KEEP POINT DEVELOPMENT LTD v. CHAN CHI YIM AND OTHERS

KEEP POINT DEVELOPMENT LTD v. CHAN CHI YIM AND OTHERS

The court accepted the claimants' surveyor methodology (Mr Wong) over the respondent's in key respects: it adopted use of the Private Domestic Class A index for projecting values, held that a distinct redevelopment enhancement should be added to domestic units (20%), rejected any enhancement for commercial units, and fixed conversion rates for ancillary spaces (enclosed flat roofs 40% capital/60% rental; enclosed rooftops 33.333% capital/40% rental; open rooftop 12% capital and rental; cocklofts 33% conversion). The court directed parties to use Mr Wong's charts, adjust figures accordingly and return if difficulties arise; costs to be in the cause.

Citation
KEEP POINT DEVELOPMENT LTD v. CHAN CHI YIM AND OTHERS
Parties
Plaintiff: Keep Point Development Limited; 1st Defendant (among 63 Defendants): Chan Chi Yim & Ngai Yuet Fong; 1st Third Party (in Liquidation): Full Country Development Limited; 2nd Third Party (firm of Solicitors): Yuen Sung & Co.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 May 2005
Case Number
HCMP6550/1998
Procedural Posture
Miscellaneous Proceedings / Action No. 6550 of 1998 / Assessment of Damages Following Liability Finding and Remittal From the Court of Final Appeal (valuation/damages Trial)
Outcome
Preliminary rulings on valuation issues in favour of the claimants' valuation methodology with specified adjustments; matter remitted to parties to compute individual awards
Legal Topics
Assessment of Damages, Mitigation of Loss, Redevelopment Potential Valuation, Conversion Rates for Ancillary Spaces, Unauthorised Structures
Source Language
EN
Contract Tort Professional Negligence Property Law Valuation Law Assessment of Damages Mitigation of Loss Redevelopment Potential Valuation +2 more

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Parties

Keep Point Development Limited

Plaintiff

Chan Chi Yim & Ngai Yuet Fong

1st Defendant (among 63 Defendants)

Full Country Development Limited

1st Third Party (in Liquidation)

Yuen Sung & Co.

2nd Third Party (firm of Solicitors)

Procedural Posture

Miscellaneous Proceedings / Action No. 6550 of 1998 / Assessment of Damages Following Liability Finding and Remittal From the Court of Final Appeal (valuation/damages Trial)

Legal Issues

  1. 1 When each claimant should, as a matter of mitigation, have purchased a replacement unit (appropriate mitigation date)
  2. 2 Appropriate valuation methodology for units that no longer exist (comparables v. index projection)
  3. 3 Whether and to what extent redevelopment potential should be added as an enhancement to capital value

Ratio Decidendi

The court accepted the claimants' surveyor methodology (Mr Wong) over the respondent's in key respects: it adopted use of the Private Domestic Class A index for projecting values, held that a distinct redevelopment enhancement should be added to domestic units (20%), rejected any enhancement for commercial units, and fixed conversion rates for ancillary spaces (enclosed flat roofs 40% capital/60% rental; enclosed rooftops 33.333% capital/40% rental; open rooftop 12% capital and rental; cocklofts 33% conversion). The court directed parties to use Mr Wong's charts, adjust figures accordingly and return if difficulties arise; costs to be in the cause.

Court Disposition

Preliminary rulings on valuation issues in favour of the claimants' valuation methodology with specified adjustments; matter remitted to parties to compute individual awards

Orders

  • Adopt the valuation methodology substantially in the form used by Mr William Wong (FPD Savill)
  • Apply a 20% redevelopment enhancement to the capital value of domestic units only