CHEUNG MAN KIT v. CHIU LOK YAN t/a NEW LUEN LIK ENGINEERING CO AND OTHERS

CHEUNG MAN KIT v. CHIU LOK YAN t/a NEW LUEN LIK ENGINEERING CO AND OTHERS

Court assessed LOEC by aggregating disciplines (orthopaedic 2%, psychiatric 12.5%, neurologic 20% = 34.5%) but found special circumstances under s9(1A) and applied the Paper Mills Formula because the Applicant could not resume pre‑injury work and the appropriate alternative job (lavatory cleaner) had a substantially lower wage (HK$10,636) producing a 61.33% earnings loss; Section 9 award: HK$1,619,112. Court exercised discretion under s10(5) to extend periodic payments to 36 months and, lacking comparable employees, applied CPI adjustments under s11(1A)(b) and s11(1B)(b) (+1.7% and +1.9%) to calculate Section 10 periodic payment award of HK$806,077.40; Section 10A medical expenses agreed...

Citation
[2024] HKDC 330
Parties
Applicant: Cheung Man Kit; 1st Respondent: Chiu Lok Yan trading as New Luen Lik Engineering Co; 2nd Respondent: Wing Lik Construction Engineering Limited; 3rd Respondent: Employees’ Compensation Assistance Fund Board
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
6 March 2024
Case Number
DCEC515/2021
Procedural Posture
Employees' Compensation Claim Under the Employees' Compensation Ordinance (cap 282) / Trial for Assessment of Compensation (assessment Hearing)
Outcome
Judgment for Applicant. Compensation awarded to Applicant.
Legal Topics
Loss of Earning Capacity, Section 9 Compensation, Section 10 Periodic Payments, Paper Mills Formula, CPI Adjustment Under Section 11, Section 10 a Medical Expenses, Extension of Periodic Payments Under Section 10(5)
Source Language
EN
Employment Law Workers' Compensation Personal Injury Civil Procedure Loss of Earning Capacity Section 9 Compensation Section 10 Periodic Payments Paper Mills Formula +3 more

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Parties

Cheung Man Kit

Applicant

Chiu Lok Yan trading as New Luen Lik Engineering Co

1st Respondent

Wing Lik Construction Engineering Limited

2nd Respondent

Employees’ Compensation Assistance Fund Board

3rd Respondent

Procedural Posture

Employees' Compensation Claim Under the Employees' Compensation Ordinance (cap 282) / Trial for Assessment of Compensation (assessment Hearing)

Legal Issues

  1. 1 Appropriate percentage for loss of earning capacity (LOEC) under s9
  2. 2 Whether to apply the Paper Mills Formula (s9(1A) special circumstances)
  3. 3 Whether to extend periodic payments beyond 24 months under s10(5)

Ratio Decidendi

Court assessed LOEC by aggregating disciplines (orthopaedic 2%, psychiatric 12.5%, neurologic 20% = 34.5%) but found special circumstances under s9(1A) and applied the Paper Mills Formula because the Applicant could not resume pre‑injury work and the appropriate alternative job (lavatory cleaner) had a substantially lower wage (HK$10,636) producing a 61.33% earnings loss; Section 9 award: HK$1,619,112. Court exercised discretion under s10(5) to extend periodic payments to 36 months and, lacking comparable employees, applied CPI adjustments under s11(1A)(b) and s11(1B)(b) (+1.7% and +1.9%) to calculate Section 10 periodic payment award of HK$806,077.40; Section 10A medical expenses agreed...

Court Disposition

Judgment for Applicant. Compensation awarded to Applicant.

Orders

  • Section 9 compensation assessed at HK$1,619,112.00
  • Section 10 periodic payments (extended to 36 months) assessed at HK$806,077.40