SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

The Tribunal held that s.53A(4)(a)'s rateable-value multipliers prescribe only a minimum floor; reasonable compensation must reflect the tenant's actual loss measured by the value of expected future use of the protected tenancy (capitalised profit rent over the relevant period) plus disturbance costs, with apportionment to sub-tenants drawn from that overall tenant interest; past occupation or sentimental value is not compensable.

Citation
SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS
Parties
Applicant: SCAIFFE LTD; Respondent (r.13): Barbara C. Woon; Respondent (r.14): Hung Pak; 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
LDNT13/1983
Procedural Posture
Landlord and Tenant — Possession for Redevelopment and Compensation for Termination of Protected Tenancy / Tribunal Award (victoria Lands Tribunal)
Outcome
Tribunal awarded full compensation to each dispossessed tenant based on capitalised profit rent (tenant's interest) plus disturbance and ordered payment on staged dates; possession order for redevelopment affirmed previously
Legal Topics
Protected Tenancy, Compensation Assessment, Redevelopment Possession Orders, Disturbance Compensation, Apportionment to Sub Tenants
Source Language
EN
Landlord and Tenant Property Law Compulsory Acquisition/compensation Protected Tenancy Compensation Assessment Redevelopment Possession Orders Disturbance Compensation Apportionment to Sub Tenants

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Parties

SCAIFFE LTD

Applicant

Barbara C. Woon

Respondent (r.13)

Hung Pak

Respondent (r.14)

Fung Kan

Sub Tenant (r.14(1))

Kung Hong Koon

Respondent (r.15)

Procedural Posture

Landlord and Tenant — Possession for Redevelopment and Compensation for Termination of Protected Tenancy / Tribunal Award (victoria Lands Tribunal)

Legal Issues

  1. 1 Whether compensation under s.53A(2) & (4)(a) must be assessed by the prescribed rateable-value multiplier formula or whether it must reflect the tenant's full actual loss
  2. 2 What heads of loss are compensable (future use value, disturbance) and whether past occupation/sentimental value is compensable
  3. 3 How compensation to sub-tenants must be apportioned against principal tenant's interest

Ratio Decidendi

The Tribunal held that s.53A(4)(a)'s rateable-value multipliers prescribe only a minimum floor; reasonable compensation must reflect the tenant's actual loss measured by the value of expected future use of the protected tenancy (capitalised profit rent over the relevant period) plus disturbance costs, with apportionment to sub-tenants drawn from that overall tenant interest; past occupation or sentimental value is not compensable.

Court Disposition

Tribunal awarded full compensation to each dispossessed tenant based on capitalised profit rent (tenant's interest) plus disturbance and ordered payment on staged dates; possession order for redevelopment affirmed previously

Orders

  • Compensation to Barbara C. Woon (No.6, 6th floor) fixed at HKD 166000; one half payable within 14 days and balance on 31 October 1983 or on delivery of vacant possession whichever is sooner
  • Compensation to Hung Pak (No.8, Basement) fixed at HKD 111600 and to sub-tenant Fung Kan (10%) at HKD 12400; staged payment one half within 14 days and balance on 31 October 1983 or on delivery of vacant possession whichever is sooner