MCDONALD'S RESTAURANTS (HONG KONG) LTD. v. LI CHIU KONG FRANKIE and Others

IN THE COURT OF APPEAL

1996, No. 85 and 103
(Civil)

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J U D G M E N T

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Nazareth, V.-P. (giving the judgment of the Court) :

1. There appear to us to be four matters for decision:

(1) The construction of Article 3.01 of the Lease, in particular the meaning of "offset": we have concluded that this is a matter that should go to trial. In these interlocutory appeals, we do not propose to canvass the detailed and forceful submissions made by counsel for obvious reasons.

(2) For the reasons indicated by the judge, we do not feel we would be justified in interfering with the exercise of his discretion in making the leave to defend that he granted, conditional.

(3) We understood from counsel for the defendants that he was content to live with the amount of $966,000 paid into court. This is accordingly no longer a live issue and we are content to let it lie.

(4) For the plaintiff Mr Merry made a powerful plea that the amount paid in be restored to that originally ordered or significantly increased. We have not felt able to come to any meaningful conclusions upon his submissions, particularly as to the quantum of any additional amount that could be ordered to be paid in.

2. As to costs, some of which have been reserved to this Court, counsel have helpfully suggested and acquiesced in what we agree would be right and we accordingly order that the costs below of the subject matter of the two notices of appeal and of the two respondents' notices, insofar as they are not the subject of any orders below, and the costs of today, be costs in the action.