Hong Kong Case Law: Decisions & Judgments

Topic

Retention monies

Legal area

Court

26 Sept 2025

AGGRESSIVE CONSTRUCTION COMPANY LTD v. SKK (H.K.) CO LTD

Citation

[2025] HKCFI 4536
Court

Court of First Instance
Case number

HCMP322/2025

The court granted the injunction because the Plaintiff discharged the burden of proving that the debts claimed in SD2 were bona fide disputed on substantial grounds and that the Defendant was, by the hearing date, sufficiently aware of those disputes so that presentation of a petition would be an abuse of process; the Defendant was ordered to pay 95% of the Plaintiff's costs of the Summons on an indemnity basis (5% discount for matters relating to SD1 and SD3).
25 Aug 2025

WAH WO ALUMINIUM WORK COMPANY LTD v. PAUL Y. BUILDERS LTD

Citation

[2025] HKCFI 4112
Court

Court of First Instance
Case number

HCCW12/2025

The court accepted the provisional liquidators' reasonable view that continuing provisional liquidation was necessary to preserve licences and enable completion of rectification works which would likely yield a better outcome for creditors; accordingly the petition was adjourned and the provisional liquidators were ordered to file a progress report and affirmation by specified dates.
28 Sept 2023

LING MAN YIU RAYMOND t/a BUILD TECH ENGINEERING CO v. YAU LUEN METAL WORKS LTD

Citation

[2023] HKDC 1161
Court

District Court
Case number

DCCJ4198/2019

On the balance of probabilities the cheque was delivered operatively and parol evidence creating post-delivery conditions was inadmissible; even if conditions existed defendant failed to prove non-compliance; plaintiff failed to discharge burden to prove Interim Account figures and therefore the Final Account figure of HK$1,893,002.20 is adopted; defendant failed to show lawful incorporation or contractual basis for the disputed deductions or retention beyond clause 12, so those deductions are disallowed, producing a net award under the Sub-Contract of HK$174,722.20 plus the cheque sum of HK$…
28 Sept 2023

LING MAN YIU RAYMOND t/a BUILD TECH ENGINEERING CO v. YAU LUEN METAL WORKS LTD

Citation

[2023] HKDC 1161
Court

District Court
Case number

DCCJ5285/2019

On the evidence the plaintiff failed to prove the higher interim valuation; the court preferred the defendant's Final Account figure of HK$1,893,002.20 for accumulated works because the plaintiff did not produce documentary measurement evidence and did not seek discovery; the FM223/F225 claim failed for lack of invoice and proof of work; the defendant was not entitled to the additional Deductions because it failed to plead or prove incorporation of CHE Contract terms or any contractual basis for administrative/fine deductions and the retention period had expired; the Cheque was delivered oper…
29 May 2023

HIP HING CONSTRUCTION COMPANY LTD v. HONG KONG AIRLINES LTD

Citation

[2023] HKCFI 1430
Court

Court of First Instance
Case number

HCCT107/2022

There is a serious question to be tried that the retention monies may be held on trust under GCC 32.5 despite absence of prior segregation; on the balance of convenience the court must preserve the disputed funds pending the substantive hearing; accordingly mandatory and prohibitory injunctions compelling payment of the retention sum into a separate bank account and restraining dealings with the monies were appropriate and granted pending trial.
25 Oct 2021

JOINT AND SEVERAL PROVISIONAL LIQUIDATORS OF HSIN CHONG CONSTRUCTION CO LTD (PROVISIONAL LIQUIDATORS APPOINTED) v. THE CHINESE UNIVERSITY OF HONG KONG AND OTHERS

Citation

[2021] HKCA 1581
Court

Court of Appeal
Case number

CAMP206/2020

The Court held that the Provisional Liquidators were entitled to seek directions without prior sanction and that the posed questions were genuine legal issues; where the contract expressly created trusts over retention monies and the employer maintained identifiable project accounting, the retention monies were held on trust and must be released to the respective nominated subcontractors; non-retention monies formed part of the company's estate and could not be paid direct by the employer after the commencement of liquidation; a post-liquidation exercise of direct payment would offend the par…
25 Oct 2021

JOINT AND SEVERAL PROVISIONAL LIQUIDATORS OF HSIN CHONG CONSTRUCTION CO LTD (PROVISIONAL LIQUIDATORS APPOINTED) v. THE CHINESE UNIVERSITY OF HONG KONG AND OTHERS

Citation

[2021] HKCA 1581
Court

Court of Appeal
Case number

CACV474/2021

The Court held that the Provisional Liquidators were entitled to seek directions under s200(3) without prior sanction; where the contract expressly created a trust over retention monies the employer's right of deduction/set-off does not automatically negate that trust (Re Tout reconciled with Yew Sang), the retention monies identified by CUHK were held on trust for the respective NSCs and must be released to them, segregation is context-dependent and did not preclude a trust on the facts, non-retention monies form part of the company’s estate, and any direct payment by the employer after liqu…
19 Apr 2021

CHEUNG KWOK KEUNG t/a WAI PAK IRON WORK CO v. CHEUNG KWOK HUNG t/a KWOK HUNG IRON WORK

Citation

[2021] HKDC 464
Court

District Court
Case number

DCCJ4654/2018

Claimant failed to discharge the burden of proving his re-measurement assessment; in absence of adequate evidence the court adopted defendant's assessment to meet justice. The court found the alleged 15% profit retention and alleged 10% DLP trade practice were not proven and rejected defendant's deductions; the alleged unfulfilled works were outside the contract scope; there was no agreement between plaintiff and the principal contractor to complete within 60 days and no liability for indemnity or delay. Consequently judgment entered for plaintiff for the balance of HK$334,312.81 plus interes…
18 Sept 2020

JOINT AND SEVERAL PROVISIONAL LIQUIDATORS OF HSIN CHONG CONSTRUCTION CO LTD (PROVISIONAL LIQUIDATORS APPOINTED) v. THE CHINESE UNIVERSITY OF HONG KONG AND OTHERS

Citation

[2020] HKCFI 2434
Court

Court of First Instance
Case number

HCCW239/2018

The summons was dismissed because the PLs had no justification to seek directions under section 200(3): the application sought to outsource a commercial decision the PLs had already taken; there was no genuine dispute or creditor challenge requiring court determination; the PLs lacked prior court sanction to commence the proceedings while provisional liquidators; and the factual/legal issues identified did not support the necessity of the application. Costs were ordered against the PLs and the court invited submissions on depriving the PLs' rights to remuneration and cost recovery.
22 Aug 2019

SUN CHEONG CONSTRUCTION CO LTD v. THE INCORPORATED OWNERS OF KING FU, HO FU, KI FU & KA FU BUILDINGS

Citation

[2019] HKCFI 2076
Court

Court of First Instance
Case number

HCCT27/2010

On the evidence the Owners failed to prove most alleged defects attributable to the Plaintiff during the contract and defects liability period; only 118 foreign objects observed in 2009 were attributable to plaintiff and should have been removed; defective concrete claims were dismissed as unreliable and untimely expert evidence; defective waterproofing and defective sealing claims were established; allowed parts of counterclaim to be set off against Plaintiff's outstanding contract sum; costs awarded largely to Plaintiff (80%).