Facts

A and his wife lived with their son B, B’s wife and their grandson. The family home was demolished and the compensation used to purchase three flats — one in Huangpu District, two in Pudong New Area. Son B later died of illness. The elderly couple sued their daughter-in-law and grandson, each claiming a 50 per cent share of the disputed property.

Issues

How the compensation and the flats purchased with it should be divided among the original occupants; whether the deceased son’s share passed to his widow and child by succession; and the extent of the elderly couple’s contribution to the purchase.

Outcome

The court identified the respective shares by reference to the original tenancy, the number of occupants and the source of the purchase money, and divided the property rights accordingly. The judgment protected the elderly couple’s residence while recognising the succession rights of the son’s family.