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 multiples prescribe only a statutory minimum; reasonable compensation must equal the tenant's actual loss measured by the value of the tenant's expected future use of the premises (capitalised profit rent over the relevant period) plus an allowance for disturbance. Past occupation or sentimental attachment is not a monetary measure of compensation; sub-tenants are entitled to an apportioned share of the tenant's interest.

Citation
SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS
Parties
Applicant: SCAIFFE LTD; Respondent: Barbara C. Woon; Respondent: Hung Pak; Respondent: Fung Kan (sub-tenant); Respondent: Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDNT14/1983
Procedural Posture
Tribunal Application for Possession to Permit Redevelopment and Claim for Tenant Compensation Under Part II Cap.7 / Tribunal Award (victoria Lands Tribunal, 23 July 1983)
Outcome
Tribunal awarded compensation to three respondents for termination of protected tenancy to permit redevelopment; possession order under s.53(2)(c) previously made was maintained; consent orders made for other respondents.
Legal Topics
Redevelopment Repossession Under S.53(2)(c), Tenant Compensation Under S.53 A(2) and S.53 A(4)(a), Measure of Compensation (rateable Value Formula V Full Loss), Disturbance Damages, Apportionment to Sub Tenants, Capitalisation of Future Profit Rent
Source Language
EN
Landlord and Tenant Law Compulsory Acquisition/compensation Property Law Redevelopment Repossession Under S.53(2)(c) Tenant Compensation Under S.53 A(2) and S.53 A(4)(a) Measure of Compensation (rateable Value Formula V Full Loss) Disturbance Damages Apportionment to Sub Tenants +1 more

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Parties

SCAIFFE LTD

Applicant

Barbara C. Woon

Respondent

Hung Pak

Respondent

Fung Kan (sub-tenant)

Respondent

Kung Hong Koon

Respondent

Procedural Posture

Tribunal Application for Possession to Permit Redevelopment and Claim for Tenant Compensation Under Part II Cap.7 / Tribunal Award (victoria Lands Tribunal, 23 July 1983)

Legal Issues

  1. 1 Whether compensation for termination of a protected tenancy to allow redevelopment must follow the rateable-value based formula used for minimum compensation or must compensate the tenant for actual loss (value of expected future use)
  2. 2 Whether past occupation or sentimental attachment is a proper element of compensation
  3. 3 How to apportion compensation between principal tenant and sub-tenant

Ratio Decidendi

The tribunal held that s.53A(4)(a)'s rateable-value multiples prescribe only a statutory minimum; reasonable compensation must equal the tenant's actual loss measured by the value of the tenant's expected future use of the premises (capitalised profit rent over the relevant period) plus an allowance for disturbance. Past occupation or sentimental attachment is not a monetary measure of compensation; sub-tenants are entitled to an apportioned share of the tenant's interest.

Court Disposition

Tribunal awarded compensation to three respondents for termination of protected tenancy to permit redevelopment; possession order under s.53(2)(c) previously made was maintained; consent orders made for other respondents.

Orders

  • Award R13 (No.6, 6th floor) to Barbara C. Woon: HKD 166000 (tenant's interest HKD 155700 plus disturbance HKD 10300)
  • Award R14 (No.8, Basement) total HKD 124000 apportioned: Hung Pak HKD 111600 (90%) and Fung Kan (sub-tenant) HKD 12400 (10%)