7. Jurisdiction and appropriate forums

7. Jurisdiction and appropriate forums

In water seepage litigation, the selection of the appropriate forum depends on the amount of damages claimed, the nature of the relief sought (such as injunctions), and whether the dispute involves the interpretation of the Deed of Mutual Covenant (“DMC”) and building management statutes. Jurisdiction is often concurrent between various courts and tribunals, meaning a plaintiff may sometimes choose between venues. 

1. Small Claims Tribunal 

The Small Claims Tribunal is the appropriate venue for minor disputes where the primary objective is financial recovery rather than stopping the seepage through a court order. 

• Monetary limit: The claim must not exceed $75,000. 
• Limited relief: The Tribunal cannot grant injunctions. It is strictly for pecuniary compensation. If a plaintiff requires a mandatory injunction to force an upstairs neighbour to perform repairs, he must commence proceedings in a higher court. 
• No legal representation: Parties must represent themselves, which minimises legal costs for straightforward claims.  

2. Lands Tribunal 

The Lands Tribunal has a specialist jurisdiction over building management disputes under the Building Management Ordinance (Cap. 344) and the DMC. 

• Concurrent jurisdiction: The Tribunal shares concurrent jurisdiction with the High Court and District Court regarding the enforcement of DMCs and the Building Management Ordinance. 
• Specified proceedings: Under section 45 and Schedule 10 of the Building Management Ordinance, it can hear cases relating to the use of common parts, interpretation of DMCs, and the duties of Incorporated Owners. 
• Transfer of cases: Under section 8A of the Lands Tribunal Ordinance (Cap. 17), the Tribunal may transfer proceedings to the High Court or District Court if it considers such a move to be in the interests of justice or if it lacks the jurisdiction to grant a specific new right. 

3. District Court 

The District Court is the standard venue for the majority of residential water seepage cases in Hong Kong. 

• Monetary limit: It handles claims where the damages sought exceed $75,000 but do not exceed $3,000,000. 
• Injunctive relief: Unlike the Small Claims Tribunal, the District Court has the power to grant both mandatory injunctions (ordering a defendant to carry out repairs) and prohibitory injunctions (restraining a defendant from allowing further seepage). 
• DMC and tort claims: It frequently adjudicates cases involving a mix of nuisance, negligence, and breach of the DMC. 

4. High Court (Court of First Instance) 

The High Court is used for cases involving very high claim amounts. 

• Monetary limit: It has unlimited civil jurisdiction. It may hear claims of any amount, but it is generally used for claims exceeding $3,000,000. 

• Jurisdiction: It has unlimited jurisdiction to hear any civil claim, including those for breach of covenant under a DMC.