Chan Tin Yau and Others v. Tsang Kwok Kay

Read the full judgment text of HCA 21228/1998 on BabelCite. This High Court CFI judgment was delivered on 6 November 2006.

1. The plaintiffs commenced this action against the defendant claiming entitlement to a right of way over the defendant’s land.

Cites 5 cases

Appeal dismissed: see CACV72/2007 dated 6 June 2008
Case No.HCA 21228/1998
Court
High Court CFI
Date06 Nov 2006
Judge
Case Document
100%Judiciary

HCA 21228/1998

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 21228 OF 1998

____________

BETWEEN

  CHAN TIN YAU (陳天有) 1st Plaintiff
  TSANG KWAI CHUEN (曾桂全)
also known as TSANG KWAI TSUN
2nd Plaintiff
  TSANG HIN MAN (曾憲文) 3rd Plaintiff
  CHEUNG WAN KAU(張運球) 4th Plaintiff
  and  
  TSANG KWOK KAY(曾國基) Defendant

______________________

Before:  Hon Chung J in Court

Date(s) of Hearing:  1, 4 to 8, 12 to 14 and 18 September 2006

Date of Handing Down Judgment:  6 November 2006

______________

J U D G M E N T

______________

Introduction

1.The plaintiffs commenced this action against the defendant claiming entitlement to a right of way over the defendant’s land.

2.The locality in question is a village called Shui Tsan Tin Tsuen (水盞田村), Pat Heung, Yuen Long (“the Village”).  The defendant’s land is registered as Lot No. 1363 Remaining Portion in Demarcation District No. 112 (“the suit property”).  The disputed right of way is a strip of land running along the north and north-western edge of the suit property (“the alleged right of way”).  Its present width is sufficient for vehicular traffic.

3.The claim is premised on:-

(a)     a written dedication in 1973 of part of the suit property by the then owner (the defendant’s predecessor-in-title) for use as a public road;

(b)    an uninterrupted use and enjoyment from time immemorial, alternatively, for more than 20 years;

(c)     prescription by lost modern grant;

(d)    a right of way by necessity;

(e)     implied reservation of grant on sale of the suit property in 1988;

(f)     estoppel by reason of the defendant’s acquiescence.

Apart from the alleged right of way, the plaintiffs also allege that the defendant has wrongfully raised the level of the suit property adjoining the alleged right of way, thereby rendering it liable to flooding when there is rain.

4.The claim is denied.  In the amended defence and counterclaim, the defendant also asserts that there are alternative means of access.

5.Further, the defence adduced evidence to the effect that the alleged right of way was built by the defendant’s father for his own use and that other villagers (including the plaintiffs) were informed that they were only allowed temporary use of the alleged right of way.

Background Facts

6.The following background facts are undisputed.

7.The main trunk road nearest to the Village is Kam Sheung Road (錦上路), which lies somewhat to the north of the Village.

8.Access to the Village is mainly through a road running off from Kam Sheung Road towards the south, or south-east (this road in fact goes beyond the Village).  The part of this road relevant to this action starts from a place called “Kwong Wah Tong gate” (光華堂閘口) and ends at “Lee Uk” (李屋).  During trial, the plaintiffs preferred to call it “the upper road” (上路) whereas the defence called it “the main road” (主幹路).  It will be called “the main road” below.

9.When the main road reaches a place called “Sam Cha Lo Hau” (三义路口) (which can be translated as “the road junction”), another road branches off towards the south-western direction.  This is the alleged right of way, which is the subject-matter of this action.

10.The alleged right of way leads to an area of the Village known as “village bottom” (村底) (“the village bottom area”).  On the other hand, the area near “Lee Uk” is known as “village top” (村頂) (“the village top area”).  Access to the village top area is through the main road (there is no need to use the alleged right of way for such purpose).  The part of the Village in-between is understandably known as “mid-village” (村中間) (“the mid-village area”).

11.The number of villagers living in the village bottom area has at all times been far less than that living in the village top area.

12.The plaintiffs and their families live in the village bottom area.  The defendant and his witnesses all live in the village top area or the mid-village area.

13.The second plaintiff (“P2”) passed away before trial.  The outcome of his claim defends on the basis on which this action is decided in this judgment.

Witnesses’ Testimony

14.The following witnesses testified for the plaintiffs at trial:-

(a)     the first plaintiff (陳天有) (“P1”);

(b)    the third plaintiff (曾憲文) (“P3”);

(c)     the fourth plaintiff (張運球) (“P4”).

