Chung Loi Kiu By Her Next Friend, Lau Ching Man v. Lau Yip Hung
Read the full judgment text of DCCJ 3999/2021 on BabelCite. This District Court judgment was delivered on 17 September 2025.
1. The present case concerns a piece of land known as Lot No. 224 in Demarcation District No. 137 (“ Lot 224 ” or “ Land ”) at Pak Long Village, Lung Kwu Tan, Tuen Mun (“ Village ”). Unless stated otherwise, all lot numbers referred to in this Judgment are in the same Demarcation District.
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DCCJ 3999/2021 [2025] HKDC 1565 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION CIVIL ACTION NO 3999 OF 2021 ————————————
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———————— JUDGMENT ———————— INTRODUCTION 1.The present case concerns a piece of land known as Lot No. 224 in Demarcation District No. 137 (“Lot 224” or “Land”) at Pak Long Village, Lung Kwu Tan, Tuen Mun (“Village”). Unless stated otherwise, all lot numbers referred to in this Judgment are in the same Demarcation District. 2.The Plaintiff (“P”) seeks a declaratory relief that she has acquired possessory title to a substantial portion of Lot 224 (“Pink Area”) by adverse possession. The Defendant (“D”) is the registered owner of Lot 224. He defends P’s claim and counterclaims for an injunction restraining P from trespassing on the Pink Area, an order for vacant possession of the same and mesne profit. 3.For easy reference, a site plan [1] (“Site Plan”) showing the location of the Pink Area as well as the Yellow Area and Indigo Area (as defined at §8 below) is attached to this judgment. 4.At the trial, P was represented by Mr. Erik Shum and Ms. Michelle Wong whereas D was represented by Mr. Jonathan Tai. 5.Before the commencement of the trial, I dealt with P’s summons dated 5 March 2025 for appointing Ms Lau Ching Man as the next friend of Madam Chung Loi Kiu (“Madam Chung”). A medical report dated 4 March 2025 from Dr. Li Cheuk Wing (“Dr. Li”), a specialist in psychiatry, was produced in support of the application. According to Dr. Li, an assessment was conducted on 21 February 2025 and he was satisfied that Madam Chung was mentally incapacitated for the purpose of the Mental Health Ordinance (Cap. 136). 6.The application did not concern D. In any event, there was no objection from Mr. Tai. Based on Dr. Li’s assessment, I was satisfied that Madam Chung was mentally incapacitated and made an order in terms of the summons. To avoid confusion, I will from now on use “P” when I refer to the Plaintiff as a party to the proceedings and “Madam Chung” when I refer to Madam Chun Loi Kiu. OVERVIEW 7.Lot 224 was previously owned by Lau Sz Ching Tso [2] (“Tso”). 8.It is P’s case that, in 1945, with the Tso’s consent, Mr. Lau Tak Yung (“Manager”), manager of the Tso, “agreed to give” the Land to Madam Chung’s late husband, Mr. Lau Yung Wah (“Lau Senior”). Since then, Lau Senior and his family have been occupying the Land. They first grew crops on it. In around 1987 to 1988, they changed to plant lychee trees. In addition to Lot 224, they also farmed on other lots in the vicinity including:-
A fence was erected to surround the farming area and only members of their family had the keys to the gate at the fence. 9.On 5 November 1990, the Tso sold Lot 224 to LWF Company Limited (“LWFC”). On 12 August 2014, LWFC sold Lot 224 to D. It is not disputed that Lau Senior and Madam Chung were not aware of these two transactions. 10.In the Amended Statement of Claim (“ASOC”), P did not specify the commencement date of the adverse possession. P only averred that Madam Chung had been in adverse possession of the Pink Area for more than 20 years or 12 years, depending on the Court’s finding on the commencement date of the adverse possession. 11.P’s case was only made clear in the Reply in which P averred that the occupation from 1945 onwards was pursuant to the Tso’s consent. When the Tso sold the Land to LWFC on 5 November 1990, the consent was automatically revoked by operation of law. Since then, P had been in adverse possession of the Land. P referred to this as the “primary case” but no alternative case was pleaded. In the opening, Mr. Shum confirmed that it was P’s only case and the applicable limitation period was 20 years from 5 November 1990 to 4 November 2010. 12.D became the registered owner in 2014 when, according to P’s case, the 20-year limitation period had already expired. D has little knowledge on events allegedly happened before 2014 and did not plead any positive case. At the trial, D essentially put P to strict proof of her claim. D denies that the Pink Area was enclosed by fence and alleges that he and his other family members were free to enter the Pink Area without interference by Madam Chung from 2015 until 2021. D also argues that Madam Chung’s use of the Pink Area to plant lychee trees from 1987 or 1998 is at best occasional and insufficient to establish factual possession for adverse possession. 13.As P admits that Madam Chung was not aware of the change of ownership of the Land in 1990 and 2014 until 2021, an argument was raised on whether Madam Chung had the animus possidendi. 14.It is Mr. Shum’s argument that the test for animus possidendi is purely objective which can be inferred from the effective or exclusive occupation and control of the Land and the fact that Madam Chung was not aware of the sale of the Land and revocation of licence on 5 November 1990 is irrelevant. 15.On the other hand, Mr. Tai submits that the test for animus possidendi has both subjective and objective aspects. Since P did not know the sale of the Land and the revocation of licence in 1990 and her use of Lot 224 remained unchanged after 1990, she was unable to prove the animus possidendi. 16.In other words, the present case involves both factual and legal disputes. LEGAL PRINCIPLES 17.The legal principles on adverse possession were helpfully set out by Mr. Shum and Mr. Tai in their respective openings. Save for the test for animus possidendi, these principles are not in dispute and can be summarized as follows:-
P’S EVIDENCE 18.At the trial, P called:-
