SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

The Tribunal held that the statutory rateable-value multiplier creates only a minimum compensation; the proper measure of reasonable compensation for termination of a protected tenancy is the value of the tenant's loss measured by the expected future use of the tenancy (capitalised profit rent over the relevant period) plus disturbance; past occupation or sentimental attachment is not a compensable measure.

Citation
SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS
Parties
Applicant: SCAIFFEE LTD; Respondent (r.13): Barbara C. Woon; Respondent (r.14): Hung Pak; Respondent Sub Tenant (r.14(1)): Fung Kan; Respondent (r.15): Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDLA8/1983
Procedural Posture
Landlord and Tenant (consolidation) Ordinance Cap.7 Part II Repossession for Redevelopment / Victoria Lands Tribunal Award Determining Compensation After Possession Order Under Section 53(2)(c)
Outcome
Tribunal awarded specified monetary compensation to the three respondents and ordered staged payment; ordered repossession conditions previously made to stand; no order as to costs.
Legal Topics
Compensation for Termination of Protected Tenancy, Measure of Compensation Vs Statutory Minimum, Use of Rateable Value Formula, Disturbance Damages, Apportionment to Sub Tenants
Source Language
EN
Landlord and Tenant Law Property Compensation Statutory Interpretation Compensation for Termination of Protected Tenancy Measure of Compensation Vs Statutory Minimum Use of Rateable Value Formula Disturbance Damages Apportionment to Sub Tenants

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Parties

SCAIFFEE LTD

Applicant

Barbara C. Woon

Respondent (r.13)

Hung Pak

Respondent (r.14)

Fung Kan

Respondent Sub Tenant (r.14(1))

Kung Hong Koon

Respondent (r.15)

Procedural Posture

Landlord and Tenant (consolidation) Ordinance Cap.7 Part II Repossession for Redevelopment / Victoria Lands Tribunal Award Determining Compensation After Possession Order Under Section 53(2)(c)

Legal Issues

  1. 1 Whether compensation payable under s.53A(2) & (4)(a) must be assessed by the prescribed rateable value formula or may reflect full measure of tenant's loss
  2. 2 Proper measure of tenant's loss (past occupation/sentimental value v expected future use and disturbance)
  3. 3 Whether sub-tenant entitlement requires adherence to rateable-value formula

Ratio Decidendi

The Tribunal held that the statutory rateable-value multiplier creates only a minimum compensation; the proper measure of reasonable compensation for termination of a protected tenancy is the value of the tenant's loss measured by the expected future use of the tenancy (capitalised profit rent over the relevant period) plus disturbance; past occupation or sentimental attachment is not a compensable measure.

Court Disposition

Tribunal awarded specified monetary compensation to the three respondents and ordered staged payment; ordered repossession conditions previously made to stand; no order as to costs.

Orders

  • Award to Barbara C. Woon (R.13) $166000 HKD
  • Award to Hung Pak (R.14) $111600 HKD