Conan ONeil Conan is the owner of a spa in Causeway Bay He c

Conan O’Neil (“Conan”) is the owner of a spa in Causeway Bay. He contacted a spa equipment company, Notorious Spa Limited (“NSL”), in relation to installing a steam facility at his spa (“Steam”). Jeff Kong, the sales manager of NSL, said the Steam is equipped with an emergency safety button. Once the button is pushed, the whole system switches off. Jeff also made it clear that the maximum temperature of the steam is 60 degrees Celsius. Conan found the Steam to be perfect for his usual customers, who are generally the elderly. Conan also received a brochure from NSL, stating that NSL won the “Spa Equipment Company of the Year 2016”.  

Conan decided to purchase the Steam and certain ancillary equipment from NSL (at HK$1,500,000). The Steam was installed soon after the contract was signed. But when Conan started to operate the Steam, customers complained that the Steam was “too hot”. The thermometer inside the Steam indicated that the temperature was way over 60 degrees Celsius (sometimes as high as 85 degrees Celsius). There was on incident that a customer, Rudy Yung, was feeling unwell when he was using the steam, but when Rudy pressed the emergency safety button, it was not working. Rudy was later rescued by Conan, but the delay had caused serious injuries to Rudy. It took 9 months for Rudy to recover. The medical costs were as high as HK$600,000.

Conan later found that NSL never received any industrial award in the past.

Advise Conan whether he has a claim against NSL. Also advise whether Conan will be held liable for Rudy’s injuries.

Solution

Conan can claim against NSL in two causes:

1) For giving false information in the Broucher that NSL has won the  “Spa Equipment Company of the Year 2016”, since NSL never received any industrial award.

2) mal functioning of the Steam machine which unable to regulate the steam upto 60 derees Celsius as per contract instead receiving 85 degrees Celsius hot steam injuring the customer which has been cost upto HKS 600,000 a huge loss and not supporting the business needs.

Conan is liable for Rudy\'s injuries because Canon cannot go a head using the steam machinery every time without checking the temperature of the output steam and the functioning of the emergency push button.

If these are checked prior to the application to the Rudy, Rudy would have been escaped from the unnecessary injury.

Conan has to bear the medical expenses of Rudy for his injury treatment HK$600,000 and also has to bear any other compnsation.