SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

The statutory rateable-value formula in s.53A(4)(a) prescribes only minimum compensation; reasonable compensation must instead compensate the tenant's actual loss measured by the value of the tenant's expected future use of the protected tenancy (the tenant's particular interest) plus an allowance for disturbance; past occupation or sentimental attachment is not a monetary measure; sub-tenants receive apportioned shares of that assessed tenant interest.

Citation
SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS
Parties
Applicant: Scaiffee Ltd; Respondent: Barbara C. Woon; Respondent: Hung Pak; Sub Tenant: Fung Kan; Respondent: Kung Hong Koon
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
23 July 1983
Case Number
LDLA16/1983
Procedural Posture
Landlord and Tenant — Repossession for Redevelopment Under Part II Cap.7 / Tribunal Award Assessing Statutory Compensation Under Section 53 A(2) and 53 A(4)(a)
Outcome
Tribunal awarded compensation to respondents based on tenant's loss (capitalised profit rent) plus disturbance and apportioned sub-tenant share where agreed; reserved no costs order.
Legal Topics
Statutory Compensation, Measure of Compensation, Protected Tenancy, Disturbance Damages, Apportionment to Sub Tenant
Source Language
EN
Landlord and Tenant Law Property Law Compulsory Acquisition/compensation Statutory Compensation Measure of Compensation Protected Tenancy Disturbance Damages Apportionment to Sub Tenant

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Parties

Scaiffee Ltd

Applicant

Barbara C. Woon

Respondent

Hung Pak

Respondent

Fung Kan

Sub Tenant

Kung Hong Koon

Respondent

Procedural Posture

Landlord and Tenant — Repossession for Redevelopment Under Part II Cap.7 / Tribunal Award Assessing Statutory Compensation Under Section 53 A(2) and 53 A(4)(a)

Legal Issues

  1. 1 Whether compensation under s.53A(2) & (4)(a) is to be assessed by the prescribed rateable-value formula or by full measure of tenant's actual loss
  2. 2 What constitutes reasonable compensation: past occupation/sentimental value vs. value of expected future use
  3. 3 How to apportion compensation to sub-tenants

Ratio Decidendi

The statutory rateable-value formula in s.53A(4)(a) prescribes only minimum compensation; reasonable compensation must instead compensate the tenant's actual loss measured by the value of the tenant's expected future use of the protected tenancy (the tenant's particular interest) plus an allowance for disturbance; past occupation or sentimental attachment is not a monetary measure; sub-tenants receive apportioned shares of that assessed tenant interest.

Court Disposition

Tribunal awarded compensation to respondents based on tenant's loss (capitalised profit rent) plus disturbance and apportioned sub-tenant share where agreed; reserved no costs order.

Orders

  • Award to Barbara C. Woon (Respondent 13) of HKD 166000
  • Award to Hung Pak (Respondent 14) of HKD 111600 and award to Fung Kan (sub-tenant) of HKD 12400 (apportioned 90%/10%)