SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

The Tribunal held that s53A's prescribed multiples of rateable value establish a minimum entitlement only; reasonable compensation must be assessed by reference to the tenant's actual loss — principally the value of the tenant's expected future use of the protected tenancy (capitalised profit rent for the appropriate period) plus a disturbance allowance — and past occupation sentimental value is not compensable; apportionment to sub-tenants follows from apportioning the tenant's interest rather than applying a separate statutory formula.

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
LDLA7/1983
Procedural Posture
Tribunal Repossession for Redevelopment With Statutory Compensation Claim Under Landlord and Tenant (consolidation) Ordinance Cap.7 Part II / Award of Compensation by Victoria Lands Tribunal (final Determination on Quantum)
Outcome
Tribunal awarded compensation to the three named respondents based on tenant-interest valuation plus disturbance and made consequential payment and possession conditions; repossession order for redevelopment previously made under s53(2)(c) was confirmed in effect; no order as to costs.
Legal Topics
Statutory Compensation Under Section 53 a, Measure of Compensation Versus Prescribed Minimum Formula, Protected Tenancy Value, Disturbance Allowance, Apportionment to Sub Tenants
Source Language
EN
Landlord and Tenant Law Property Law Statutory Compensation Tribunal Procedure Statutory Compensation Under Section 53 a Measure of Compensation Versus Prescribed Minimum Formula Protected Tenancy Value Disturbance Allowance +1 more

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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

Tribunal Repossession for Redevelopment With Statutory Compensation Claim Under Landlord and Tenant (consolidation) Ordinance Cap.7 Part II / Award of Compensation by Victoria Lands Tribunal (final Determination on Quantum)

Legal Issues

  1. 1 Whether compensation under s53A(2) and s53A(4)(a) must be assessed by the same rateable-value multiple formula as the minimum compensation or by reference to the tenant's actual loss
  2. 2 Whether past occupation or sentimental attachment is a proper measure of compensation
  3. 3 What heads of loss are recoverable by a dispossessed protected tenant (value of expected future use, disturbance, apportionment to sub-tenants)

Ratio Decidendi

The Tribunal held that s53A's prescribed multiples of rateable value establish a minimum entitlement only; reasonable compensation must be assessed by reference to the tenant's actual loss — principally the value of the tenant's expected future use of the protected tenancy (capitalised profit rent for the appropriate period) plus a disturbance allowance — and past occupation sentimental value is not compensable; apportionment to sub-tenants follows from apportioning the tenant's interest rather than applying a separate statutory formula.

Court Disposition

Tribunal awarded compensation to the three named respondents based on tenant-interest valuation plus disturbance and made consequential payment and possession conditions; repossession order for redevelopment previously made under s53(2)(c) was confirmed in effect; no order as to costs.

Orders

  • Award to Barbara C. Woon (R.13) $166,000 HKD
  • Award to Hung Pak (R.14) $111,600 HKD and award to sub-tenant Fung Kan (R.14(1)) $12,400 HKD (apportionment 90%/10%)