The High Court has ruled in favour of the Housing Authority for recovery of damages from a piling contractor and an insurance company arising from settlement of foundations in two housing blocks.

The authority welcomed the judgment and the $550 million award. It will recover the money as soon as possible. It said the judgment sends a clear message to the industry that the Government will pursue wrongdoers.

In July 1999, excessive uneven foundation settlement was found in two of the six Home Ownership Scheme blocks under construction at Tin Shui Wai area 31 Phase 1. Foundation remedial works were completed in mid-2003.