THE BANK OF EAST ASIA, LTD v. WELON ASIA LTD

DCCJ 5758/2006

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CIVIL ACTION NO. 5758 OF 2006

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J U D G M E N T

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1.  This is the assessment of damages sustained by the plaintiff due to the breach of the tenancy agreement entered between the plaintiff and the defendant and dated 6 December 2004 relating to the property known as Ground Floor of 12 of the Remaining Portion of Lot No. 3705 in Demarcation District 120, Yuen Long, New Territories.  The term of the tenancy was for a period of 3 years, commencing from 6 December 2004 and expiring on 5 December 2007.  The monthly rental is $155,000, payable in advance on the 6th day of each calendar month. 

2.  By a letter dated 23 May 2006, the defendant unilaterally terminated the tenancy agreement with immediate effect, and it returned the keys of the property to the plaintiff.  By a letter 30 May 2006, the plaintiff wrote to the defendant, saying that it accepted the repudiation of the tenancy agreement made by the defendant.

3.  I accept the evidence of Johnny Yau, the assistant estate manager of the Facility Management Department of the plaintiff.  I am satisfied that the plaintiff did make reasonable effort to mitigate the loss of the plaintiff due to the termination of the tenancy by the defendant by securing a new tenancy for the property.  The new tenancy is for a term of 3 years commencing from 16 August 2006 to 15 August 2009 at the monthly rental of $148,000.

4.  I am satisfied that the plaintiff has proved its case regarding the particulars of damages set out under items 3, 4, 5, 6 and 7 of paragraph 9 of the Statement of Claim.  The plaintiff is entitled to the damages listed out in these 5 items in the total sum of $766,249. 

5.  I order that the defendant do pay, within 14 days from today, to the plaintiff the sum of $766,249, at judgment rate, with interests thereon at judgment rate, until payment.  Interests on the said sum of $766,249 are to run as follows:

(1)      on the sum of $74,000, from 23 August 2006;

(2)      on the sum of $14,507, from 15 August 2006;

(3)      on the sum of $425,000, from 6 July 2006;

(4)      on the sum of $150,000, from 31 August 2006;

(5)      on the sum of $102,742, from 25 April 2007.

(Discussion re costs)

6.  I order that the defendant do pay costs of this action relating to assessment of the plaintiff’s damages, to be taxed if not agreed, with certificate for counsel.