P1 is in his sixties while the other plaintiffs are in their fifties at the time of trial.  Hence, they were in their twenties or thirties in the early 1970’s.

15.The following witnesses testified for the defence:-

(a)     Tsang Kwok-hung (曾國洪), the defendant’s brother (“D’s brother”);

(b)    Kan Choi-ming (簡彩明), a builder/contractor who builds village houses (“Kan”);

(c)     Tsang Ming (曾明), the defendant’s father (“D’s father”);

(d)    Cheung Ching-kiu (張程橋), a representative of the Village from 1990 to 1995 (“Cheung”);

(e)     Cheung Kuen-choy (張權財), a garage owner who operated a junk yard at the Village in 1988 which was turned into a garage later (“KC Cheung”);

(f)     Chan Kwai-fong (陳貴芳), a villager of the Village who helped repair the main road in about 1987 (“Chan”);

(g)     Lee Tin-kau (李天球), a villager of the Village (“Lee”);

(h)     Cheung Tim-loi (張添來), a representative of the Village (“TL Cheung”).

D’s brother is in his forties, having been born in 1962; D’s father is in his eighties.  The other defence witnesses who are also villagers of the Village are in their sixties or seventies.

16.Before turning to the credibility and reliability of the above witnesses, some words need to be spent on the background against which their testimony should be looked at.

17.There is a common trait among the witnesses.  Back in the 1970’s, those from the older generation (namely, those who are now in their fifties, sixties, seventies or even eighties) did not stay in the Village; they stayed in the city apparently to seek education or employment there.  They went to the Village to visit their families once in a while and only became more involved in the affairs of the Village from about the 1980’s (particularly in the mid- or late-1980’s) onwards.  In fact, one witness, Lee, even left Hong Kong and resided in England for a long period of time since the 1960’s.

18.This ties in with the general economic environment of Hong Kong at the time.  In the decade between 1954 and 1964, Hong Kong’s economy has become:-

“… a largely industrialized economy … in which only about 5 per cent of the work force is now engaged in farming and fishing, and peasant economies in which the money measure of the national product commonly bears a lower relation to the standard of living of the people … ” (emphasis supplied) (Hopkins: Hong Kong: The Industrial Colony (1971), pp. 4-5).

The economic change was described in The Economist Intelligence Unit: Hong Kong to 1994 (1990) as follows:-

“Pre-1980 production based estimates of GDP, including those published by the government for the period 1970-80, are not considered very reliable … However, the fragmentary evidence available … confirms that there was a drift towards manufacturing corresponding to the expansion of domestic exports.  By 1972 the number of registered industrial undertakings was 21,386, 3.8 times the 1960 figure, and electricity consumption was up 384.9 per cent …  A classic feature of industrialisation is the shift away from primary industries towards secondary and tertiary industries, and Hong Kong was no exception.  By the census year 1961 8 per cent of the working population was stilled employed in the primary sector (mostly agriculture and fishing), but in the following census of 1971 the proportion had fallen to 4.3 per cent … ” (emphasis supplied) (pp. 12-13).

There was a swing towards the service sector in the 1970s

The tremendous expansion of financial services during the period is reflected in governmental estimates of GDP … In 1970 financing, insurance, real estate and business services accounted for 14.9 per cent of GDP at current factor cost … the proportion rose to 25.9 per cent in 1980 … ” (p. 14).

19.In assessing credibility for the purpose of making a finding of fact, the tests adopted for such assessment are as those stated in the judgment of Star Glory Investment Ltd. v. Kai Tuo (H.K.) Technologies Co. Ltd. and Others, HCA 3523/2002:-

“The assessment of a witness’s credibility and/or reliability is a task frequently undertaken by the court in litigation (in fact, very often an essential task).  I consider the following to be the appropriate test to adopt:-

‘There are two objective tests for assessing a witness’s credibility regarding a matter to which he has testified:-

(a)     whether that part of his testimony is inherently plausible or implausible;

(b)     whether that part of his testimony is, in a material way, contradicted by other evidence which is undisputed or indisputable (an example often given of such evidence is contemporaneous documents).

Further, where it is shown that a witness has been discredited over one or more matters to which he has testified (using the above tests), this fact is relevant to the assessment of his overall credibility.  Likewise, regard may be had to a witness's motive for deliberately not giving truthful testimony.  For example, telling the truth may prejudice his interest, or a just determination of the litigation may affect his interest’.