19.P did not call Ms. Lau Yuk Tai, another daughter of Madam Chung. Upon the parties’ agreement, her witness statement is excluded from evidence. The witness statement of Madam Chung 20.As Madam Chung was mentally incapacitated, she was not able to give evidence at the trial. Mr. Shum sought to adduce her witness statement dated 22 May 2023 as hearsay evidence under sections 47 and 47A of the Evidence Ordinance (Cap.8) and a hearsay notice in respect of Madam Chung’s witness statement was filed on 24 February 2025 (“Hearsay Notice”). The admission was opposed by Mr. Tai. After discussion, the parties agreed to deal with the issue of admissibility at the end of the trial. In the closing, both Mr. Shum and Mr. Tai made further submissions on this issue. 21.Section 47(1) of the Evidence Ordinance provides that evidence shall not be excluded on the ground that it is hearsay unless (a) a party against whom the evidence is to be adduced objects to its admission; and (b) the Court is satisfied, having regard to the circumstance of the case, that the exclusion of the evidence is not prejudicial to the interests of justice. 22.The weight to be given to the hearsay evidence is relevant to the question of admissibility. In Cheung Wei Man Vivien v Centaline Property Agency Limited [8] , Lam J said at 696H:-
23.The burden falls on the party objecting to hearsay evidence to satisfy the Court that the exclusion of such evidence is not prejudicial to the interest of justice; Lau Kwai Ping Joyce v Fulland International Limited [9] . 24.Mr. Shum explains that, as shown in Dr. Li’s report dated 8 May 2023 [10] , Madam Chung was of sound mind when she prepared her witness statement in May 2023. However, her physical and mental condition subsequently deteriorated and became mentally incapacitated before the trial. 25.Mr. Shum submits that Madam Chung’s witness statement was disclosed in 2023 and P’s reliance on its contents would not take D by surprise. Further, Madam Chung was the key witness to P’s case, particularly on events since 1945 until her children matured. Excluding her witness statement would be detrimental to P’s case and unfair. 26.Moreover, as Madam Chung was mentally incapacitated, it was impossible to call her to testify under section 48 and admitting her witness statement as hearsay was the only viable course to take. Mr. Shum emphasizes that P has all along been acting in good faith without delay and the deterioration of Madam Chung’s health conditions is beyond the control of any party. 27.On the other hand, Mr. Tai is skeptical as to the timing of P’s attempt to adduce Madam Chung’s witness statement as hearsay. Mr. Tai points out that P expressly informed the Court at the Pre-Trial Review hearing on 7 January 2025 (“PTR”) that Madam Chung would be called to testify at the trial and there was no indication that Madam Chung was unfit to give evidence. The sudden claim in P’s Opening Submissions dated 20 February 2025 (filed 14 days before the trial) that Madam Chung’s mental condition had deteriorated is inconsistent with P’s earlier position and raises serious concerns whether the attempt to adduce her witness statement as hearsay is merely a trial tactic. 28.According to the medical report dated 25 February 2025, Ming informed Dr. Li at the assessment on 21 February 2025 that Madam Chung’s health had deteriorated significantly over the past 2 years. Mr. Tai queries that, if Ming’s allegation were true, P must have been aware of Madam Chung’s declining health and should have ample time to secure her evidence by deposition under Order 39 but P has failed to do so. P shall not now be allowed to rely on Madam Chung’s witness statement as hearsay and unfairly deprive D of the right to cross-examine her. Further, Ming would give evidence at the trial and Madam Chung’s witness statement adds little to it. 29.I do not query the fact that Madam Chung was mentally incapacitated when the trial commenced on 6 March 2025. My concern is on the timing of the application for appointment of next friend and the consequential attempt to adduce Madam Chung’s witness statement as hearsay evidence. As noted above, P confirmed at the PTR that Madam Chung would give evidence at the trial. The first indication that Madam Chung was “unfit to attend court to give evidence” was made in P’s Opening Submissions dated 20 February 2025[11]. The Hearsay Notice was filed on 24 February 2025 and the summons for appointment of next friend was filed on 5 March 2025. In other words, everything happened within 2 weeks before the trial. 30.According to the Affirmation of Ms. Lau Ching Man, Madam Chung was admitted to hospital in August 2024 because she was feeling unwell but the treating doctor did not make any remark on her mental capacity. She personally was not aware of any mental health issue concerning Madam Chung. On 3 February 2025, Madam Chung was admitted to hospital again when she was feeling unwell. This time “the health condition of [Madam Chung] raised concern as to whether she is fit to attend court to give evidence at the trial” and arrangement was made to visit Dr. Li on 21 February 2025 for assessment. 31.In my view, Ms. Lau Ching Man’s affirmation has failed to address my concerns on the timing. Firstly, it is noted that P arranged Madam Chung to be examined by Dr. Li in May 2023 to confirm her mental capacity when her witness statement was prepared but there is no explanation why examination was not carried out before P confirmed at the PTR that Madam Chung would testify at trial. This omission is particularly significant given that confirming Madam Chung’s capacity to give evidence at trial is no less important than ensuring her capacity to make a witness statement. Secondly, there is no indication from Ms. Lau that the treating doctor made any comment on Madam Chung’s mental capacity when she was admitted to hospital on 3 February 2025 and it is unclear from Ms. Lau’s affirmation what prompted the concern about Madam Chung’s mental capacity after this admission. Finally, it is noted that P had already indicated in her Opening Submissions dated 20 February 2025 that Madam Chung was “unfit to attend court to give evidence” even though Dr. Li’s assessment was only conducted on 21 February 2025 and his report was not available until 25 February 2025. 32.Further, having considered the factors set out in section 49, I would have given no weight to Madam Chung’s witness statement even if it had been admitted as hearsay. Firstly, her witness statement was made in 2023 which is long after the events starting from 1945. Secondly, it was made for the specific purpose of present case and is an edited account. Thirdly, Madam Chung is not an independent witness. She is a party to the present case and is claiming adverse possession of the Pink Area. She has a substantial interest in the outcome of the case and has the motive to conceal or misrepresent truth. Lastly, the circumstance where P suddenly had concern on Madam Chung’s casts doubt on whether the decision to adduce her witness statement as hearsay was an attempt to prevent proper evaluation of its weight. 