SNOWLAND LTD v. DIRECTOR OF LANDS

SNOWLAND LTD v. DIRECTOR OF LANDS

Tribunal applied established principle that prime+1% is the appropriate starting rate for pre-judgment interest absent evidential foundation to depart; found no sufficient evidence that applicant could borrow at lower rates or that applicant's conduct caused special or wasted costs; held expert's late revisions were justifiable and did not constitute a special reason to reduce professional fees; ordered respondent to pay interest at prime+1% on specified sums, to pay applicant's professional remuneration of its expert (amount to be determined if not agreed), and to pay applicant's costs taxed on party and party basis at High Court scale with certificate for counsel.

Citation
SNOWLAND LTD v. DIRECTOR OF LANDS
Parties
Applicant: Applicant; Respondent: Respondent
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
31 March 2017
Case Number
LDLR2/2014
Procedural Posture
Compensation Under Lands Resumption Ordinance / Post Judgment Paper Disposal on Interest, Professional Fees and Costs
Outcome
Applicant awarded interest at Prime+1% on specified sums, respondent ordered to pay applicant's professional remuneration for Mr Charles C K Chan (to be determined if not agreed), and respondent to pay applicant's costs with certificate for counsel taxed at High Court scale; costs order nisi made absolute after 14...
Legal Topics
Pre Judgment Interest Rate, Professional Fees Under LRO, Costs Taxation, Expert Witness Conduct, Valuation Methods and Reconciliation
Source Language
EN
Land Law Compulsory Acquisition Civil Procedure Costs Law Evidence (expert Evidence) Pre Judgment Interest Rate Professional Fees Under LRO Costs Taxation +2 more

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Parties

Applicant

Applicant

Respondent

Respondent

Procedural Posture

Compensation Under Lands Resumption Ordinance / Post Judgment Paper Disposal on Interest, Professional Fees and Costs

Legal Issues

  1. 1 What rate of pre-judgment interest should be applied
  2. 2 Whether applicant is entitled to recover full professional fees under s6(2A) and s10(2)(e)(ii) LRO
  3. 3 Whether expert valuer's late revisions and conduct justify reduction of professional fees or costs sanctions

Ratio Decidendi

Tribunal applied established principle that prime+1% is the appropriate starting rate for pre-judgment interest absent evidential foundation to depart; found no sufficient evidence that applicant could borrow at lower rates or that applicant's conduct caused special or wasted costs; held expert's late revisions were justifiable and did not constitute a special reason to reduce professional fees; ordered respondent to pay interest at prime+1% on specified sums, to pay applicant's professional remuneration of its expert (amount to be determined if not agreed), and to pay applicant's costs taxed on party and party basis at High Court scale with certificate for counsel.

Court Disposition

Applicant awarded interest at Prime+1% on specified sums, respondent ordered to pay applicant's professional remuneration for Mr Charles C K Chan (to be determined if not agreed), and respondent to pay applicant's costs with certificate for counsel taxed at High Court scale; costs order nisi made absolute after 14...

Orders

  • The respondent shall pay the applicant the professional remuneration reasonably incurred by the applicant by virtue of section 6(2A) and 10(2)(e)(ii) of the LRO, ie the professional remuneration of Mr Charles CK Chan, expert for the applicant, with the amount to be determined by the Tribunal if not agreed
  • The respondent do pay the applicant interest on the Provisional Payment from the date of reversion (ie 18 May 2011) to the date of payment (ie 15 November 2011) at the rate of 1% above the HSBC's prevailing best lending rate