(See, for example, the decisions in Chiu Chi Tong v. Lau Chong Sai & Another, HCA 765/2002 (para. 28) and Yu Ming Investment Ltd. v. Pang Ru Chuan, Richard HCA 814/2002 (para. 13))”.

20.On the other hand, the reliability of the witness is concerned with his ability to accurately observe, recall and recount the relevant events.

21.The background set out in para. 17 to 18 above has bearing on the reliability of the witnesses.  This is because, having been away from the Village for lengthy periods of time during the 1970’s (and most part of the 1980’s), quite possibly their memory of the condition of the Village during that period may not be as accurate as they subjectively believed when they testified.

(a)     Overall Assessment

22.The events of crucial importance of the issues raised in this action took placed mostly in the 1970’s and hence were about 30 years prior to trial.  There is a paucity of contemporaneous documents (those produced during trial are of oblique assistance at best).

23.It is widely accepted that human memory very often fades with the passage of time.  Hence, even leaving aside the question of credibility, the reliability of the witnesses clearly needs to be taken into consideration when deciding whether their testimony should be accepted.  Unfortunately, having seen and heard the witnesses, I find that none of them is entirely reliable.  Their testimony has been shown to be unreliable to different extents and in relation to different matters.  This is even more so with regard to witnesses who clearly has an interest in the outcome of this action (that is, the plaintiffs, D’s brother and D’s father).

(1)     Was there an Express Grant ?

24.The witnesses who claim to have knowledge about this are the plaintiffs, D’s brother, D’s father and Cheung.  The gist of the parties’ respective case about this aspect can be summarised as follows.

25.Before the 1970’s, a lot of the land lying between the Village and Kam Sheung Road (and on which part of the main road was later built) belonged to two brothers, Tsang Lam-chiu (曾林昭) (“Tsang”) and Tsang Shum-chiu (曾森昭).  Those lands were usually referred to by the villagers as “Kwong Wah Tong” (光華堂) because a building bearing that name has been built by them in that area.

26.In 1972, it became apparent that the Village needed a road for access to Kam Sheung Road.  By then, Tsang has emigrated to Australia.  The villagers caused a letter to be sent to him to seek his donation of parts of his land for building such a road.  Tsang wrote back in 1973 indicating his agreement for parts of the land to be put to such use.  This road is now part of the main road.  Because the main road runs for some length, there was also the need for other pieces of land to be donated.  However, this is irrelevant for present purposes.

27.Funding for the construction of the main road came from the villagers’ donations.  Two books of donation records are included in the trial bundles.

28.What is in dispute is whether the letter sent to Tsang also sought his donation of parts of the suit property (which also belonged to him then), and whether he also agreed to such a request.  The plaintiffs contend he did whereas the defence contends otherwise.

29.As was stated above, I do not find any of the witness entirely reliable.  In fact, as will be set out in more detail below, I do not find D’s brother or D’s father to be credible witnesses.

30.Faced with such a high degree of potential unreliability, I find it a better approach to examine some other matters in order to determine whose account is to be preferred.  Three such matters are mentioned in more details below.

31.The first matter concerns the two cars placed by D’s brother next to the alleged right of way in late 1992 or early 1993.  According to him, they were put there under the following circumstances.

32.The alleged right of way was built by D’s father in 1974 to enable access to his home.  It was a cul-de-sac for parking his car.  Problem with regard to the alleged right of way began to appear in 1980 or 1981.  Various parties including P2 and his family, and Cheung Kiu (P4’s father) started to use the alleged right of way for access.  D’s father repeatedly reminded them it was a private road which he built, and it had to be surrendered when the lease of the suit property was terminated.

33.D’s father purchased the suit property in 1988.  He divided it up into portions and distributed them among his sons in 1992 for them to build their own homes.

34.D’s brother then caused two cars to be placed next to the alleged right of way at the end of 1992 or early 1993.  During examination-in-chief, his attention was specifically drawn to this matter (and to the photos in trial bundle C, p. 114 which show the position of one of the two cars).  He was given more than one chance to speak on the matter and he confirmed the car was placed about half feet away from the alleged right of way.

35.The reason given in his witness statement for doing so was to prevent heavy vehicles going to the construction site (for building the house for P2’s son) from using the alleged right of way as a means of access.

36.I do not accept the above to be the real reason why the cars were put next to the alleged right of way.