33.More importantly, I agree with Mr. Tai that Madam Chung’s witness statement does not add anything to Ming’s evidence. It is P’s case that the 20-year limitation period for adverse possession started in 1990 and expired in 2010. Ming was born in 1960 and has direct knowledge on events happened during the said limitation period. He was also the person who, on behalf of Madam Chung, liaised and negotiated with D on matters relating to the Pink Area in 2021. For events before 1960s, his knowledge came from Madam Chung and Lau Senior which is hearsay. Since Madam Chung is unable to attend the trial, what she said in her witness statement about the events before 1960s would also become hearsay if the witness statement is adduced. In other words, evidence on events before 1960s would be hearsay in any event regardless of whether Madam Chung’s witness statement is admitted or not. 34.On the other hand, I am of the view that it would be unfair to deprive D of the opportunity to cross-examine Madam Chung. 35.By reason of the aforesaid, I am satisfied that D has demonstrated that the exclusion of P’s witness statement is not prejudicial to the interest of justice. Accordingly, I would refuse to admit Madam Chung’s witness statement as hearsay evidence, save for paragraphs 32 and 33 which were referred to during cross-examination of Ming and the admission of these two paragraphs as hearsay evidence is agreed by the parties. Lau Yun Ming (Ming) 36.Ming is the second son of Madam Chung. He was born in 1960. He lived in the family house on Lot 843 (known as House 257) at the north of the Yellow Area until he built his own house in around 1996. 37.Lau Senior and Madam Chung have six children, namely:-
38.According to Ming, Madam Chung told him that, after the end of World War II, the Manager orally gifted Lot 224 and Lot 225 to Lau Senior as a reward for his services to the Tso and the family started to farm on these two pieces of land. Subsequently, they extended the farming area to other lands. 39.Madam Chung also told Ming that, in 1950s, they erected a bamboo fence to surround the farming area to prevent trespassing. The gate of the bamboo fence was locked and only their family had the key. In addition to growing crops, they also raised pigs, chickens and cattle. Ming recalled that he assisted in farming when he was about 6 or 7 years old. 40.In late 1960s, Lau Senior and Ming gradually replaced the bamboo fence with wire fence. The replacement was completed in 1970. 41.When Ming’s siblings moved out one by one, Lau Senior and Madam Chung surrendered some of the farming areas and only farmed on the Yellow, Pink and Indigo Areas. 42.In around 1987 to 1988, Lau Senior and Madam Chung decided to change from growing crops to planting lychee and longan trees because planting fruits trees was easier than growing crops. Fruit trees absorbed dew at night and they only needed to water the trees in hot weather. Except the first few years of planting, the fruit trees harvested every summer, usually in July. After Chinese New Year, Ming helped Madam Chung to apply fertilizer and salt to the soils. Ming also recalled that his two sisters came back in July to assist in picking lychee and longan. 43.In 1988, they mainly occupied the Yellow and Pink Areas, which they referred to as “Lychee Garden”. 44.In 1994, Ming started to build his own small house on Lot 872, which is adjacent to the western bound of the Indigo Area. The construction was completed in 1995 and the house is known as House 266. Ming construed a concrete wall with iron rods around his small house. At the same time, an iron fence of 4 feet high was erected to replace the wire fence to surround the Lychee Garden and a gate was set at the southeast corner of the Garden. 45.In around 2010, Madam Chung ceased using Lot 215. In around 2017, Madam Chung surrendered Lots 216 to 218 to the owners, keeping only the Yellow and Pink Areas. 46.In around June 2021, Mr. Lau Chi Sang (“Village Head”), the Village head, informed Madam Chung that the Pink Area belonged to D and asked her to remove the trees thereon. According to Ming, it was the first time that someone alleged to be the owner of Lot 224. Madam Chung indicated that she needed time to understand and investigate. Later in June 2021, Ming sent a fax to D asking about the amount of compensation for removal of trees and the date of removal [12] . 47.On 5 July 2021 at about 2 to 3 p.m., the Village Head and one Mr. Lau came to House 266 to meet Madam Chung and Ming. At the meeting, the Village Head offered to pay $2,000 for each tree. Ming said they needed to consider the offer. The Village Head took out a settlement agreement [13] which had been signed by D (as the owner) and the Village Head (as the witness) but Ming did not sign it. 48.In August 2021, Ming found that the iron fence was damaged and a vehicle bearing registration number UL876 (“UL876”) was parked in the Yellow Area. Ming reported the case to the Police. Vehicle search showed that the owner of UL876 was Lau Yip Wai, who is D’s brother. 49.On 12 August 2021, Madam Chung made a complaint to the Transport Department and asked it to tow away UL876. On the same day, Madam Chung posted a notice on Lot 224 demanding the removal of UL876 within one week. 50.On 13 August 2021, Madam Chung posted two more notices on Lot 224 stating that she was the owner of Lot 224 and warning that any trespassing or damage to the Land would be reported to the Police. 51.On 12 September 2021 at 10:30, someone claiming to be the owner’s agent cut through the iron fence. Madam Chung asked them to stop and reported the case to the Police. Ming carried out the repair immediately and incurred a cost of $2,500. 52.Ming denies D’s allegations (see below) that:-
Ms. Lau Yuk Ying (Ying) 53.Ying is the second daughter of Madam Chung and Lau Senior. She was born in 1948. She started working in Tsuen Wan in 1963 and moved out from the Village in 1969. She visited her parents once every one or two months. She was aware of the erection of fence. 54.She recalled that her parents were still growing crops on the Yellow and Pink Areas in 1980s. As her parents were growing old, they changed to plant lychee and longan trees in late 1980s or early 1990s. She also confirmed that the farming area had been fenced off at all material times. Tang Wai Kit (Tang) 55.Tang is Ming’s son-in-law. He first visited Lychee Garden in 2018 and observed that it was surrounded by fence. After he married Ming’s daughter in 2019, he visited Madam Chung once every two to three weeks. He usually parked his car on a concrete road outside the Lychee Garden. 56.On 23 May 2021, he and his family arrived at the Village at around 10 to 11 a.m. and parked his car as usual. Later, there was an accusation that his car caused an obstruction and a dispute arose between Madam Chung’s family and D’s family. The matter was reported to the Police. Upon the Police’s request, Tang moved his car to another location. D’S EVIDENCE 57.D filed witness statements for 7 factual witnesses and all of them gave oral evidence at the trial, namely:
