BENNY LEE WAI KHEONG AND ANOTHER v. LAM KEN CHUNG SIMON AND ANOTHER

BENNY LEE WAI KHEONG AND ANOTHER v. LAM KEN CHUNG SIMON AND ANOTHER

On the balance of probabilities the court found no actionable misrepresentation and no rectification; the building renovation was the act of the Incorporated Owners and not attributable to the plaintiffs as landlords so there was no breach of the covenant of quiet enjoyment by the plaintiffs; the defendants repudiated the tenancy and are liable for rent and damages but the plaintiffs failed reasonably to mitigate, so damages were reduced to HK$742,224.84 plus specified interest and a costs order of 90% in favour of the plaintiffs.

Citation
[2026] HKDC 480
Parties
1st Plaintiff: BENNY LEE WAI KHEONG; 2nd Plaintiff: HUI WAI HAN LINDA; 1st Defendant: LAM KEN CHUNG SIMON; 2nd Defendant: LISA TANG
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
19 March 2026
Case Number
DCCJ342/2021
Procedural Posture
Landlord and Tenant Dispute (tenancy Agreement) / Judgment After Trial
Outcome
Plaintiffs' claim allowed in part; Defendants' counterclaim dismissed; defendants held to have repudiated tenancy and liable for damages subject to mitigation reduction
Legal Topics
Misrepresentation, Quiet Enjoyment Covenant, Rectification of Written Agreements, Mitigation of Loss, Damages, Incorporated Owners (owners' Corporation), Building Renovation Impact
Source Language
EN
Contract Property Landlord and Tenant Equity Tort Misrepresentation Quiet Enjoyment Covenant Rectification of Written Agreements +4 more

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Parties

BENNY LEE WAI KHEONG

1st Plaintiff

HUI WAI HAN LINDA

2nd Plaintiff

LAM KEN CHUNG SIMON

1st Defendant

LISA TANG

2nd Defendant

Procedural Posture

Landlord and Tenant Dispute (tenancy Agreement) / Judgment After Trial

Legal Issues

  1. 1 Whether plaintiffs knew or should have known of imminent renovation and method
  2. 2 Whether plaintiffs made representations about timing and method of renovation (misrepresentation)
  3. 3 Whether covenant of quiet enjoyment was breached by renovation

Ratio Decidendi

On the balance of probabilities the court found no actionable misrepresentation and no rectification; the building renovation was the act of the Incorporated Owners and not attributable to the plaintiffs as landlords so there was no breach of the covenant of quiet enjoyment by the plaintiffs; the defendants repudiated the tenancy and are liable for rent and damages but the plaintiffs failed reasonably to mitigate, so damages were reduced to HK$742,224.84 plus specified interest and a costs order of 90% in favour of the plaintiffs.

Court Disposition

Plaintiffs' claim allowed in part; Defendants' counterclaim dismissed; defendants held to have repudiated tenancy and liable for damages subject to mitigation reduction

Orders

  • Judgment for the Plaintiffs in the sum of HK$742,224.84
  • Interest on HK$742,224.84 at 1% above HSBC prime rate from 13 January 2021 until date of judgment and thereafter at judgment rate until payment in full