The government is seeking to throw out a legal challenge by a company demanding more than $2.5 billion in compensation for the loss of boat access rights in Penny's Bay as a result of the Disney theme park development.
Penny's Bay Investment Company Limited, a former landlord in Penny's Bay, Lantau, was given permission in March for a High Court review to settle the dispute.
But barrister Joseph Fok, SC, for the government, argued yesterday in the Court of First Instance that the amount of compensation payable should be resolved in the Lands Tribunal.
The court heard that in April 1995, the government proposed to reclaim land in Penny's Bay for container terminals, but the plan was abandoned in favour of the Disneyland theme park project. The company eventually sold the land to the government for $1.5 billion in April last year, but the parties failed to reach agreement over compensation for the boat access rights and the company filed a claim to the Lands Tribunal.
The company later decided to seek a judicial review.
Yesterday, Mr Fok argued that the point of a judicial review was to challenge the legality of actions by public bodies and not to decide on compensation.
