LUCK MOST LTD AND OTHERS v. GOOD MOVEMENT LTD

LUCK MOST LTD AND OTHERS v. GOOD MOVEMENT LTD

The Tribunal interpreted Schedule 2 paragraph 2 as requiring the reserve price to be fixed by reference to the redevelopment potential of the subject lot(s) on their own, thereby excluding evidence and claims relying on merged site or special interest (Clay) factors for the purpose of fixing the reserve price; paragraph 1(b) (and annexed plan and schedule) disclosed no arguable defence on that point and was struck out; the provision was not unconstitutional in that scheme and the auction process protects minority owners by allowing market realization of any enhanced value.

Citation
[2023] HKLdT 14
Parties
1st Applicant: Luck Most Limited; 2nd Applicant: Welfine Limited; 3rd Applicant: Brighteam Limited; 4th Applicant: Betan Limited; 5th Applicant: Emmanie Limited
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
24 February 2023
Case Number
LDCS11000/2020
Procedural Posture
Land (compulsory Sale for Redevelopment) Ordinance (cap. 545) Application / Summons to Strike Out (pre Trial Hearing on Pleadings)
Outcome
Application allowed. Paragraph 1(b) of the Amended Notice of Opposition, the plan marked A and the Schedule annexed thereto were struck out. Costs nisi granted to applicants with certificate for counsel; costs of impugned expert reports ordered nisi in favour of applicants; order nisi to become absolute within 14...
Legal Topics
Compulsory Sale for Redevelopment, Reserve Price Assessment, Valuation — Redevelopment Potential, Merged Site Value / Special Interest (clay Factor), Striking Out Pleadings, Constitutionality Challenge
Source Language
EN
Property Law Constitutional Law Administrative Law Civil Procedure Compulsory Sale for Redevelopment Reserve Price Assessment Valuation — Redevelopment Potential Merged Site Value / Special Interest (clay Factor) +2 more

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Parties

Luck Most Limited

1st Applicant

Welfine Limited

2nd Applicant

Brighteam Limited

3rd Applicant

Betan Limited

4th Applicant

Emmanie Limited

5th Applicant

Procedural Posture

Land (compulsory Sale for Redevelopment) Ordinance (cap. 545) Application / Summons to Strike Out (pre Trial Hearing on Pleadings)

Legal Issues

  1. 1 Whether paragraph 2 of Schedule 2 of Cap.545 (the 'on its own' formula) excludes consideration of merged site/special interest factors when fixing the reserve price
  2. 2 Whether paragraph 1(b) of the Amended Notice of Opposition discloses a reasonable defence or is scandalous, frivolous or vexatious and should be struck out
  3. 3 Whether the 'on its own' formula is constitutionally compliant under proportionality analysis

Ratio Decidendi

The Tribunal interpreted Schedule 2 paragraph 2 as requiring the reserve price to be fixed by reference to the redevelopment potential of the subject lot(s) on their own, thereby excluding evidence and claims relying on merged site or special interest (Clay) factors for the purpose of fixing the reserve price; paragraph 1(b) (and annexed plan and schedule) disclosed no arguable defence on that point and was struck out; the provision was not unconstitutional in that scheme and the auction process protects minority owners by allowing market realization of any enhanced value.

Court Disposition

Application allowed. Paragraph 1(b) of the Amended Notice of Opposition, the plan marked A and the Schedule annexed thereto were struck out. Costs nisi granted to applicants with certificate for counsel; costs of impugned expert reports ordered nisi in favour of applicants; order nisi to become absolute within 14...

Orders

  • Paragraph 1(b) of the Amended Notice of Opposition struck out
  • Plan marked A and the Schedule annexed to the Amended Notice of Opposition struck out