Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Rateable value formula vs actual loss

Legal area

Court

23 Jul 1983

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS

Citation

SCAIFFEE LTD v. CHOW HET CHUEN AND OTHERS
Court

Lands Tribunal
Case number

LDLA21/1983

Section 53A's prescribed multiples of rateable value constitute only a statutory minimum; reasonable compensation must be assessed by reference to the tenant's actual loss as the present value of the tenant's expected future use of the protected tenancy (capitalised profit rent over the relevant period) plus an allowance for disturbance; past occupation sentiment is not compensable and apportionment to sub-tenants is required but founded on the same valuation principles.
23 Jul 1983

SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS

Citation

SCAIFFEE LTD v. CHOW HEI CHUEN AND OTHERS
Court

Lands Tribunal
Case number

LDNT20/1983

The Tribunal held that the statutory rateable-value multipliers in s53A(4)(a) establish minimum compensation only; reasonable compensation must be assessed by reference to the tenant's actual loss from premature termination — principally the capitalised value of the tenant's expected future use of the protected tenancy together with a reasonable allowance for disturbance — and not by reference to past occupation or sentimental value; apportionment to sub-tenants follows the same valuation principles.