Mcdonald's Restaurants (Hong Kong) Ltd v. Director of Lands

Case No.
Court
Date22 Dec 2006
Judge
Case Document
100%

LDMT 2 OF 2004

IN THE LANDS TRIBUNAL OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

MTR Ordinance Application No. 2 of 2004

_______________

Between

  McDonald’s Restaurants (Hong Kong) Limited Applicant
  And  
  Director of Lands Respondent

_______________

Before: H. H. Judge Yung, Presiding Officer of the Lands Tribunal and Mr. W. K. LO, Member of the Lands Tribunal

Date of Hearing: 28th August 2006, 29th August 2006, 30th August 2006 and 31st August 2006

Date of Judgment: 22nd December 2006

_____________________

C O R R I G E N D U M

______________________

The adopted percentage of variable expenses to turnover, as a simple average of percentages calculated for years from 1995 to 1998 should be 19.61%, instead of 18.78%, as show in the calculations at TABLE 2 of the Judgment.  The revised TABLE 2 is appended below: -

Revised TABLE 2 (a)

  Affected Period
(25 Aug 1995 to 27 Aug 1998)
  25 Aug 1995
to
31 Dec 1995
01 Jan 1996
to
31 Dec 1996
01 Jan 1997
to
31 Dec 1997
01 Jan 1998
to
27 Aug 1998
Total
Product sales          
Projected product sales $10,999,761 $29,644,742 $26,562,259 $15,833,832 $83,040,594
Less: Actual product sales $9,034,556 $23,861,324 $21,117,440 $13,719,045 $67,732,365
Drop in product sales (P) $1,965,205 $5,783,418 $5,444,819 $2,114,787 $15,308,229
Gross profit ratio (Q) 62.65% 64.19% 64.07% 66.06% -
Shortfall in gross profit (R = P x Q) $1,231,201 $3,712,376 $3,488,496 $1,397,028 $9,829,101
           
           
Premium sales          
Premium sales as % of product sales 2.12% 1.30% 1.61% 2.11% -
Projected premium sales $233,195 $385,382 $427,652 $334,094 $1,380,323
Less: Actual Premium sales $191,215 $310,392 $340,847 $289,953 $1,132,407
Drop in premium sales (S) $41,980 $74,990 $86,805 $44,141 $247,916
Gross profit ratio (T) 0% 0% 7.22% 32.28% -
Shortfall in gross profit (U = S x T) 0 0 $6,267 $14,249 $20,516
           
           
Drop in sales (V = P + S) $2,007,185 $5,858,408 $5,531,624 $2,158,928 $15,556,145
           
           
Shortfall in turnover’s gross profit (W = R + U) $1,231,201 $3,712,376 $3,494,763 $1,411,277 $9,849,617
           
           
Less          
Savings in variable expenses (X = 19.61% (b) x V) $393,609 $1,148,834 $1,084,751 $423,366 $3,050,560
           
           
Pecuniary loss (W – X) $837,592 $2,563,542 $2,410,012 $987,911 $6,799,057

Notes:

(a)      This TABLE 2 follows the format of the hearing document Bundle C-40.

(b)      The adopted percentage of variable expenses to turnover is a simple average of percentages calculated for years from 1995 to 1998.

As a result of this correction, we work out the compensation at $6,799,057 which is rounded to $6.8 million.  This is to replace the sum of $6.9 million as stated in paragraph 21 of the Judgment.

  (I. KWOK)
Clerk to H. H. Judge YUNG

Dated this the 25th day of January 2007

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