37.The fact that the alleged right of way was never blocked or fenced is already surprising if in fact other villagers never enjoyed a right to use it (the defendant’s claim of the need for access for his family’s access cannot be a satisfactory reason for not doing so).  By around 1992 or 1993, when the building of houses for the defendant and his sibling must have already been in the mind of D’s father (see para. 33 above), the need to stop other villagers from continuing to use the alleged right of way (which by then fell within the divided portion owned by the defendant) became even greater than before.

38.Under these circumstances, one will expect D’s brother to completely block off the alleged right of way, rather than to place two cars next to it (as if to imply that other villagers could still use it other than for heavy vehicles).  The reason set out in para. 35 and 37 above (even if true) cannot satisfactorily explain why that was never done.

39.Despite having been asked to explain why he did not block the alleged right of way (during both cross-examination and re-examination), D’s father failed to give any valid reason for not doing so.

40.The other matter relates to the letter sent to Tsang (then residing in Australia) in 1973.  This is expressly referred to in the statement of claim (served on the defendant in December 1998).  The defendant merely denies it in his pleading (filed in February 1999).

41.Further, affidavit evidence was filed and served by the parties in around April 1999 in connection with the plaintiffs’ application for interlocutory injunction.  The plaintiffs yet again referred to the letter sent to Tsang.  D’s father deposed in his affirmation he had never heard of the letter before.  This is very different from the case put forth in the witness statements (D’s father’s witness statement was served in March 2005) and testified to at trial, which is in gist that the letter was not written or signed by the individuals referred to by the plaintiffs (but by someone else), and its contents were only about the construction of the main road.

42.Finally, the first court document where the defence states that a letter has been sent to Tsang in 1973 is the witness statement of D’s father (served in March 2005, some 6 years after the commencement of this action).

43.The defence case regarding how documents relating to the construction of the main road allegedly became lost is also unconvincing.  This part of the defence case is based on the testimony of D’s father and Cheung.

44.According to the defence, D’s father handed over those documents to Cheung in 1994.  The documents included the two books of donation records; it is unclear what the other documents were but they appear to include a map depicting the main road and a record showing the written consent of land owners for the main road to be built, and the letter written by Tsang.  In relation to the last-mentioned document, Cheung in fact claims that he has read its contents.

45.I agree with the plaintiffs that the above is unbelievable:-

(1)     this aspect has not been mentioned in the witness statement of D’s father at all;

(2)     the reason given for the handing over of the documents was that D’s father considered it safer for them to be kept by Cheung after the village hall (where they were originally kept) was damaged.  However, the damage took place in 1988 but the documents were not handed over until 1994;

(3)     D’s father only requested Cheung to return the donation records to him but somehow did not ask for the return of the other documents (Cheung claimed they were later misplaced by him).

46.I disagree with the defence contention that because D’s father was a tenant of the suit property in the 1970’s, it is inherently implausible that Tsang would grant a portion of the suit property for use as the alleged right of way.  I consider the lease of the suit property to D’s father in the 1970’s to be a neutral fact.

(2)    How the Alleged Right of Way was Built ?

47.Quite some time was spent in examining the witnesses regarding the precise width of the main road and the alleged right of way during the period commencing from the 1970’s.  Both parties claim they were the ones who paved/widened the alleged right of way.

48.In view of the matters set out in para. 17 to 18 and 22 to 23 above, I do not find the exercise to be helpful.

49.Insofar as it is suggested that back in the 1970’s the alleged right of way must have been a narrow footpath which could not admit any vehicular traffic, exhibit “D1” (an aerial photograph taken in February 1973) does not show that it was definitely so.

50.First, the width of the main road and the alleged right of way at that time appear to be similar.  Secondly, several vehicles can be found parked near the top left corner of “D1”.  A comparison of the width of those vehicles and that of the alleged right of way suggests that it may not be entirely impossible to drive a vehicle along the alleged right of way.

51.In fact, if one also compares “D1” to exhibit “D2” (an aerial photograph agreed by the parties to have been taken in November 1978), the alleged right of way did not appear to have undergone substantial change from around February 1973 to November 1978.  The footpath parallel to the alleged right of way (that is, the one with a nullah to its right, and where a truck was parked at one of its ends) shown in “D2” cannot be found in “D1”.  On the other hand, the main road would appear to have been widened and paved sometime between February 1973 and November 1978 (which is consistent with the witnesses’ testimony).

52.Having said that, for the avoidance of doubt, I have taken into account the fact that vehicular traffic in the New Territories was uncommon in the 1970’s and such traffic only became more common later.

(3)    Events in the Subsequent Years

53.The defence also argues that various matters which took place since about 1973 can assist the determination of this action.  I shall set out the more important ones below.

