SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

The Tribunal held that the statutory rateable‑value multiples in s.53A(4)(a) are minimum floors only; reasonable compensation must be assessed by reference to the tenant's actual loss measured as the value of the tenant's expected future use of the tenancy (capitalised profit rent for the period of restriction) plus disturbance, and past or sentimental occupation value is not a monetary measure of compensation.

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): Fung Kan; Respondent (r15): Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDLA23/1983
Procedural Posture
Victoria Lands Tribunal – Repossession for Redevelopment Under Landlord and Tenant (consolidation) Ordinance Cap.7 Part II / Award – Determination of Compensation (tribunal Award Dated 23 July 1983)
Outcome
Possession order under s.53(2)(c) upheld; compensation awarded to three respondents for dispossession by redevelopment order; no order as to costs.
Legal Topics
Measure of Compensation, Protected Tenancy, Redevelopment Possession, Disturbance Damages, Rateable Value Formula, Apportionment to Sub Tenants
Source Language
EN
Landlord and Tenant Property/compensation Statutory Interpretation Measure of Compensation Protected Tenancy Redevelopment Possession Disturbance Damages Rateable Value Formula +1 more

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Parties

SCAIFFEE LTD

Applicant

Barbara C. Woon

Respondent (r13)

Hung Pak

Respondent (r14)

Fung Kan

Respondent/sub Tenant (r14)

Kung Hong Koon

Respondent (r15)

Procedural Posture

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

Legal Issues

  1. 1 Whether compensation beyond the statutory minima must be calculated by the prescribed rateable‑value multiplier or by full assessment of tenant's actual loss
  2. 2 Proper measure of a tenant's loss on compulsory repossession for redevelopment (past occupation value vs future use value)
  3. 3 Whether sentimental/past occupation value is compensable

Ratio Decidendi

The Tribunal held that the statutory rateable‑value multiples in s.53A(4)(a) are minimum floors only; reasonable compensation must be assessed by reference to the tenant's actual loss measured as the value of the tenant's expected future use of the tenancy (capitalised profit rent for the period of restriction) plus disturbance, and past or sentimental occupation value is not a monetary measure of compensation.

Court Disposition

Possession order under s.53(2)(c) upheld; compensation awarded to three respondents for dispossession by redevelopment order; no order as to costs.

Orders

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