BEST HONOUR INVESTMENT & DEVELOPMENT LTD v. BEST SONIC LTD

BEST HONOUR INVESTMENT & DEVELOPMENT LTD v. BEST SONIC LTD

The appeal is dismissed: the tenant's defence is barred by res judicata from the earlier struck-out action and, in any event, there is no arguable defence because an assignee landlord is not liable for the assignor's prior breaches and the tenant failed to give the written notice required by the lease; accordingly the Order 14 judgment for rent, forfeiture and possession is affirmed and possession must be returned to the landlord.

Citation
BEST HONOUR INVESTMENT & DEVELOPMENT LTD v. BEST SONIC LTD
Parties
Plaintiff (landlord): Best Honour Investment & Development Limited; Defendant (tenant): Best Sonic Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 April 2003
Case Number
HCA4391/2002
Procedural Posture
Landlord and Tenant Rent Recovery and Possession / Appeal From Master's Order (order 14); Judgment on Appeal in Chambers
Outcome
Appeal dismissed; Master's Order 14 affirmed; costs to plaintiff
Legal Topics
Forfeiture, Rent Recovery, Assignee Liability, Repair Covenant, Res Judicata, Notice Requirements
Source Language
EN
Landlord and Tenant Contract Property Procedural Law Forfeiture Rent Recovery Assignee Liability Repair Covenant +2 more

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Parties

Best Honour Investment & Development Limited

Plaintiff (landlord)

Best Sonic Limited

Defendant (tenant)

Procedural Posture

Landlord and Tenant Rent Recovery and Possession / Appeal From Master's Order (order 14); Judgment on Appeal in Chambers

Legal Issues

  1. 1 Whether tenant may withhold rent due to breaches by the previous landlord (assignor)
  2. 2 Whether an assignee landlord is liable for breaches committed by the assignor prior to assignment
  3. 3 Whether the tenant gave the written notice required by clause 3(c) of the lease to trigger landlord's repair obligations

Ratio Decidendi

The appeal is dismissed: the tenant's defence is barred by res judicata from the earlier struck-out action and, in any event, there is no arguable defence because an assignee landlord is not liable for the assignor's prior breaches and the tenant failed to give the written notice required by the lease; accordingly the Order 14 judgment for rent, forfeiture and possession is affirmed and possession must be returned to the landlord.

Court Disposition

Appeal dismissed; Master's Order 14 affirmed; costs to plaintiff

Orders

  • Appeal dismissed with costs to the plaintiff
  • Defendant to return possession of the premises to the plaintiff as soon as possible