XCHRX LEE MARK & ASSOCIATES ARCHITECTS & SURVEYORS LTD. v. CHEUNG YIP TRADING LTD.

HCA 7895/1999

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 7895 OF 1999

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J U D G M E N T

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1. The plaintiffs architects were retained by the defendant developer on the terms of an agreement in writing dated 28 November 1997. Under the agreement, the defendant became liable (in the events which happened) to pay the following sums on the following dates :-

1. $100,000 on 28 November 1997 (the date of the agreement; this has been paid);

2. $100,000 on 28 November 1997 (the date to be treated as the date of acceptance by the defendant of a schematic design proposed by the plaintiffs);

3. $100,000 on 13 December 1997 (the date of submission of plans to the Building Authority);

4. $100,000 on 17 December 1997 (the date of submission of plans to the District Land Office).

2. Only the first of these sums has been paid. The agreement has foundered since on 30 January 1998 the Building Authority disapproved the plans. In October 1998, the defendant called off the contract altogether, claiming that the work done by the plaintiffs was useless. It has refused to pay the other three sums I have mentioned.

3. In my judgment, it is liable to pay these sums as it had agreed to do under the agreement and must counterclaim for recovery of the money already paid and for any damages to which it may be entitled.

4. I will therefore give judgment for the plaintiffs for $300,000, and will give the defendant unconditional leave to defend as to the balance of $3,261.00 (claimed by the plaintiffs as disbursements) and as to any claim for interest on the sums unpaid. The defendant will be at liberty to include any counterclaim which it may be advised to make against the plaintiffs in the defence which it has been given leave to file. There will be a stay of execution of the judgment until after judgment on the defendant's counterclaim, but the plaintiffs are to be at liberty to apply at any time to lift the stay if so advised. The costs of the plaintiffs of this application are to be taxed and paid by the defendant to the plaintiffs.

Directions

5. 14 days for defence (and counterclaim, if any).

6. 14 days for reply.

7. Discovery 7 days after close of pleadings.

8. Inspection 7 days thereafter.

9. Leave to set down 7 days after inspection.

10. I will give no directions for filing of witness statements.