Which are the conditions for claiming compensation (including the burden of proof)?
2.1 In order to be able to claim compensation under the Civil liability regime, the following conditions must be met:
Contract
Contracts for the sale of goods in Hong Kong are governed by the Sale of Goods Ordinance (Cap. 26) (“SOGO”) and the common law. The SOGO implies certain terms as to quality into contracts for the sale of goods. Where the contract is for the sale of goods by description, there is an implied condition that the contractual goods will correspond with the description. In addition, there is an implied condition that goods supplied under sales contracts are of merchantable quality and that goods supplied under a contract are reasonably fit for a known particular purpose. The burden of proof lies with the claimant.
Tort of negligence
A civil claim under the tort of negligence can be brought for defective products. The burden of proof is on the claimant to prove negligence by establishing the following:
- The supplier owed a duty of care to the claimant;
- The supplier breached that duty of care; and
- The supplier's breach of duty resulted in the claimant's loss or injury.
2.2 Which are the grounds for exclusion of liability?
Contract
Generally, parties are free to enter into contracts of sale subject to statutory requirements and the common law.
Under the SOGO, liability arising from implied terms can be excluded, subject to the Control of Exemption Clauses Ordinance (Cap. 71) (“CECO”)
Negligence
Under the CECO, liability cannot be excluded in a contract for negligence that causes death or personal injury.
2.3 Which are the time limits for submitting a claim for compensation?
The limitation period for bringing a product liability claim in contract or tort is 6 years from the date on which the cause of action accrued.
For a personal injury claim involving damages for negligence, nuisance or breach of duty, an action must be brought within 3 years from the date on which the cause of action accrued or the date of the knowledge of the claim (whichever is later).
Representative proceedings (similar to class actions) are permitted in Hong Kong whereby numerous persons having the same interest in any proceedings may bring proceedings by or against any one or more of them as representing all or as representing all except one or more of them. However, we understand that there have been no representative proceedings to date for product liability claims in relation to pharmaceutical products.
2.4 Which damages can be compensated?
A claimant may seek monetary compensation, injunctive and declaratory relief. Losses arising from personal injury, death and damage to property other than the product itself are recoverable.
In very limited and special circumstances, punitive damages may be awarded.
2.5 Is it possible to claim compensation directly to the insurance company of the damaging party?
No.
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