Case Overview:
The dispute arose from the termination of a construction management agreement by the Tung Cheng Yuen Buddhist Association, leading JM Bay Properties Inc. to claim anticipated loss of profit.

Legal Arguments and Issues:
JM Bay argued it was entitled to compensation for anticipated profits, based on a construction cost estimate of $5.72 million. Tung Cheng countered, stating there was no consensus on construction costs and disputed any entitlement to profit loss claims. The court focused on determining the appropriate estimated construction cost, calculating the fee JM Bay could have anticipated, and deducting overhead and subconsultant costs.

Court’s Findings:
The court concluded that although there was no formal agreement on the exact construction cost, Tung Cheng had communicated an expectation of a $3.85 million budget. JM Bay’s anticipated fee was assessed at 7.5% of this figure ($288,750). After deducting the subconsultant's fee (13% of the anticipated fee, equating to $37,537.50) and overhead costs (assessed at 40% of the net fee, equating to $100,485), the court determined JM Bay’s anticipated loss of profit.

Award and Costs:
The court accepted Registrar Gaily’s recommendation and awarded JM Bay Properties Inc. a total of $150,727.50 for anticipated loss of profit, subject to deductions for any advance payments made by Tung Cheng?.