URBAN PROPERTY MANAGEMENT LTD v. WORLD WAY INVESTMENTS LTD

DCCJ 4542/2024

[2026] HKDC 1011

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CIVIL ACTION NO 4542 OF 2024

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BETWEEN

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ASSESSMENT OF DAMAGES

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A. Introduction

1.  On 9 August 2024, the Plaintiff commenced the present action by Writ of Summons against the Defendant for outstanding manager’s remuneration and monthly management fees due under the management agreement entered into between the Plaintiff and the Defendant on 15 February 2018 (“Management Agreement”).

2.  Under the Management Agreement, the remuneration of the Plaintiff for managing the Defendant’s properties shall be HK$27,000 per month (“Manager’s Remuneration”). The Defendant is also obliged to pay a monthly management fee to cover the actual management expenses of the preceding month, namely the expenses, costs and charges necessarily and reasonably incurred in the management of the Defendant’s properties (“Monthly Management Expenses”).

3.  It is the Plaintiff’s case that in breach of the Management Agreement, the Defendant failed to pay HK$2,047,515.27 being the outstanding Manager’s Remuneration and Monthly Management Expenses for the period from October 2023 to June 2024 despite repeated demand. The breakdown is provided for in paragraph 7 of the Statement of Claim indorsed in the Writ of Summons.

4.  The Defendant failed to file any acknowledgement of service with notice of intention to defend within the prescribed time. As a result, on 12 September 2024, a final and interlocutory judgment was entered against the Defendant with damages to be assessed. The claim for Manager’s Remuneration of HK$27,000 per month (in total HK$243,000) was entered as a final judgment whereas the claim for Monthly Management Expenses was entered as an interlocutory judgment with damages to be assessed.

5.  This is the consequent assessment of damages. In light of the final judgment entered, the outstanding claim by the Plaintiff is HK$1,804,515.27 (ie HK$2,047,515.27 – HK$243,000).

B. The Hearing

6.  Pursuant to the Order made by Master K W Yan on 29 January 2026, this action was set down for assessment of damages on 29 May 2026 at 9:30 a.m.

7.  At the hearing, the Plaintiff was represented by Messrs Li, Kwok & Law. The Defendant is not legally represented and is absent. Having considered the Affirmation of Ngai Chi Ho Gabriel, I am satisfied that Assessment Bundle (including Order made by Master K W Yan) and the Plaintiff’s Submissions were all served to the Defendant such that the Defendant had been duly notified of this hearing. I am satisfied that the hearing should proceed in the absence of the Defendant.

8.  At the end of the hearing, I granted final judgment in favour of the Plaintiff in the amount of HK$1,804,515.27 with interests. I indicated that my reasons would be handed down later, which I now do.

C. Evidence

9.  In support of its claim, the Plaintiff filed the witness statement of Mr Fung Hin Yu (“Mr Fung and “PWS” respectively). Mr Fung is the property asset manager of the Plaintiff.

10.  Mr Fung attended the hearing and testified in Court. He adopted the PWS. PWS confirmed the Plaintiff’s case as summarized in paragraphs 1 to 4 above.

11.  Mr Fung confirmed that the Management Agreement has not been terminated until no earlier than July 2024, and thus forming the basis of the Plaintiff’s claim up to June 2024. He also confirmed the total expenses incurred in the amount of HK$1,804,515.27 which forms the basis of the Plaintiff’s claim for Monthly Management Expenses.

12.  The Plaintiff also adduced the debit notes issued by the Plaintiff for the period between October 2023 to June 2024 together with the underlying receipts / records for the actual expenses incurred.

13.  I have considered the evidence of Mr Fung together with documentary evidence. I accept that Mr Fung is a credible witness and the documentary evidence are credible and I shall give full weight to them.

D. Analysis

14.  The evidence of Mr Fung is supported by the contemporaneous documents. Under Clauses 6.1 and 6.3 of the Management Agreement, the Plaintiff is entitled to recoup from the Defendant the actual management expenses incurred, which shall be the expenses, costs and charges necessarily and reasonably incurred in the management of the Defendant’s properties.

15.  The amount of HK$1,804,515.27 now claimed by the Plaintiff as Monthly Management Expenses include the costs of management staff, security services, telephone & postage, cleaning service, repair and maintenance costs, insurance, printing & stationery expenses, sundries expenses and transport expenses for equipment (by GogoVan). I consider the above expenses, costs and charges were necessarily and reasonably incurred in the management of the Defendant’s properties.

16.  In the circumstances, I accept that the Defendant should pay HK$1,804,515.27 to the Plaintiff being the Monthly Management Expenses for the period between October 2023 to June 2024.

E. Conclusion

17.  By reason of the above, I hold that the Plaintiff is entitled to recover from the Defendant HK$1,804,515.27. Costs should follow the event. I will now make the following orders:-

(1) Final judgment is entered against the Defendant in the sum of HK$1,804,515.27. Interest on the said sum is awarded at the HSBC prime rate +1% per annum from 9 August 2024 (ie date of the Writ of Summons) to the date of judgment and thereafter at judgment rate until payment;

(2) The Defendant do pay the Plaintiff’s costs of this action including today’s hearing for assessment of damages, summarily assessed at HK$60,000, payable forthwith.

18.  Last but not least, I shall express my gratitude to Mr Cheng of Messrs Li, Kwok & Law for the assistance rendered.