ORIENT RISE LTD v. GREAT SCENE WORLDWIDE LTD

HCA2971/2004

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

ACTION NO. 2971 OF 2004

J U D G M E N T

1.  This is an action for the sum of $1,435,950.41.  It relates to the sale of various articles of clothing made by the plaintiff to the defendant’s order and included in this sum is a certain element for services given by the plaintiff to the defendant, being the payment on the defendant’s behalf of VAT which the defendant would have been required to pay and which the plaintiff paid on its behalf, and of course it is only right that these amounts should now be reimbursed to the plaintiff.

2.  Having heard the evidence of Miss Fung on behalf of the plaintiff, I am satisfied that the amounts claimed are proved in their entirety. The matter is very well documented.  All the invoices are present save for one or two, and I am satisfied on her evidence that where the plaintiff has not been able to find those invoices, that the invoices had originally been drawn up, the goods represented by the invoices had been delivered and there is other evidence which would support that. I think this is a plaintiff that keeps very proper accounts and so I have every confidence in its accounting system.

3.  Credit has been given where it is due.  That has been properly reflected in the amount of the claim.  Credit notes have been issued, and also where payment has been made, this is all recognised and so I have every confidence that this outstanding amount has been fully documented and proved by the evidence that has been led, both in the form of the oral evidence of Miss Fung and supported by the documents that have been put into evidence.  So there will be judgment for the plaintiff in the amount claimed.

4.  Mr Chung, I am minded to give you interest at 1 per cent above the prime rate, this being a commercial action, to compensate your client for being kept out of its money. I shall say that interest should run from the date of the writ until today at that rate and thereafter at the judgment rate until payment.

5.  The defendant must also pay the plaintiff its costs of this action, to be taxed on a party-and-party basis.