In our Client Alert of 17 October 2012, we reported that a trial of the following preliminary issue would take place in three personal injury cases, on 6, 7 and 16 November 2012:
“Whether, having regard to economic developments from 1995 up to the present time, the Cookson v Knowles assumption of a net rate of return of 4.5% remains valid in Hong Kong and, if not, what is the net rate of return, based upon which multipliers ought to be assessed and awarded.”
The parties were given leave to adduce economic expert evidence on the interpretation of historical data of investment returns, net of inflation, of various investment vehicles in Hong Kong from 1995 to date.
On 29 October 2012, the trial of the preliminary issue was adjourned to 8 to 11 January 2013 in order to give the experts further time to compile their reports. A further update will be sent to you once a decision has been handed down following that trial.