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Hong Kong CA in Maeda v Bauer: claim notices must state contractual basis; no later switch; time bars not narrowly construed; persuasive for English law and FIDIC 2017

Published on: 12 November 2020

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Maeda Kensetsu Kogyo Kabushiki Kaisha (aka Maeda Corporation) v Bauer Hong Kong Ltd [2020] HKA 830

What are the practical implications of this case?

The Hong Kong Court of First Instance’s ruling drew attention because the contested notification requirement mirrored provisions in the FIDIC 2017 suite. In particular, clause 20.2.4 of the Red, Yellow and Silver Books obliges a party, when submitting a fully detailed claim, to include a statement identifying the contractual or other legal foundation for that claim. Supplying that statement is a condition precedent to any entitlement. At first instance, the court determined that once a party has specified the contractual basis it relies upon, it is not permitted to later advance a different basis. This approach is of persuasive value in England and Wales. See News Analysis: Hong Kong—effect of notification of contractual basis of claim (Maeda v Bauer). The Hong Kong Court of Appeal upheld the first-instance outcome. The judgment emphasises the necessity of strict compliance with contractual conditions precedent, and confirms that exclusion clauses and time bar clauses...

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