Grace International Ltd. v. The Incorporated Owners of Fontana Gardens and Other

Grace International Ltd. v. The Incorporated Owners of Fontana Gardens and Other

House Rule (j) of the DMC for Block A could not lawfully authorise the managing agents or owners to disconnect a flat's water supply because disconnection/reconnection of inside services constitutes an 'alteration' requiring the Water Authority's written permission under Cap.102; additionally the 15 December 1995...

Source-derived case information.

Citation
Grace International Ltd. v. The Incorporated Owners of Fontana Gardens and Other
Parties
Plaintiff: Grace International Ltd.; 1st Defendant: The Incorporated Owners of Fontana Gardens; 2nd and 3rd Defendants: Fontana Gardens Owners and Occupiers Association; Alico Management Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 May 1996
Case Number
HCA13338/1995
Procedural Posture
Civil Dispute Concerning Building Management, Injunction and Counterclaim for Management Charges and Damages / Judgment at Trial (high Court)
Outcome
Injunction granted restraining defendants from disconnecting or interfering with water supply to Plaintiff's three units except temporary disconnection necessitated by pipeworks to entire blocks; Plaintiff held liable for arrears of management fees totalling HKD 79,619.25; Plaintiff awarded damages for repair costs...
Legal Topics
Injunction, Water Supply Disconnection, Deed of Mutual Covenant (dmc), Building Management Ordinance (cap.344), Waterworks Ordinance (cap.102), Management Charges and Surcharges, Duty to Repair, Set Off
Source Language
en
Property Law Administrative Law Contract Law Equity Statutory Interpretation Building Management Injunction Water Supply Disconnection +6 more

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Parties

Grace International Ltd.

Plaintiff

The Incorporated Owners of Fontana Gardens

1st Defendant

Fontana Gardens Owners and Occupiers Association; Alico Management Limited

2nd and 3rd Defendants

Procedural Posture

Civil Dispute Concerning Building Management, Injunction and Counterclaim for Management Charges and Damages / Judgment at Trial (high Court)

Legal Issues

  1. 1 Whether House Rule (j) or DMC empowered managing agents/owners to disconnect inside water services
  2. 2 Whether disconnection/reconnection constituted an alteration requiring Water Authority permission under Cap.102
  3. 3 Whether the 1st Defendant was validly incorporated and its management committee validly constituted under Cap.344

Ratio Decidendi

House Rule (j) of the DMC for Block A could not lawfully authorise the managing agents or owners to disconnect a flat's water supply because disconnection/reconnection of inside services constitutes an 'alteration' requiring the Water Authority's written permission under Cap.102; additionally the 15 December 1995 resolution purporting to amend House Rules for Blocks B and D was invalid due to irregular constitution of the management committee under Cap.344 and defective notice; accordingly the injunction restraining defendants from disconnecting water was granted; the Plaintiff was nonetheless liable for certain arrears of management fees (net $79,619.25) but entitled to set-off damages...

Court Disposition

Injunction granted restraining defendants from disconnecting or interfering with water supply to Plaintiff's three units except temporary disconnection necessitated by pipeworks to entire blocks; Plaintiff held liable for arrears of management fees totalling HKD 79,619.25; Plaintiff awarded damages for repair costs...

Orders

  • Injunction restraining Defendants from disconnecting or interfering with water supply to Plaintiff's three units in Blocks A, B and D except for temporary disconnection necessitated by pipeworks to entire blocks
  • Plaintiff liable for arrears of management fees and related surcharge insofar as applicable amounting to HKD 79,619.25