Their evidence can be summarized as follows. 58.Prior to the purchase of Lot 224, D’s father visited the Land. He told D that there were 5 lychee trees on the Land and it was not enclosed by fence. 59.After the purchase, D visited Lot 224 in 2015 and was able to enter the Land without any restriction. It was his observation that:-
The above conditions remained unchanged until around August 2021. 60.In about December 2014, D engaged HMS to survey Lot 224. The surveying was carried out on 14 January 2015 and no one prevented HMS’s staff from entering Lot 224. According to the survey plan prepared by HMS [14] , there was no fence at the eastern and southern bounds of Lot 224. Following the survey, D submitted his small house application in February 2015. 61.Later, D found out that the trees on Lot 224 were planted by Madam Chung. In around May 2015, D and his father contacted Madam Chung. They told Madam Chung that D was the owner of Lot 224 and asked her to remove the trees. Madam Chung asked for D’s permission to continue growing fruits thereon and promised to remove the trees when D needed the Land to build a small house. As D’s small house application was still being processed and D had no plan to use the Land for other purposes, he allowed Madam Chung to continue growing fruits trees on the Land upon her promise. 62.Whilst D was waiting for the outcome of his small house application, he also allowed his family members (such as Hang, Chau and Wai), friends or villagers to park their cars on Lot 224. No one prevented them from doing so before August 2021. 63.On 9 December 2020, DLO issued a notice informing the villagers of D’s small house application and requested the villagers to reply by 23 December 2020 if there was any objection [15] . According to DLO’s notice, it was distributed to, inter alia, the “Application site”, i.e. Lot 224. D himself saw the said notice at the Village’s office, the Village’s bus stop and the tree on the Lot 224. As DLO received no objection, D’s application was approved on 18 May 2021. 64.In March 2021, Wai started to park UL876 on Lot 224 occasionally. According to Wai, no one prevented him from doing so and the condition of Lot 224 at that time was the same from what D had observed in 2014 (see §59 above). 65.In around April 2021, D was informed that his small house application would soon be approved and sought assistance from the Village Head to recover the Land. Later, the Village Head told D that Madam Chung had orally promised to remove the trees after that year’s harvest. Relying upon Madam Chung’s oral promise, D allowed her to continue using the Land. 66.In May 2021, Wai purchased a new car and parked UL876 on Lot 224 on a long-term basis. Once again, no one prevented him from doing so. 67.On 23 May 2021, there was a dispute between the family of Madam Chung and the family of D over the parking of Tang’s car and Police was called. 68.On 13 June 2021, Ming sent a letter to D asking for compensation for removal of trees and the deadline of removal. 69.On 5 July 2021, the Village Head and Hang met Madam Chung and Ming. Prior to the meeting, Ming told the Village Head that Madam Chung was willing to accept $2,000 per tree on Lot 224 and Chau prepared a settlement agreement so that Ming could sign at the meeting. 70.At the meeting, Ming confirmed the acceptance of the compensation of $2,000 per tree. But when he was asked to sign the settlement agreement, Ming said he wished to consult his family members first. 71.Thereafter, Madam Chung failed to sign the settlement agreement or to remove the trees on Lot 224. D tried to contact Ming by phone or at House 266 but to no avail. 72.On 9 August 2021, it was found that wire fence was erected on Lot 224 but the Land was not completely enclosed and remained accessible by UL876. D tried to contact Ming but again to no avail. 73.On 12 August 2021, D posted a notice on the wire fence demanding Madam Chung to remove it within a week. In the meantime, Madam Chung posted notices on the Land asserting for the first time her right on the Land. As D could not reach Ming, he sought assistance from the Police. 74.On 6 September 2021, Lot 224 was completely fenced off and UL876 was trapped inside. 75.On 12 September 2021, after seeking legal advice, D arranged to remove the wire fence on Lot 224. Madam Chung called the Police. After mediation by the Police, D temporarily restored the wire fence. D denies that he instructed anyone to remove the wire fence before 12 September 2021. EXPERTS’ EVIDENCE 76.Pursuant to the leave granted by the Court, P and D engaged Mr. Ian Wootten and Mr. Eric Tang respectively. 77.The experts conducted a site inspection on 26 October 2022 and a meeting was held on 21 February 2023. They confirm that there is no significant difference in their observation over the aerial photos and survey sheets. 78.In the Joint Statement dated 20 April 2023, the experts set out their agreements and disagreements. I shall refer to their opinions when I address the issues in dispute. ISSUES TO BE DETERMINED 79.In essence, the Court needs to determine the following two issues:-
ALLEGATION OF COLLUSION BY D’S WITNESSES 80.Before I address the issues to be determined, I shall first deal with Mr. Shum’s submissions on the alleged collusion by D’s witnesses. 81.In the closing, Mr. Shum complains that the witness statements of D’s witnesses are almost identical on many aspects such as:-
Mr. Shum summarizes the relevant parts of their witness statements in Appendix 4 to his closing submissions. 82.During cross-examination, D’s witnesses admitted that all of them attended a meeting at the office of D’s solicitors to prepare their witness statements and they discussed the present case at the meeting to ensure the consistency of their witness statements. Later the same day, their (or their first) witness statements were typed up and they signed it accordingly. They denied the allegation of collusion and maintained that what they said in their witness statements were true and accurately reflected their observations. 83.Mr. Shum submits that, based on the admissions of D’s witnesses, there is a clear breach of the fundamental principle of witness independence and their evidence is colluded. As the Court cannot tell which part of the witness statement comes from the witness’s own memory and which part is copied from other witnesses, he invites the Court to give no weight to all the evidence of D’s witnesses. 84.Mr. Shum refers me to Ho Sing Yin v Chan Yiu Ling [16] where Deputy Judge Saunders said that:-
