Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Valuation of goodwill

Legal area

Court

26 Jul 1996

CHUM HON CHI v. DIRECTOR OF LANDS

Citation

CHUM HON CHI v. DIRECTOR OF LANDS
Court

Court of Appeal
Case number

CACV122/1996

Motion to strike out dismissed because leave granted to amend notice of appeal to add an arguable point of law (challenge to the Tribunal's 9% discount rate). Two other proposed grounds (treatment of area/duration and deduction of proprietor's wages) were not arguable errors of law and leave to amend in respect of them was refused. Time issue was treated as immaterial because court would have extended time if a valid point of law existed. Appeal therefore proceeds on the limited legal issue permitted.
20 May 1996

Tsang Ling chu v. Director of Lands

Citation

Tsang Ling chu v. Director of Lands
Court

Lands Tribunal
Case number

LDLR23/1994

Under s.10(2)(d) the applicant is entitled to compensation to restore the business to the position had there been no resumption; goodwill assessed by total wages of three long‑term employees at HK$15,000/month with a 13th month, 20% employer margin and multiplier 2, fixed at HK$1.4m; the four excavators were necessary business assets and included in replacement valuation; auction proceeds of HK$520,000 were multiplied by 5 to estimate market/replacement value HK$2.6m, yielding forced sale compensation HK$2,080,000 after deducting auction proceeds; profit rent assessed at HK$40,000 and other a…