Hong Kong third wave: landlord sues to evict new Covid-19 testing facility in Tai Po, claiming they were misled in rental agreement

Sunrise Diagnostic Centre, which began operations on July 14, is one of two private labs engaged to widen city’s overall testing capacity

Company chairman says they do not expect the lawsuit to affect the lab’s work

Reading Time:2 minutes

Facing a new, and more aggressive third wave of Covid-19 infections, the Hong Kong government has contracted with two private labs to increase testing capabilities. Photo: Getty Images

Published: 9:02pm, 24 Jul 2020Updated: 12:29am, 25 Jul 2020

A private laboratory that has spent the past 10 days helping the Hong Kong government conduct Covid-19 tests for high-risk groups is facing eviction after its landlord took legal action claiming it had been misled into signing the tenancy agreement.

Taipo Tapestry Company on Thursday sued Sunrise Diagnostic Centre, seeking a court order to rescind the agreement in accordance with the Misrepresentation Ordinance, and to force the company to vacate the premises.

Tai Po district councillors and members of the Neo Democrats party protest outside Tai Ping Industrial Park against mainland genetics company BGI Group over its new Covid-19 testing laboratory in the industrial estate. Photo: Edmond So

The plaintiff also demanded mesne profits – those accrued during their exclusion from the property – as well as damages for the alleged misrepresentation, plus interest and costs from the defendant, established by Shenzhen-based BGI Genomics.

Documents filed to the High Court revealed that the two parties signed a tenancy agreement for the unit in Tai Ping Industrial Park in Tai Po, on June 16, at the monthly rate of HK$181,636 (US$23,400).

But the writ did not disclose details of the alleged “misrepresentation”, and the court has yet to schedule a hearing.

Sunrise was one of two private labs engaged by the government this month to widen the city’s overall testing capacity. Paid for out of the city’s Anti-epidemic Fund, the lab began operations on July 14.