HANG SENG FINANCE LTD. v. TAM KIT KWONG

HCA10530/1999

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 10530 OF 1999

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ASSESSMENT OF DAMAGES

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1. These proceedings arise out of an agreement in writing dated 19 April 1996. The agreement was for the hire purchase by the defendant of a Toyota Hong Kong and Kowloon taxi, vehicle registration No. GC 8502 from the plaintiff, Hang Seng Finance Limited.

2. Madam Fu Him, an officer of Hang Seng Finance Limited, in advancing the claim of the plaintiff, adopted her affirmation as her evidence.

3. Pursuant to the hire purchase agreement, the defendant made an initial payment of $270,000 and further undertook to pay 240 monthly instalments of $21,595 each.

4. The defendant defaulted in making punctual payment of the monthly instalments. By a letter dated 21 April 1999, the plaintiff wrote to the defendant informing him that it was accepting his repudiation of the agreement and terminated the said agreement.

5. The plaintiff repossessed the taxi and eventually sold it, after due and diligent efforts had been made to secure the highest price for the taxi, to City Motors Limited for the sum of $2,098,209 on 4 June 1999. Proceedings were then issued to recover damages for the defendant's repudiation of the contract.

6. On 23 July 1999 final and interlocutory judgment in default of defence was entered against the defendant for damages to be assessed.

7. Madam Fu Him's affirmation sets out all the relevant details pertaining to this case. In particular paragraph 13 rendered full particulars of the plaintiff's loss and damage following the defendant's wrongful repudiation of the agreement.

8. The total hire purchase price, that is the cash price of the taxi plus total hire charges amounted to HK$5,618,394.50. Madam Fu Him's computation sets out the net loss which she put at $110,461.76. That figure is arrived at after necessary deduction of such items as the initial cash payment, the 33 instalments paid up to 19 January 1999 by the defendant, etc. I accept as correct Madam Fu Him's calculation of the loss sustained.

9. The evidence plainly establishes that the defendant was in breach of the hire purchase agreement by not continuing with the hire purchase by way of continual payment of the hire charges as and when they became due.

10. On the evidence I accept and find that the plaintiff has sustained a net loss of $110,461.76. That is the amount I quantify as damages sustained by Hang Seng Finance Limited that should be reimbursed in full by the defendant. This amount of damages will attract interest at judgment rate from 23 July 1999 until full payment thereof.

11. Additionally, I shall award costs to the plaintiff against the defendant on a party and party basis, taxed if not agreed.