Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Multiplier

  • 7 Feb 2013

    LI KA WAI v. HOSPITAL AUTHORITY

    Citation
    LI KA WAI v. HOSPITAL AUTHORITY
    Court
    Court of First Instance
    Case number
    HCPI671/2007

    The Cookson v Knowles assumption of a 4.5% real net return is no longer valid in Hong Kong; the court must deduct price inflation and reasonable management fees and tailor the notional investment portfolio to the claimant's period of need. Accordingly distinct net discount rates are set according to term of need: -0.5% for plaintiffs with needs up to 5 years (portfolio: ~20% 12-month time deposits, 80% EFNs), 1% for needs up to 10 years (portfolio: ~15% time deposits, 85% EFNs/bonds of BBB+ or better after a 0.75% management fee), and 2.5% for needs exceeding 10 years (portfolio: ~10% time de…

  • 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    The Cookson v Knowles 4.5% assumption is no longer valid in Hong Kong.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…

  • 16 Oct 2012

    CHAN PAK TING v. CHAN CHI KUEN AND ANOTHER

    Citation
    CHAN PAK TING v. CHAN CHI KUEN AND ANOTHER
    Court
    Court of First Instance
    Case number
    HCPI235/2011

    Sufficient evidence of a substantial change in the economic landscape since the 1996 Court of Appeal decision justified granting leave to adduce actuarial and economic evidence and ordering a trial of the preliminary issue to determine whether the Cookson 4.5% net rate remains valid for selecting multipliers in Hong Kong.

  • 18 Jul 2003

    CHU WO HEUNG AND ANOTHER v. HUI LAI WA AND OTHERS

    Citation
    CHU WO HEUNG AND ANOTHER v. HUI LAI WA AND OTHERS
    Court
    Court of First Instance
    Case number
    HCPI952/1996

    Judge found on the evidence that the deceased's reliable net trucking income was HK$26,400 per month, assessed loss of dependency at HK$16,000 per month, adopted a multiplier of 14, awarded specified pre and post assessment sums for dependency and accumulation, refused to adopt the IRD Asset Betterment Method and held that alleged illegal or unproven businesses could not underpin pecuniary loss claims.

  • 20 Feb 2001

    CHAN KING WAN AND ANOTHER v. HONEST SCAFFOLD GENERAL CONTRACTOR CO. LTD. AND ANOTHER

    Citation
    CHAN KING WAN AND ANOTHER v. HONEST SCAFFOLD GENERAL CONTRACTOR CO. LTD. AND ANOTHER
    Court
    Court of Appeal
    Case number
    CACV290/2000

    The Master did not err in principle or factually in averaging historic dividends and applying a reasonable post-death increase; the multiplier of 10 was appropriate; s.20(2)(b)(iii) permits recovery for loss of accumulation of wealth broadly conceived and estate duty valuations are a proper practical starting point; a separate claim for loss of services is barred by s.20C(3) where bereavement damages have been awarded; costs for unnecessary appeal bundles/transcript should be borne by those who ordered them absent cause shown.

  • 25 Jun 1999

    SHEK CHOR TAI v. YA LEE CONSTRUCTION CO LTD

    Citation
    SHEK CHOR TAI v. YA LEE CONSTRUCTION CO LTD
    Court
    Court of First Instance
    Case number
    HCPI757/1998

    Liability had been fixed by consent at 90%; for quantum the court adopted the deceased's comparator PW5 current wage of $13,000 to project present earnings, applied an effective increase to pre-trial and post-trial dependency values, accepted a multiplier of 6 for both widow and son, rejected the mother-in-law as a dependant, refused any award for accumulation of wealth under LARCO for lack of proved pattern of savings, limited funeral expenses to the proved $79,980 (covered by advance), awarded statutory bereavement sum $70,000 with interest at prevailing suitor's funds rate, applied specifi…

  • 9 Dec 1998

    TSUI NUEM v. CHEUNG WAI KUEN

    Citation
    TSUI NUEM v. CHEUNG WAI KUEN
    Court
    Court of First Instance
    Case number
    HCPI374/1998

    Master accepted plaintiff's basic salary of $6,500 and found probable commission of $2,500 per month and allowance of one month annual bonus, computed pre-accident median monthly earnings $9,541.66 and escalated to median pre-trial monthly earnings $12,061.14 using 8% per annum inflation; found partial failure to mitigate from end June 1995 and applied a $4,000 per month mitigation deduction escalated to $4,603.40 to trial; gross pre-trial loss calculated as $796,035.24 less mitigation $188,739.40 giving $607,295.84; applied multiplier 3 for future loss to monthly notional earnings $9,373.82…

  • 14 May 1984

    WONG SHU WAN v. WU KWOK YAU, SIMON

    Citation
    WONG SHU WAN v. WU KWOK YAU, SIMON
    Court
    Court of First Instance
    Case number
    HCA8593/1983

    Where precise evidence of the deceased's free balance and earnings was lacking the court applied a 55% free balance for a single man, accepted HKD 3,750 per month as a reasonable multiplicand, applied a multiplier of 16 for post-trial loss (running from date of death), calculated pre-trial losses by evenly spreading the increase over three years, and awarded total damages of HKD 406,029.72 with interest and costs directions as set out.

  • 5 Nov 1980

    LAI MUK KAN v. NEDERHORST FOUNDATION ENGINEERING (HK) LTD

    Citation
    LAI MUK KAN v. NEDERHORST FOUNDATION ENGINEERING (HK) LTD
    Court
    District Court
    Case number
    DCEC53/1980

    Court accepted evidence of partial dependency and quantified monthly contributions for dependants, concluded an appropriate multiplier would be in excess of five but the award is limited by Section 6 to the statutory maximum, and therefore awarded the maximum sum of $60,000 to the applicant with costs on the upper scale.

  • 30 Sept 1977

    CHAN MEI KAM v. HONG KONG TRAMWAYS LTD AND ANOTHER

    Citation
    CHAN MEI KAM v. HONG KONG TRAMWAYS LTD AND ANOTHER
    Court
    Court of First Instance
    Case number
    HCA164/1977

    On uncontested evidence the court fixed dependency at $1,200 per month (taking into account likely salary increases but discounting speculative promotion), applied a multiplier of 8 given the deceased's age, health and probable continuation of work, awarded $115,200 under the Fatal Accidents Ordinance apportioned among dependants, awarded $10,000 under Cap.23 for loss of expectation of life, reduced funeral expenses to $5,010.40, and applied interest at 4% on special damages and 8% on general damages.