SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

The Tribunal held that the statutory rateable‑value multiples constitute a minimum floor only; reasonable compensation must be the tenant's actual loss measured by the value of the tenant's expected future use of the tenancy capitalised over an appropriate period plus disturbance costs, with past occupation or sentimental value not being a basis for additional compensation.

Citation
SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS
Parties
Applicant: Scaiffe Ltd; Respondent (r.13): Barbara C. Woon; Respondent (r.14): Hung Pak; Respondent Sub Tenant (r.14(1)): Fung Kan; Respondent (r.15): Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDNT6/1983
Procedural Posture
Landlord and Tenant — Possession for Redevelopment Under Part II Cap.7 / Victoria Lands Tribunal Award on Compensation Following Repossession Order Under S.53(2)(c)
Outcome
Tribunal awarded full compensation to respondents R.13–R.15 based on value of tenant's interest plus disturbance and ordered payment with specified timetable; no order as to costs.
Legal Topics
Protected Tenancy, Redevelopment Repossession, Assessment of Compensation, Disturbance Damages, Rateable Value Formula
Source Language
EN
Landlord and Tenant Property Law Compulsory Acquisition/compensation Protected Tenancy Redevelopment Repossession Assessment of Compensation Disturbance Damages Rateable Value Formula

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Parties

Scaiffe Ltd

Applicant

Barbara C. Woon

Respondent (r.13)

Hung Pak

Respondent (r.14)

Fung Kan

Respondent Sub Tenant (r.14(1))

Kung Hong Koon

Respondent (r.15)

Procedural Posture

Landlord and Tenant — Possession for Redevelopment Under Part II Cap.7 / Victoria Lands Tribunal Award on Compensation Following Repossession Order Under S.53(2)(c)

Legal Issues

  1. 1 Whether compensation under s.53A(2) & (4)(a) is to be assessed by the same formula as the statutory minimum based on rateable value or by full measure of the tenant's actual loss
  2. 2 What constitutes the tenant's loss for compensation purposes (past occupation/sentimental value v expected future use and disturbance)
  3. 3 Whether apportionment to sub-tenants and the power to amend minimum formula limits assessment of reasonable compensation

Ratio Decidendi

The Tribunal held that the statutory rateable‑value multiples constitute a minimum floor only; reasonable compensation must be the tenant's actual loss measured by the value of the tenant's expected future use of the tenancy capitalised over an appropriate period plus disturbance costs, with past occupation or sentimental value not being a basis for additional compensation.

Court Disposition

Tribunal awarded full compensation to respondents R.13–R.15 based on value of tenant's interest plus disturbance and ordered payment with specified timetable; no order as to costs.

Orders

  • Award to Barbara C. Woon (No.6, 6th floor) HKD 166000
  • Award to Hung Pak (No.8, Basement) HKD 111600