Choi Wai Lup v. Housing Appeal Tribunal and Another
Read the full judgment text of HCAL 1023/2024 on BabelCite. This High Court CFI judgment was delivered on 20 September 2024.
1. By his Form 86 dated 2 July 2024 filed together with a supporting affirmation dated 28 June 2024, the Applicant seeks leave to apply for judicial review so as to challenge and overturn the decision made by the Appeal Panel (Housing) (“Appeal Panel”) dated 28 March 2024 (“Decision”).
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HCAL 1023/2024 [2024] HKCFI 2384 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF FIRST INSTANCE CONSTITUTIONAL AND ADMINISTRATIVE LAW LIST NO 1023 OF 2024 ________________________
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___________________ J U D G M E N T ___________________ A. Introduction 1.By his Form 86 dated 2 July 2024 filed together with a supporting affirmation dated 28 June 2024, the Applicant seeks leave to apply for judicial review so as to challenge and overturn the decision made by the Appeal Panel (Housing) (“Appeal Panel”) dated 28 March 2024 (“Decision”). 2.By the Decision, the Appeal Panel confirmed the Notice to Quit dated 30 January 2024 (“NTQ”) issued by Hong Kong Housing Authority (“HA”) to the Applicant in relation to a public rental housing unit in Long Tin House, Pak Tin Estate (“Unit”), of which the Applicant is tenant. 3.The Appeal Panel is an independent statutory appeal panel. As is typical in a situation where the appeal hearing has been completed and the decision made, the Appeal Panel has taken a neutral stance towards this application. Hence, the real contest is between the Applicant and the HA. 4.By an ex parte Summons dated 9 August 2024 filed together with his second affirmation, the Applicant made an urgent application to this Court for an interim injunction (“Interim Application”) to prohibit the HA’s planned repossession of the Unit on 13 August 2024 to enforce the NTQ. Against the relevant timing, I was not satisfied that it was apt to deal with the Interim Application without any notice being given to the HA. I gave directions on 9 August 2024 that the Interim Application be heard on 12 August 2024 ‘on notice’ or an inter partes basis. 5.After hearing submissions at that hearing, I ordered that (1) a rolled-up hearing be fixed for 11 September 2024; (2) the HA should file and serve its Initial Response on 26 August 2024; (3) the Applicant should file and serve his Reply (if any) on 2 September 2024; (4) an interim injunction against eviction would be granted until the rolled-up hearing on 11 September 2024 or further order; and (5) all questions of costs would be reserved. 6.The affirmation of Mr Koon Sing-kim, Housing Manager/Kowloon West & Sai Kung 8 of the Housing Department (for the HA), was filed on 26 August 2024. The Applicant’s 3rd affirmation in reply was filed on 2 September 2024. 7.At the rolled-up hearing, the Applicant was represented by Ms Jenny Lok of Counsel, and the HA was represented by Ms Eva Leung of Counsel. 8.I note that the Applicant originally sought to address submissions as though challenging both the HA’s decision to issue the NTQ and the later Decision by the Appeal Panel. But it seemed to me that, as a result of the Applicant exercising his right to appeal the NTQ, and because the matter was considered afresh by the Appeal Panel, the focus of the present challenge could only be on the Decision. At the hearing, both Ms Lok and Ms Leung confirmed their agreement that the focus should be only on the Decision. 9.At the conclusion of the hearing, I reserved my decision to be handed down later. This is my Judgment. B. Factual Background 10.The background as can be drawn from the materials from both sides is broadly as follows. 11.The Applicant, who is 66 years old and works in a Mahjong parlour, is the tenant of the Unit, by virtue of the tenancy agreement entered into between himself and the HA on 29 December 2021 (“Tenancy Agreement”). On 12 January 2022, the tenancy period began and vacant possession was delivered to the Applicant. 