DOUBLE DRAGON DEVELOPMENT LTD v. CHEUNG KAM LAI

DCCJ 5626/2020

[2022] HKDC 409

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CIVIL ACTION NO 5626 OF 2020

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BETWEEN

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ASSESSMENT OF DAMAGES

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Introduction

1.  The plaintiff is the registered owner of Flat No 7 (No 17 Man Wai Street), 1^st Floor, Man Yuen Building, Nos 2-24 Man Yuen Street and Nos 1-23 Man Wai Street, Kowloon, Hong Kong (“the P’s flat”).

2.  The P’s flat is divided into 3 units, namely, Room A, Room B and Room C, which were rented out for rental income.

3.  The defendant is the registered owner of the flat immediately above the P’s flat (“the D’s flat”).

4.  The plaintiff’s claim is for an injunction and damages caused by water seepage from the D’s flat.

5.  The plaintiff subsequently abandoned the claim for injunction. Interlocutory judgment was entered in favour of the plaintiff on 17 December 2020 with damages to be assessed.

6.  The Notice of Trial [Re: Assessment of Damages] was duly served on the defendant by the plaintiff on 23 February 2022. I am satisfied that due notice was given to the defendant of the trial on assessment of damages.

Assessment of Damages

(a) Costs of remedial works

7.  The plaintiff obtained 3 quotations from 3 different companies to do the remedial works identified by the expert. Eventually, the plaintiff engaged Hon Keung Engineering Company (漢強工程公司) to do the works for the sum of $232,500. Later on, further remedial works at the costs of $17,800 were done to Room B and Room C because the water seepage at the ceiling had deteriorated.

8.  I accept that the costs of remedial works in the sum of $250,300 ($232,500 + $17,800) are reasonably incurred.

(b) Loss of rental income

9.  Due to the water seepage, the tenant in Room A made default in payment of rent. The plaintiff suffered loss of rental income as a result.

Room	Rent/month	Period of Default	Rental Loss
A	$4,800	3/2019 to 15/8/2019	$26,400

10.  The tenants in Room B and Room C terminated the tenancy early due to the water seepage. The plaintiff suffered loss of rental income as a result. Although the plaintiff received the complaint of water seepage from the tenants in November 2018, Miss Kelly Cheng, counsel for the plaintiff, is contented to calculate the loss arising from early termination of tenancy from 1 January 2019 until the original expiry dates of the tenancy agreements.

Room	Rent/month	Early termination	Rental Loss
B	$8,000	by 5 months 21 days	$ 45,600
C	$7,200	by 9 months	$ 64,800
		Total:	$110,400

11.  The plaintiff was unable to rent out the 3 rooms before the remedial works were finished by the end of August 2021. The plaintiff suffered loss of rental income as a result.

12.  Mr Christopher Tang of Multiple Surveyors & Consultants Ltd has given an opinion on the market rent of the 3 rooms for the years of 2019, 2020 and 2021.

13.  Hence, the loss of rental income before the completion of the remedial works are as follows:-

Room	Period	Market Rent	Rental Loss
A	16/8/2019 - 31/12/2019	$6,450/month	$29,025
	1/1/2020 - 31/12/2020	$6,100/month	$73,200
	1/1/2021 - 31/8/2021	$5,800/month	$46,400
B	22/6/2019 - 31/12/2019	$11,600/month	$73,080
	1/1/2020 - 31/12/2020	$10,900/month	$130,800
	1/1/2021 - 31/8/2021	$10,500/month	$84,000
C	1/10/2019 - 31/12/2019	$8,600/month	$25,800
	1/1/2020 - 31/12/2020	$8,100/month	$97,200
	1/1/2021 - 31/8/2021	$7,700/month	$61,600
		Total:	$621,105

14.  I am satisfied that the plaintiff has suffered loss of rental income due to the water seepage in the sum of $757,905 ($26,400 + $110,400 + $621,105).

Conclusion

15.  Accordingly, I find that the plaintiff’s damages to be $1,008,205 ($250,300 + $757,905).

Interest

16.  The plaintiff is entitled to interest thereon at 1% above HSBC’s best lending rate from the date of writ, ie 20 October 2020 to the date of judgment and thereafter at judgment rate until payment.

Costs

17.  The plaintiff is also entitled to the costs of the assessment of damages together with all costs reserved with certificate for counsel, to be taxed if not agreed.