Read the full judgment text of FACV 000002/2002 on BabelCite. This FACV judgment was delivered on 17 January 2003 before Bokhary PJ, Chan PJ, Silke NPJ, Nazareth NPJ, Lord Millett NPJ.
Constitutional law – Basic Law Article 105 – right to compensation for compulsory resumption according to 'real value' – whether speculative 'hope value' element must be included – Lands Resumption Ordinance (Cap. 124) – sections 10, 12(b), 12(c) and 12(d) – construction of s.12(c) – agricultural land in the New Territories held under Crown lease with restrictive user and building covenants – land resumed in 1999 for public housing – claimants' comparables of land held under similar Crown leases – whether 'hope value' reflecting prospect of obtaining lease modification to permit development is compensable – principle of equivalence and fair compensation – exclusion of speculative element – 'real value' versus open market value – interpretation of 'licence, permission, lease or permit whatsoever' – ejusdem generis – distinction between licences affecting the value of the interest taken and those that do not – property versus administrative licences – admissibility of Explanatory Memorandum and ministerial statements as evidence of the mischief at which the statute is aimed – res gestae of 1922 amendment – Crown's right to charge premium for modification of user covenants – whether Basic Law entrenches pre-handover law or also confers new rights – authority of Privy Council in Winfat Enterprise – whether comparables reflecting speculative element can be relied on at face value – two-stage valuation approach under Watford Construction – appeal allowed, assessments discharged, cases remitted to the Lands Tribunal, Government awarded costs in the CFA and Court of Appeal with each party bearing its own costs in the Lands Tribunal.
Legal issues: Interpretation of s.12(c) Lands Resumption Ordinance - exclusion of hope value from compensation · Constitutional compatibility of s.12(c) with Article 105 of the Basic Law
Outcome: Appeal allowed; assessments discharged; both cases remitted to the Lands Tribunal for reconsideration of compensation on a full evaluation of all the evidence in the light of the CFA's judgment