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 minimum compensation calculated by reference to rateable value and length of occupation but does not limit the assessment of what is reasonable; reasonable compensation for dispossessed protected tenants is the equivalent of their actual loss measured by the value of their expected future use (the tenant's interest determined by capitalising profit rent over the relevant period) plus disturbance costs; past occupation or sentimental value is not a monetary measure of compensation; sub-tenants are entitled to an apportioned share of the tenant's interest.

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
LDLA22/1983
Procedural Posture
Possession for Redevelopment and Compensation Under Landlord and Tenant (consolidation) Ordinance Cap.7 Part II / Victoria Lands Tribunal Award Determining Compensation (tribunal Award Dated 23 July 1983)
Outcome
Tribunal awarded compensation to the three respondents based on assessed tenant interest (capitalised profit rent) plus disturbance and maintained the redevelopment repossession order; no order as to costs.
Legal Topics
Compensation Assessment, Protected Tenancy, Redevelopment Possession Orders, Minimum Statutory Compensation, Disturbance Allowance, Apportionment to Sub Tenants
Source Language
EN
Landlord and Tenant Property Law Compulsory Acquisition/compensation Statutory Interpretation Compensation Assessment Protected Tenancy Redevelopment Possession Orders Minimum Statutory Compensation +2 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

Possession for Redevelopment and Compensation Under Landlord and Tenant (consolidation) Ordinance Cap.7 Part II / Victoria Lands Tribunal Award Determining Compensation (tribunal Award Dated 23 July 1983)

Legal Issues

  1. 1 Whether compensation under s.53A(2) and s.53A(4)(a) must be calculated solely by the prescribed rateable-value formula or may be a full measure of the tenant's actual loss
  2. 2 Proper measure of tenant's loss when dispossessed for redevelopment of protected tenancy
  3. 3 Whether past occupation or sentimental value is compensable

Ratio Decidendi

The Tribunal held that s.53A(4)(a) prescribes minimum compensation calculated by reference to rateable value and length of occupation but does not limit the assessment of what is reasonable; reasonable compensation for dispossessed protected tenants is the equivalent of their actual loss measured by the value of their expected future use (the tenant's interest determined by capitalising profit rent over the relevant period) plus disturbance costs; past occupation or sentimental value is not a monetary measure of compensation; sub-tenants are entitled to an apportioned share of the tenant's interest.

Court Disposition

Tribunal awarded compensation to the three respondents based on assessed tenant interest (capitalised profit rent) plus disturbance and maintained the redevelopment repossession order; no order as to costs.

Orders

  • Repossession order under s.53(2)(c) of Cap.7 previously made on 22 June 1983 is maintained.
  • Award to R13 Barbara C. Woon: total HKD 166000 (tenant's interest HKD 155700; disturbance HKD 10300).