MCDONALD’S RESTAURANTS (HONG KONG) LTD. v. LI CHIU KONG FRANKIE AND OTHERS

CACV000103A/1996

IN THE COURT OF APPEAL

1996, No. 85 and 103
(Civil)

BETWEEN
MCDONALD’S RESTAURANTS
(HONG KONG) LTD
Plaintiffs/
Respondents
AND
LI CHIU KONG FRANKIE 1st Defendant/
1st Appellant
MILFORD FOUNDATION LTD 2nd Defendant/
2nd Appellant
LI CHUNG PAN 3rd Defendant/
3rd Appellant

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Coram: Hon Nazareth, V.-P., Liu, J.A. and Cheung, J.

Date of Hearing: 6 September 1996

Date of Judgment: 6 September 1996

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J U D G M E N T

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Nazareth, V.-P. (giving the judgment of the Court) :

1. There appear to us to be four matters for decision:

(1) The construction of Article 3.01 of the Lease, in particular the meaning of “offset”: we have concluded that this is a matterthat should go to trial. In these interlocutory appeals, we do not propose to canvass the detailed and forceful submissions madeby counsel for obvious reasons.

(2) For the reasons indicated by the judge, we do not feel we would be justified in interfering with the exercise of his discretionin making the leave to defend that he granted, conditional.

(3) We understood from counsel for the defendants that he was content to live with the amount of $966,000 paid into court. This isaccordingly no longer a live issue and we are content to let it lie.

(4) For the plaintiff Mr Merry made a powerful plea that the amount paid in be restored to that originally ordered or significantlyincreased. We have not felt able to come to any meaningful conclusions upon his submissions, particularly as to the quantum of anyadditional amount that could be ordered to be paid in.

2. As to costs, some of which have been reserved to this Court, counsel have helpfully suggested and acquiesced in what we agree wouldbe right and we accordingly order that the costs below of the subject matter of the two notices of appeal and of the two respondents’notices, insofar as they are not the subject of any orders below, and the costs of today, be costs in the action.

(G.P. Nazareth) (B. Liu) (P. Cheung)
Vice President Justice of Appeal Judge of the High Court

Representation:

Mr Robert C. Tang QC and Mr Nelson Miu (M/s Liu, Choi & Chan) for the Defendants/Appellants

Mr Malcolm Merry (M/s Deacons Graham & James) for the Respondents