MTR CORPORATION LTD 對 梁智貞及另一人

MTR CORPORATION LTD 對 梁智貞及另一人

Manager (MTR) is not obliged to implement owners' general meeting resolutions absent express DMC provision; MTR's budgeting, apportionment and accounting for clubhouse income/deficit and presentation of budgets complied with the DMC; managers' remuneration is properly calculated on total actual expenditure (gross) including clubhouse-related expenditure; clubhouse may have separate accounts and a separate bank account is recommended but the inclusion of clubhouse deficits in Phase budgets is permissible; CNFA is not a common part as contended by the applicants and its ownership/management status is distinct, but the applicant's relief on CNFA was dismissed for want of specified orders and...

Citation
[2018] HKLdT 76
Parties
First Applicant (ldbm 53/2014); First Respondent (ldbm 179/2016): Leung Chi Ching (梁智貞); Second Applicant (ldbm 53/2014); Second Respondent (ldbm 179/2016): Chan Tin Mun (陳天敏); Respondent (ldbm 53/2014); Applicant (ldbm 179/2016): MTR Corporation Limited
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
15 November 2018
Case Number
LDBM179/2016
Procedural Posture
Lands Tribunal (building Management) / Final Hearing and Determination
Outcome
Most of applicants' claims dismissed; CNFA legal characterization rejected in applicants' favour but specific relief on CNFA claim dismissed for lack of specified orders; costs ordered against applicants on a provisional basis.
Legal Topics
Deed of Mutual Covenant Interpretation, Management Charges and Budgeting, Managers' Duties and Discretion, Calculation of Managers' Remuneration, Clubhouse Funding and Accounting, Common Parts and CNFA Allocation, Owners' Meeting Resolutions, Costs and Interlocutory Relief
Source Language
CH
Property Law Building Management Contract Interpretation Administrative Law Deed of Mutual Covenant Interpretation Management Charges and Budgeting Managers' Duties and Discretion Calculation of Managers' Remuneration +4 more

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Parties

Leung Chi Ching (梁智貞)

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

Chan Tin Mun (陳天敏)

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

MTR Corporation Limited

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

Procedural Posture

Lands Tribunal (building Management) / Final Hearing and Determination

Legal Issues

  1. 1 Whether the manager (MTR) is bound to implement owners' general meeting resolutions
  2. 2 Whether clubhouse income was lawfully used and whether clubhouse accounts must be separate
  3. 3 Whether clubhouse budget and deficits may be apportioned to Phase II budgets

Ratio Decidendi

Manager (MTR) is not obliged to implement owners' general meeting resolutions absent express DMC provision; MTR's budgeting, apportionment and accounting for clubhouse income/deficit and presentation of budgets complied with the DMC; managers' remuneration is properly calculated on total actual expenditure (gross) including clubhouse-related expenditure; clubhouse may have separate accounts and a separate bank account is recommended but the inclusion of clubhouse deficits in Phase budgets is permissible; CNFA is not a common part as contended by the applicants and its ownership/management status is distinct, but the applicant's relief on CNFA was dismissed for want of specified orders and...

Court Disposition

Most of applicants' claims dismissed; CNFA legal characterization rejected in applicants' favour but specific relief on CNFA claim dismissed for lack of specified orders; costs ordered against applicants on a provisional basis.

Orders

  • Applicants Leung Chi Ching and Chan Tin Mun to pay one-third (1/3) of the costs of both cases to MTR Corporation Limited (including reserved costs and solicitor's certificate) assessed on the District Court scale if not agreed; unless an application is made within 14 days the order becomes absolute
  • Applicants' claim regarding CNFA dismissed without prejudice to parties negotiating and to the parties applying to the court subsequently if required