SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

Section 53A's prescribed multiples of rateable value constitute only a statutory minimum; reasonable compensation must be assessed by reference to the tenant's actual loss as the present value of the tenant's expected future use of the protected tenancy (capitalised profit rent over the relevant period) plus an allowance for disturbance; past occupation sentiment is not compensable and apportionment to sub-tenants is required but founded on the same valuation principles.

Citation
SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS
Parties
Applicant: Scaiffee Ltd; Respondent: Barbara C. Woon; Respondent: Hung Pak; Respondent: Fung Kan (sub-tenant); Respondent: Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDLA21/1983
Procedural Posture
Landlord and Tenant (consolidation) Ordinance Cap.7 Part II Repossession for Redevelopment / Tribunal Award (victoria Lands Tribunal) Compensation Assessment Following Possession Order Under S.53(2)(c)
Outcome
Tribunal awarded compensation to respondents R13, R14 (including sub-tenant apportionment) and R15 in specified sums; repossession order under s.53(2)(c) stands; no order as to costs.
Legal Topics
Measure of Compensation, Protected Tenancy, Rateable Value Formula Vs Actual Loss, Disturbance Compensation, Apportionment to Sub Tenant
Source Language
EN
Landlord and Tenant Property Law Compulsory Acquisition/compensation Administrative/tribunal Procedure Measure of Compensation Protected Tenancy Rateable Value Formula Vs Actual Loss Disturbance Compensation +1 more

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Parties

Scaiffee Ltd

Applicant

Barbara C. Woon

Respondent

Hung Pak

Respondent

Fung Kan (sub-tenant)

Respondent

Kung Hong Koon

Respondent

Procedural Posture

Landlord and Tenant (consolidation) Ordinance Cap.7 Part II Repossession for Redevelopment / Tribunal Award (victoria Lands Tribunal) Compensation Assessment Following Possession Order Under S.53(2)(c)

Legal Issues

  1. 1 Whether compensation payable under s.53A(2) & (4)(a) must follow the prescribed minimum formula based on multiples of rateable value or be a full measure of the tenant's actual loss
  2. 2 Proper measure of a protected tenant's loss (future use value vs past/sentimental value)
  3. 3 Whether sub-tenant's entitlement requires adherence to the minimum rateable-value formula

Ratio Decidendi

Section 53A's prescribed multiples of rateable value constitute only a statutory minimum; reasonable compensation must be assessed by reference to the tenant's actual loss as the present value of the tenant's expected future use of the protected tenancy (capitalised profit rent over the relevant period) plus an allowance for disturbance; past occupation sentiment is not compensable and apportionment to sub-tenants is required but founded on the same valuation principles.

Court Disposition

Tribunal awarded compensation to respondents R13, R14 (including sub-tenant apportionment) and R15 in specified sums; repossession order under s.53(2)(c) stands; no order as to costs.

Orders

  • Award R13 (Barbara C. Woon): HKD 166000 payable half within 14 days and balance on 31 Oct 1983 or on delivery of vacant possession whichever is sooner
  • Award R14 (Hung Pak): HKD 111600 payable half within 14 days and balance on 31 Oct 1983 or on delivery of vacant possession whichever is sooner