TAI FAT DEVELOPMENT (HOLDING) CO. LTD v. THE INCORPORATED OWNERS OF GOLD KING INDUSTRIAL BUILDING

TAI FAT DEVELOPMENT (HOLDING) CO. LTD v. THE INCORPORATED OWNERS OF GOLD KING INDUSTRIAL BUILDING

The DMC, read as a whole including its definitions and First Schedule which lists the 13 parking spaces under 'Loading and Unloading Areas', shows the parties intended those 13 spaces to be common areas for loading/unloading; accordingly the main claim for possession by Tai Fat fails, the IO's primary declaration that the 13 parking spaces are common areas succeeds, but claims to set aside tenancies and recover prior rents fail (no mutual mistake affecting indivisible contracts and limitation/locus obstacles).

Citation
TAI FAT DEVELOPMENT (HOLDING) CO. LTD v. THE INCORPORATED OWNERS OF GOLD KING INDUSTRIAL BUILDING
Parties
Plaintiff (by Original Action) and 1st Defendant (by Counterclaim): Tai Fat Development (Holding) Co. Ltd; Defendant (by Original Action) and Plaintiff (by Counterclaim): The Incorporated Owners of Gold King Industrial Building; 2nd Defendant (by Counterclaim): South China Cold Storage & Industrial Co. Ltd.; 3rd Defendant (by Counterclaim): South China Building Materials Ltd.; 4th Defendant (by Counterclaim): Pickford Development Co. Ltd.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 January 2014
Case Number
HCA104/2006
Procedural Posture
Civil Possession/land/property Dispute With Counterclaim / Final Judgment (court of First Instance) 15 January 2014
Outcome
Main claim by Tai Fat dismissed in its entirety. Counterclaim partly allowed: declaration that the 13 parking spaces listed under 'Loading and Unloading Areas' in the First Schedule to the DMC are common areas; all other relief claimed by IO dismissed.
Legal Topics
Deed of Mutual Covenant, Common Areas, Parking Spaces, Tenancy, Repudiation, Mutual Mistake, Restitution, Limitation
Source Language
EN
Property/real Property Conveyancing Contract Equity Civil Procedure Deed of Mutual Covenant Common Areas Parking Spaces +5 more

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Parties

Tai Fat Development (Holding) Co. Ltd

Plaintiff (by Original Action) and 1st Defendant (by Counterclaim)

The Incorporated Owners of Gold King Industrial Building

Defendant (by Original Action) and Plaintiff (by Counterclaim)

South China Cold Storage & Industrial Co. Ltd.

2nd Defendant (by Counterclaim)

South China Building Materials Ltd.

3rd Defendant (by Counterclaim)

Pickford Development Co. Ltd.

4th Defendant (by Counterclaim)

Procedural Posture

Civil Possession/land/property Dispute With Counterclaim / Final Judgment (court of First Instance) 15 January 2014

Legal Issues

  1. 1 Whether the 13 specified parking spaces are common areas under the DMC or subject to exclusive ownership by the First Owner
  2. 2 Whether previous tenancy agreements are void ab initio for mutual mistake and whether rent paid must be returned
  3. 3 Whether the 2004 Tenancy was repudiated and effect on possession and mesne profits

Ratio Decidendi

The DMC, read as a whole including its definitions and First Schedule which lists the 13 parking spaces under 'Loading and Unloading Areas', shows the parties intended those 13 spaces to be common areas for loading/unloading; accordingly the main claim for possession by Tai Fat fails, the IO's primary declaration that the 13 parking spaces are common areas succeeds, but claims to set aside tenancies and recover prior rents fail (no mutual mistake affecting indivisible contracts and limitation/locus obstacles).

Court Disposition

Main claim by Tai Fat dismissed in its entirety. Counterclaim partly allowed: declaration that the 13 parking spaces listed under 'Loading and Unloading Areas' in the First Schedule to the DMC are common areas; all other relief claimed by IO dismissed.

Orders

  • Declare that Parking Spaces Nos. 1,2,4,5,11,12,13,14,20,36,37,38 and 39 (the 13 Parking Spaces) are common areas of the Building under the DMC
  • Dismiss Tai Fat's main claim in all other respects