The Court of Second Instance (TSI) has ruled in favor of a former Pearl Horizon buyer, granting him a higher amount in compensation for damages caused by the non-construction of the residential development.
In the ruling, the collective of judges decided to increase the amount to be paid by the Polytex Import and Export Company, the former owner of the project, as they found the initial compensation amount determined by a lower court to be too low.
In the initial case, the Court of First Instance (TJB) ruled that Polytex must pay compensation of MOP4 million.
The case dates back to 2011 when Polytex signed a contract to sell an apartment in Pearl Horizon to a woman for HKD5,668,000.
The company explained later that, in reality, the woman only paid HKD4,534,400, as she was granted a 20% discount.
In 2015, this buyer transferred her contractual position to the final buyer for HKD7,670,000.
The final buyer is seeking higher compensation from the company, as he obtained a loan to purchase the contractual rights, spending an additional HKD242,000 in interest between 2015 and 2018.
After the TJB’s decision to award MOP4 million in compensation, both the buyer and Polytex have appealed to the TSI.
Upon review, the TSI concluded that the fair amount of compensation should be the actual amount paid for the first buyer plus interest for eight years, calculated based on an average annual interest rate of 3.5%, arriving at the final amount of HKD5,690,000.
According to the information provided by the Office of the President of the Court of Final Appeal (TUI), once again, none of the parties have agreed with TSI’s ruling, and both have appealed the decision to the TUI.
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