85.Mr. Shum also refers to Au Yeung Pui Chun v Cheng Wing Sang [17] where Godfrey Lam J made similar comments as follows:-
86.On the other hand, Mr. Tai submits that the mere fact that there are identical paragraphs in the witness statements or that the witnesses discussed the case when they prepared their witness statements does not necessarily mean that no weight should be given to them. The weight to be given should be considered after taking into account their answers given during cross-examination. Mr. Tai observes that Mr. Shum’s cross-examination on D’s witnesses focused primarily on the preparation of their witness statements and there was minimum cross-examination on the substantive contents of their witness statements. 87.Further, Mr. Tai argues that the identical paragraphs in their witness statements are not referring to events but rather describing the condition of Lot 224 at different points in time. When the Land’s condition remained unchanged, it is entirely reasonable for the witnesses to use similar wording in giving instructions to D’s solicitors who then used similar wording to draft their witness statement. There is no plausible alternative way to describe it. 88.Mr. Tai refers to Shum Wing Lok v Shum Man [18] . In that case, the plaintiff’s counsel made similar submissions on the breach of witness independence by the defendant’s witnesses and invited the court to give no weight to their evidence. Deputy Judge H Au-Yeung (as he then was) said that:-
89.The learned Deputy Judge referred to Chan Chung Yee v Chan Wah Cho [19] and Integrity Financial Advice Network Company Limited v Chu Yau Shun [20] where the approach of not dismissing the “problematic” witness statements automatically was also adopted and agreed that that was the correct approach. The learned Deputy Judge further said that:-
90.I agree with Mr. Tai that I shall not automatically disregard D’s evidence simply because their witness statements contain almost identical paragraphs or they admitted that they discussed the case at a conference when they prepared their witness statements. The cases of Ho Sing Yin and Au Yeung Pui Chun should not be read as laying down any rigid rules that the Court must not give any weight to the witnesses’ evidence in such circumstances. I am of the view that the learned Deputy Judge’s approach in Shum Wing Lok is the correct one and I would respectfully adopt it. 91.In other words, I need to consider their answers given during cross-examination on not only their discussion for preparation of their witness statements but also the substantive matters relating to the issues in dispute. In addition, when assessing the credibility of witnesses, I bear in mind the following principles set out by Deputy Judge Eugene Fung SC in Hui Cheung Fai v Daiwa Development Ltd [21] :-
92.Further, if a witness has told lies on a central issue, that may have a significant adverse impact on the credibility of his or her evidence as a whole; Swallow Kingdom Holdings v Lo Kok Shing Leo [22] . FACTUAL POSSESSION 93.In the closing, Mr. Tai challenges almost every aspect of P’s evidence on factual possession. Initial occupation and use of the Land 94.Mr. Tai first submits that P’s evidence on when and how Madam Chung started occupying the Pink Area is inconsistent and does not support P’s pleaded case:-
95.I am unable to accept Mr. Tai’s submission by reason of the following:-
96.Based on the evidence available, I find on balance that Lau Senior and Madam Chung started occupying the Pink Area in 1945 under the consent of the Tso pursuant to a licence. Planting of trees 97.Mr. Tai then submits that, although the aerial photos show that trees were planted in the Yellow and Pink Areas, P has failed to establish that Madam Chung was the one who planted the trees. Mr. Tai even challenges that the lychee trees now exist on the Land were planted by Madam Chung. 98.It is the experts’ common opinion that:-
99.It is D’s own evidence that he was told in 2015 that the trees on Lot 224 were planted by Madam Chung. Since then, he had contacted Madam Chung or Ming from time to time on matters relating to Lot 224. During the years, no other persons claimed to be the owner of the trees on the Land and D never queried that the trees thereon belong to Madam Chung. 100.In light of the agreed opinions of the experts and D’s own evidence, I find on balance that the lychee trees on Lot 224 were planted by Madam Chung and belong to her. 101.In any event, it is trite law that it is not necessary for the adverse possession to be made by one person for the whole of the limitation period and a squatter can rely on the occupation of the previous squatters to establish adverse possession; Lau Kwai Ping Joyce §17. In my view, Madam Chung can still claim adverse possession even if the trees were not planted by her. 102.Mr. Tai also argues that, even if P can establish that the trees were planted by Madam Chung, it does not necessarily amount to adverse possession. Mr. Tai submits that mere tree planting, without acts of exclusion, does not establish adverse possession. Mr. Tai relied on Gotland Enterprises Limited v Kwok Chi Yau [25] where Lam VP (as he then was) held that:-
103.Mr. Tai also relies to Wai Wah Traders Ltd v Wong Yim t/a Creative Advertising Design Company [26] where Deputy Judge Mimmie Chan (as she then was) said that:-
104.Mr. Tai points out that there are other Hong Kong authorities where the Court held that, where planting of trees was equivocal, the Court would examine what further steps were taken by a squatter to exclude others; e.g. The personal representative of the estate of Chan Chuen v Forestside Ltd [27] , Wong Pui Wan v Wong Wing Kwong [28] , and Chan Tin Bo v The estate of Ng Cheong [29] . 105.Mr. Shum disagrees that there is any legal proposition that mere planting trees could never establish adverse possession. He refers to Powell v. McFarlane where Slade J said that “There are a few acts which by their very nature are so drastic as to point unquestionably, in the absence of evidence to the contrary, to an intention on the part of the doer to appropriate the land concerns. The ploughing and cultivation of agricultural land is one of such act” [30] . Mr. Shum submits that the authorities relied on by Mr. Tai were just examples of unsuccessful reliance on tree planting alone to establish adverse possession. They are not authorities to rebut the proposition that tree planting could be a possessory act of adverse possession. 