SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

The Tribunal held that the rateable‑value multiplier in s.53A(4)(a) prescribes only minimum compensation; reasonable compensation must instead compensate the tenant for actual loss measured by the value of his expected future use of the protected tenancy (capitalised profit rent) plus disturbance costs. Past occupation or sentimental value is not a monetary measure. Applying this method the Tribunal quantified each tenant's interest and disturbance and awarded specific sums.

Citation
SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS
Parties
Applicant: SCAIFFE LTD; Respondent: Barbara C. Woon; Respondent: Hung Pak; Respondent (sub Tenant): Fung Kan; Respondent: Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDNT22/1983
Procedural Posture
Application for Possession for Redevelopment Under Landlord and Tenant (consolidation) Ordinance Cap.7 Part II and Assessment of Compensation Under Section 53 a / Victoria Lands Tribunal Award (determination of Compensation)
Outcome
Tribunal awarded compensation to the three disputing respondents and maintained the possession order for redevelopment; no order as to costs.
Legal Topics
Measure of Compensation, Protected Tenancy, Section 53(2)(c) Redevelopment Possession, Section 53 A(2) and (4)(a) Minimum Compensation, Disturbance Compensation, Apportionment to Sub Tenants
Source Language
EN
Landlord and Tenant Law Property Law Compulsory Acquisition/compensation Tribunal Procedure Measure of Compensation Protected Tenancy Section 53(2)(c) Redevelopment Possession Section 53 A(2) and (4)(a) Minimum Compensation +2 more

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Parties

SCAIFFE LTD

Applicant

Barbara C. Woon

Respondent

Hung Pak

Respondent

Fung Kan

Respondent (sub Tenant)

Kung Hong Koon

Respondent

Procedural Posture

Application for Possession for Redevelopment Under Landlord and Tenant (consolidation) Ordinance Cap.7 Part II and Assessment of Compensation Under Section 53 a / Victoria Lands Tribunal Award (determination of Compensation)

Legal Issues

  1. 1 Whether compensation for termination of a protected tenancy to allow redevelopment must follow the rateable‑value multiplier formula used for minimum compensation or be full compensation for the tenant's actual loss
  2. 2 Whether past occupation or sentimental attachment is a proper component of compensation
  3. 3 How to value a tenant's interest and include disturbance costs

Ratio Decidendi

The Tribunal held that the rateable‑value multiplier in s.53A(4)(a) prescribes only minimum compensation; reasonable compensation must instead compensate the tenant for actual loss measured by the value of his expected future use of the protected tenancy (capitalised profit rent) plus disturbance costs. Past occupation or sentimental value is not a monetary measure. Applying this method the Tribunal quantified each tenant's interest and disturbance and awarded specific sums.

Court Disposition

Tribunal awarded compensation to the three disputing respondents and maintained the possession order for redevelopment; no order as to costs.

Orders

  • Award to R.13 Barbara C. Woon: HKD 166000
  • Award to R.14 Hung Pak: HKD 111600