FIRST PACIFIC BANK LTD. v. CEN PHONE CO. LTD. and Others

1995 No. 2347

IN THE SUPREME COURT OF HONG KONG

HIGH COURT

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ASSESSMENT OF DAMAGES

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1. This assessment is of damages payable by the 2nd and 3rd Defendants as guarantors of the 1st Defendant under a lease agreement entered into between the 1st Defendant and the Plaintiff.

2. The lease was of industrial plant and in common form. Similarly, the form of guarantee was in familiar terms and contained a provision that on default by the hirer (the 1st Defendant), the guarantors would provide a full indemnity for the losses falling on the Plaintiff. That indemnity included costs.

3. I had the assistance of a summary of the main provisions of the agreements and of the computation of damages. This had been prepared by Mr. Lam.

4. Evidence was given by Mr. WONG Chun-fai, Danny of the Plaintiff Company who produced both of the lease agreement and the guarantee and confirmed the contents and the signatures.

5. He was also able to confirm the computation of damages that included the discount required by what is known as the Rule of 78.

6. Mr. Wong was also able to confirm that the goods in question had not been returned by the hirer and the Plaintiff had been unable to obtain re-possession in spite of proper efforts and enquiries having been made.

7. I do not propose to set out in full the figures put forward on behalf of the Plaintiff. They are available in the court file should they be required.

8. It is sufficient to say that I accept them as being accurate and as properly recording the damages due.

9. I, therefore, assess the damages due from the 2nd and 3rd Defendants to the Plaintiff in the sum of $509,596.75 with interest thereon from 2 March 1995 to the date of judgment at the rate of 2% per month.

10. There will be costs to the Plaintiff on an indemnity basis.