SUNION DEVELOPMENT LTD v. NAM HOI BUS SERVICES CO LTD

SUNION DEVELOPMENT LTD v. NAM HOI BUS SERVICES CO LTD

Court found as fact that Sunion (through Lam) and Polyunit (through Ho and Leung) represented the Property to be open storage land suitable and lawful for Nam Hoi's intended use; Nam Hoi relied on those representations; vehicle parking fell within the contractual open storage use so Nam Hoi did not breach the Tenancy and Sunion's forfeiture was wrongful; Sunion is liable under the Misrepresentation Ordinance for inducing the contract; Polyunit breached statutory duties by failing to verify land use and is liable to Nam Hoi in respect of counterclaim items recoverable in law; damages were assessed and limited to proven items (relocation, refunds) while other claimed business losses were...

Citation
SUNION DEVELOPMENT LTD v. NAM HOI BUS SERVICES CO LTD
Parties
Plaintiff (original Action); 1st Defendant (counterclaim): Sunion Development Limited; Defendant (original Action); Plaintiff (counterclaim): Nam Hoi Bus Services Company Limited; 2nd Defendant (counterclaim): Leung Lai Chu Judy (trading as Polyunit Property Agency Co)
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
29 March 2012
Case Number
DCCJ4935/2009
Procedural Posture
Civil Action Tenancy Dispute With Counterclaim for Misrepresentation and Statutory Claims / Judgment (trial)
Outcome
Judgment for both sides in part: Sunion awarded mesne profits; Nam Hoi awarded parts of counterclaim against Sunion and Polyunit; Sunion and Polyunit found liable for misrepresentations/statutory breaches in relation to inducing the Tenancy.
Legal Topics
Forfeiture of Lease, Mesne Profits, Statutory Misrepresentation Liability, Statutory Duty of Estate Agents (s36), Damages and Mitigation, Agent Authority and Ratification
Source Language
EN
Landlord and Tenant Law Contract Law Misrepresentation Estate Agents Regulation Planning/land Use Law Forfeiture of Lease Mesne Profits Statutory Misrepresentation Liability +3 more

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Parties

Sunion Development Limited

Plaintiff (original Action); 1st Defendant (counterclaim)

Nam Hoi Bus Services Company Limited

Defendant (original Action); Plaintiff (counterclaim)

Leung Lai Chu Judy (trading as Polyunit Property Agency Co)

2nd Defendant (counterclaim)

Procedural Posture

Civil Action Tenancy Dispute With Counterclaim for Misrepresentation and Statutory Claims / Judgment (trial)

Legal Issues

  1. 1 Whether Nam Hoi breached the Tenancy by parking vehicles on the Property
  2. 2 If breach, whether Sunion entitled to terminate Tenancy and claim vacant possession and mesne profits and amount
  3. 3 Whether Sunion and/or Polyunit made misrepresentations inducing Nam Hoi to enter the Tenancy

Ratio Decidendi

Court found as fact that Sunion (through Lam) and Polyunit (through Ho and Leung) represented the Property to be open storage land suitable and lawful for Nam Hoi's intended use; Nam Hoi relied on those representations; vehicle parking fell within the contractual open storage use so Nam Hoi did not breach the Tenancy and Sunion's forfeiture was wrongful; Sunion is liable under the Misrepresentation Ordinance for inducing the contract; Polyunit breached statutory duties by failing to verify land use and is liable to Nam Hoi in respect of counterclaim items recoverable in law; damages were assessed and limited to proven items (relocation, refunds) while other claimed business losses were...

Court Disposition

Judgment for both sides in part: Sunion awarded mesne profits; Nam Hoi awarded parts of counterclaim against Sunion and Polyunit; Sunion and Polyunit found liable for misrepresentations/statutory breaches in relation to inducing the Tenancy.

Orders

  • Nam Hoi shall pay Sunion HKD 230000 being mesne profits up to 19 October 2011 at HKD 10,000 per month
  • Sunion and Polyunit shall pay Nam Hoi HKD 80000 being relocation expenses