YUEN HIU TUNG v. HOSPITAL AUTHORITY

YUEN HIU TUNG v. HOSPITAL AUTHORITY

There has been sufficient evidence of a substantial change in the economic landscape since the earlier authorities to justify admitting actuarial and economic evidence to test whether the conventional 4.5% real net rate of return remains appropriate in Hong Kong; accordingly leave to adduce such evidence was granted and a preliminary issue was ordered to determine the appropriate net rate of return and resulting multipliers, with strict directions limiting experts to historical data and prohibiting opinions on future economic developments.

Citation
YUEN HIU TUNG v. HOSPITAL AUTHORITY
Parties
Plaintiff (hcpi 235/2011): Chan Pak Ting; 1st Defendant (hcpi 235/2011): Chan Chi Kuen; 2nd Defendant (hcpi 235/2011): Chan Yiu Fai Joe; Plaintiff (hcpi 671/2007) by His Mother and Next Friend So Yuet Wa: Li Ka Wai (a minor); Plaintiff (hcpi 228/2010) by Her Grandmother and Next Friend Yip Hei Siu: Yuen Hiu Tung (a minor); Defendant (hcpi 671/2007 and HCPI 228/2010): Hospital Authority
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 October 2012
Case Number
HCPI228/2010
Procedural Posture
Personal Injuries Actions Heard Together to Determine Preliminary Issue on Discount Rate and Admissibility of Actuarial and Economic Evidence / Interlocutory Application Heard; Leave Granted to Adduce Expert Evidence; Preliminary Issue Ordered for Trial
Outcome
Application granted in part: leave granted to adduce actuarial and economic evidence; preliminary issue ordered for trial to determine appropriate net rate of return and multipliers
Legal Topics
Discount Rate, Multiplier for Future Losses, Expert Evidence Admissibility, Actuarial Tables, Periodical Payments, Inflation Measure (price Vs Payroll)
Source Language
EN
Tort Personal Injury Civil Evidence Actuarial Law Economic Evidence Discount Rate Multiplier for Future Losses Expert Evidence Admissibility +3 more

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Parties

Chan Pak Ting

Plaintiff (hcpi 235/2011)

Chan Chi Kuen

1st Defendant (hcpi 235/2011)

Chan Yiu Fai Joe

2nd Defendant (hcpi 235/2011)

Li Ka Wai (a minor)

Plaintiff (hcpi 671/2007) by His Mother and Next Friend So Yuet Wa

Yuen Hiu Tung (a minor)

Plaintiff (hcpi 228/2010) by Her Grandmother and Next Friend Yip Hei Siu

Hospital Authority

Defendant (hcpi 671/2007 and HCPI 228/2010)

Procedural Posture

Personal Injuries Actions Heard Together to Determine Preliminary Issue on Discount Rate and Admissibility of Actuarial and Economic Evidence / Interlocutory Application Heard; Leave Granted to Adduce Expert Evidence; Preliminary Issue Ordered for Trial

Legal Issues

  1. 1 Whether Cookson v Knowles assumption of a net rate of return of 4.5% remains valid in Hong Kong given economic developments since 1995
  2. 2 Whether actuarial and economic expert evidence should be admitted to reassess the appropriate discount rate/multipliers for future losses
  3. 3 Scope and limits of expert evidence (historical data only; no forecasts)

Ratio Decidendi

There has been sufficient evidence of a substantial change in the economic landscape since the earlier authorities to justify admitting actuarial and economic evidence to test whether the conventional 4.5% real net rate of return remains appropriate in Hong Kong; accordingly leave to adduce such evidence was granted and a preliminary issue was ordered to determine the appropriate net rate of return and resulting multipliers, with strict directions limiting experts to historical data and prohibiting opinions on future economic developments.

Court Disposition

Application granted in part: leave granted to adduce actuarial and economic evidence; preliminary issue ordered for trial to determine appropriate net rate of return and multipliers

Orders

  • Trial of preliminary issue ordered: whether Cookson v Knowles assumption of 4.5% net return remains valid and if not what net rate to use; trial listed before PI Judge on 6 Nov 2012 with 7 and 16 Nov 2012 reserved
  • Leave granted to serve and adduce Professor Chan Wai Sum's expert reports and defendant's nominated expert report; experts to meet without prejudice within 21 days and prepare a signed joint report within 14 days thereafter with specified content