SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

The statutory rateable-value multiplier in s.53A(4)(a) provides only a minimum guaranteed compensation; the proper measure of reasonable compensation is the tenant's actual loss measured by the value of the tenant's expected future use of the protected tenancy (capitalised profit rent) plus reasonable disturbance costs; past occupation or sentimental value is not compensable; apportionment to sub-tenants is required but follows the same valuation principles.

Citation
SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS
Parties
Applicant: Scaiffee Ltd; Respondent (r13): Barbara C. Woon; Respondent (r14): Hung Pak; Respondent (sub Tenant R14(1)): Fung Kan; Respondent (r15): Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDLA12/1983
Procedural Posture
Landlord and Tenant — Repossession for Redevelopment Under Landlord and Tenant (consolidation) Ordinance Cap.7 S.53(2)(c) and Compensation Under S.53 a / Tribunal Award on Quantum of Compensation (victoria Lands Tribunal Award)
Outcome
Tribunal awarded compensatory sums to respondents based on capitalised value of expected future profit rent plus disturbance; ordered payment schedule and apportionment for sub-tenant; no order as to costs.
Legal Topics
Measure of Compensation, Protected Tenancy, Section 53 A(2) and 53 A(4)(a), Disturbance Damages, Rateable Value Formula, Apportionment to Sub Tenants, Capitalisation and Years Purchase
Source Language
EN
Landlord and Tenant Property Law Compulsory Acquisition and Compensation Tribunal Procedure Measure of Compensation Protected Tenancy Section 53 A(2) and 53 A(4)(a) Disturbance Damages +3 more

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Parties

Scaiffee Ltd

Applicant

Barbara C. Woon

Respondent (r13)

Hung Pak

Respondent (r14)

Fung Kan

Respondent (sub Tenant R14(1))

Kung Hong Koon

Respondent (r15)

Procedural Posture

Landlord and Tenant — Repossession for Redevelopment Under Landlord and Tenant (consolidation) Ordinance Cap.7 S.53(2)(c) and Compensation Under S.53 a / Tribunal Award on Quantum of Compensation (victoria Lands Tribunal Award)

Legal Issues

  1. 1 Whether reasonable compensation under s.53A(4)(a) must be assessed by the statutory rateable-value multiplier or by full assessment of tenant's actual loss
  2. 2 Whether minimum statutory formula governs all compensation or only the statutory floor
  3. 3 Proper components of compensation (value of expected future use of protected tenancy plus disturbance)

Ratio Decidendi

The statutory rateable-value multiplier in s.53A(4)(a) provides only a minimum guaranteed compensation; the proper measure of reasonable compensation is the tenant's actual loss measured by the value of the tenant's expected future use of the protected tenancy (capitalised profit rent) plus reasonable disturbance costs; past occupation or sentimental value is not compensable; apportionment to sub-tenants is required but follows the same valuation principles.

Court Disposition

Tribunal awarded compensatory sums to respondents based on capitalised value of expected future profit rent plus disturbance; ordered payment schedule and apportionment for sub-tenant; no order as to costs.

Orders

  • Award R13 (Barbara C. Woon) total HKD 166000 (tenant's interest HKD 155700 plus disturbance HKD 10300)
  • Award R14 total HKD 124000 apportioned HKD 111600 to Hung Pak and HKD 12400 to sub-tenant Fung Kan (tenant's interest HKD 113600 plus disturbance HKD 10400)