SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

The Tribunal held that the statutory multiples of rateable value constitute only a prescribed minimum; reasonable compensation must be assessed as the tenant's actual loss, measured by the value of the tenant's expected future use of the protected tenancy plus reasonable disturbance allowance; past occupation/sentimental value is not a monetary measure and the statutory formula does not limit full assessment of loss.

Citation
SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS
Parties
Applicant: SCAIFFEE LTD; Respondent (vlt 18/83): Barbara C. Woon; Respondent (vlt 19/83): Hung Pak; Sub Tenant / Respondent (apportioned With Hung Pak): Fung Kan; Respondent (vlt 20/83): Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDLA11/1983
Procedural Posture
Landlord and Tenant — Possession for Redevelopment; Compensation Under Cap.7 Part II / Tribunal Award (determination of Compensation)
Outcome
Compensation awarded to dispossessed tenants assessed as value of tenant's interest plus disturbance; payment schedule and apportionment ordered as set out below
Legal Topics
Compensation for Dispossessed Tenants, Protected Tenancy, Measure of Compensation, Redevelopment Possession Orders, Disturbance Damages, Apportionment to Sub Tenants
Source Language
EN
Landlord and Tenant Property Law Compulsory Acquisition/compensation Compensation for Dispossessed Tenants Protected Tenancy Measure of Compensation Redevelopment Possession Orders Disturbance Damages +1 more

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Parties

SCAIFFEE LTD

Applicant

Barbara C. Woon

Respondent (vlt 18/83)

Hung Pak

Respondent (vlt 19/83)

Fung Kan

Sub Tenant / Respondent (apportioned With Hung Pak)

Kung Hong Koon

Respondent (vlt 20/83)

Procedural Posture

Landlord and Tenant — Possession for Redevelopment; Compensation Under Cap.7 Part II / Tribunal Award (determination of Compensation)

Legal Issues

  1. 1 Whether compensation under s53A(2) and s53A(4)(a) is to be assessed by the prescribed rateable-value multiplier formula or by full measure of the tenant's actual loss
  2. 2 What is the proper measure of the tenant's loss — past occupation/sentimental value or the value of expected future use and disturbance
  3. 3 Extent to which minimum statutory formula limits assessment of reasonable compensation

Ratio Decidendi

The Tribunal held that the statutory multiples of rateable value constitute only a prescribed minimum; reasonable compensation must be assessed as the tenant's actual loss, measured by the value of the tenant's expected future use of the protected tenancy plus reasonable disturbance allowance; past occupation/sentimental value is not a monetary measure and the statutory formula does not limit full assessment of loss.

Court Disposition

Compensation awarded to dispossessed tenants assessed as value of tenant's interest plus disturbance; payment schedule and apportionment ordered as set out below

Orders

  • Award R13 (Barbara C. Woon) total HKD 166000 (tenant's interest HKD 155700; disturbance HKD 10300)
  • Award R14 (Hung Pak) total HKD 124000 (apportioned: Hung Pak HKD 111600 (90%) and Fung Kan HKD 12400 (10%))