EURASIA COMPANY v. GLORY NICE INDUSTRIAL LIMITED

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CIVIL ACTION NO. 18068 OF 2000

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JUDGMENT

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1. I have to assess damages in respect of this matter, judgment having been entered against the defendants on 10 November last year in default of defence.

2. The matter comes about in this way:

3. The plaintiffs have ordered a series of windmills and other type of Lunar New Year decorations from the defendants. The defendants have  either failed to deliver in a timely fashion a whole of the purchase order or in respect of some orders, they have made partial delivery, and so the claim is for what the plaintiffs would have earned from these New Year decorations had there been timely delivery and they would have then been able to sell them on for a profit.

4. The matter is clearly put at page 34 of the bundle which shows how the loss of profit is calculated which gives a gross figure of $116,081.53. Off that I am invited to allow a set-off (and this appears at page 39 of the bundle) the sum of $4,577.15, giving a net figure of $111,504.38.

5. But it seems to me that there are fixed costs which need to come off, costs which would have been incurred anyway as part of the running costs of the company, and in this instance there is a figure here claimed for $14,000 as an administration cost (this appears at page 34). It seems to me that must come off - that is part of the fixed running costs of the company and therefore I shall assess damages as follows:-

6. The judgment will be $97,504.30 and that is a figure which puts the plaintiffs in the position that they would have been had this contract been complied with. That must attract interest and I will say that interest should be from the date of the writ until judgment at half the judgment rate and thereafter at the judgment rate until payment.

7. The plaintiffs must also have their costs to be taxed if not agreed.