7 Feb 2013
LI KA WAI v. HOSPITAL AUTHORITY
- Citation
- LI KA WAI v. HOSPITAL AUTHORITY
- Court
- Court of First Instance
- Case number
- HCPI671/2007
The Cookson v Knowles assumption of a 4.5% real net return is no longer valid in Hong Kong; the court must deduct price inflation and reasonable management fees and tailor the notional investment portfolio to the claimant's period of need. Accordingly distinct net discount rates are set according to term of need: -0.5% for plaintiffs with needs up to 5 years (portfolio: ~20% 12-month time deposits, 80% EFNs), 1% for needs up to 10 years (portfolio: ~15% time deposits, 85% EFNs/bonds of BBB+ or better after a 0.75% management fee), and 2.5% for needs exceeding 10 years (portfolio: ~10% time de…