54.First, the sequence in which the main road and the alleged right of way were constructed.  The plaintiffs claim that the latter was constructed first whereas the defence contends otherwise.  I do not find this to have any real significance in the resolution of this action.  Insofar as the defence relies on the width of the alleged right of way before and after it was paved, this has already been discussed above.

55.Second, the maintenance of the alleged right of way.  The plaintiffs claim that they (and other villagers who need to use the alleged right of way, especially those living in the village bottom area) have undertaken the work.  D’s brother testified (during examination-in-chief) to the effect that the defendant (or his family) had never maintained it because it was unnecessary to do so (due to the restriction to traffic imposed by D’s father).

56.That the alleged right of way was never maintained by funds from the Village is also emphasised by the defence as evidence against its dedication by Tsang.  I do not find this to be necessarily the case.  Afterall, the alleged right of way is practically only of use to those living in the village bottom area.  It is only natural that it would be maintained by them.  In fact, even according to the defence case, some villagers appeared to be unclear whether it was their task to maintain the alleged right of way (see, for example, para. 25, witness statement of D’s father, para. 3, TL Cheung’s witness statement and the re-examination of Chan).

57.Other matters relied on by the defence include:-

(a)     in about 1982 to 1983, D’s father asked P4’s father to stop using the alleged right of way;

(b)    in about 1987, the truck drivers of a rattan factory in the Village knew that the alleged right of way could not be used;

(c)     apart from D’s father, no other villagers owned a vehicle back in the 1970’s;

(d)    D’s brother informed Kan as early as in 1991 that the alleged right of way was a private road built by D’s father;

(e)     in early 1992, D’s brother, P1 and P4 arranged to measure the land for the purpose of building a road using the footpath and the nullah;

(f)     the quarrel in mid-1993 between P1 and D’s brother regarding how the new road should be built.

58.In relation to para. 57(a) and (c) above, as will be discussed below, I do not accept D’s father to be a truthful witness.  For this reason, there is no evidence regarding such matters.

59.In relation to para. 57(b) above, I agree with the plaintiffs that the witness statement of D’s father shows that the rattan factory was in operation before 1986.  I therefore do not accept Chan’s testimony regarding this matter.

60.In relation to para. 57(d) above, this is at best a self-serving statement of D’s brother and should be given no weight.

61.Para. 57(e) and (f) above concern matters of peripheral importance only and should not be given any weight.

(b)     Individual Witnesses

(1)     Plaintiffs’ Witnesses

62.I do not find P1 to be a reliable witness.  During cross-examination, he has repeatedly corrected his earlier testimony.  He has also exaggerated some of the matters he testified to.  I do not accept those parts of his testimony which are unsupported by the testimony of P3 or P4.

63.On the other hand, I prefer the testimony of P3 and P4 to that of the defence witnesses.  Save regards P1’s reliability (see para. 62 above), I do not agree with the criticisms made against them by the defence.

(2)    Defence Witnesses

64.I do not find D’s brother or D’s father to be credible witnesses.  It is (at least implicitly) accepted that there are discrepancies between parts of the defence pleadings, their affirmations (filed in April 1999) and their witness statements (filed in March and September 2005).  The discrepancies allegedly resulted from the fault of the solicitor formerly employed by the solicitors acting for the defence.  I do not accept that to be the real reason.

65.The said discrepancies include:-

(a)     the affirmations do not state D’s father sought, and obtained, Tsang’s consent for building the main road.  They allege that the main road was built with Tsang’s verbal consent.  In fact, D’s father said he never heard of the written request to, or the written consent from, Tsang.  The witness statements, however, claim that D’s father wrote to Tsang in 1972 to obtain Tsang’s consent for doing so;

(b)    according to the affirmations, the alleged right of way was paved (with concrete or tar) in 1985.  But the witness statements claim that the alleged right of way was paved with tar in 1976 with the help of one Lee Kong Chai (李江仔).

66.The defence claim the discrepancies might also have been caused by the lack of time to properly prepare the affirmations (for use in resisting the plaintiffs’ application for interlocutory injunction in April 1999).  I do not accept the claim.  For example, the gist of the contents of affirmations set out in para. 65(a) above also appeared in the defence and counterclaim (which was served in February 1999).  It is not alleged there was insufficient time to prepare the defence pleadings either.

