Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Business loss compensation

Legal area

Court

28 Apr 2009

HAPPY DRAGON RESTAURANT LTD v. THE DIRECTOR OF LANDS

Citation

HAPPY DRAGON RESTAURANT LTD v. THE DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR17/2006

Tribunal concluded applicant acted unreasonably in extinguishing the restaurant because a suitable alternative premises (Wah Do) existed and the applicant had or could have obtained the financial means to relocate; accordingly the claim for compensation based on total extinguishment (permanent loss and disturbance) is rejected.
28 Nov 1996

LEE Lam and Another v. Director of Lands

Citation

LEE Lam and Another v. Director of Lands
Court

Lands Tribunal
Case number

LDLR11/1995

Compensation is limited to losses attributable to the resumed premises; where item-specific attribution is impossible, one-third apportionment of the business as a whole is appropriate. Applying these principles the tribunal awarded goodwill HK$960,000 (HK$480,000 pa x multiplier 2), profit rent HK$57,500, machinery HK$625,300 (purchase cost less depreciation), fixtures and fittings HK$1,107,200 (quoted cost less 20% depreciation), totalling HK$2,750,000; costs HK$9,000 awarded and leave reserved for interest under s.17(3A).