The Government acted irrationally and abused its power over negotiations for compensation with a woman who lost her kindergarten as a result of land resumption, a court has ruled.
Mr Justice Michael Hartmann quashed a refusal by the Director of Lands in 1998 not to compensate Ho Lee Chui-foon and ordered the Government to re-enter negotiations with her.
He wrote in his judgment handed down in the Court of First Instance that the decision by the Director of Lands was irrational and amounted to an abuse of power.
The judge ruled that Mrs Ho, who owned Leung Tin Kindergarten in Leung Tin village, Tuen Mun, had a legitimate expectation that the Government would honour a promise to pay her compensation.
The pledge was made in about 1980 when the Government announced plans to acquire the Tuen Mun villages of Leung Tin and San Wai Chai to build a new town.
Mrs Ho said she was persuaded by Billy Lam, a Tuen Mun district officer, to delay the relocation of her school as this could work to her advantage in any future compensation negotiations.
In a letter submitted to the judge, Mr Lam backed up Mrs Ho's claim.