106.In my view, the disagreement between Mr. Tai and Mr. Shum is, in substance, not as significant as it first seems. The fundamental principle remains that possession must be single and exclusive; Gotland §33. There is no fixed or absolute rule to determine what constitutes “single and exclusive” possession. Rather, it is a question of fact to be determined in each individual case. The act of planting trees is simply one way of using the land and whether this act alone constitutes adverse possession depends on its degree and extent, just as with any other form of land use. As held by Deputy Judge Marlene Ng (as she then was) in Lau Kwai Ping Joyce (supra), whether planting trees can be evidence of exclusive possession depends on the facts of the case. 107.According to Ming, the process of planting and cultivating trees on the Pink Area was much simpler and attention was required during two specific periods each year, i.e. (a) after Chinese New Year, when fertilizer was applied to the soil; and (b) during the summertime, when the trees were watered and lychee was harvested. There is no suggestion from Ming that any additional work or attention was required outside these two specific periods. 108.Considering the undisputed evidence, I agree with Mr. Tai that, after changing to tree planting in 1987 or 1998, Madam Chung’s use of the Pink Area was intermittent and occasional which, without additional acts of excluding others, insufficient for adverse possession. 109.In any event, it is not Mr. Shum’s submissions that Madam Chung’s act of planting trees on the Pink Area alone is sufficient to establish factual possession. In addition to planting trees, Mr. Shum relies on the setting up and existence of fence made of bamboos and wires, planting of vegetation as hedges to form barriers to establish the possession. Erection of fence 110.As this is perhaps the most important issue in the present case, it is necessary to set out P’s pleaded case first. In the ASOC, it is pleaded that:-
111.As Madam Chung was unable to attend the trial, evidence on fence mainly comes from Ming. However, I am of the view that his evidence is not entirely satisfactory:-
112.By reasons aforesaid, I do not think I can accept on Ming’s evidence on this important issue without reservation. In such regard, I would resort to the expert evidence. 113.For the northern bound, as there was no fence between the Yellow and Pink Areas, the focus is on the northern bound of the Yellow Area. The experts agree that:-
114.I note that it is D’s evidence that, when he visited the Land in 2015, he observed that there was very old and dilapidated iron fence at the northern bound of the Yellow Area. 115.For the western bound of the Pink Area, the experts agree that:-
116.The experts seem to agree that access to the Pink Area from the western bound was restricted after the construction of a house and its paved garden in 1997 even though the fence was erected in 1999. What the experts cannot agree is whether access to the Pink Area from the western bound was restricted before 1997. Mr. Tang suggests that it was not restricted, but Mr. Wootton disagrees. 117.For the southern bound of the Pink Area, the experts agreed that:-
118.Mr. Wootton is of the view that the “present photos” show that there is little clearance above the ground to the bottom of the tree foliage on the southern bound and this means access was restricted throughout that side. 119.For the eastern bound of the Yellow and Pink Areas, Mr. Wootton is of the view:-
120.Mr. Tang is of the view that:-
121.In summary, it is agreed by the experts that:-
122.In the closing, Mr. Shum appears to accept the Yellow and Pink Areas were not completely fenced off. However, he argues that complete enclosure is not necessary, and the need and degree of setting up fences and barriers depends on the risk of trespassing. If there was no or very low risk of trespassing, there is no need to enclose, let alone complete enclosure. Mr. Shum submits that:-
123.Unsurprisingly, Mr. Tai objects to Mr. Shum’s submissions on the ground that they amount to complete departure from P’s pleaded case. Mr. Tai refers to P’s pleadings and points out that P only relies on the cultivation and the complete enclosure as the basis for factual possession. P has not pleaded any other act of possession by, say, structure, tree, unbroken vegetation, etc. 124.In reply, Mr. Shum argues that Mr. Tai’s complaint is wrongly placed and unjustified. It is Mr. Shum’s submissions that:-
125.With my greatest respect to Mr. Shum, I am afraid that I cannot agree with his submissions:-
126.By reasons of the aforesaid, I am of view that P should not be allowed to rely on the unpleaded acts of possession. 127.In any event, even if P were allowed to run such unpleaded case, I am of the view that it is not supported by evidence:-
Conclusion on factual possession 128.By reasons of above, I find that there was no complete enclosure of the Pink Area from 1990 to 2010 and the access to the Pink Area was not restricted. I accept D’s evidence that he was able to enter the Pink Area when he visited it in 2015 and that, from 2015 to August 2021, D, his family members and friends were able to park their cars on the Pink Area without restriction or interference from Madam Chung and her family. 129.Coupled with my finding that the Madam Chung’s use of the Pink Area for planting of lychee trees is occasional and intermittent, I am not satisfied that P has demonstrated by compelling evidence that Madam Chung had exclusive control and possession of the Pink Area to the exclusion of others from 1990 to 2010. As P has failed to prove the factual possession, it follows that her claim for adverse possession must fail. ANIMUS POSSIDENDI 130.Given my finding that P has failed to prove the factual possession, it is strictly speaking unnecessary for me to deal with the issue of animus possidendi. However, in deference to the submissions made by Mr. Shum and Mr. Tai and in the case that I am wrong in my decision on factual possession, I shall give my views on this issue as well. 131.Relying on Ho Hang Wan v Ma Ting Cheung [43] , Mr. Shum argues that the test for animus possidendi is purely objective, which is to be inferred from the circumstances and evidence of the squatter’s control and possession of the subject land. It is Mr. Shum’s argument that, where the act of possession is unequivocal, the act of possession itself is sufficient to show the intention to possess and the question of intention to possess is significant only where the act of possession is equivocal. 