67.The witness statement of D’s father also states that P4’s taxi was allowed (by him) to use the alleged right of way in around 1975.  However, D’s father testifies that it was a mistake and P4 only did so in about 1985.  I do not accept his claim of an error, but find this to be an attempt to weaken the plaintiffs’ case by untruthful evidence.

68.Kan was essentially a builder/developer and, according to his witness statement, became involved in property development in the Village since the 1990’s.  His knowledge about the alleged right of way naturally came from hearsay sources.  I do not find his testimony to be of help to the determination of this action.

69.I do not find Cheung to be a truthful or reliable witness.  His testimony regarding D’s father handing over to him documents relating to the construction of the main road, and the claim that some of them were later misplaced (by him), appears to me to be contrived.

70.I agree with the plaintiffs that no valid reason has been given for the hand-over of the documents in 1994 when the village hall was damaged much earlier in 1988.

71.Further, this part of the defence case should also be looked at in the light of D’s father having purchased the suit property in 1988.  By 1992, he has divided it up into portions and divided them among his sons, with the intention of building houses for them.  According to the defence, D’s father consistently took the view his permission for others to use the alleged right of way was only temporary.  With these in mind, the handing over of the documents in 1994, and the failure to ask for their return, are unbelievable.

72.There are other criticisms levied against Cheung’s testimony in the plaintiffs’ closing submissions.  I do not propose to repeat them save to say I agree with them.

73.I do not accept Chan to be a truthful or reliable witness either.  His testimony about having conversations with the truck drivers from the rattan factory is not mentioned in his witness statement.  The witness statement of D’s father was drafted in a manner which suggests the operation of the rattan factory was prior to 1986.  Chan’s claim that D’s father has attended a village meeting is also not supported by the contemporaneous documents.

74.Lee left the Village in the 1960’s.  His knowledge of matters related to the alleged right of way came essentially from (and must have been coloured by) D’s brother.  I do not place any weight on his testimony.

75.TL Cheung’s testimony relates to incident dating back to the 1980’s or even earlier.  For the reasons given in para. 17 to 18 and 22 to 23 above, I regard his testimony lacking in reliability.

Findings of Fact : Dedication of Land

76.The legal principles relating to this has been set out in Kong Sau Ching v. Kong Pak Yan [2004] 1 HKC 119.  The relevant parts read:-

“14. Megarry & Wade, The Law of Real Property (6th ed.), p. 1090 (paras. 18-067 to 18-068) explains how a public right of way may be created by dedication:-

“To establish a highway at common law by dedication and acceptance it must be shown--

(i)

that the owner of the land dedicated the way to the public, and

(ii) that the public accepted that dedication, the acceptance normally being shown by user by the public.

Dedication may be formal, although this is comparatively infrequent.  It is usually inferred from long user by the public, so that user is thus effective to prove both dedication and acceptance.  But in order to raise a presumption of dedication there must have been open user as of right for so long a time and in such a way that the landowner must have known that the public were claiming a right.  User with the landowner’s permission or tolerance is no user as of right, and the court is slow to find a claim of right where the user is attributable to the landowner’s indulgence.  The user must also have been without interruption by the owner.  A practice frequently adopted to disprove any intention to dedicate is to close the way for one day in each year, for this asserts the landowner’s right to exclude the public at will.

The length of the enjoyment to be shown depends on the circumstances of the case.  Where the circumstances have pointed to an intention to dedicate, 18 months has been held to be enough; where the circumstances are against dedication, a substantially greater period may be insufficient, especially if in recent years there has been no occupier capable of dedicating a highway in perpetuity.”

16. … Mr Graham observes that it is plain from statute that dedication of a highway to public use is possible in Hong Kong.  He gives as an example Building (Planning) Regulations (Cap.  123F), r. 22(1) …

17. Mr Graham accepts that to establish public dedication it may be necessary to show that the Government as reversioner under the relevant Government Lease1 has consented to a dedication.  But he contends that Government’s consent to the public dedication of the Disputed Way can be inferred here from the evidence.

18. I agree with Mr Graham on the law. … ”.

77.By virtue of the evidence (especially the witnesses’ testimony) accepted by me, I find that the plaintiffs have successful established this aspect of their case.

78.I am satisfied that the letter written by Tsang in 1973 amounted to his dedication of parts of the main road the alleged right of way.  There is also evidence various government services, such as water pipes, have made use of the alleged right of way.

Findings of Fact : Prescriptive Right of Way

79.I agree with the conclusion regarding this aspect reached in Kong Sau Ching at para. 104 to 106, namely:-

“104. To what extent do the common law doctrines of prescription since time immemorial … apply to Hong Kong today?

