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.