SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

The statutory rateable-value multiplier in section 53A(4)(a) prescribes a minimum compensation only; reasonable compensation under section 53A(2) must be the equivalent of the tenant's actual loss from forced early surrender — measured by the value of the tenant's expected future use of the tenancy (capitalised...

Source-derived case information.

Citation
SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS
Parties
Applicant: Scaiffee Ltd; Respondent: Barbara C. Woon; Respondent: Hung Pak; Respondent: Fung Kan; Respondent: Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDLA10/1983
Procedural Posture
Landlord and Tenant — Possession for Redevelopment and Compensation Under Part II Cap. 7 / Tribunal Award Determining Compensation Under Section 53 a Following Repossession Order Under Section 53(2)(c)
Outcome
Compensation awarded to respondents in specified sums; payment schedule ordered; no order as to costs.
Legal Topics
Measure of Compensation, Protected Tenancy, Redevelopment Orders, Rateable Value Formula, Disturbance Damages, Apportionment to Sub Tenants
Source Language
en
Landlord and Tenant Law Property Law Compulsory Acquisition and Compensation Statutory Interpretation Measure of Compensation Protected Tenancy Redevelopment Orders Rateable Value Formula +2 more

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Parties

Scaiffee Ltd

Applicant

Barbara C. Woon

Respondent

Hung Pak

Respondent

Fung Kan

Respondent

Kung Hong Koon

Respondent

Procedural Posture

Landlord and Tenant — Possession for Redevelopment and Compensation Under Part II Cap. 7 / Tribunal Award Determining Compensation Under Section 53 a Following Repossession Order Under Section 53(2)(c)

Legal Issues

  1. 1 Whether compensation payable under section 53A(2) & (4)(a) must be calculated by the rateable-value multiplier formula or may be a full measure of the tenant's actual loss
  2. 2 Whether the statutory minimum formula displaces ordinary principles of compensation
  3. 3 Proper measure of compensation for a protected tenant forced to give up tenancy early (role of past occupation, future use, disturbance)

Ratio Decidendi

The statutory rateable-value multiplier in section 53A(4)(a) prescribes a minimum compensation only; reasonable compensation under section 53A(2) must be the equivalent of the tenant's actual loss from forced early surrender — measured by the value of the tenant's expected future use of the tenancy (capitalised profit rent for the relevant period) plus reasonable disturbance — and not by past occupation sentiment or an automatic multiple of rateable value.

Court Disposition

Compensation awarded to respondents in specified sums; payment schedule ordered; no order as to costs.

Orders

  • R13 (Barbara C. Woon) awarded HKD 166000
  • R14 (Hung Pak) awarded HKD 124000, apportioned HKD 111600 to principal tenant Hung Pak and HKD 12400 to sub-tenant Fung Kan