LAU CHI KAN MICHAEL v. PANG CHING CHEUNG

HCA 2781/2004

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 2781 OF 2004

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R U L I N G

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1.  On 25 October last I entered judgment against the Defendant in the sum of $2,158,410.14.  In respect of interest, both as to the rate and the time over which interest should be awarded, I invited submissions in writing within 14 days of the date of judgment.  The Plaintiff has lodged such a submission but I have nothing from the Defendant.  Time has now expired and so I propose to give my ruling in this regard notwithstanding anything from the Defendant.

2.  The point at issue is whether the Plaintiff ought to have any interest prior to the date of judgment.  I say that because it was not until the first day of the trial that the Plaintiff finally settled upon the amount which he claimed from the Defendant, his pleaded case up till then being for a sum which exceeded $5 million.  That was reduced to the amount eventually awarded in the judgment.  In such circumstances, I do not believe that the Plaintiff should receive any pre-trial interest.  I say that because a Defendant is entitled to know, in the case of a liquidated demand, how much he is said to owe the Plaintiff.  This was not the case here.  Whilst the Defendant may have alleged that he owed nothing, it was not until the first day of the trial that the Plaintiff accepted the importance of 8 July 2004 as being a significant watershed in the way in which loans had been extended to the Defendant.  In such circumstances, I do not think it is right to award any pre-trial interest.  What I will award is interest at the judgment rate, on the amount of the judgment, from the date of judgment until payment which is the usual order.  To that extent the claim for interest succeeds.  There will be no award of costs in respect of the preparation of the written submission on this issue.