SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

The Tribunal held that s.53A(4)(a) prescribes only minimum compensation based on rateable‑value multiples; reasonable compensation is instead the tenant's actual loss measured by the value of expected future use of the protected tenancy plus an allowance for disturbance. Past occupancy or sentimental value is not a compensable measure. The Tribunal quantified loss by estimating profit rent, capitalising profit rent for the relevant period, and adding disturbance costs, and awarded specific sums to respondents accordingly.

Citation
SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS
Parties
Applicant: SCAIFFEE LTD; Respondent (r.13): Barbara C. Woon; Respondent (r.14): Hung Pak; Sub Tenant / Respondent (r.14(1)): Fung Kan; Respondent (r.15): Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDLA9/1983
Procedural Posture
Landlord and Tenant — Possession for Redevelopment and Statutory Compensation Under Cap.7 Part II / Tribunal Award (victoria Lands Tribunal — Award Dated 23 July 1983)
Outcome
Tribunal awarded compensation to the three disputed respondents representing full reasonable compensation (tenant's interest plus disturbance) and ordered staged payment; repossession order remains conditional on payment/surrender terms; no order as to costs.
Legal Topics
Section 53 a Compensation, Measure of Compensation, Redevelopment Possession Under S.53(2)(c), Sub‑tenant Apportionment, Disturbance Damages, Rateable Value Formula Vs. Full Loss
Source Language
EN
Landlord and Tenant Law Compulsory Acquisition / Compensation Property Law Statutory Interpretation Section 53 a Compensation Measure of Compensation Redevelopment Possession Under S.53(2)(c) Sub‑tenant Apportionment +2 more

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Parties

SCAIFFEE LTD

Applicant

Barbara C. Woon

Respondent (r.13)

Hung Pak

Respondent (r.14)

Fung Kan

Sub Tenant / Respondent (r.14(1))

Kung Hong Koon

Respondent (r.15)

Procedural Posture

Landlord and Tenant — Possession for Redevelopment and Statutory Compensation Under Cap.7 Part II / Tribunal Award (victoria Lands Tribunal — Award Dated 23 July 1983)

Legal Issues

  1. 1 Whether compensation payable under s.53A(2) & (4)(a) is confined to the prescribed rateable‑value multiples (minimum) or is a full compensation for tenant's actual loss
  2. 2 Whether past occupation or sentimental attachment is a proper measure of compensation
  3. 3 Proper measure and components of reasonable compensation for dispossessed protected tenants (value of expected future use and disturbance)

Ratio Decidendi

The Tribunal held that s.53A(4)(a) prescribes only minimum compensation based on rateable‑value multiples; reasonable compensation is instead the tenant's actual loss measured by the value of expected future use of the protected tenancy plus an allowance for disturbance. Past occupancy or sentimental value is not a compensable measure. The Tribunal quantified loss by estimating profit rent, capitalising profit rent for the relevant period, and adding disturbance costs, and awarded specific sums to respondents accordingly.

Court Disposition

Tribunal awarded compensation to the three disputed respondents representing full reasonable compensation (tenant's interest plus disturbance) and ordered staged payment; repossession order remains conditional on payment/surrender terms; no order as to costs.

Orders

  • R13 (Barbara C. Woon) awarded total HKD 166000 (tenant interest HKD 155700 + disturbance HKD 10300)
  • R14 (Hung Pak) awarded total HKD 111600 and R14(1) (Fung Kan, sub‑tenant) awarded total HKD 12400 (apportioned 90%/10% of HKD 124000)