HANG SENG FINANCE LTD. v. CHU KWOK KEUNG, THOMAS

HCA9889/1999

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 9889 OF 1999

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ASSESSMENT OF DAMAGES

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1. By agreement in writing dated 16 October 1997, the plaintiff agreed to let to the defendant on hire purchase a Toyota Hong Kong and Kowloon taxi vehicle registration No. GH 9805 upon the terms and conditions set out in the hire purchase agreement which has been exhibited to Madam Fu Him's affirmation. Madam Fu Him is an officer of Hang Seng Finance Limited, the plaintiff in this case, and she is duly authorised to represent the plaintiff.

2. Madam Fu Him has adopted in evidence her affirmation evidence, which I wholly accept, together with the exhibits annexed thereto.

3. The defendant made an initial payment of $250,000 pursuant to the hire purchase agreement and was contractually bound to make further 240 monthly instalments for the vehicle of $27,954.70 each. There was the usual option to purchase on payment of a small sum of money at the end of the hire.

4. The defendant was contractually bound to perform the terms of the contract, notably amongst which was his obligation to make prompt and full payment as and when the instalments became due. The defendant defaulted as is disclosed on the evidence. Pursuant to its rights the plaintiff issued a notice in writing accepting the defendant's repudiation and terminating the hire purchase agreement.

5. The taxi was subsequently repossessed and sold to Hang On Motors Limited for $2,200,889 on 6 May 1999. The efforts undertaken by the plaintiff to obtain the best price for the vehicle had been set out quite fully in the affirmation of Madam Fu Him. I accept that the sale was regular and the best price had been obtained in mitigation of the loss sustained by Hang Seng Finance Limited.

6. Madam Fu Him has set out the loss sustained by Hang Seng Finance Limited in paragraph 13 of her affirmation. That paragraph gives particulars of the total hire purchase price of the vehicle. It amounted to $6,930,825.36. It further sets out the deductions to which the defendant was entitled. I adopt in full the particulars given as being evidence which the court should rely on in this case. The net loss sustained amounts to $684,561.39. That quantum is now being sought by way of assessment.

7. I can perceive no reason why this amount of damages is not recoverable against the defendant. I order that it be paid by the defendant to the plaintiff.

8. There shall be interest upon this sum of $684,561.39 at judgment rate from 15 July 1999, the date when final and interlocutory judgment in default of defence was entered against the defendant in favour of the plaintiff for damages to be assessed until full payment.

9. Additionally, the plaintiff shall have its costs of this assessment, including any costs that might be reserved in respect thereof against the defendant on a party and party basis.