105. As far as time immemorial was concerned, Judge Chan had no doubt. He said in Tang Tim Fat at 377 (ll.32-43):-

“At common law such a grant would only be presumed if the user as of right had continued from time immemorial, i.e. ‘from time whereof the memory of men runneth not to the contrary’ (see Littleton p. 1031).  The year 1189 has been fixed as the limit of legal memory (see Bryant v. Foot (1867) LR 2 QB 161 per Cockburn LJ at pp. 180-81).  As it is clearly impossible in most cases to establish continuous user as of right since 1189, a period of 20 years’ user has been accepted by the courts as sufficient to give rise to a presumption of such user since 1189 (see Darling v. Clue (1864) 4 F&F 329, at p. 334). However, if it can be demonstrated that the user could not have existed in 1189, e.g. when a building was only erected after 1189, the easement cannot be claimed. In the premises, there is no question that prescription by user since time immemorial can ever apply to lands in Hong Kong in view of the history of the territory, and also the fact that British rule only commenced less than 100 years ago.”

106. I agree with Judge Chan that, for the reasons given by him, the doctrine of time immemorial would seem to have little practical application in Hong Kong, whether or not it was part of the English common law actually received here in 1843. Mr Graham frankly conceded that in the Hong Kong context it was ‘impossible to apply the concept of user as of right since time immemorial.’”

80.By reason of the matters set out above, I am not satisfied the plaintiffs have made out this aspect.

Findings of Fact : Right of Way by Necessity

81.It is undisputed that the plaintiffs’ properties are land-locked by other lots of land.

82.The defence argues that there are other means of access to their properties.

83.The first argument of the defence is as follows.  It is the plaintiffs’ own case there was an alternative route of access through Kwong Wah Tong at the time when the writ herein was issued.  But, as the plaintiffs explained, this was only a temporary arrangement reached with the owner of that property, and for the limited purpose of allowing heavy vehicles carrying to take construction materials to the construction site during that period.

84.Second, it is argued that vehicular access is not a necessity; the plaintiffs can access their properties on foot using the footpath: Tang Tim Fat and Another v. Chan Fok Kei and Others [1992] 2 HKC 623, 634-5.  Because of the conclusion reached as regards the other aspects of the plaintiffs’ claim, it is unnecessary to make any definitive decision on this argument.  I will therefore only observe that I see some strength in it.

85.Finally, the defence contends the plaintiffs could have built a new road using the footpath and the surface of the nullah.  I agree with the plaintiffs that the contention is not feasible because it will involve intruding into parts of land belonging to other owners.

Findings of Fact : Prescription by Lost Modern Grant

86.The relevant law has been correctly stated in Kong Sau Ching:-

“107. On prescription by lost modern grant, Judge Chan was equally robust. He said in Tang Tim Fat at 381 (l.33)-382 (l.9):-

“I am not convinced that it would be appropriate to modify the English common law to allow the presumption of a lost modern grant to arise between lessees of a common landlord.  Such an extended presumption violates the very foundation of the doctrine itself, i.e. the fiction of a servient owner making a grant to a dominant owner.  As between lessees of a common grantor, the rule in Wheeldon v. Burrows of an implied reservation/grant is capable of providing a ready solution to a situation where such a right of way is necessary for the enjoyment of the land.  There is no logical need to add fiction to fiction.  In reality it is difficult to see how such a matter can ever become a real problem.  All Crown leases in the New Territories are for agricultural use and can only be used profitably for other uses with the special permission from the Crown.  Thus, it is difficult to see how a ‘servient lessee’ would not be readily agreeable to consent to a modification of the right of way for agricultural use over his land to that of more profitable uses if he himself is seeking special waiver from the Crown for similar profitable uses of his own land.  In any event, the Crown also has ultimate weapon of a right of re-enter under the Crown Land resumption Ordinance (Cap. 124).  I am not satisfied that the circumstances justify a modification of the well-established English common law in manner urged upon me by the defendants.  The justice of the situation does not warrant such a drastic departure from the well-founded basis for the presumption.  I hold that the presumption of a lost modern grant can only be claimed by one owner of fee simple against another, and cannot be made available to a lessee of a term unless he claims it also on behalf of his grantor who holds the fee simple.  And, as a result of historical fact, such presumption has no de facto application in Hong Kong."

