Mediation under Land (Compulsory Sale for Redevelopment) Ordinance

Dear all,

Mediation under Land (Compulsory Sale for Redevelopment) Ordinance

 

I am Natalia Cheung, a Hong Kong International Arbitration Centre (HKIAC) Accredited Mediator and a practising solicitor in Hong Kong.

I would like to share with you some information on mediation for land compulsory sale cases under the Land (Compulsory Sale for Redevelopment) Ordinance (Cap. 545), Laws of Hong Kong (“Compulsory Sale Ordinance”).

 

Section 4(2) of the Compulsory Sale Ordinance stipulates that the Lands Tribunal shall not make an order for sale unless it is satisfied that, inter alia, the majority owner has taken reasonable steps to acquire all the undivided shares in the lot (including, in the case of a minority owner whose whereabouts are known, negotiating for the purchase of such of those shares as are owned by that minority owner on terms that are fair and reasonable).

 

Pursuant to Practice Direction LTPD CS1 2011 issued under section 10(5)(a) of the Lands Tribunal Ordinance (Cap. 17), parties in compulsory land sale cases should attempt mediation to settle the dispute. This includes the purchase of shares in the lot which are owned by the minority owner.

If the majority owner in compulsory sale cases unreasonably fails or refuses to attempt mediation with the minority owner, the Lands Tribunal may consider him as not having taken all reasonable steps under section 4(2) of the Compulsory Sale Ordinance to acquire the minority owner's undivided share of the lot.  The Lands Tribunal is entitled to take into account such failure or refusal in deciding whether to grant an order for sale or not.

Further, in exercising its discretion on costs, the Lands Tribunal shall take into account any unreasonable failure of a party to engage in mediation, where it can be established by admissible materials.

However, the Lands Tribunal shall not refuse to grant an order for sale or make any adverse costs order against a party on the ground of unreasonable failure to engage in mediation when:

(1)   The party has engaged in mediation to the minimum level of participation agreed to by the parties or as directed by the Lands Tribunal prior to the mediation in accordance with paragraph 8(6) of the said Practice Direction.

(2)   A party has a reasonable explanation for not engaging in mediation.

In any event, legal representatives should advise their clients that the Lands Tribunal is entitled to refuse to make an order for sale and/or to make an adverse costs order when a party unreasonably fails to engage in mediation.

 

For further information on mediation, please contact Ms. Natalia Cheung 

[(852)-6777 5767]

E-mail: natalia@plaw.hk

 

Natalia Cheung 

HKIAC Accredited Mediator & Hong Kong Solicitor

Pang Kung & Co., HK Solicitors & Notaries & Civil Celebrants of Marriages

   

 

Disclaimer: The above is for your information and reference only. The contents do not constitute legal advice or a substitute for legal advice in individual cases.