Hong Kong Case Law: Decisions & Judgments

Topic

Market price valuation

Legal area

Court

7 Nov 2014

NOVO STEEL (HK) LTD v. PEAKO ENGINEERING CO LTD

Citation

NOVO STEEL (HK) LTD v. PEAKO ENGINEERING CO LTD
Court

Court of First Instance
Case number

HCCL14/2012

Section 52(3) applies and the correct market for immediate sale of the unaccepted 2,084.50 MT was the stockist-to-stockist spot market; exclude contracts/quotations for future delivery over six months, use actual/quoted transactions for immediate or near-immediate delivery, calculate an average (excluding outliers), apply a 10% discount to reflect bargaining and the need to offload a large immediate lot, which produced an assessed market price of HK$4,589.10/MT and damages of HK$2,628,346.05.
20 Apr 1990

FRIENDSHIP ALLIANCE METALS & MINERALS CO., LTD. v. BENQUEN TRADING CO., LTD.

Citation

FRIENDSHIP ALLIANCE METALS & MINERALS CO., LTD. v. BENQUEN TRADING CO., LTD.
Court

Court of First Instance
Case number

HCA3319/1989

The court preferred the plaintiff's body of transactional and witness evidence over the defendant's single outlier transaction, found the market unit price at the relevant time to be US$64.15 per dry metric ton unit, applied the accepted 5% trade margin to reduce the recoverable quantity to 190 metric tons and assessed damages at US$47,547.50; no pre-judgment interest was awarded and costs of the assessment were ordered nisi to the plaintiff with a certificate for counsel.
12 Jan 1988

TIEN CHEUNG HONG TEXTILES LTD. v. ARKAY HEERA SONS (HK) LTD t/a ARDAY HEERA SONS AND OTHERS

Citation

TIEN CHEUNG HONG TEXTILES LTD. v. ARKAY HEERA SONS (HK) LTD t/a ARDAY HEERA SONS AND OTHERS
Court

Court of First Instance
Case number

HCA3907/1987

Plaintiff failed to prove the alleged special losses due to lack of credible, arm's length evidence; damages are properly assessed under s.53(3) by reference to the market price of $4.752 per yard less the contract price $4.05 for 300,000 yards, yielding $210,600, plus interest.
19 Sept 1975

TAI HING COTTON MILL LTD v. KAMSING KNITTING FACTORY (A FIRM)

Citation

TAI HING COTTON MILL LTD v. KAMSING KNITTING FACTORY (A FIRM)
Court

Court of Appeal
Case number

CACV16/1975

Majority held that where there is no fixed time for delivery and the seller positively refuses/repudiates, s.53(3) permits assessment of damages by reference to the market price at the date of refusal (31 July 1973 here); prior purchases before formal repudiation did not operate to reduce the buyer's claim absent pleaded earlier breach; accordingly judgment for plaintiff for $833,553 substituted for trial judge's figure.

Hong Kong Case Law

NOVO STEEL (HK) LTD v. PEAKO ENGINEERING CO LTD

FRIENDSHIP ALLIANCE METALS & MINERALS CO., LTD. v. BENQUEN TRADING CO., LTD.

TIEN CHEUNG HONG TEXTILES LTD. v. ARKAY HEERA SONS (HK) LTD t/a ARDAY HEERA SONS AND OTHERS

TAI HING COTTON MILL LTD v. KAMSING KNITTING FACTORY (A FIRM)