Funfair Co Ltd 訴 Wong Lui Wing t/a Kwong Wing Metal Co
Read the full judgment text of CACV 441/2006 on BabelCite. This Court of Appeal judgment was delivered on 10 July 2007 before Tang Kwok-chang VP, Cheung Chak-yau JA, Lam Man-hon J.
Landlord and tenant – lease – unilateral termination – repudiation – Whether a lease can be terminated unilaterally by the tenant returning the keys without acceptance by the landlord – Whether the landlord can recover rent after the tenant's unaccepted repudiation – Whether the tenant is entitled to the return of the security deposit – Contract law – White and Carter principle – Landlord's right to affirm lease – Whether landlord acted wholly unreasonably – Civil appeal from District Court – District Court Civil Action 755/2005 – Plaintiff landlord leased Lots in Yau Tong to defendant for two years and three days at HK$165,000 per month – Government lease did not permit storage of scrap iron – Lands Department required fee of HK$484,028 for grace period which defendant refused to pay – Plaintiff obtained interim injunction against unauthorised use – Defendant returned keys and purported to terminate lease on 16 December 2004 – Plaintiff refused to accept repudiation – Two post-dated cheques dishonoured – Whether the lease could be unilaterally terminated: Held, no – A contract including a lease cannot be terminated unilaterally absent express provision; an unaccepted repudiation is ineffective (National Carriers Ltd v Panalpina; 1 Chitty on Contracts paras 25-012) – Whether landlord can recover rent: Held, yes – A landlord has a continuing right to sue for rent under a lease, which also confers an estate in land (White and Carter v McGregor) – Following Reichman v Beveridge [2006] EWCA Civ 1659, a landlord is entitled to affirm the lease and claim rent unless the landlord acted wholly unreasonably – Whether landlord acted wholly unreasonably: Held, no – The plaintiff's conduct in obtaining the injunction to stop breach of the government lease was not unreasonable, and the defendant did not plead or argue unreasonableness – Whether the deposit should be returned: Held, no – The lease was not validly terminated, so the question of forfeiture of deposit does not arise; the central issue is the plaintiff's claim for rent, and the defendant's only defence (an alleged oral agreement permitting storage of scrap iron) was rejected at trial and not appealed – District Court judge's finding that the lease was unilaterally terminated was wrong – Defendant's reliance on Sano Screen distinguished because in that case the landlord accepted the repudiation, unlike the present case – Defendant's argument based on mitigation of damages was not pleaded below and could not be raised for the first time on appeal – Plaintiff's appeal allowed – Defendant ordered to pay HK$495,000 in rent (December 2004, January 2005 and February 2005) plus interest at best lending rate plus 1% from 21 February 2005, and costs of both the District Court and the Court of Appeal, to be assessed if not agreed
