SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

The tribunal held that compensation payable under s53A(2) and (4)(a) is not confined to the statutory minimum formula based on rateable value multiples; rather reasonable compensation equals the tenant's actual loss measured by the value of the tenant's expected future use of the premises (capitalised profit rent for the period of restricted tenure) plus disturbance; past occupation or sentimental value are not compensable and the minimum multiples are merely a statutory floor.

Citation
SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS
Parties
Applicant: Scaiffe Ltd; Respondent: Barbara C. Woon; Respondent: Hung Pak; Sub Tenant: Fung Kan; Respondent: Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDNT21/1983
Procedural Posture
Tribunal Repossession for Redevelopment Under Part Ii, Landlord and Tenant (consolidation) Ordinance Cap.7 / Award Determining Compensation (victoria Lands Tribunal, 23 July 1983)
Outcome
Tribunal awarded full compensation to respondents R13–R15 based on tenant's interest (capitalised profit rent) plus disturbance; ordered payment schedule; no order as to costs
Legal Topics
Repossession for Redevelopment (s53), Measure of Compensation (s53 A), Minimum Compensation Formula (rateable Value Multiples), Disturbance Damages, Apportionment to Sub Tenants
Source Language
EN
Landlord and Tenant Property/real Property Compulsory Acquisition/compensation Administrative/tribunal Law Repossession for Redevelopment (s53) Measure of Compensation (s53 A) Minimum Compensation Formula (rateable Value Multiples) Disturbance Damages +1 more

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Parties

Scaiffe Ltd

Applicant

Barbara C. Woon

Respondent

Hung Pak

Respondent

Fung Kan

Sub Tenant

Kung Hong Koon

Respondent

Procedural Posture

Tribunal Repossession for Redevelopment Under Part Ii, Landlord and Tenant (consolidation) Ordinance Cap.7 / Award Determining Compensation (victoria Lands Tribunal, 23 July 1983)

Legal Issues

  1. 1 Whether compensation under s53A(2) and (4)(a) is to be assessed by the prescribed rateable‑value multiple formula (used for minimum compensation) or as full compensation equal to the tenant's actual loss
  2. 2 Whether past occupation or sentimental value are proper measures of compensation
  3. 3 How to quantify a tenant's interest and disturbance when repossessed to allow redevelopment

Ratio Decidendi

The tribunal held that compensation payable under s53A(2) and (4)(a) is not confined to the statutory minimum formula based on rateable value multiples; rather reasonable compensation equals the tenant's actual loss measured by the value of the tenant's expected future use of the premises (capitalised profit rent for the period of restricted tenure) plus disturbance; past occupation or sentimental value are not compensable and the minimum multiples are merely a statutory floor.

Court Disposition

Tribunal awarded full compensation to respondents R13–R15 based on tenant's interest (capitalised profit rent) plus disturbance; ordered payment schedule; no order as to costs

Orders

  • Award to Barbara C. Woon (No.6, 6th floor, VLT 18/83) HKD 166000
  • Award to Hung Pak (No.8, Basement, VLT 19/83) HKD 111600