PAUL Y. MANAGEMENT LTD v. ETERNAL UNITY DEVELOPMENT LTD AND OTHERS

CACV 16/2008

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF APPEAL

CIVIL APPEAL NO. 16 OF 2008

(ON APPEAL FROM HCA 571 OF 2007)

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BETWEEN

PAUL Y. MANAGEMENT LIMITED Plaintiff
and
ETERNAL UNITY DEVELOPMENT LIMITED 1st Defendant
CHAN YUK YAN 2nd Defendant
ETERNAL UNITY PROPERTIES LIMITED 3rd Defendant
and
PAUL Y. ENGINEERING GROUP LIMITED 1st Third Party
PYI CORPORATION LIMITED 2nd Third Party

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Before: Hon Cheung JA, Lam and A. Cheung JJ in Court

Date of Hearing: 7 November 2008

Date of Decision: 7 November 2008

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D E C I S I O N

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Hon Cheung JA (giving decision of the Court) :

1. The plaintiff applies for leave to appeal to the Court of Final Appeal against our judgment of 12 August 2008.

2. The only basis of the application is on the ‘or otherwise’ ground.

3. The first ground relied upon by the plaintiff is a repeat of the arguments raised before us, namely, whether the loan agreementwas a stand alone agreement or part of a master agreement.

4. The present case is concerned with whether summary judgment should be granted. We do not see the situation to be so exceptionalthat justice requires the case to be considered by the Court of Final Appeal.

5. Likewise for the other grounds raised in support of the application, namely, the fact that the amount involved is over the $1 millionthreshold, our decision introduced uncertainty to commercial transactions and the burden and expenses of a full trial, whether theyare taken separately or in total, do not advance the plaintiff’s case any further.

6. The application is accordingly refused with costs to the defendants.

(Peter Cheung)
Justice of Appeal
(M. H. Lam)
Judge of the Court of
First Instance
(Andrew Cheung)
Judge of the Court of
First Instance

Mr. Jat Sew Tong, SC and Mr. Victor Dawes, instructed by Messrs Pinsent Masons, for the Plaintiff

Mr. David Tsang, instructed by Messrs Siao, Wen and Leung, for the 1st, 2nd and 3rd Defendants