Legal issues: Whether the lease could be unilaterally terminated by the tenant returning the keys · Whether the plaintiff can recover rent for December 2004, January 2005 and February 2005 · Whether the defendant's counterclaim for return of the deposit should succeed
Outcome: Plaintiff's appeal allowed; defendant ordered to pay the plaintiff HK$495,000 in unpaid rent with interest, plus costs of both the District Court and the Court of Appeal.
Cited by 8 cases · Cites 1 case
|
CACV 441/2006 香港特別行政區 高等法院上訴法庭 民事司法管轄權 民事上訴 案件編號:民事上訴案件 2006年第441號 (原區院民事訴訟 2005年第755號)
聆訊日期: 2007年7月5日 判案書日期: 2007年7月10日 判案書 上訴法庭副庭長鄧國楨頒發上訴法庭判案書: 1.原告人是油塘海路第2、3及4地段(「地段」)之業主。 2.2004年3月29日,原告人與被告人簽訂一份地段的租約,租期由2004年3月29日起為期2年零3日,每月租金為$165,000,每月的租金須於該月的第1日預先支付。 3.根據租約條款,被告人只能把地段用作政府租契內所容許的土地用途。 4.有關政府租契條例並不容許該地段使用作儲存廢鐵的用途。 5.2004年10月在原告人要求之下,被告人以兩張期票預先繳付2004年12月及2005年1月之租金。 6.2004年10月29日,地政總署向原告人發出警告信,指地段被用作儲存廢鐵,因而違反政府租契的規定,政府有權收回地段,要求原告人在28天內糾正地段的用途。信件同時指出假若原告人未能如期糾正,地政總署可以給予3個月寬限期,但條件是原告人須繳付$484,028之費用。 7.根據租約附件三,該費用應由被告人支付。原告人曾透過律師向被告人發信,允許被告人經原告人向政府支付$484,028以換取3個月的寬限期,被告人卻不予理會。 8.2004年11月24日,原告人向高等法院申請及獲頒佈臨時禁制令,禁止被告人以及其他人等在地段進行違反政府租契之行為。 9.被告人認為原告人此舉乃違約之行為。2004年12月16日被告人之律師致函原告人,表示接納原告人之違約行為,並把鑰匙交還原告人之律師,藉以放棄地段之佔有權。隨後原告人律師回應他們,拒絕終止合約,並表示會將鑰匙保管,被告人可以隨時索回。 10.兩張期票逐一被退票。 11.2005年2月21日,原告人發出告票,其申索如下:
12.在反申索書中,被告人要求原告人退還$330,000之租約按金。 13.在反申索書中,被告人聲稱與原告人代表梁悅強先生有口頭協議,准許被告人分租及使用該地段作儲存廢鐵之用,所以原告人申請及獲頒佈臨時禁制令是原告人先違約。 14.區域法院法官周兆熊經正審後於2006年9月19日頒佈退票之申索得直,但欠租之申索則被撤銷。同時,周法官判被告人之反申索得直,結果兩數互相抵銷,與訟雙方不須支付對方任何款項。 15.原告人就周法官拒絕其欠租之申索,以及就反申索之裁判作出此上訴。被告人並無提出反上訴。 16.在判案書之第11段,周法官表述以下觀點:
17.這觀點是錯誤的。除非合約明文許可,否則任何合約均不能作單方面終止。 18.租約是合約的一種,雖然正如Lord Simon of Glaisdale在National Carriers Ltd v Panalpina (Northern) Ltd [1981] AC 675 at 703所說:悔約原則(doctrine of repudiation)亦適用於租約。但未經接納的違約行為是沒有效的。見1 Chitty on Contracts, (28th Ed), paras. 25-012. 19.但違反不同性質的合約會引致不同後果。一般來說,違約一方只需賠償另一方的損失;但若有關土地權益的合約,例如買賣協議或租約,雙方都可要求執行強制履行令(Specific Performance)。業主亦有權向租客追討租金。見White and Carter (Councils) Ltd v McGregor [1962] AC 413. 20.最近英國上訴法庭在Reichman and Anor v Beveridge and Anor [2006] EWCA Civ 1659一案,經仔細考慮下認為除非業主是在完全無理(wholly unreasonable)的情況下強制執行租約,否則業主有權堅持租戶繳交租金。本庭認同此觀點。 21.根據周法官的判案書,被告人是違約一方,原告人亦沒接納被告人的違約行為。本案被告人的答辯理由只局限在是否與原告人代表有口頭協議。周法官不接納有口頭協議之說法,而被告人亦沒有為此上訴。 22.再者,本案有關的只是2004年12月,2005年1及2月的租金,而被告人只在2004年12月16日違約,所以事實上並沒有原告人行為不合理,何況完全不合理的基礎。 23.周法官下令退回按金的判決也是錯誤,實際上租約並未終止。本案與沒收按金的問題無關,關鍵是原告人能否向被告人追討租金。被告人答辯的唯一理由是原告人違反了口頭協議。這點周法官並不接納。 24.雖然被告人沒有律師代表,但其論據大綱清楚列明其觀點。 25.被告人指出:
26.但被告人提出的Sano Screen一案對被告人並沒幫助,因為在該案業主接納了租戶的悔約(repudiation)。見第4頁第3段。而本案原告人並無接納被告人的悔約。 27.再者,被告人提到:
以上不適用於業主根據租約向租戶追討租金。租約除了是一項合約外,亦同時批予租客在租出土地上的產業權(estate)。這產業權在簽訂租約時經已由業主批出。在租約期滿前,租客對該土地享有獨有管有(exclusive possession),業主不須再以其他行為履行此責任。上述Reichman一案已有詳細解釋。況且被告人的說法牽涉為減低損害賠償,Mitigation of damages,就算這概念對業主追討租金也可致用(本庭對此論點不在此案作定論),但在本案,被告人的答辯理由並沒有提出這點,所以周法官也沒有考慮這點。況且如果原審時有提出這論點,一定會有其他證供處理這個問題,所以本庭不能准許被告人在本庭提出這論點。 28.基於上述理由,本庭裁定原告人上訴得直。 29.被告人須支付原告人$495,000連利息,利息由2005年2月21日起計,息率為最優惠利率加1厘。被告人亦須支付原告人在區域法院及本庭之訟費。假如雙方未能就訟費達成協議,則須由法院評定訟費。
原告人:由何葉律師行轉聘凌振威大律師代表。 被告人:無律師代表,親自應訊。 |
Cases cited in this judgment