FORTUNE CONCEPT GROUP LTD v. TONG CHOR YIN AUGUSTINE t/a AUGUSTINE C.Y. TONG & CO., SOLICITORS & NOTARIES

Parties

Procedural Posture

Landlord and Tenant; Summary Judgment (order 14) / Order 14 Summary Judgment Application

Legal Issues

1. 1 Whether tenant forfeited right to exercise option to renew by being in arrears and repeatedly late with management fee payments as at 31 July 2007
2. 2 Whether tenant's denial of landlord's title constituted repudiation that defeated tenant's position
3. 3 Whether s58 Conveyancing and Property Ordinance Cap.219 prevents landlord's claim without prior notice

Ratio Decidendi

Tenant lost the right to exercise the renewal option because, as at 31 July 2007, he was in arrears and had a persistent history of late payment amounting to failure of the condition precedent; additionally the tenant's pleaded denial of the landlord's title constituted repudiation fatal to the tenant's position; section 58 did not apply because the lease expired by effluxion of time once the option was lost. Therefore the landlord's Order 14 relief in paragraphs (1) and (4) succeeds.

Court Disposition

Order 14 summary judgment granted in part: paragraphs (1) and (4) of the landlord's summons dated 2 April 2008 granted; no order as to paragraphs (2), (3) and (5).

Orders

• Paragraphs (1) and (4) of the landlord's summons dated 2 April 2008 are granted.
• No order is made in respect of paragraphs (2), (3) and (5) of the landlord's summons dated 2 April 2008.