梁智貞及另一人 對 MTR CORPORATION LTD

梁智貞及另一人 對 MTR CORPORATION LTD

The Tribunal held that under the Deed the Manager has wide discretion and is not bound by ordinary owners' meeting resolutions; the Manager did not breach the Deed in its accounting for clubhouse income or in including clubhouse expenditure for budgeting and for calculating manager remuneration on gross expenditure; the Manager complied with the Deed's budget and notification procedures; a Club can be formed pre-final phase and the residents' handbook can operate as Club rules for management purposes; the CNFA characterisation required interpretation of the Deed and the Tribunal rejected the Manager's contention that CNFA is necessarily excluded from paying management fees but made no...

Citation
[2018] HKLdT 76
Parties
First Applicant (ldbm 53/2014); First Respondent (ldbm 179/2016): Leung Chi Ching; Second Applicant (ldbm 53/2014); Second Respondent (ldbm 179/2016): Chan Tin Mun; Respondent (ldbm 53/2014); Applicant (ldbm 179/2016): MTR Corporation Limited
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
15 November 2018
Case Number
LDBM53/2014
Procedural Posture
Building Management Dispute (deed of Mutual Covenant) / Judgment (lands Tribunal)
Outcome
Applicants' substantive claims dismissed except issue about CNFA characterization reserved for negotiation or further application; costs awarded to MTR
Legal Topics
Deed of Mutual Covenant, Managers' Duties and Discretion, Management Charges and Apportionment, Clubhouse/club Rules and Accounting, Manager's Remuneration, Budgets and Notices, Common Parts / CNFA
Source Language
CH
Property Law Building Management Contract Interpretation Administrative Law Deed of Mutual Covenant Managers' Duties and Discretion Management Charges and Apportionment Clubhouse/club Rules and Accounting +3 more

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Parties

Leung Chi Ching

First Applicant (ldbm 53/2014); First Respondent (ldbm 179/2016)

Chan Tin Mun

Second Applicant (ldbm 53/2014); Second Respondent (ldbm 179/2016)

MTR Corporation Limited

Respondent (ldbm 53/2014); Applicant (ldbm 179/2016)

Procedural Posture

Building Management Dispute (deed of Mutual Covenant) / Judgment (lands Tribunal)

Legal Issues

  1. 1 Whether owners' general meeting resolutions bind the manager
  2. 2 Proper treatment and accounting of clubhouse income and deficits
  3. 3 Whether clubhouse expenses may be included in Phase budgets and affect manager remuneration

Ratio Decidendi

The Tribunal held that under the Deed the Manager has wide discretion and is not bound by ordinary owners' meeting resolutions; the Manager did not breach the Deed in its accounting for clubhouse income or in including clubhouse expenditure for budgeting and for calculating manager remuneration on gross expenditure; the Manager complied with the Deed's budget and notification procedures; a Club can be formed pre-final phase and the residents' handbook can operate as Club rules for management purposes; the CNFA characterisation required interpretation of the Deed and the Tribunal rejected the Manager's contention that CNFA is necessarily excluded from paying management fees but made no...

Court Disposition

Applicants' substantive claims dismissed except issue about CNFA characterization reserved for negotiation or further application; costs awarded to MTR

Orders

  • Applicants to pay one third (1/3) of the costs of both cases to MTR (including reserved costs and solicitor's certificate) assessed on District Court scale; if parties cannot agree the amount it shall be taxed by the Court
  • Costs order to become absolute unless an application is made within 14 days