SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

The Tribunal held that the statutory multiple of rateable value establishes only a minimum; reasonable compensation must reflect the tenant's actual loss measured by the value of the tenant's expected future use at restricted rent plus reasonable disturbance costs; past occupation or sentimental value is not compensable; sub-tenants receive an apportioned share of that loss. The Tribunal quantified tenants' interests by estimating profit rent and capitalising at 13% for defined periods and added disturbance allowances to reach the awards ordered.

Citation
SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS
Parties
Applicant: SCAIFFEE LTD; Respondent (r13): Barbara C. Woon; Respondent (r14): Hung Pak; Sub Tenant (r14(1)): Fung Kan; Respondent (r15): Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDLA15/1983
Procedural Posture
Landlord and Tenant (cap.7) Possession for Redevelopment and Compensation Assessment / Tribunal Award (compensation Assessment)
Outcome
Tribunal awarded compensation to the three dispossessed tenants based on tenant's interest plus disturbance and ordered payment by applicant; no order as to costs.
Legal Topics
Tenant Compensation, Measure of Compensation, Redevelopment Repossession, Disturbance Damages, Rateable Value Formula
Source Language
EN
Landlord and Tenant Law Compulsory Acquisition/compensation Property Valuation Tenant Compensation Measure of Compensation Redevelopment Repossession Disturbance Damages Rateable Value Formula

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Parties

SCAIFFEE LTD

Applicant

Barbara C. Woon

Respondent (r13)

Hung Pak

Respondent (r14)

Fung Kan

Sub Tenant (r14(1))

Kung Hong Koon

Respondent (r15)

Procedural Posture

Landlord and Tenant (cap.7) Possession for Redevelopment and Compensation Assessment / Tribunal Award (compensation Assessment)

Legal Issues

  1. 1 Whether compensation for termination of a protected tenancy to allow redevelopment should be assessed by the same formula as the statutory minimum (multiple of rateable value) or by full measure of tenant's actual loss
  2. 2 Whether rateable value based minimum is exclusive or only a floor
  3. 3 Proper measure of tenant's loss (future use value vs past occupation/sentimental value)

Ratio Decidendi

The Tribunal held that the statutory multiple of rateable value establishes only a minimum; reasonable compensation must reflect the tenant's actual loss measured by the value of the tenant's expected future use at restricted rent plus reasonable disturbance costs; past occupation or sentimental value is not compensable; sub-tenants receive an apportioned share of that loss. The Tribunal quantified tenants' interests by estimating profit rent and capitalising at 13% for defined periods and added disturbance allowances to reach the awards ordered.

Court Disposition

Tribunal awarded compensation to the three dispossessed tenants based on tenant's interest plus disturbance and ordered payment by applicant; no order as to costs.

Orders

  • Applicant to pay Respondent R13 (Barbara C. Woon) HKD 166000 as compensation
  • Applicant to pay Respondent R14 (Hung Pak) HKD 111600 and Sub-tenant R14(1) (Fung Kan) HKD 12400 as apportioned compensation