Waldo Development Co. Ltd. v. Lau's Hop Hing Ltd.

HCA 9562 OF 1999

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 9562 OF 1999

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ASSESSMENT OF DAMAGES

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1. This is an assessment of damages after judgment was entered on 2 August 2000 in favour of the plaintiff against the defendant for damages to be assessed.

2. The defendant was the registered owner of shop 4-A on the ground floor of a composite block, Block A-E, in Whampoa Estate of Kowloon. The defendant intended to partition the unit into 4 shop spaces Shop A4A, A4B, A4C and A4D for sale.

3. In December 1996 the defendant, acting through its estate agent, represented to the plaintiff that the sub-divided shop spaces would be properly partitioned with independent electricity and water meter for each and every of those sub-divided shop spaces. Acting upon such representation the plaintiff purchased 2 of the units, shops A4B and A4C.

4. The sale of shops A4B and A4C was completed on 15 April 1998 after the defendant had installed the partitioning walls to create the 4 new shop spaces. After taking possession of the shop spaces, the plaintiff came to realize there was no electricity supply to the units nor was there any independent water or electricity meters at shops A4B and A4C.

5. The only electricity meter approved and registered with the China Light & Power Company Limited was installed within shop A4D. The purchaser of A4D had registered themselves as the users of the meter to the exclusion of the plaintiff. The only approved water meter was found in shop A4D and the owners of Shop A4D had also registered themselves as the users of the meter to the exclusion of the plaintiff.

6. The existing electrical installations of the building had reached its maximum capacity. Additional supply of electricity to the sub-divided units would overload the existing cables and installations. To increase the supply of electricity to the building, the Incorporated Owners of Whampoa Estate had to carry out or consent to the carrying out of extensive up-grading works on the existing transformer, cable and installation. Such consent the Incorporated Owners had refused to give. All the 4 new shops had to share the existing supply of 100 amperes amongst themselves, allowing only 30 amperes to each unit.

7. In an attempt to obtain share usage of the electricity meter, the plaintiff incurred legal expenses in bringing legal suit against the owner of shop A4D.

8. The plaintiff was unable to arrange for the connection of electricity supply to shops A4B and A4C until 24 November 1998. The property was eventually rented out on 3 December 1998.

9. In April 2000 the plaintiff obtained the consent of the Incorporated Owners and the approval of the Water Authority to install independent water meters to the two shop spaces A4B and A4C.

10. The defendant failed to appear at the assessment hearing. In the absence of contrary evidence I accept on balance the plaintiff did suffer the following financial losses:-

(a)	fees incurred in engaging MECS Consulting Engineers to look into the electricity problem	$5,000
(b)	expenses incurred in installing electricity and water meters ($61,500 + $20,000 + $3,000)	$84,500
(c)	legal fees incurred in taking action against the owner of shop A4D	$65,000
(d)	loss of rental at market rent of HK$72,500 from 16 May 1998 to 2 December 1998	$485,750
	HK$640,250
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11. I award judgment in favour of the plaintiff in the sum of HK$640,250.

12. I also grant costs order nisi in favour of the plaintiff. Quantum of costs is to be taxed, if not agreed. This order nisi would become absolute unless parties made application to be heard within 14 days from the day of this judgment.