12.There were provisions of the Tenancy Agreement requiring the tenant (1) to take up residence in the Unit within one month, and (2) to maintain regular and continuous residence in the Unit. 13.The Applicant’s wife (“Wife”) and son (“Son”) are the authorised family members of the Unit as stated in the Tenancy Agreement. They each obtained one-way permits in 2016, but stayed in the Mainland and (it is said) planned to join the Applicant after the renovation works of the Unit were completed. The Son is now 18 years old. 14.In August 2022, the Son was diagnosed with cancer and received surgical treatment. In view of the lockdown during the Covid-19 pandemic, the Son received surgery and medical treatments in the Mainland. The Wife stayed in the Mainland to take care of the Son. 15.In or by August 2024, the health condition of the Son had improved, but follow-up is still required. In that month, it is said, the Wife came to stay with the Applicant in the Unit and began to work in Hong Kong. 16.The Housing Department (“HD”) is the executive arm of the HA. 17.Investigations conducted by the Public Housing Resources Management Sub-section of the HD in the period from 2 August 2023 to 14 November 2023 (“Investigation Period”) – including from unannounced visits – revealed that the Applicant, the Wife and the Son had failed to maintain regular and continuous residence in the Unit. 18.In response to the HD’s letter dated 13 November 2023 for an appointed visit, the Applicant contacted the office of the HD by phone on 14 November 2023 at 9:05am to request for re-scheduling the appointed visit due to work commitments. An appointed visit was then arranged for 10am on 14 November 2023 (“Appointed Visit”). 19.During the Appointed Visit, the following reasons were provided by the Applicant to the Investigation Officer for his non-occupation during the Investigation Period:
20.The explanations provided by the Applicant for non-occupation of the Unit were not accepted by the HA, which issued the NTQ to the Applicant on 30 January 2024. 21.On 1 February 2024, the Applicant filed an appeal to the Appeal Panel against the NTQ. The appeal hearing was conducted on 20 March 2024. There is a transcript of that appeal hearing. 22.The HA’s case was that the Applicant had failed to retain regular and continuous residence in the Unit during the Investigation Period, which was in breach of the Tenancy Agreement, and therefore the NTQ should be upheld. The HA supported its allegation by reference to (1) the low water and electricity consumption of the Unit, (2) 16 unannounced visits by HD staff when no one was present in the Unit, and (3) the travel records of the Applicant, the Wife and the Son. The Wife had not travelled to Hong Kong since 22 October 2021, and the Son had not travelled to Hong Kong since 27 April 2019. In other words, neither the Wife or Son had been in Hong Kong at any time after the making of the Tenancy Agreement. That continued to be the position as at the date of the appeal. 23.At the appeal hearing, the HA also submitted inter alia that:
24.The Applicant did not deny that there was non-occupation of the Unit during the Investigation Period, and contended that it was due to the following factors beyond his control:
25.By letter dated 28 March 2024, the Appeal Panel informed the Applicant of its decision to uphold the NTQ. The English translation of the reasons given by the Appeal Panel to confirm the NTQ sets out the reasons as follows:
26.Hence, the gist of the reasons for the Decision (as helpfully summarised by Ms Leung) was that:
C. The Intended Grounds for Review 27.In the Form 86 and Ms Lok’s submissions, the Applicant relied on the following grounds to challenge the Decision, being:
28.The first two grounds were in the Form 86, but the third was not. As will be seen below, it can be dispatched shortly. 29.It is also fair to point out that, though the first two grounds have been put forward separately, they clearly rely significantly on similar submissions and are at least overlapping. For that reason, I think it be convenient to set out the arguments on the ground separately, before considering the conclusion on them as though together. 30.By way of overview at the rolled-up hearing, Ms Lok submitted the following five key points, which she said ought to be taken into consideration:
D. Fettering of Discretion Ground 31.It is convenient to deal with the Fettering of Discretion Ground first, which was a new ground, not set out in the Form 86, and only advanced by Ms Lok in her Skeleton Submissions. Of itself, that is a reason for it to be dismissed. 32.In any event, as her written submissions identified, the intended challenge on this Ground was essentially directed at the decision of the HA to issue the NTQ (rather than the Decision of the Appeal Panel). 33.Further, I accept the submission by Ms Leung that the intended ground is not reasonable arguable. There was no fettering of discretion in the HA taking into account, as part of the considerations, the water and electricity consumption records, immigration records and physical visits by the staff of the HD, when it formed the overall view that those materials show that the Applicant, the Wife and the Son did not retain regular and continuous residence in the Unit. E. The Insufficient Weight/Consideration Ground 34.As to the complaint about insufficient weight given to or consideration of the reasons given by the Applicant, Ms Lok’s written submissions may be summarised as follows:
