Cases - Director of Building and Lands v Shun Fung Ironworks Ltd
Record details
- Name
- Director of Building and Lands v Shun Fung Ironworks Ltd
- Date
- (1995)
- Citation
- 2 WLR 404
- Legislation
- Keywords
- Loss and damages - disturbance compensation
- Summary
-
Although based on Hong Kong legislation, this House of Lords decision is a leading case on disturbance compensation. In particular it established the principle that a claimant is entitled to fair and adequate compensation for loss and damage suffered by his/her business as a result of the compulsory acquisition. To succeed, a claimant must show:
- a causal connection between the loss and the compulsory acquisition;
- that the loss was not too remote; and
- that it was one which a reasonable person in the position of the claimant would have incurred.
Further, such losses can include pre-acquisition losses as well as post-acquisition losses.