108. I think that the difficulties which I identified in the course of analysing Tang Tim Fat above apply equally to Judge Chan’s comments on the application of the doctrine of lost modern grant to Hong Kong.  I will not repeat the observations which I have made.  I simply add that I do not follow Judge Chan’s reasoning based on New Territories leases being for agricultural purposes and on the Crown Land Resumption Ordinance (first enacted in November 1900).  Nor am I clear as to what “historical fact” Judge Chan alludes.

109. Again my difficulties with Tang Tim Fat lead me to think that Judge Chan’s consideration of local circumstances in determining the extent (if at all) to which the common law doctrine of lost modern grant was received in Hong Kong did not go as far as it might have.  At first impression, clumsy though the doctrine of lost grant may be as a fiction, it was part of the common law in force in England in 1843 and would have been received in Hong Kong at that time, possibly in modified form as circumstances warranted.  The question whether the English restriction applies in Hong Kong to limit prescription by lost modern grant here to fee simple holders is a different question to that of reception of the lost grant doctrine in the first place.

110. I accordingly agree with Mr Graham’s argument that the doctrine of lost modern grant formed part of the common law received by Hong Kong in 1843 and such doctrine has been preserved post-1 July 1997 by Art 8 of the Basic Law

119. The easements would have arisen by reason of the common law doctrine of lost modern grant and through operation of the 1832 Act as applied to Hong Kong by the [Application of English Laws Ordinance].  Insofar as the 1832 Act is concerned, notwithstanding repeal of the AELO on 1 July 1997, the particular Plaintiffs’ inchoate rights would have been preserved by reference to Arts 6, 105 and 120 of the Basic Law”.

87.By reason of the matters aforesaid, I also find the plaintiffs have established this part of their case.

Findings of Fact : Implied Reservation of Right of Way

88.Gale on Easements (2002) 17th Ed. has the following to say:-

“… it is now settled that prima facie, on a disposition of part of the land of the disposing party, no reservation of any easement in favour of the part retained will be implied.

The exception to the prima facie rule have never been exhaustively stated.  One is where the property retained is landlocked, and a case for a way of necessity arises” (para. 3-82 and 3-83).

89.Hence, this aspect of the plaintiffs’ case very probably faces the same difficulty as their case regarding right of way by necessity.  However, I refrain from determining this aspect because it is unnecessary to do so.

Findings of Fact : Estoppel

90.Kong Sau Ching observed that:-

“122. Proprietary estoppel essentially requires evidence of a representation by the defendants, reliance on the representation by the plaintiffs and (possibly) detriment as a result of such reliance”.

91.Similar to Kong Sau Ching, on the evidence adduced at trial, I do not consider the plaintiffs in this action to have successfully established this aspect.

Conclusion

92.I enter judgment in the plaintiffs’ favour (the plaintiffs’ claim that the defendant caused flooding to the alleged right of way by raising the ground beside it is not disputed in evidence, and not dealt with in closing submission) and dismiss the counterclaim.

93.I leave it to the parties to agree on the precise terms of the order(s) to be made.  In default of agreement, there is liberty to apply for such purpose.

Other Matters

94.Some time has been spent (both in cross-examination and in submissions) on alleged improprieties in the plaintiffs’ application for interlocutory injunction.  I do not find any substance in the complaint.  The costs of that application should be made costs in the cause of this action.

95.Although not expressly set out herein, I have considered all the evidence adduced at trial, and the points put forth in the parties’ respective submissions (written and verbal).

96.Some of the matters dealt with in the cross-examination of the plaintiffs’ witness are at best of peripheral importance.  Yet relatively lengthy periods of time were spent on them.  More importantly, defence counsel has made an admission in open court regarding improper conduct on the part of a solicitor who has left the firm acting for the defendant (namely, the failure to follow (or at least to verify) client’s instructions).  There is no evidence that the solicitor concerned has been consulted about this.  Further, strangely enough, the same firm saw fit to continue to act for the defendant despite the said professional misconduct on the part of its former employee.

Costs Order

97.The parties agree on the applicability of the usual rule that costs should follow the event.  There will accordingly be a costs order that the costs of this action are to be paid by the defendant to the plaintiffs to be taxed if not agreed.

  (Andrew Chung)
Judge of the Court of First Instance
High Court

Mr Paul K N Wu and Mr Victor C F Cheung, instructed by Messrs Simon C W Yung & Co., for the Plaintiffs

Mrs Dora Chan, instructed by Messrs Tsang Chan & Woo, for the Defendant

Appeal dismissed: see CACV72/2007 dated 6 June 2008