The Incorporated Owners of Kadoorie Avenue Mansion v. Rising Dragon International Ltd
Read the full judgment text of LDBM 201/2013 on BabelCite. This Lands Tribunal judgment.
1. This is the hearing of the respondent’s following two applications:
Cites 2 cases
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LDBM 201/2013 IN THE LANDS TRIBUNAL OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION BUILDING MANAGEMENT APPLICATION NO. 201 OF 2013 ________________ BETWEEN
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___________________ D E C I S I O N ___________________ 1.This is the hearing of the respondent’s following two applications:
2.The FBP application and striking out application are the respective subject matters of the respondent’s summonses dated 20th August and 3rd September 2004. Brief background 3.The Applicant is the incorporated owners of a multi-storey building known as Kadoorie Avenue Mansion standing at 205-207 Prince Edward Road West, Kowloon. The respondent is the owner of Flat 10A Car Port No.16 and Main Roof A (“Roof A’) of the Mansion. 4.It is the applicant’s case that the respondent has installed a number of antennas and radio based stations (“RBS”) together with some structures on Roof A and common parts of the building, acting in breach of the Deed of Mutual Covenants (“DMC”), Building Management Ordinance, Cap 344 (“BMO”) and Government lease. The unauthorized structures, antennas and RBS also constitute a nuisance and have caused annoyance, damages or disturbance to other owners and occupiers of the Mansion. By this application, the applicant seeks declarations that the respondent is in breach of various provisions of the Government lease, DMC and BMO. It also asks for orders against the respondent to remove those installations and for injunctions restraining installation of any structure, antenna and RBS on the common parts and Roof A of the Mansion. 5.The respondent filed a Notice of Opposition on 30th June 2014 putting up various grounds of defence including the applicant turning a blind eye to its own breaches of various provisions of the DMC and building plans thus not coming to court with a clean hand, there being prior compromise between the parties, delay and laches. It also fights back with a counterclaim for a declaration that the applicant has breached its duties under S.18 (1) of the BMO and for an injunction compelling it to carry out its duties. FBP Application 6.The respondent first filed and served a request to provide FBP of the Notice of Application on 22 July 2014. The applicant’s answers were given on 5 August 2014. In so far as the FBP application is concerned, the respondent now takes the view that the applicant has only failed to properly answer Request No.1 despite the aforesaid answers. Request No.1 7.Request No 1 deals with paragraph 16 of the Notice of Application. The relevant part of the paragraph which attracts the respondent’s request for FBP is the particulars pleaded in subparagraph (b). The last sentence after subparagraph (d) is the subject matter of the striking out application. For completeness sake they are repeated below:
8.According to Mr. Chong of counsel for the respondent, subparagraph (b) does not tell whether there were actual incidents in the past which affected maintenance and repair. The defendant would like to know better the applicant’s case and if necessary, may need to call factual witness and/or even adduce expert evidence to rebut the applicant’s case. That is why the Request No.1 was made. The request and the applicant’s answers which the respondent considered insufficient are set out below:
9.The answers appear to confirm there having been such incidents in the past but no further particulars can be provided because the applicant kept no such record. Mr. Chong considers the answers insufficient. His submission can broadly be summarized as follows:
10.Mr. Leung of counsel submits for the applicant that if there is no record, it means there is no recollection as well otherwise it would amount to record on the part of the applicant. He submits paragraph 16(b) never alleges there having been actual impairment or damages to common water pipes. It merely states that the installation of those structures/antennas/RBS might impair or damages the pipes. The particulars given by the applicant on 5 August 2014 are more than sufficient to deal with Request No.1. 11.At the hearing he confirms that the applicant will not be relying on any past incidents at trial to substantiate its case. It can be gathered from his submission that the applicant’s case is that once it is proved that there are installation of the structures/antennas/RBS on Roof A and/or the common part of the building, the real probability of pipes repair and maintenance being affected as pleaded will be apparent[2]. The alleged respondent’s response as to the finding of factual or even expert witnesses to rebut the applicant’s allegation in this regard are, according to Mr. Leung, somewhat “over the top”. In any event by the lengthy paragraphs 29 and 30 of the Notice of Opposition pleaded in response to paragraph 16 of the Notice of Application, the respondent, said Mr. Leung, is fully aware of what cases it is going to meet[3]. 12.The starting point is O.18 r.12 RHC which provide:
