7 Feb 2013
YUEN HIU TUNG v. HOSPITAL AUTHORITY
- Citation
- YUEN HIU TUNG v. HOSPITAL AUTHORITY
- Court
- Court of First Instance
- Case number
- HCPI228/2010
The Cookson v Knowles 4.5% assumption is no longer valid in Hong Kong. The court sets pragmatic, horizon-based real net discount rates after deducting price inflation and reasonable management fees, using asset mixes and review periods matched to claimant needs: -0.5% for needs up to 5 years, 1% for needs up to 10 years, and 2.5% for needs exceeding 10 years. These rates follow from (a) adopting price inflation (not payroll) for non-earnings losses, (b) deducting reasonable management fees where mixed portfolios (equities/bonds) are used, (c) using a 5–7 year review for fixed income/EFNs and…