SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

The Tribunal held that the statutory rateable-value formula in Section 53A(4)(a) creates only a minimum compensation floor; reasonable compensation must be assessed as the equivalent of the tenant's actual loss — principally the value of the tenant's expected future use of the premises (capitalised profit rent for...

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 (sub Tenant): Fung Kan; Respondent: Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDLA6/1983
Procedural Posture
Possession Order for Redevelopment Under Landlord and Tenant (consolidation) Ordinance Cap. 7 Part II / Award
Outcome
Tribunal awarded compensation to the three disputing respondents based on capitalised value of expected future use plus disturbance; ordered staged payment and conditions for payment on surrender of possession; no order as to costs.
Legal Topics
Measure of Compensation, Protected Tenancy, Redevelopment, Rateable Value, Disturbance Compensation, Apportionment to Sub Tenant
Source Language
en
Landlord and Tenant Law Property Law Compulsory Acquisition/compensation Administrative/tribunal Law Measure of Compensation Protected Tenancy Redevelopment Rateable Value +2 more

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Parties

SCAIFFEE LTD

Applicant

Barbara C. Woon

Respondent

Hung Pak

Respondent

Fung Kan

Respondent (sub Tenant)

Kung Hong Koon

Respondent

Procedural Posture

Possession Order for Redevelopment Under Landlord and Tenant (consolidation) Ordinance Cap. 7 Part II / Award

Legal Issues

  1. 1 Whether compensation for termination of protected tenancy for redevelopment should be calculated by the same prescribed formula (multiple of rateable value) as the statutory minimum or by full measure of the tenant's actual loss
  2. 2 Whether past occupation or sentimental value is a proper measure of compensation
  3. 3 How to apportion and calculate compensation for principal tenant and sub-tenant

Ratio Decidendi

The Tribunal held that the statutory rateable-value formula in Section 53A(4)(a) creates only a minimum compensation floor; reasonable compensation must be assessed as the equivalent of the tenant's actual loss — principally the value of the tenant's expected future use of the premises (capitalised profit rent for the relevant period) plus reasonable disturbance costs — and not by reference to past occupation or sentimental value.

Court Disposition

Tribunal awarded compensation to the three disputing respondents based on capitalised value of expected future use plus disturbance; ordered staged payment and conditions for payment on surrender of possession; no order as to costs.

Orders

  • R13 (Barbara C. Woon) awarded total compensation $166000
  • R14 (Hung Pak) awarded total compensation $111600; R14(1) (Fung Kan, sub-tenant) awarded $12400 (apportionment 90%/10%)