13.I consider it fair to say that there is no dispute between parties on the principles applicable to ordering FBP as both counsel have either referred directly to the often-cited authorities in this area including Kwok Chin Wing v 21 Holdings Ltd[4], Sinoearn International Ltd v Hyundai-CCECC Joint Venture[5], Aktieselskabet Danik Skibsfinansiering v Wheelock Marden & Co. Ltd[6], or some other cases which approved basically the principles enunciated in the aforesaid authorities. The function of a properly particularized pleadings has been succinctly summarized in Wheelock Marden by Bokhary JA (as the learned NPJ then was) and set out in paragraph 18/12/1 of Hong Kong Civil Procedure 2015 Vo.1 at p.409:
14.O.18 r.12 (3B) RHC is introduced by the Civil Justice Reform. It provides that no order under r.12 (3) will be ordered unless it is necessary either (i) for disposing fairly of the cause or matter; or (ii) for saving costs. Accordingly relevance is not the test. Necessity for the stated purposes must also be shown. The burden of proof is on the party bringing the application[7], i.e. the respondent in the present case. 15.In the Tribunal’s judgment, paragraph 16(b) may give rise to doubts as to whether the applicant is relying on the mere fact of installation amounting to breach of DMC and BMO or that past events will also be relied on. If past events are relied on, it will only be fair for the applicant to plead the particulars so that the respondent can prepare its case in rebuttal, if so advised. Request No.1 is therefore relevant and necessary for ascertaining the scope of the applicant’s case and thus for saving costs, though it will be, according to the tribunal’s judgment, a bit exaggerated and far-fetched to suggest expert needs be involved to consider whether maintenance and repair have been or will be affected. 16.The question is whether the answers already provided are sufficient. 17.This tribunal does not share Mr. Chong’s submission that the applicant’s answers suggest a shifted case – from a case where repair and maintenance are possible to impossible. The original pleading suggests the said installations affecting repair and maintenance. It will be a matter of degree when repair is affected but still made possible or to the extent of being rendered impossible. 18.However, this tribunal accepts Mr. Chong’s another contention that the answer is insufficient. The simple answer by the applicant is that they keep no record of any such repair. It is not apparent from the applicant’s case that there were no such incidents in the past. Neither is the applicant’s express case that the ascertainment of particulars too laborious for the time being but they will be supplying the same later. It is also not the express case of the applicant that they will not rely on past incidents until Mr. Leung’s confirmation at the hearing after talking to those instructing him. Reasonable opponent will therefore be left in doubt as to whether at the end of the day the other side will put in evidence of past events to substantiate the pleaded particulars until in the middle of the hearing. 19.Having said the above this tribunal, however, does not intend to ask the applicant to file FBP of the answers already provided. It is because Mr. Leung of counsel has already confirmed on the applicant’s behalf that it will not be relying on past incidents. In the circumstances, though the requested particulars are considered relevant and necessary to help clarify and define the applicant’s case, in light of Mr. Leung’s confirmation it is no longer necessary for FBP to be ordered. The primary concern of whether or not factual rebuttal evidence need be prepared has been duly addressed. The FBP together with the confirmation aforesaid has basically helped clarify paragraph 16 (b) and served the purposes set out in paragraph 13 above. Striking Out Application 20.As set out in the striking out summons, there are 3 areas in the applicant’s pleadings which are considered bad by the respondent and liable to be struck out. In the course of the hearing Mr. Leung concedes on behalf applicant on one area and partly on the second. The 3 areas are discussed below. Res ipsa loquitur 21.The applicant pleads in aid of the doctrine of res ipsa loquitur in paragraph 16 of the Notice of Application[8]. The respondent’s complaint is that this case is allegedly founded on, inter alia, breach of DMC, BMO but not negligence. As the doctrine is irrelevant it must be struck out for being bad in law. 22.Mr. Leung admits the applicant is not relying on the use of the phrase in the manner as it applies to negligence or breach of duty claim. Mr. Leung says it is only a short or fancy way of saying “the antennas installations built there speak for themselves”[9]. He, however, is unable to refer to authorities that this often-relied-on doctrine applies also to the causes of action now being sued on by the applicant. After several exchanges with the bench and taking of instruction from those instructing him, he confirmed, and this tribunal considers sensibly and correctly, that the applicant is not relying on the res ipsa loquitur doctrine pleaded. 23.In Sanfield Building Contractors Ltd v Li Kai Cheong[10], Bokhary PJ formulated the res ipsa loquitur rule in the following words:
