SINOFIT (HK) LTD v. FULL GAIN INVESTMENT LTD AND ANOTHER

SINOFIT (HK) LTD v. FULL GAIN INVESTMENT LTD AND ANOTHER

The Tribunal held it had jurisdiction to determine the current tenancy disputes under the BMO and Lands Tribunal Ordinance; Full Gain could not recover an excessive increase attributable to an air-conditioning reserve and overall management charges were unreasonable given the poor standard of service and...

Source-derived case information.

Citation
SINOFIT (HK) LTD v. FULL GAIN INVESTMENT LTD AND ANOTHER
Parties
Applicant (tenant): SINOFIT (H.K.) LIMITED; 1st Respondent (landlord): FULL GAIN INVESTMENT LIMITED; 2nd Respondent (building Manager): HANG YICK PROPERTIES MANAGEMENT LIMITED
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
17 March 1997
Case Number
LDNT3975/1995
Procedural Posture
Part IV Tenancy; Building Management Ordinance (bmo) Proceedings / Judgment (17 March 1997)
Outcome
Judgment for Applicant in part; management charges reduced and damages awarded; new tenancy fixed for 2 years with rent set.
Legal Topics
New Tenancy Determination, Management Charges, Maintenance Obligations and Delegation, Damages for Breach, Registration of Tenancy
Source Language
en
Property Law Landlord and Tenant Law Building Management Law Contract Law New Tenancy Determination Management Charges Maintenance Obligations and Delegation Damages for Breach +1 more

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Parties

SINOFIT (H.K.) LIMITED

Applicant (tenant)

FULL GAIN INVESTMENT LIMITED

1st Respondent (landlord)

HANG YICK PROPERTIES MANAGEMENT LIMITED

2nd Respondent (building Manager)

Procedural Posture

Part IV Tenancy; Building Management Ordinance (bmo) Proceedings / Judgment (17 March 1997)

Legal Issues

  1. 1 Whether the Lands Tribunal had jurisdiction under LTCO or BMO to determine disputes under the current Part IV tenancy
  2. 2 Whether increased management charges were recoverable from the tenant under the tenancy agreement and whether they were reasonable
  3. 3 Extent of landlord's liability for maintenance where performance was delegated to management company

Ratio Decidendi

The Tribunal held it had jurisdiction to determine the current tenancy disputes under the BMO and Lands Tribunal Ordinance; Full Gain could not recover an excessive increase attributable to an air-conditioning reserve and overall management charges were unreasonable given the poor standard of service and comparables, so charges were fixed at $5,500/month for the relevant period; Full Gain remained contractually liable for maintenance despite delegation and was awarded damages of $100,000 for breaches; the new tenancy was fixed at 2 years from 1 January 1996 and rent fixed at $71,500/month after downward adjustments for size, layout, condition and the exceptional effect of abnormally high...

Court Disposition

Judgment for Applicant in part; management charges reduced and damages awarded; new tenancy fixed for 2 years with rent set.

Orders

  • Management charges payable by the Applicant to the Respondent for the period 1 March 1994 to 31 December 1995 determined at $5,500 per month.
  • The Respondent shall pay the Applicant general damages of $100,000 for breach of the current tenancy agreement for the period which expired on 31 December 1995.