CIVIL LIABILITY (CONTRIBUTION) ORDINANCE

CIVIL LIABILITY (CONTRIBUTION) ORDINANCE

LAWS OF HONG KONG

CIVIL LIABILITY (CONTRIBUTION) ORDINANCE

CHAPTER 377-





CHAPTER 377

CIVIL LIABILITY (CONTRIBUTION)

To make new provision for contribution between persons who are jointly or
severally, or both jointly and severally, liable for the same damage or debt
and in certain other similar cases where two or more persons have paid or
may be required to pay compensation for the same damage or debt; and to
amend the law relating to proceedings against persons jointly liable for the
same debt or jointly or severally, or both jointly and severally, liable for the
same damage or debt.

[1 January 1985.]

1. This Ordinance may be cited as the Civil Liability (Contribution)
Ordinance.

2. (1) In this Ordinance

'action' means an action brought in Hong Kong;

'dependants' has the same meaning as in the Fatal Accidents
Ordinance.

(2) References in this Ordinance to an action brought by or on
behalf of the person who suffered any damage include references to an
action brought for the benefit of his estate or dependants.

(3) A person is liable in respect of any damage for the purposes of
this Ordinance if the person who suffered it (or anyone representing his
estate or dependants) is entitled to recover compensation from him in
respect of that damage (whatever the legal basis of his liability, whether
tort, breach of contract, breach of trust or otherwise).

3. (1) Subject to the following provisions of this section, any
person liable in respect of any damage suffered by another person may
recover contribution from any other person liable in respect of the same
damage (whether jointly with him or otherwise).

(2) A person shall be entitled to recover contribution by virtue of
subsection (1) notwithstanding that he has ceased to be liable in
respect of the damage in question since the time when the damage
occurred, provided that he was so liable immediately before he made or
was ordered or agreed to make the payment in respect of which the
contribution is sought.

(3) A person shall be liable to make contribution by virtue of
subsection (1) notwithstanding that he has ceased to be liable in
respect of the damage in question since the time when the damage
occurred, unless he ceased to be liable by virtue of the expiry of a
period of limitation or prescription which extinguished the right (and did
not merely bar a remedy) on which the claim against him in respect of
the damage was based.





(4) A person who has made or agreed to make any payment in
bona fide settlement or compromise of any claim made against him in
respect of any damage (including a payment into court which has been
accepted) shall be entitled to recover contribution in accordance with
this section without regard to whether or not he himself is or ever was
liable in respect of the damage, provided, however, that he would have
been liable assuming that the factual basis of the claim against him
could be established.

(5) On assessing any contribution under this section the court
shall disregard any part of the payment in respect of which the
contribution is sought which appears to the court to be excessive.

(6) A judgment given in any action brought by or on behalf of the
person who suffered the damage in question against any person from
whom contribution is sought under this section shall be conclusive in
the proceedings for contribution as to any issue determined by that
judgment in favour of the person from whom the contribution is sought.

(7) In this section-

(a)references to a person's liability in respect of any damage are
references to any such liability which has been or could be
established in an action brought by or on behalf of the person
who suffered the damage; but it is immaterial whether any
issue arising in any such action was or would be determined
(in accordance with the rules of private international law) by
reference to the law.of a place outside Hong Kong;

(b)'payment' includes payment in kind or by way of services or
other arrangement whatsoever if such payment in kind or
services or arrangement has a monetary value reasonably
capable of being determined.

4. (1) Subject to subsection (3), in any proceedings for contribution
under section 3 the amount of the contribution recoverable from any
person shall be such as may be found by the court to be just and
equitable having regard to the extent of that person's responsibility for
the damage in question.

(2) Subject to subsection (3), the court shall have power in any
such proceedings to exempt any person from liability to make
contribution, or to direct that the contribution to be recovered from any
person shall amount to a complete indemnity.

(3) Where the amount of the damages which have or might have
been awarded in respect of the damage in question in any action
brought by or on behalf of the person who suffered it against the
person from whom the contribution is sought was or would have been
subject to

(a)any limit imposed by or under any law or by any agreement
made before the damage occurred;

(b)any reduction by virtue of section 21 of the Law Amendment
and Reform (Consolidation) Ordinance; or





(c)any corresponding limit or reduction under the law of a place
outside Hong Kong,

the person from whom the contribution is sought shall not by virtue of
any contribution awarded under section 3 be required to pay in respect
of the damage a greater amount than the amount of those damages as
so limited or reduced.

5. Ju ' dgment obtained against any person liable in respect of any
debt or damage shall not be a bar to an action, or to the continuance of
an action, against any other person who is (apart from any such bar)
jointly liable with him in respect of the same debt or damage.

6. If more than one action is brought in respect of a



damage by or on behalf of the person by whom it was suffered
against persons liable in respect of the damage (whether jointly or
otherwise) the plaintiff shall not be entitled to costs in any
of those
actions, other than that in which judgment is first given, unless the
court is of the opinion that there was reasonable ground for bringing
the action.

7. A release of, or accord with, a person liable in respect of any
debt or damage, granted or made by a person to whom the debt is due
or by whom the damage is suffered, does not discharge another person
who is jointly liable in respect of the debt or damage unless the release
or accord so provides.

8. Without prejudice to section 6(1) of the Crown Proceedings
Ordinance (indemnity and contribution), this Ordinance shall .bind the
Crown.

9. (1) Nothing in this Ordinance shall affect any case where the
debt in question became due or (as the case may be) the damage in
question occurred before the date on which it comes into force.

(2) A person shall not be entitled to recover contribution or liable
to make contribution in accordance with section 3 by reference to any
liability based on breach of any obligation assumed by him before the
date of commencement of this Ordinance.

(3) The right to recover contribution in, accordance with section 3
supersedes any right, other than an express contractual right, to
recover contribution (as distinct from indemnity) otherwise than under
this Ordinance in corresponding circumstances; but nothing in this
Ordinance shall affect

(a)any express or implied contractual or other right to indemnity;
or

(b)any express contractual provision regulating or excluding
contribution,

which would be enforceable apart from this Ordinance (or render
enforceable any agreement for indemnity or contribution which would
not be enforceable apart from this Ordinance).
Originally 77 of 1984. Short title. Interpretation. 1978 c. 47, s.6. (Cap. 22) Entitlement to contribution. 1978 c. 47, s.1. Assessment of contribution. 1978 c. 47, s. 2. Proceedings against persons jointly liable for the same debt or damage. 1978 c. 47, s.3. Successive actions against persons liable (Jointly or otherwise) for the same damage 1978 c. 47, s. 4. Effect of joint liability of release or accord. Application to the Crown. 1978 c. 47, s. 5. (Cap. 300) Savings. 1978 c. 47, s. 7.

Originally 77 of 1984. Short title. Interpretation. 1978 c. 47, s.6. (Cap. 22) Entitlement to contribution. 1978 c. 47, s.1. Assessment of contribution. 1978 c. 47, s. 2. Proceedings against persons jointly liable for the same debt or damage. 1978 c. 47, s.3. Successive actions against persons liable (Jointly or otherwise) for the same damage 1978 c. 47, s. 4. Effect of joint liability of release or accord. Application to the Crown. 1978 c. 47, s. 5. (Cap. 300) Savings. 1978 c. 47, s. 7.

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