HANG TAK COMPANY LIMITED v. THE ATTORNEY GENERAL

HANG TAK COMPANY LIMITED v. THE ATTORNEY GENERAL

The grant of Lot 3338 carried two necessary implied terms as of the relevant date (13 Oct 1978): (1) plaintiff to be given actual possession within a reasonable time from the deemed possession date (28 Feb 1979); (2) defendant to provide vehicular access by extending Kau Wah Keng Approach Road at least northerly to point X so as to enable the development and lawful use of carparks. Government breached both implied terms, plaintiff did not waive its rights, and plaintiff proved loss of profits on a residual valuation such that damages of HK$62,000,000 are awarded.

Citation
HANG TAK COMPANY LIMITED v. THE ATTORNEY GENERAL
Parties
Plaintiff (crown Lessee): Hang Tak Company Limited; Defendant (government): The Attorney General
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
31 July 1986
Case Number
HCA2567/1983
Procedural Posture
Civil Action for Breach of Contract Arising From Crown Lease Exchange (property/development) / Judgment Delivered After Trial (deputy High Court Judge Cruden, 31 July 1986)
Outcome
Judgment for plaintiff. Declaration that conditions of grant discharged by defendant's breach and damages awarded to plaintiff.
Legal Topics
Implied Terms in Contract, Crown Lease Obligations, Actual Possession, Vehicular Access/easement, Waiver and Equitable Estoppel, Calculation of Damages (loss of Profits)
Source Language
EN
Property Law Contract Law Administrative/public Law Building/regulatory Law Valuation Law Implied Terms in Contract Crown Lease Obligations Actual Possession +3 more

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Parties

Hang Tak Company Limited

Plaintiff (crown Lessee)

The Attorney General

Defendant (government)

Procedural Posture

Civil Action for Breach of Contract Arising From Crown Lease Exchange (property/development) / Judgment Delivered After Trial (deputy High Court Judge Cruden, 31 July 1986)

Legal Issues

  1. 1 Whether an implied term existed that plaintiff would be given actual possession of Lot 3338
  2. 2 Whether an implied term existed that Government would provide vehicular access sufficient to enable development (extension of Kau Wah Keng Approach Road to point X)
  3. 3 Whether Government breached any implied terms and whether plaintiff waived rights

Ratio Decidendi

The grant of Lot 3338 carried two necessary implied terms as of the relevant date (13 Oct 1978): (1) plaintiff to be given actual possession within a reasonable time from the deemed possession date (28 Feb 1979); (2) defendant to provide vehicular access by extending Kau Wah Keng Approach Road at least northerly to point X so as to enable the development and lawful use of carparks. Government breached both implied terms, plaintiff did not waive its rights, and plaintiff proved loss of profits on a residual valuation such that damages of HK$62,000,000 are awarded.

Court Disposition

Judgment for plaintiff. Declaration that conditions of grant discharged by defendant's breach and damages awarded to plaintiff.

Orders

  • Declaration that conditions of grant of Lot 3338 are discharged by defendant's breach
  • Damages awarded to plaintiff in the sum of HKD 62000000 for loss of profits