35.Ms Lok also sought to adduce new evidence not before the Appeal Panel, being three sets of photos, including (1) some taken inside the Unit showing the renovation, (2) a photo said to show the Wife’s employment in August 2024, and (3) photos of the Son’s medical condition in August 2022. Ms Lok accepted that they were not presented before the Appeal Panel, but submitted the first category is produced now because it was only at the appeal hearing that the members started to have discussion on matters prior to the investigation. 36.However, I accept Ms Leung’s submission that the photos are not admissible or helpful now. First, the photos of the Unit and of the Son’s medical condition were available before the time of the Appeal Panel hearing, and in any event add little to the evidence and submissions made as regards both points at that hearing. This is perhaps particularly so, when the Applicant pointed out at the appeal hearing that the HA had visited his home and seen the renovations, and there was no issue as to the Son’s condition. Secondly, the photo of the Wife in an apparent work uniform was taken only recently in August 2024, and in any event of itself could not prove her employment. 37.Ms Leung’s submissions in response to the other points were in summary that:
F. Unreasonableness Ground 38.In the present case, Ms Lok submitted that it is irrational for the Appeal Panel to reach the conclusion that the Applicant, the Wife and the Son had alternative accommodation and failed to show a genuine need for the Unit, because:
39.The gist of Ms Leung’s response to this Ground is that:
G. Analysis of the Two Grounds 40.The weight to be given to particular aspects of the evidence is ordinarily a matter for the decision maker, and complaints that insufficient weight has been given to one aspect or another does not usually provide fertile ground for a judicial review challenge. It is also trite that an applicant who asserts Wednesbury unreasonableness or irrationality faces a high hurdle. In this case, from the arguments set out above, it seems to me that Ms Lok’s submissions essentially assert that the Appeal Panel’s failure to give proper weight to certain aspects of the materials is of such a magnitude that it gives rise to the claimed irrationality. That is why I think it apt to consider these two Grounds together. 41.For that purpose, I do not think it necessary to engage in close analysis of previous decisions relating to whether non-occupation of a unit was voluntary or involuntary. Each case will turn on its own particular facts and circumstances, and it is necessary to focus on those. 42.The starting point in this case is that it is indisputable that the Applicant and his family members did not retain continuous and regular residence in the Unit from 12 January 2022 to 31 January 2024 – with the possible exception relating to the period in and after August 2023, when the Applicant was required to spend most nights at his place of employment, and depending on how ‘residence’ is considered. 43.But, as I read the reasoning, the two Members of the Appeal Panel forming the majority might have been prepared to overlook some of the earlier period (and so to exercise the discretion to set aside the NTQ), had they not formed the view that each of the Applicant, the Wife and the Son had alternative available accommodation and therefore no pressing need for the Unit. This is where it seems to me that the two Members fell into error, of the sort to justify an intervention by the Court exercising its judicial review supervisory jurisdiction. 44.First, as regards the Applicant himself, I accept that the evidence may not have been as clear as it might have been at the Appeal Panel. But, reading the transcript in a way appropriate to the nature of the hearing, I think that the Applicant was trying to explain that whilst he had previously paid some fees for staying in the attic above his employer’s workplace, that ended when he was able to move into the Unit after renovation was completed in August 2023. Indeed, he stated that he did move in. However, at almost exactly the same point of time, renovations commenced at the place of employment, and the Applicant was required to spend most overnights there. As that was an instance of employment, I do not think the Applicant was saying that he paid to stay there – hence the analogy with the security guard. Even during that time, the Applicant said he would sometimes return to the Unit, including to clean it. Though not a point on its own, the fact that during the Investigation Period the HD officers found no accumulation of letters in the letterbox lends some support to that fact (and it is speculative to suggest that the absence of letters was because the Applicant was using a different correspondence address, which seems unlikely not least as regards utility bills and the like). Certainly, unless a pure coincidence, the Applicant was able to respond to the HD’s invitation for a fixed appointment within 24 hours. 