BANQUE WORMS v. SINCERELY (ASIA) LTD. AND KLOCKNER EAST ASIA LTD. (THIRD PARTY)

HCA019061/1998

HCA 19061/1998

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 19061 OF 1998

BETWEEN
BANQUE WORMS
(Incorporated in France with limited liability)
Plaintiff
AND
SINCERELY (ASIA) LIMITED Defendant
and
KLOCKNER EAST ASIA LIMITED Third Party

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Coram : Hon. Godfrey, J.A. in Chambers (sitting as an additional Judge of the Court of First Instance)

Date of hearing : 29 July 1999

Date of judgment : 29 July 1999

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J U D G M E N T

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1. This is an application by a bank for summary judgment for the amount (USD794,944.27) of a draft supplied by the bank at the requestof the defendant in favour of the third party, and duly honoured by the bank. The bank originally accepted instructions from thedefendant not to honour the draft but subsequently accepted that it was bound to do so. In my judgment the bank was right to do so.

2. By an agreement dated 29 May 1998, the plaintiff agreed with the defendant that, after 30 July 1998, the draft could be releasedto the third party “for its own use and retention absolutely”. When the third party presented the draft so released to it on 7 October1998, the bank was entitled and bound to honour it. The draft was given for good consideration, that is to say, the entry by thethird party into the agreement of 29 May 1998, and the defendant has no defence to the action. I will give judgment for the bankfor the full amount claimed, with interest and costs.

(Gerald Godfrey)
Justice of Appeal

Representation:

Mr. Peter Duncan, instructed by Messrs. Fred Kan & Co., for the Plaintiff

Mr. Rimsky K.K. Yuen, instructed by Messrs. Lui & Carey, for the Defendant