DR HENRIETTA MAN HING IP AND OTHERS v. CROCUS PROPERTY INC

DR HENRIETTA MAN HING IP AND OTHERS v. CROCUS PROPERTY INC

The court held that an easement to use the common toilets on the 15th floor was properly implied to give effect to the parties' common intention because the units were sold for use as doctors' consulting rooms and access to toilets was necessary for that use; plaintiffs were therefore entitled to damages measured by the difference between the market price achieved by Crocus's sale to Kerry and the contract price plaintiffs would have paid (after area adjustment), less stamp duty and legal fees; interest and costs awarded to plaintiffs.

Citation
DR HENRIETTA MAN HING IP AND OTHERS v. CROCUS PROPERTY INC
Parties
1st Plaintiff (action Hca004910/1980): Dr. Franklin Li; 2nd Plaintiff (action Hca004910/1980): Ariella Estates Limited; 1st Plaintiff (action 4910/1980): Dr. Henrietta Man Hing Ip; 2nd Plaintiff (action 4910/1980): Madam Mok Wong Fung Yee; 3rd Plaintiff (action 4910/1980): Dearmost Estates Limited; 4th Plaintiff (action 4910/1980): Cheuk Fai & Company Limited; Defendant: Crocus Property Inc
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 February 1983
Case Number
HCA4910/1980
Procedural Posture
Contract (sale of Part of Floor) With Claim for Specific Performance and Alternative Claim for Damages; Dispute Over Implied Easement of Necessity / Judgment on Assessment of Damages Following Repudiation and Prior Appellate Proceedings
Outcome
Judgment for plaintiffs; damages awarded in lieu of specific performance, interest and costs granted
Legal Topics
Specific Performance, Implied Easement, Easement of Necessity, Assessment of Damages, Intent to Grant Easements, Vendor Repudiation
Source Language
EN
Contract Law Property Law Equitable Remedies Land Law Valuation of Damages Specific Performance Implied Easement Easement of Necessity +3 more

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Parties

Dr. Franklin Li

1st Plaintiff (action Hca004910/1980)

Ariella Estates Limited

2nd Plaintiff (action Hca004910/1980)

Dr. Henrietta Man Hing Ip

1st Plaintiff (action 4910/1980)

Madam Mok Wong Fung Yee

2nd Plaintiff (action 4910/1980)

Dearmost Estates Limited

3rd Plaintiff (action 4910/1980)

Cheuk Fai & Company Limited

4th Plaintiff (action 4910/1980)

Crocus Property Inc

Defendant

Procedural Posture

Contract (sale of Part of Floor) With Claim for Specific Performance and Alternative Claim for Damages; Dispute Over Implied Easement of Necessity / Judgment on Assessment of Damages Following Repudiation and Prior Appellate Proceedings

Legal Issues

  1. 1 Whether an easement to use common toilets on the 15th floor was implied as necessary to give effect to the parties' common intention
  2. 2 Whether damages should be assessed as the difference between market price received by third‑party purchaser and plaintiffs' contract price and the correct date of valuation
  3. 3 Whether ancillary terms in Crocus's later sale (supplemental deed of mutual covenant and first option rights) reduce plaintiffs' entitlement

Ratio Decidendi

The court held that an easement to use the common toilets on the 15th floor was properly implied to give effect to the parties' common intention because the units were sold for use as doctors' consulting rooms and access to toilets was necessary for that use; plaintiffs were therefore entitled to damages measured by the difference between the market price achieved by Crocus's sale to Kerry and the contract price plaintiffs would have paid (after area adjustment), less stamp duty and legal fees; interest and costs awarded to plaintiffs.

Court Disposition

Judgment for plaintiffs; damages awarded in lieu of specific performance, interest and costs granted

Orders

  • Plaintiffs in action 4909/80 awarded damages of HK$2,926,550 less stamp duty on a price of HK$9,640,400 and legal fees on the conveyance
  • Plaintiffs in action 4910/80 awarded damages of HK$2,421,650 less stamp duty on a price of HK$7,377,200 and legal fees on the conveyance