24.The learned authors of Tort Law and Practice in Hong Kong, Sweet & Maxwell, 3rd ed, 2014 at §4.214-25 indentify several requirements for reliance of the res ipsa loquitur reasoning such as (i) accident does not ordinarily occur without defendant’s negligence; (ii) the thing that cause the damage being in the defendant’s exclusive control; (iii) cause of occurrence unknown; and (iv) latent defect, etc. It is apparent from the aforesaid formulation by Bokhary PJ and the propositions by the learned authors that the pleaded doctrine or mode of reasoning is not applicable to the present case in which the causes of action have nothing to do with tort or negligence. Even if there is no concession by the applicant, this tribunal would have struck out the last sentence of paragraph 16 on the ground it tend to prejudice, embarrass, or delay the fair trial of the action. The Nuisance Issue 25.Paragraph 17 of the Application states:
26.The request for FBP on this paragraph, particularly on paragraph 17(1) is understandable. It is because while one expressly acknowledges that there is no acceptable scientific proof for the alleged health hazards, one appears to rely on these unsubstantiated scientific evidence to prove one’s nuisance claim. The respondent made the following requests before applying for striking out:
27.The applicant provides the following answers:
28.The respondent considers since there is express admission on the part of the applicant that they cannot prove scientifically any damages allegedly caused by the electromagnetic radiation, coupled with the fact that the applicant is not going to adduce expert evidence in this regard, paragraph 17 of the Notice of Application together with the answers should be struck out on the basis that they are scandalous, frivolous, vexatious, and may prejudice, embarrass or delay the fair trial of the action and/or otherwise are an abuse of process of the court. 29.In his oral submission, Mr. Leung informs the tribunal the applicant is no longer relying on paragraph 17(1) of the Notice of Application. The tribunal will therefore strike out the said subparagraph which the applicant will no longer rely on for the obvious reasons of saving costs. Mr. Leung, however, maintains paragraph 17(2) and (3) should remain. 30.It is Mr. Leung’s submission that striking out pleadings should only be made in “plain and obvious” case, and it is far from plain and obvious that the applicant would not succeed in establishing its case under paragraph 17. Mr. Leung’s case is that the proof of genuine fears on the part of the residents/owners of the Mansion, even though a subjective one, amounts to “disturbance”, “annoyance” or even “nuisance”[11]. 31.From the particulars pleaded under paragraph 17 of the Notice of Application, it is fair to say the applicant basically pleads the alleged adverse effects on health of the electromagnetic radiation, though unsubstantiated scientifically, constitutes a nuisance and has caused, inter alia, damage, disturbance and annoyance to resident/owners of the building. Nuisance, if proved, amounts to a breach of the DMC in the present case which the applicant is entitled to enforce. Damage, if proved, necessarily constitutes nuisance. It is, however, not clear from paragraph 17 whether the applicant is saying “disturbance” or “annoyance” is actionable per se. Neither is it apparent from the pleadings that these “disturbance” and “annoyance” constitute breaches of certain provisions of the DMC, nor these two heads are in fact coming under the umbrella of the nuisance claim. Mr. Leung’s submission does not serve to clarify this issue. 32.It is noted thatin a recent decision of this tribunal in The Incorporated Owners of Fanling Centre v Wong Yu Ting Terence[12], the incorporated owners sued for breach of a number of provisions of its DMC, including a covenant that “no owner do cause or permit or suffer to be done any act or thing which may be or become a nuisance or annoyance or cause damage to the other owners and occupiers” (emphasis added). In that case, on complaints of an owner whose daughter had unfortunately got brain tumour, the incorporated owners sued the respondent who erected a number of radio antennas on the roof for causing, inter alia, nuisance or disturbance to other owners of the building. No expert opinion was adduced to prove causation between the tumour and the antennas. The incorporated owners succeeded in obtaining mandatory orders for removal of the antennas. Proof of there being no peace of mind in the complainant was accepted and held to be sufficient to amount to a breach of the said covenant. The tribunal in that case considered the worries held should be reasonably held. The decision was upheld when the Court of Appeal refused to grant to appeal[13]. 33.In the said decision, the learned deputy judge relied on a passage in the Halsbury’s Law of Hong Kong[14] which states that:
34.No DMC was exhibited in the present case. From a perusal of the pleadings, it appears that the applicant is relying on, among other provisions, clause 8(d) of the DMC in particular which stipulates owners covenant with each other the following:
