SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

The Tribunal held that the statutory formula based on rateable value defines only a minimum; reasonable compensation under s.53A(4)(a) is the equivalent of the tenant's actual loss from being required to give up a protected tenancy early and is measured by the value of the tenant's expected future use (capitalised profit rent) plus an allowance for disturbance; past occupation or sentimental value is not compensable; apportionment to sub-tenants is permissible but limited by the tenant's total interest.

Citation
SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS
Parties
Applicant: Scaiffe Ltd; Respondent: Barbara C. Woon; Respondent (principal Tenant): Hung Pak; Respondent (sub Tenant): Fung Kan; Respondent: Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDNT18/1983
Procedural Posture
Landlord and Tenant — Repossession for Redevelopment Under Landlord and Tenant (consolidation) Ordinance Cap.7 Section 53(2)(c); Determination of Compensation Under Section 53 a / Victoria Lands Tribunal Award (quantum of Compensation) Dated 23 July 1983
Outcome
Tribunal awarded compensation to the three respondents on the basis of tenant's interest in expected future use capitalised plus disturbance, ordered payment schedule and apportionment to sub-tenant; no order as to costs.
Legal Topics
Measure of Compensation Under Statutory Redevelopment Orders, Protected Tenancy Valuation, Disturbance Compensation, Apportionment to Sub Tenants, Role of Rateable Value Formula Vs Actual Loss
Source Language
EN
Landlord and Tenant Law Property Law Statutory Interpretation Compulsory Acquisition and Compensation Measure of Compensation Under Statutory Redevelopment Orders Protected Tenancy Valuation Disturbance Compensation Apportionment to Sub Tenants +1 more

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Parties

Scaiffe Ltd

Applicant

Barbara C. Woon

Respondent

Hung Pak

Respondent (principal Tenant)

Fung Kan

Respondent (sub Tenant)

Kung Hong Koon

Respondent

Procedural Posture

Landlord and Tenant — Repossession for Redevelopment Under Landlord and Tenant (consolidation) Ordinance Cap.7 Section 53(2)(c); Determination of Compensation Under Section 53 a / Victoria Lands Tribunal Award (quantum of Compensation) Dated 23 July 1983

Legal Issues

  1. 1 Whether compensation under s.53A(2) and (4)(a) must be calculated solely by the prescribed rateable-value/occupation multiplier formula or whether it may be a full compensation for the tenant's actual loss
  2. 2 Whether minimum statutory multiples are the ceiling or merely a floor
  3. 3 Whether past occupation or sentimental attachment is a proper measure of compensation

Ratio Decidendi

The Tribunal held that the statutory formula based on rateable value defines only a minimum; reasonable compensation under s.53A(4)(a) is the equivalent of the tenant's actual loss from being required to give up a protected tenancy early and is measured by the value of the tenant's expected future use (capitalised profit rent) plus an allowance for disturbance; past occupation or sentimental value is not compensable; apportionment to sub-tenants is permissible but limited by the tenant's total interest.

Court Disposition

Tribunal awarded compensation to the three respondents on the basis of tenant's interest in expected future use capitalised plus disturbance, ordered payment schedule and apportionment to sub-tenant; no order as to costs.

Orders

  • Award to Barbara C. Woon (No.6 Arbuthnot Road, 6th floor): HKD 166000
  • Award to Hung Pak (No.8 Arbuthnot Road, Basement — principal tenant): HKD 111600