SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

Minimum compensation under s.53A(4)(a) is determined by the prescribed rateable-value multiple and length of occupation, but reasonable compensation under s.53A(2) is not confined to that formula; it must reflect the tenant's actual loss measured by the value of the tenant's expected future use of the protected tenancy plus an allowance for disturbance. Past occupation or sentimental value is not compensable. Sub-tenants are entitled to a proportion of the tenant's assessed compensation consistent with the values of their respective interests.

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
LDLA14/1983
Procedural Posture
Landlord and Tenant (consolidation) Ordinance Cap. 7 Part II Repossession for Redevelopment and Compensation / Tribunal Award
Outcome
Tribunal ordered repossession previously and awarded compensatory sums to the three respondents for loss of protected tenancies and disturbance.
Legal Topics
Measure of Tenant Compensation, Redevelopment Repossession Under Section 53(2)(c), Section 53 A(2) and 53 A(4)(a) Minimum Compensation, Valuation of Tenant's Interest, Disturbance Damages, Apportionment to Sub Tenant
Source Language
EN
Landlord and Tenant Property Law Compulsory Acquisition/compensation Measure of Tenant Compensation Redevelopment Repossession Under Section 53(2)(c) Section 53 A(2) and 53 A(4)(a) Minimum Compensation Valuation of Tenant's Interest Disturbance Damages +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

Landlord and Tenant (consolidation) Ordinance Cap. 7 Part II Repossession for Redevelopment and Compensation / Tribunal Award

Legal Issues

  1. 1 Whether compensation on dispossession under s.53A(2) & (4)(a) is confined to the prescribed rateable-value multiple minimum or must reflect the tenant's full loss
  2. 2 Proper measure of tenant's loss (future use value vs past occupation/sentimental value)
  3. 3 Whether sub-tenant share requires adherence to the minimum formula

Ratio Decidendi

Minimum compensation under s.53A(4)(a) is determined by the prescribed rateable-value multiple and length of occupation, but reasonable compensation under s.53A(2) is not confined to that formula; it must reflect the tenant's actual loss measured by the value of the tenant's expected future use of the protected tenancy plus an allowance for disturbance. Past occupation or sentimental value is not compensable. Sub-tenants are entitled to a proportion of the tenant's assessed compensation consistent with the values of their respective interests.

Court Disposition

Tribunal ordered repossession previously and awarded compensatory sums to the three respondents for loss of protected tenancies and disturbance.

Orders

  • Award to Barbara C. Woon (R13) $166000 HKD
  • Award to Hung Pak (R14) $111600 HKD