35.The provision of the DMC in the present case is different and is obviously more restrictive in scope than that of The Incorporated Owners of Fanling Centre. Only nuisance constitutes a breach and any act short of nuisance appears insufficient. This tribunal considers The Incorporated Owners of Fanling Centre therefore not applicable as the covenant sued on in that case is of a wider scope. That is why this tribunal raises the query that it is not apparent from paragraph 17 of the Notice of Application as to whether the applicant is saying proof of “annoyance” or “disturbance” to other owners/residents breach of DMC. 36.In the tribunal’s judgment, disturbance and annoyance are not causes of action. One needs to establish the element of “disturbance of”, or “annoyance to” before one can successfully set up nuisance. Once set up it amounts to a breach of DMC. In Clerk & Lindsell on Torts, Sweet & Maxwell (20th ed, 2010), at para 20.01, nuisance (or private nuisance) is defined as follows:
37.So by paragraph 17, the applicant is basically pleading nuisance caused by the radiation emanated from the antennas and RBS amounting to a breach of DMC. According to the classification in Clerk & Lindsell on Torts, nuisance of this kind belongs to the third class, namely, “unduly interfering with his neighbour in the comfortable and convenient enjoyment of his land”[15]. 38.In the present case, the applicant admits that there is no scientifically acceptable evidence to show causation of any alleged harmful effect to the radiation emanated from the RBS. It sees fit to abandon paragraph 17(1). The question is therefore whether mere fear (thus causing disturbance to and annoyance of owners/residents or no peace of mind as in The Incorporated Owners of Fanling Centre) of the possible harmful effect of the radiation, though without scientific proof but honest and perhaps reasonable, is sufficient to substantiate a nuisance claim as a matter of law. Both counsel make no submission on the matter. It appears from Mr. Leung’s submission that if the applicant can prove residents/owners fearing of the effect of the radio waves generated by the antennas/RBS on their well-being, that amounts to “disturbance” and ‘annoyance”, and may amount to “nuisance”[16]. He refers this tribunal to no authorities. 39.With respect I disagree. 40.In the English court of appeal decision in Birmingham Development Co. Tyler[17], one of the many complaints by the plaintiff was that a brick wall erected on the adjoining land owned by the defendant was considered unsafe and would collapse onto the plaintiff’s site, thus presenting a danger to the latter’s workers entering a part of the plaintiff’s land adjoining the said wall. The defendant’s failure to abate resulted in the plaintiff stopping work on its own site. An injunction was applied. The English Court of appeal upheld the dismissal of the injunction by the first instance’s court. 41.Although as a matter of evidence the plaintiff in Birmingham Development Co. Tyler failed to discharge its burden of proof to establish the wall being actually dangerous and presented a risk, Rimer LJ, in his decision, proceeded on the basis that the plaintiff had a genuine, honest and reasonable subjective fear that the wall would collapse. The central issue identified by the learned judge was a proposition put forth by the plaintiff’s counsel: in order to establish nuisance it was not necessary for the plaintiff to prove an actual danger emanating from the defendant’s land causing interference or fear[18]. 42.The learned judge answered the said question in the negative. Rimer LJ did not rule out “fear’ alone could found a case on nuisance as he considered that a claimant would have a case in nuisance if a house bordered his own property and its state of dilapidation was such that it presented a real danger of collapsing onto his property[19] (emphasis added). He elaborated:
43.So subjective fear itself is insufficient. It must be well-founded and the activities complained of and causing the fear, i.e. the erection of antennas and RBS with telephone micro-waves emanating therefrom in the present case, must be shown to be actually dangerous to health on a balance of probability. It is the applicant’s own case that there is no scientific proof to link the alleged health hazards and the radiation. After abandonment of paragraph 17(1), apart from stating the electromagnetic field limits published by ICNIRP, what are left are no more than various complaints by owners/residents that they fear the radiation but these worries and fear, though genuine, will not be supported by any objective evidence. These complaints serve no useful purpose to advance the applicant’s case. If the applicant knowingly pleads a case which it will not or is unable to adduce acceptable evidence to substantiate, in the tribunal’s judgment it is scandalous and tends to embarrass his opponent. Further in response to the said pleadings the respondent may wish to put in evidence in rebuttal, thus delaying the fair trial of the real issues in the present case. In the tribunal’s judgment, paragraph 17, including subparagraph (1), should be struck out. The Alleged Approval Issues 44.It is the respondent’s case that the applicant fails to enforce the DMC by allowing several unlawful acts to carry on within the building. The unlawful acts complained of are:
