Canopy as a common part

Hollywood Shopping Centre Owners’ Committee Ltd v Incorporated Owners of Wing Wah Building  ([2011] HKEC 1063, CA) concerned a mixed commercial / residential development. There was an owners corporation for the development as a whole. There was a sub-DMC for the shops at ground, mezzanine and first floor levels (Hollywood Shopping Centre). There was a separate owners’ corporation for the shopping centre. The dispute between the two corporations centred on a canopy attached to the outside wall of the building between the ground and mezzanine floors. The plaintiff (the Hollywood Shopping Centre Owners) had allowed the canopy to be used for advertisements. The defendants claimed that this was a breach of section 34I since it meant that the shopping centre owners had converted a common part to their private use. The Court of Appeal agreed and Hollywood Shopping Centre was ordered to account for the sums received for advertising in respect of the advertising agreement entered into after the Incorporated Owners of the building had voiced their opposition to the use of the canopy for the exclusive benefit of the shopping centre.

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