SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

The Tribunal held that Section 53A(4)(a)'s prescribed formula based on rateable value and length of occupation establishes only a minimum; reasonable compensation for termination to permit redevelopment must compensate the tenant for the actual loss of their expected future use of the protected tenancy (the tenant's...

Source-derived case information.

Citation
SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS
Parties
Applicant: SCAIFFE LTD; Respondent: CHOW HEI CHUEN & OTHERS; Respondent: Barbara C. Woon (R.13); Respondent: Hung Pak (R.14); Respondent: Kung Hong Koon (R.15)
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDNT8/1983
Procedural Posture
Landlord and Tenant Possession for Redevelopment and Tenant Compensation Under Part II Cap.7 / Tribunal Award (final)
Outcome
Tribunal awarded full compensation to the three respondents based on assessed tenant's interest plus disturbance and ordered payment on a staged basis.
Legal Topics
Redevelopment Possession (section 53(2)(c)), Tenant Compensation (section 53 A), Measure of Compensation, Disturbance Damages, Rateable Value as Minimum Formula
Source Language
en
Landlord and Tenant Law Property Law Compulsory Acquisition/compensation Redevelopment Possession (section 53(2)(c)) Tenant Compensation (section 53 A) Measure of Compensation Disturbance Damages Rateable Value as Minimum Formula

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Parties

SCAIFFE LTD

Applicant

CHOW HEI CHUEN & OTHERS

Respondent

Barbara C. Woon (R.13)

Respondent

Hung Pak (R.14)

Respondent

Kung Hong Koon (R.15)

Respondent

Procedural Posture

Landlord and Tenant Possession for Redevelopment and Tenant Compensation Under Part II Cap.7 / Tribunal Award (final)

Legal Issues

  1. 1 Whether compensation for termination of a protected tenancy to permit redevelopment is to be assessed by the prescribed rateable value formula or by full measure of the tenant's actual loss
  2. 2 Whether past occupation or sentimental attachment is a proper measure of compensation
  3. 3 How to quantify tenant's loss (value of expected future use, profit rent, capitalization, disturbance)

Ratio Decidendi

The Tribunal held that Section 53A(4)(a)'s prescribed formula based on rateable value and length of occupation establishes only a minimum; reasonable compensation for termination to permit redevelopment must compensate the tenant for the actual loss of their expected future use of the protected tenancy (the tenant's particular interest) plus disturbance. Past occupation or sentimental value is not a monetary measure of compensation. Apportionment to sub-tenants must reflect the sum of interests not exceeding the tenant's interest.

Court Disposition

Tribunal awarded full compensation to the three respondents based on assessed tenant's interest plus disturbance and ordered payment on a staged basis.

Orders

  • Applicant to pay Barbara C. Woon (R13, No.6, 6th floor) HKD 166000 in compensation
  • Applicant to pay Hung Pak (R14, No.8 Basement) HKD 111600 and Fung Kan (R14(1), sub-tenant) HKD 12400 (apportioned 90%/10%), total HKD 124000