45.In its Reply and Defence to Counterclaim, the applicant pleaded in subparagraph (c) of the respective paragraphs 6, 7 and 9 that the conversion of the car parking spaces or structures (as the case may be) were “approved by all the individual flat owners of the Building or otherwise not objected to by any of them until February 2013”. Apparently considered bad plea, the respondent raises request for FBP in respect of the approval pleaded in the 3 subparagraphs. The applicant answers each of the requests by three separate answers in almost identical terms as follows:
46.Mr. Chong takes the view that since the applicant is an owners’ incorporation, its operation should be governed by the BMO. Any approval by owners must therefore be by owners’ resolution contained in meeting minutes which the applicant is now unable to produce. Further, the pleas of “approval”, “not objected to”, “no record”, “tacit approval” or “implied approval” are apparently internally inconsistent. The FBP provided rendered the original pleadings irrelevant and meaningless[25]. They therefore should be struck out on the grounds that they are “scandalous, frivolous, vexatious, may prejudice embarrass or delay the fair trial of the action, or otherwise an abuse of process”. 47.It is trite that the court should only exercise the power to strike out pleadings in plain and obvious cases. Disputed facts were to be resolved in favour of the party sought to be struck out. The claim must be obviously unsustainable, the pleading unarguably bad and it must be impossible, not just improbable, for the claim to succeed before the court will strike it out: see para 18/19/4 of Hong Kong Civil Procedure 2015 Vo.1 at p.435. 48.In the tribunal’s judgment, the aforesaid pleas, though with a lot of room for improvement, are broadly speaking, not inconsistent with each other. The fact that there was no record kept of any approval, as a matter of logic, does not necessarily follow that there is no approval. Approval of course can be evidenced by written resolution. However, it can also be inferred from documents other than proper resolution(s). What case the applicant can achieve eventually is a matter of evidence at trial. Whether the BMO will deem there being no approval because there being no resolution is an issue which the respondent has not yet properly made out. 49.It is further noted from the records of management committee exhibited by one Mr. Chan on behalf of the applicant the following:
50.It can therefore be seen from the above that the management committee had already had full knowledge of there being 9 car parks as early as 1980. There appeared to have been discussion of the committee to further convert them from 9 to 8 in 1981 and they agreed to put the matter to the owners’ meeting for further discussion. It is therefore arguable that the then car parks condition (9 instead of 10) would be acceptable to the owners otherwise the committee would not have referred the matter to them for discussion with a view to a further modification. At least it is arguable that members of the management committee and all those in attendance had accepted the then car park condition (9 instead of 10). Further, the management committee agreed to incur expenses to re-make the external wall of the watchman room. It is at least arguable if the watchman room was built without approval the management committee would not have recorded any improvement work about it. Further, the construction of an extra covered car park even received the approval of the management committee. 51.Accordingly, it cannot be said for sure at this stage that the pleas set out in paragraph 46 above are inconsistent or bound to fail at trial. In the circumstances, this tribunal do not consider the respondent has make out a good case for striking out the approval pleas of the applicant discussed above. Conclusion and Orders 52.By reasons of the above, the tribunal makes the following orders:
Mr Paul HM Leung, instructed by Chan & Tsui, for the applicant Mr Patrick Chong, instructed by Hui & Lam, for the respondent [1] See §16.3(a) of Mr. Chong’s skeleton argument of 21 November 2014 [2] See §13 of Mr. Leung’s skeleton argument of 24 November 2014 [3] See §11 of Mr. Leung’s skeleton argument of 24 November 2014 [4] [2013] 16 HKCFAR 663 [5] [2013] 16 HKCFAR 632 [6] [1994] 2 HKC 264 [7] See §18/12/66 of Hong Kong Civil Procedure 2015 Vo.1 at p.422 [8] See §7 above [9] See §18 of Mr. Leung’s skeleton argument of 24 November 2014 [10] [2003] 6 HKCFAR 207 [11] See §25 & 26 of Mr. Leung’s skeleton argument of 24 November 2014 [12] (unreported) 9 May 2014, DDJ Kot [13] See HCMP1979/2014, 11 November 2014 (unreported), Cheung CJHC, Lam VP [14] Halsbury’s Laws of Hong Kong Vol.17 at 235.374 and see §18 of the said decision [15] See §20-06 of Clerk & Lindsell on Torts, Sweet & Maxwell (20th ed, 2010), [16] See §26 of Mr. Leung’s skeleton argument of 24 November 2014 [17][2008] EWCA Civ 859 [18] See [2008] EWCA Civ 859 at §§ 38 & 39 [19] See [2008] EWCA Civ 859 at § 52 [20] See [2008] EWCA Civ 859 at § 50 [21] See [2008] EWCA Civ 859 at § 55 [22] §16-19 of the Notice of Opposition [23] §20 of the Notice of Opposition [24] §22 of the Notice of Opposition [25] See §32 of Mr. Chong’s skeleton argument of 21 November 2014 |
Cases cited in this judgment
Further hearings and rulings under LDBM 201/2013