XN000022-1984-08-10 — Page 3

NJ

FRIDAY, AUGUST 10, 1984

AN IMPORTANT PROPOSAL SET OUT IN THE BILL ABOLISHES AN EXISTING RULE WHICH RELEASES A SECOND AND SUBSEQUENT DEFENDANTS FROM PAYING DAMAGES ONCE A JUDGMENT HAS BEEN OBTAINED AGAINST THE FIRST DEFENDANT.

AMONG OTHER PROVISIONS, THE BILL ENTITLES A DEFENDANT TO CLAIM A CONTRIBUTION TOWARDS THE DAMAGES FROM ANOTHER DEFENDANT REGARDLESS OF THE LEGAL BASIS OF HIS LIABILITY TO THE INJURED PARTY, WHETHER TORT, BREACH OF CONTRACT OR TRUST OR OTHERWISE.

FOR EXAMPLE, IF A PURCHASER BUYS A KETTLE FROM A SHOP AND THE KETTLE EXPLODES THE FIRST TIME IT IS USED, THE PURCHASER MAY SUE THE SHOP FOR BREACH OF CONTRACT. THE SHOP WOULD NOT BE ABLE TO RESIST THE CLAIM AS BY LAW THERE IS AN IMPLIED CONDITION IN SUCH CONTRACTS THAT THE KETTLE IS FIT FOR ITS PURPOSE. THE PURCHASER MAY CHOOSE TO SUE THE MANUFACTURER OF THE KETTLE WHOSE FAULT CAUSED THE EXPLOSION BUT THE PURCHASER WOULD HAVE TO PROVE NEGLIGENCE, WHICH MAY BE DIFFICULT SO HE SUES THE SHOP AND WINS. UNDER

THE PRESENT LAW THE SHOP CANNOT CLAIM CONTRIBUTION FROM THE MANUFACTURER (WHICH MAY BE 100 PER CENT) TOWARDS THE DAMAGES IT MUST PAY THE PURCHASER AS THE ACTION BROUGHT BY THE PURCHASER WAS FOR BREACH OF CONTRACT. THIS BILL WILL ENABLE THE SHOP TO CLAIM CONTRIBUTION FROM THE MANUFACTURER IN THESE CIRCUMSTANCES.

THE BILL ALSO PROVIDES THAT A DEFENDANT IS ENTITLED TO CONTRIBUTION TO THE DAMAGES EVEN THOUGH HE HAS CEASED TO BE LIABLE TO THE INJURED PARTY, FOR EXAMPLE, BY HAVING AGREED TO PAY DAMAGES AND THUS SETTLED THE ACTION. HE IS ALSO ENTITLED TO CONTRIBUTION, REGARDLESS OF WHETHER HE WAS IN FACT LIABLE, IF HE HAS MADE A BONA FIDE SETTLEMENT WITH THE INJURED PARTY, PROVIDED THAT THE OTHER DEFENDANT FROM WHOM CONTRIBUTION IS SOUGHT WAS HIMSELF LIABLE TO THE INJURED PARTY.

+THESE TWO PROVISIONS REFLECT THE POLICY OF THE LAW TO ENCOURAGE SETTLEMENTS OF DISPUTES WITHOUT RECOURSE TO LITIGATION, + THE SPOKESMAN EXPLAINED.

THE COURT WILL DETERMINE THE AMOUNT OF CONTRIBUTION IN THESE CASES, WHICH WILL BE LIMITED TO THE AMOUNT THE CONTRIBUTOR WOULD HAVE HAD TO PAY IF THE INJURED PARTY HAD SUED HIM.

THE CIVIL LIABILITY (CONTRIBUTION) BILL 1984 IS SCHEDULED TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON OCTOBER 10 AND TO RECEIVE ITS THIRD READING ON NOVEMBER 21.

ANYONE WHO WISHES TO COMMENT ON ITS PROVISIONS MAY WRITE TO UMELCO AT SWIRE HOUSE, 12TH FLOOR, CHATER ROAD, OR TO THE ATTORNEY GENERAL'S CHAMBERS AT THE CENTRAL GOVERNMENT OFFICES, LOWER ALBERT ROAD, HONG KONG,

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