132.In Ho Hang Wan, the plaintiff entered possession of the land in 1957. At that time, the land was not fenced. It was the plaintiff and her husband who gradually erected fences and structures over the land and the works were completed by about 1963 or 1964. The landowner died on 21 April 1964 but the plaintiff and her husband did not know it. The plaintiff’s primary case was that she entered into the land in 1957 as an adverse possessor. The trial judge rejected this case and found that she entered into the land originally as a licensee. The plaintiff’s alternative case was that, if she was a licensee, such licence had terminated upon the death of the landowner by operation of law and thereafter the possession by the plaintiff was adverse and being no longer referable to the licence. The trial judge rejected this alternative case as well. In particular, the trial judge found that, upon the basis that the Plaintiff and her husband did not know of the death of the landowner, “nothing suggests that their state of mind was different before or after 1964. They regarded themselves throughout as licensees”. The plaintiff appealed. 133.On appeal, the Court of Appeal held that a revocable licence is automatically terminated by the death of the licensor and it is not necessary for the licensee to have received notice of the death. On the intention to possess, it was agreed that the plaintiff, having covered the site with structures and used it as a store and a residence, could not more plainly have demonstrated exclusive physical possession to the world. Since the plaintiff denied any licence and asserted actual adverse intent from the outset, the defendant’s argument was based on a notional imputation of an intent to the plaintiff as a hypothetical reasonable licensee who had not forgotten the existence of the original licence and not having known of the death of the landowner. It was argued by the defendant that a person in such state of mind could not show sufficient intention to possess because, if challenged, she would have had to concede the right of the licensor to demand possession at some future date and it mattered not that to the outside world she could be seen to be in exclusive possession if there was no animus to dispossess the licensor. 134.The Court of Appeal held that the plaintiff’s possession after 1964 was certain and unequivocal, and attributable to no continuing licence. The mental reservation sought to be attributed to her as a hypothetical honest or reasonable licensee, are no more than effective to negative the intention to possess. 135.Mr. Shum submits that Ho Hang Wan was expressly referred to in Wong Tak Yue (No.2) and Li CJ observed that “there is nothing in that judgment which is inconsistent with the approach I have adopted here”. Therefore, Mr. Shum argues, Ho Hang Wan remains good law and is a binding authority on this Court. 136.With respect, Mr. Shum is taking Li CJ’s comments in Wong Tak Yue (No.2) out of context. After saying that “there is nothing in [Ho Hang Wan] which is inconsistent with the approach I have adopted here”, the learned CJ continued to say that:-
137.Reading the passage as a whole, it is clear that Li CJ did not read Ho Hang Wan as laying down the principle that the test for animus possidendi is purely objective. On the contrary, Li CJ was of the view that Ho Hang Wan was decided “on its own special fact” when the Court “presumed” (not “found”) the requisite intention from the occupier’s exclusive possession after the termination of the licence by death of the licensor although the licensee did not receive notice of death. A similar comment was made by Litton PJ at 71D that Ho Hang Wan “turned upon its own peculiar facts”. 138.On the other hand, the Court of Appeal made it clear in Hong Kong Kam Lan Koon Ltd v Realray Investment Ltd [44] that “ … the plaintiff has to show (a) physical possession: open, single and effective exclusive control; (b) intention to possess / animus possidendi: subjectively so intended and objectively so manifested” (§33) (emphasis added) 139.As pointed out by Mr. Tai, Ho Hang Wan was not followed in many subsequent cases. For instance, the issue of whether the test for animus possidendi is purely objective was argued in Lee Siu Fong v Wong Wan Leung [45] , Lok J considered Ho Hang Wan and held that the test is both subjective and objective:-
140.In Cheung Leung Tak v 張秀雯 [46] , the 1st defendant built a wall on a piece of land (referred to as “Section D” in the judgment) with the consent of the owner. Subsequently, the owner transferred the land to the plaintiff. The 1st defendant claimed a declaration that she had title to the wall. Recorder Steward Wong SC said:-
141.Mr. Shum submits that the squatter was unrepresented in Cheung Lai Tak and no full arguments could be advanced to assist Recorder Steward Wong SC. Therefore, it is no authority contradicting Ho Hang Wan. 142.With respect to Mr. Shum, I disagree with his submissions. The fact that the squatter was unrepresented in Cheung Lai Tak does not mean that the learned Recorder’s decision is incorrect or has less force. As has been repeatedly emphasized in the authorities, intention is a question of fact which is to be determined by taking into account all the circumstances. I respectfully agree with the learned Recorder that there is nothing in Ho Hang Wan that compels me to make a finding of fact that the animus possidendi existed whenever the licence had ended. Each case is to be decided on its own facts. 143.In a more recent case of Team Success Engineering Limited v Yau Choi Lin [47] , it was the defendants’ case that, with the consent of the original owner, the 1st defendant caused the whole of a piece of land (referred to as “the Old Lot 256RP” in the judgment) to be paved by concrete in 1987 and then parked cars therein. The licence was revoked on 28 March 1992 when the original owner sold the land to the new owner and since then the defendants had been adversely possessing the land. 144.Counsel for the defendants relied on Ho Hang Wan to argue that a previous licensee holding over after termination of licence could have intention to possess. Deputy District Judge Adrian Wong referred to Wong Tak Yue and Cheung Leung Tak, and held that Ho Hang Wan was found on its own facts and it does not lay down any principle that adverse possession must automatically start upon termination of the original licence. The question remained one of fact for the courts to determine. I respectfully agree with the view of the learned Deputy District Judge. 145.Mr. Shum then refers me to Tsang Foo Keung v Chu Jim Mi Jimmy [48] where Chow J (as he then was) said that:-
146.With respect, Mr. Shum is taking Chow J’s comment out of context. To fully and properly understand the learned judge’s comment that “the subjective intention of that person is unlikely to carry much, if any, weight”, one needs to consider what was “mentioned above”. The relevant part is at §44 where the learned judge said that:-
