SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

The Tribunal held that s53A(4)(a) minimum multiples of rateable value constitute a statutory floor only; reasonable compensation otherwise must reflect the tenant's actual loss measured by the value of expected future use (capitalised profit rent) plus an allowance for disturbance; past occupation or sentimental...

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; Respondent: Hung Pak; Respondent: Fung Kan; Respondent: Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDNT9/1983
Procedural Posture
Landlord and Tenant — Repossession for Redevelopment With Compensation Claim Under Cap.7 Part II / Victoria Lands Tribunal Award (decision)
Outcome
Tribunal awarded compensation to the three respondents calculated as value of tenants' interest (capitalised profit rent) plus disturbance; repossession order for redevelopment previously made under s53(2)(c) stands; no order as to costs.
Legal Topics
Redevelopment Repossession Under Section 53, Tenant Compensation Under Section 53 a, Measure of Compensation, Disturbance Allowance, Apportionment to Sub Tenant
Source Language
en
Landlord and Tenant Property Compulsory Acquisition Statutory Compensation Redevelopment Repossession Under Section 53 Tenant Compensation Under Section 53 a Measure of Compensation Disturbance Allowance +1 more

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Summary, issues, holding and outcome

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Parties

SCAIFFE LTD

Applicant

CHOW HEI CHUEN & OTHERS

Respondent

Barbara C. Woon

Respondent

Hung Pak

Respondent

Fung Kan

Respondent

Kung Hong Koon

Respondent

Procedural Posture

Landlord and Tenant — Repossession for Redevelopment With Compensation Claim Under Cap.7 Part II / Victoria Lands Tribunal Award (decision)

Legal Issues

  1. 1 Whether compensation under s53A(2) & (4)(a) must be calculated solely by the prescribed rateable‑value formula or may be full compensation for tenant's actual loss
  2. 2 What is the proper measure of a tenant's loss (future use/value vs past occupation/sentimental value)
  3. 3 Whether sub‑tenant entitlement and apportionment require adherence to the rateable‑value formula

Ratio Decidendi

The Tribunal held that s53A(4)(a) minimum multiples of rateable value constitute a statutory floor only; reasonable compensation otherwise must reflect the tenant's actual loss measured by the value of expected future use (capitalised profit rent) plus an allowance for disturbance; past occupation or sentimental value is not a proper monetary measure; established valuation and disturbance principles apply to assess awards.

Court Disposition

Tribunal awarded compensation to the three respondents calculated as value of tenants' interest (capitalised profit rent) plus disturbance; repossession order for redevelopment previously made under s53(2)(c) stands; no order as to costs.

Orders

  • Compensation awarded to respondent Barbara C. Woon (R13, No.6 Arbuthnot Road, 6th floor) in the sum of HKD 166000
  • Compensation awarded for No.8 Arbuthnot Road Basement (total HKD 124000) apportioned: Hung Pak HKD 111600 and Fung Kan (sub‑tenant) HKD 12400