45.As to the position of the Wife and the Son, it is of course correct that they had alternative accommodation in the Mainland. But, if they were in effect “stuck” in the Mainland as a result of a combination of the travel restrictions during the pandemic and the Son’s medical condition / need for treatment, and the Wife’s understandable staying there for that purpose, that they found somewhere to live does not seem to me to be rationally connected with their not having a need for the Unit. 46.Further, it is possible to consider the position of the Wife and the Son separately. Even assuming the Son was intended to have continued education in the Mainland, that would not have ordinarily prevented the Wife from coming to Hong Kong. I think the Applicant gave evidence and/or made submission to this effect during the appeal hearing. Had the Wife not understandably stayed in the Mainland after the Son’s cancer diagnosis, it is likely that she would have been found in occupation of the Unit during some, if not all, of any unannounced visits – even if the Applicant’s working hours and obligations meant that he would not have been found present at the same time. There would also have been greater use of the utilities, such that an investigation as to the occupancy of the Unit might not even have been pursued. 47.When those matters are properly taken into consideration, that may change the weight or balance to be given to the other features such as the impact of the pandemic on the renovation requirements, and the fact that the Applicant had spent the substantial part of his savings in order to pay for the renovations which were completed many months in advance of even the Investigation Period, let alone the decision to issue the NTQ. 48.This does not seem to me to be a matter simply of sympathy or personal empathy, but the fair, proper and rational approach to the materials. 49.I have also taken into account that one of the Members of the Appeal Panel has already taken the view that the overall circumstances justify the exercise of the discretion in favour of the Applicant. Therefore, upon any reconsideration, it might only need one of the other two Members to change his mind as to the weighing and balancing exercise, for there to be a different decision. H. Result 50.In the particular circumstances of this case, it seems to me that the arguments put forward on behalf of the Applicant justify the grant of leave to apply for judicial review, and ultimately just support the finding of the substantive review, and point to the grant of relief. 51.Therefore, I quash the Decision, and remit the matter back to the Appeal Panel for reconsideration in the light of, and with the benefit of, this Judgment. 52.I shall make a costs order nisi that the HA pay the costs of the Applicant, to be summarily assessed by me on paper. The order will become absolute, unless an application for variation is made within the next 14 days. 53.In the circumstances, though I have been provided with an updated calculation of mesne profits to 20 September 2024, I make no order in that regard, as it may become otiose. Of course, that will be impacted by the decision made upon the reconsideration, which is a decision for the Appeal Panel to make. 54.Lastly, I would emphasise that nothing in this Judgment is intended to set any precedent for future cases. In particular, I acknowledge the points which the HA has reiterated, namely that public rental housing and precious social resources should be used optimally and be rationally allocated to those with genuine need, and that there is an growing public sentiment and approval in the HA’s efforts to combat tenancy abuse.
Ms Jenny Lok, instructed by C.W. Heung & Partners, for the applicant The 1st putative respondent was excused from court attendance Ms Eva Leung, instructed by Fairbairn Catley Low & Kong, for the 2nd putative respondent | |||||||||||||||||||||||||||||||||
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