147.When reading the judgment in context, it is clear that, when Chow J said that the subjective intention of the squatter is unlikely to carry much weight, he was referring to the self-serving statement made by the squatter. This is in line with the approach of Wong Tak Yue which held that where the occupier has made self-serving statement as to what his intention was, whether during the period of occupation or when challenged in legal proceedings, the courts should approach them with some skepticism. The courts would scrutinize the circumstances in which they were made and would give them such weight if any as they may deserve. Conversely, where the occupier has made statements as to what his intention was and such statements are against his interest, the courts would usually accord to them considerable weight. In my view, Chow J’s comment does not support Mr. Shum’s argument. 148.In my view, P’s evidence that Madam Chung was unaware of the revocation of licence in 1990 is against her interest in the same way as the squatter in Wong Tak Yue (No.2) who said that he would give the land back to the owner when he returned and the Court is entitled to take it into account when assessing the intention to possess. 149.Mr. Shum also refers me to the Court of Appeal decision in Fung Yuk Luen v Wong Fung Lan [49] where Chow JA approved the trial judge’s decision that “enclosing land by a fence is good evidence to show an intention to exclude the world at large”. 150.In that case, the trial judge found that the squatter occupied the land pursuant to a licence which was later terminated by notice and therefore his claim for adverse possession failed. On appeal, the Court of Appeal held that the trial judge’s finding on licence could not be supported by evidence. Since the trial judge did not make any finding on animus possidendi, it was thus open to the Court of Appeal to reach a fresh view on this issue on the basis of the existing evidence and the above comment of Chow JA was given in such context. 151.I agree that the intention to possess can be inferred from the unequivocal act of physical exclusive possession in appropriate cases such as Fung Yuk Lung where the squatter never had the consent of the owner to occupy the land. But it does not mean that the subjective intention of the squatter shall never be considered. As emphasized by Li CJ in Wong Tak Yue (no.2), intention is a question of fact and the court is required to assess all the circumstances. 152.Mr. Shum further argues that the law requires evidence of subjective state of mind of the squatter defies logic because there are cases where the subjective intention of a squatter cannot be ascertained. 153.With respect, I believe Mr. Shum confuses between “requiring evidence of subjective state of mind to prove the intention to possess” and “taking into account evidence of subjective state of mind to access the intention to possess”. Whilst I agree that evidence of subjective state of mind of the squatter is not a must in a claim for adverse possession, it does not mean that the Court should ignore those evidence when it is available. 154.By reason of the above, I reject Mr. Shum’s argument that the test of animus possidendi is purely objective. I am of the view that the Court is entitled to, and in fact shall, take into account the undisputed fact that Madam Chung was not aware of the revocation of licence in 1990 when assessing the intention to possess. 155.Given my view on the test of animus possidendi, I would have found that P has failed to prove the intention to possess even assuming that P is able to establish the factual possession. I respectfully agree with the learned Recorder in Cheung Leung Tak that, when the acts are essentially the same before and after the termination of licence, it is more likely that the intention has not changed, and the occupier is still acting with the same intention as before, and without the necessary animus possidendi. CONCLUSION 156.For the sake of completeness, I confirm that I have considered all the evidence and submissions of the parties. I do not find it necessary to overburden this already long judgment by dealing with each and every argument raised by the parties. 157.By reason of the aforesaid, I dismiss P’s claim. As P’s claim for adverse possession fails, there is no basis for her to continue occupying the Pink Area. As for the damages for trespass, since there is no evidence on quantum, Mr. Tai seeks nominal damages of $1 and there is no objection from Mr. Shum. 158.Therefore, I enter judgment in favour of D and make the following order:-
159.Lastly, it remains for me to thank Mr. Shum and Ms. Wong for P as well as Mr. Tai for D for their very helpful assistance to the Court.
Mr Erik Shum & Ms Michelle Wong, instructed by Messrs Ho, Tse, Wai & Partners & Associates, for the Plaintiff Mr Jonathan Tai, instructed by Messrs T.K. Tsui & Co., for the Defendant [1] Trial Bundle A(2), page 534 [2] 劉士興祖 [3] (1997-98) 1 HKCFAR 55 [4] [2003] 1 AC 419 [5] [2015] 6 HKC 200 [6] (1979) 38 P & CR 452 [7] [2023] HKCA 183 §34 [8] [2004] 1 HKC 692 [9] [2020] HKCFI 1510 at §45 [10] Trial Bundle A(2), page 361 [11] P’s Opening Submissions §35 [12] Trial Bundle A(1), page 248; “… 可否回函商量肯出多少錢?及樹木清除日期 …” [13] Trial Bundle A(1), page 249 [14] Trial Bundle B(2), page 423 [15] Trial Bundle B(2), page 491 [16] HCA 90/2010, 13 July 2012 [20] HCA 623/2012, 15 March 2016 [21] HCA 1734/2009, 8 April 2014 at §§77-80 [22] [2020] HKCFI 2396 at §§31-33 per Deputy Judge MK Liu [23] Trial Bundle A(1), page 254: “我家門前LOT224 IN DD137土地,一直荒廢多年。有見及此,本人於多年前,一直種植荔枝樹數拾棵,並用鐵絲網包圍此土地沿用至今。” [24] Trial Bundle A(1), page 5 [25] CACV 260/2014, 19th January 2016 [26] HCMP 965/2000, 8 December 2011 [27] HCA 2055/2021, 13 April 2016 at §§89-92 [28] [2018] HKDC 160 at §§70-82 [29] [2024] HKDC 567 at §§44-48 [30] (1979) 38 P & CR 452, 477-478 [31] Trial Bundle A(1), page 36 [32] Trial Bundle A(1), page 37 [33] Trial Bundle A(1), page 38 [34] Trial Bundle B(3), page 554; “本人為龍鼓灘村原居民。至1945年開始,於LOT NO 224 IN DD 137 土地上耕作,並把農作物自用。於80年代末期開始,改為種植荔枝樹9棵及龍眼樹1棵,每年摘取果實自用並把部份出售,以幫補家計。數十年來一直相安無事。後來有人常到本人荔枝園偷取荔枝,本人只好在荔枝園四周築起鐵絲網包圍,以防止他人擅自走進荔枝園偷摘荔枝。” [35] Trial Bundle A(1), page 36 [36] Trial Bundle A(1), page 162 [37] Trial Bundle A(1), page 37 [38] Trial Bundle A(1), page 225 [39] Trial Bundle A(1), page 225 [40] P’s Closing Submissions §159 [41] Trial Bundle A(1), page 112, §47 [42] Trial Bundle A(1), page 108, §21(c) [43] [1990] 1 HKLR 649 [44] CACV 79/2008, 18 February 2009 [45] HCA 122/2012, 3 January 2017 [46] [2018] 5 HKLRD 579 [48] HCA 7140/1995, 30 June 2015 |
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