TOADS COMPANY LTD v. MA, LAI SHAN CONNIE 及另一人

TOADS COMPANY LTD v. MA, LAI SHAN CONNIE 及另一人

Defendants are jointly and severally liable for the plaintiff's proven loss of net rent of $107,612.5 because the plaintiff proved unpaid rent, deducted the deposit and accepted mitigation by reletting; the claimed asset impairment ($199,273) was dismissed because plaintiff failed to prove market diminution causally...

Source-derived case information.

Citation
[2018] HKDC 877
Parties
Plaintiff: TOADS COMPANY LIMITED; First Defendant: MA, LAI SHAN CONNIE; Second Defendant: KELVIN WONG
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
27 July 2018
Case Number
DCCJ4572/2016
Procedural Posture
Civil Breach of Contract (commercial Lease) / Assessment of Damages Following Default Judgment
Outcome
Judgment for plaintiff on default; damages in the sum of $107,612.5 awarded; claim for asset impairment dismissed; interest and costs awarded to plaintiff.
Legal Topics
Breach of Lease, Assessment of Damages, Mitigation of Loss, Interest, Costs, Property Valuation, Accounting Impairment
Source Language
ch
Contract Property Landlord and Tenant Civil Procedure Breach of Lease Assessment of Damages Mitigation of Loss Interest +3 more

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Parties

TOADS COMPANY LIMITED

Plaintiff

MA, LAI SHAN CONNIE

First Defendant

KELVIN WONG

Second Defendant

Procedural Posture

Civil Breach of Contract (commercial Lease) / Assessment of Damages Following Default Judgment

Legal Issues

  1. 1 Whether defendants liable for unpaid rent for the remainder of the lease term
  2. 2 Quantum of damages recoverable for lost rent after mitigation
  3. 3 Whether plaintiff may recover an asset impairment loss caused by defendants' breach

Ratio Decidendi

Defendants are jointly and severally liable for the plaintiff's proven loss of net rent of $107,612.5 because the plaintiff proved unpaid rent, deducted the deposit and accepted mitigation by reletting; the claimed asset impairment ($199,273) was dismissed because plaintiff failed to prove market diminution causally linked to the breach and relied on internal accounting evidence and a fact witness rather than expert valuation; further, the lease did not create any obligation by tenant to compensate for asset value decline.

Court Disposition

Judgment for plaintiff on default; damages in the sum of $107,612.5 awarded; claim for asset impairment dismissed; interest and costs awarded to plaintiff.

Orders

  • First and second defendants to pay plaintiff damages of $107,612.5 jointly and severally
  • Defendants to pay interest on the damages from 14 September 2016 to the date of this assessment at HSBC prime rate then thereafter at the judgment rate (currently 8% per annum) until payment in full