Hong Kong Case Law: Decisions & Judgments

Topic

Fixtures and fittings depreciation

Legal area

Court

27 Nov 1996

CHAN Chi-sum and Others v. Director of Lands

Citation

CHAN Chi-sum and Others v. Director of Lands
Court

Lands Tribunal
Case number

LDLR6/1996

Tribunal applied s.10(2)(d) to award compensation restoring applicants to business position at resumption, found Shenzhen warehouse operations genuine and not proven illegal, found business unprofitable so goodwill claim dismissed, accepted applicants' expert valuations for forced sale of stock and for decoration/fixtures subject to 40% depreciation, accepted respondent's profit rent figure, and determined total compensation at HK$1,000,000.
9 Jul 1996

Fung Kai Yin and Others t/a Hang Lam Tong Sun Yung Seafood and Medicine Co. v. Director of Lands

Citation

Fung Kai Yin and Others t/a Hang Lam Tong Sun Yung Seafood and Medicine Co. v. Director of Lands
Court

Lands Tribunal
Case number

LDLR12/1995

Under s.10(2)(d) applicants were entitled to compensation restoring their business position absent resumption. The correct test for total extinguishment is whether, on all facts, the business operator can reasonably be expected to continue the business elsewhere (not the Shun Fung relocation trilateral test which applies only to relocation claims). Shops using the same trade name but with different partner combinations are distinct businesses and cannot be treated as continuations. Goodwill is to be valued by capitalizing normal profit trends: taxable profit 1992-93 of approx. HK$600,000 take…
26 Jun 1996

LIU CHIU t/a YEENA FASHION CENTRE v. DIRECTOR OF LANDS

Citation

LIU CHIU t/a YEENA FASHION CENTRE v. DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR13/1995

Relocation was not reasonable on the facts (previous branch had failed, insufficient grounds to expect successful relocation and claimant lacked funds); therefore treat as total extinguishment; annual profit trend fixed at HK$500,000, multiplier of 2 for goodwill (HK$1,000,000); profit rent assessed at HK$57,000; forced sale of stock compensation HK$500,000; fixtures and fittings HK$230,000; aggregate compensation determined and awarded at HK$1,800,000 with costs and leave reserved for interest.

Hong Kong Case Law

CHAN Chi-sum and Others v. Director of Lands

Fung Kai Yin and Others t/a Hang Lam Tong Sun Yung Seafood and Medicine Co. v. Director of Lands

LIU CHIU t/a YEENA FASHION CENTRE v. DIRECTOR OF LANDS