CHAMPION SUCCESS LTD AND ANOTHER v. LEUNG LAI LAI THE ADMINISTRATRIX OF THE ESTATE OF LAI YIN KING DECEASED AND OTHERS

CHAMPION SUCCESS LTD AND ANOTHER v. LEUNG LAI LAI THE ADMINISTRATRIX OF THE ESTATE OF LAI YIN KING DECEASED AND OTHERS

The Tribunal held applicants satisfied the statutory ownership threshold (80% applicable), proved redevelopment of the buildings was justified by both their age and poor state of repair on expert evidence, and had taken reasonable steps to acquire the minority shares by making fair market‑based offers; accordingly an order for sale by public auction was granted with proceeds apportioned on EUV and the reserve price set at the RDV of HKD 81,000,000.

Citation
CHAMPION SUCCESS LTD AND ANOTHER v. LEUNG LAI LAI THE ADMINISTRATRIX OF THE ESTATE OF LAI YIN KING DECEASED AND OTHERS
Parties
1st Applicant: Champion Success Limited; 2nd Applicant: All Bright Hong Kong Investment Limited; 1st Respondent (discontinued): Leung Lai Lai; 2nd Respondent: Cheung Shui Fun (representing estate of Wong Chiu Kit, deceased); 3rd Respondent: Cheung Shui Fun (representing estate of Gin Yan Tak, deceased)
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
16 January 2013
Case Number
LDCS41000/2011
Procedural Posture
Land (compulsory Sale for Redevelopment) Ordinance Application / Judgment
Outcome
Order for sale granted under the Land (Compulsory Sale for Redevelopment) Ordinance Cap.545
Legal Topics
Compulsory Sale for Redevelopment, Ownership Threshold Under S.3, Reasonable Steps to Acquire Minority Shares, Age and State of Repair, Existing Use Value (euv) Valuation, Redevelopment Value (rdv) and Reserve Price, Trustees Appointment, Costs
Source Language
EN
Land Law Compulsory Sale Property Valuation Civil Procedure Compulsory Sale for Redevelopment Ownership Threshold Under S.3 Reasonable Steps to Acquire Minority Shares Age and State of Repair +4 more

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Parties

Champion Success Limited

1st Applicant

All Bright Hong Kong Investment Limited

2nd Applicant

Leung Lai Lai

1st Respondent (discontinued)

Cheung Shui Fun (representing estate of Wong Chiu Kit, deceased)

2nd Respondent

Cheung Shui Fun (representing estate of Gin Yan Tak, deceased)

3rd Respondent

Procedural Posture

Land (compulsory Sale for Redevelopment) Ordinance Application / Judgment

Legal Issues

  1. 1 Whether applicants satisfied the ownership threshold in s.3 as lowered by notice under s.3(5)
  2. 2 Whether redevelopment of the lots is justified by the age or state of repair under s.4(2)(a)
  3. 3 Whether applicants took reasonable steps to acquire all undivided shares under s.4(2)(b)

Ratio Decidendi

The Tribunal held applicants satisfied the statutory ownership threshold (80% applicable), proved redevelopment of the buildings was justified by both their age and poor state of repair on expert evidence, and had taken reasonable steps to acquire the minority shares by making fair market‑based offers; accordingly an order for sale by public auction was granted with proceeds apportioned on EUV and the reserve price set at the RDV of HKD 81,000,000.

Court Disposition

Order for sale granted under the Land (Compulsory Sale for Redevelopment) Ordinance Cap.545

Orders

  • All undivided shares in the Lots to be sold by public auction for redevelopment under s.4(1)(b) of the Ordinance
  • Reserve price for the auction set at HKD 81,000,000