SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

The Tribunal held that the statutory rateable-value multiplier in s.53A(4)(a) provides only a minimum floor; reasonable compensation must be the tenant's actual loss from having to give up protected tenancy early, calculated as the value of the tenant's expected future use of the tenancy (capitalised profit rent for the appropriate period) plus a reasonable award for disturbance; past occupation or sentimental attachment is not a monetary measure of loss except insofar as it underpins the statutory minimum.

Citation
SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS
Parties
Applicant: SCAIFFE LTD; Respondent: Barbara C. Woon; Respondent: Hung Pak; Respondent: Fung Kan; Respondent: Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDNT17/1983
Procedural Posture
Landlord and Tenant — Possession for Redevelopment Under Landlord and Tenant (consolidation) Ordinance Cap.7 Part II / Tribunal Award Assessing Compensation Following Possession Order Under S.53(2)(c)
Outcome
Tribunal awarded compensation to the three reserved respondents and confirmed prior repossession order under s.53(2)(c); no order as to costs.
Legal Topics
Statutory Compensation, Measure of Damages, Redevelopment Possession, Security of Tenure, Disturbance Damages, Apportionment to Sub Tenants
Source Language
EN
Landlord and Tenant Property Law Compulsory Acquisition/compensation Administrative/tribunal Law Statutory Compensation Measure of Damages Redevelopment Possession Security of Tenure +2 more

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Parties

SCAIFFE LTD

Applicant

Barbara C. Woon

Respondent

Hung Pak

Respondent

Fung Kan

Respondent

Kung Hong Koon

Respondent

Procedural Posture

Landlord and Tenant — Possession for Redevelopment Under Landlord and Tenant (consolidation) Ordinance Cap.7 Part II / Tribunal Award Assessing Compensation Following Possession Order Under S.53(2)(c)

Legal Issues

  1. 1 Whether the prescribed rateable-value multiplier formula in s.53A(4)(a) applies to full compensation or only to minimum compensation
  2. 2 Proper measure of compensation for a protected tenant dispossessed for redevelopment
  3. 3 Whether past occupation or sentimental value is compensable

Ratio Decidendi

The Tribunal held that the statutory rateable-value multiplier in s.53A(4)(a) provides only a minimum floor; reasonable compensation must be the tenant's actual loss from having to give up protected tenancy early, calculated as the value of the tenant's expected future use of the tenancy (capitalised profit rent for the appropriate period) plus a reasonable award for disturbance; past occupation or sentimental attachment is not a monetary measure of loss except insofar as it underpins the statutory minimum.

Court Disposition

Tribunal awarded compensation to the three reserved respondents and confirmed prior repossession order under s.53(2)(c); no order as to costs.

Orders

  • Award to Respondent R13 (Barbara C. Woon), No.6 Arbuthnot Road 6th floor: HK$166000 total
  • Award to premises No.8 Arbuthnot Road Basement: HK$124000 total, apportioned HK$111600 to principal tenant Hung Pak (90%) and HK$12400 to sub-tenant Fung Kan (10%)