ORIENT LEASING (H.K) LTD. v. PETER SCALES CO. LTD.

IN THE SUPREME COURT OF HONG KONG

HIGH COURT

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BETWEEN

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ASSESSMENT OF DAMGES

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1. On the 19th September 1984 the Plaintiff obtained judgment against the Defendant for delivery up of a N.C.R. 8270 computer and for payment of $8,910.00 arrears of rent with interest at 15% thereon from the 24th May 1984 until payment, costs, and damages for breach of contract.

2. Pursant thereto this is the assessment of the damages occasioned by the Defendant's breach of the terms and conditions of its lease of the computer from the Plaintiff.

3. Both parties agree that the principles laid down in Campbell Discount Co. v. Bridge [1962]A.C. p. 600 apply to the present case, and I have heen supplied with a copy of the agreed payment schedule.

4. My first observation is that I can see no reason why I should not hold the defendant to the terms of the agreement, the parties were at arms length and there is nothing to suggest that the stipulations for interest and re-payment over 5 years were in any way untoward.

5. The Plaintiff's calculations of its loss, properly as it seems to me include a rebate calculated according to the rule known as the rule of 78, but it has not brought into account the residual value of the computer estimated at less than 1% of its cost price, $3,000.00

6. At first sight this is rather a startling figure but on reflection having regard to the phenomenal evolution of computers and to the lease itself it seems reasonable enought in as much as its actual cost is effectively written of over the 5 years. I also note that the valuation is quite up-to-date being dated the 6th February, 1985.

7. Nevertheless I propose and will bring this sum into account small though it be, and assess the damages therefore at:-

8. There will be interest at the rate of 8% from date of the writ until today and thereafter at the judgment rate until payment with costs to the Plaintiff.