Case: Leiman, Ricardo and another v Noble Resources Ltd and another [2020] 2 SLR 386 (CA) – Law on Penalty Clauses

Singapore Law; Legal; Lawyer

Significance: Court of Appeal partly allows appeal against High Court decision and declines to decide on whether the law in Singapore on penalty clauses should be modified in the light of the new UK Supreme Court test for penalty clauses in Cavendish Square Holding BV v Makdessi [2016] AC 1172 (UKSC) (“Cavendish“) which the High Court below applied.

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Business Debt Claims

Singapore Law; Legal; Lawyer

Businesses (creditors) who wish to make a claim against another business (debtors) for a debt arising from contract should follow the State Courts’ pre-action protocol for business-to-business debt claims (the “Protocol“).

A creditor must comply with the framework in the Protocol before commencing any lawsuit in the State Courts.

A debtor must respond to a letter of claim within 14 days of receipt (or the timeline in the letter if earlier).

The Protocol stipulates certain material information and documents which must be provided by the creditor in the letter of claim or the debtor in the response to a letter of claim.

If either the creditor or debtor requests a document or information, the other party must within 14 days of receiving the request provide the document or information sought, or explain why the document or information sought is unavailable.

If you wish to engage me to assist with preparing a letter of demand for your business debt claim, please complete this Google form. (Google account log-in required for file upload.)

Alternatively, if you wish to engage a Singapore lawyer to assist with preparing a response to a letter of claim for business debt, including a counterclaim, you may contact me here.

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Insights into the Honourable Justice Chan Seng Onn

Singapore Law; Legal; Lawyer

Justice Chan Seng Onn was the judge who acquitted the foreign domestic worker Ms Parti Liyani of stealing items allegedly belonging to a Karl Liew.

In this piece, I set out some interesting facts about, and insights from, Chan J extracted from an interview with him done by some students several years ago.

Did you know that he was a top A level student along with George Yeo and Teo Chee Hean; he was a President’s Scholar and studied and worked as an engineer before switching mid-career to law?

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Case: Paulus Tannos v Heince Tombak Simanjuntak and others [2020] SGCA 85 – majority of Court of Appeal refused recognition of foreign bankruptcy order due to breach of natural justice

Singapore Law; Legal; Lawyer

Significance: In a rare split decision, the majority of the Court of Appeal (Sundaresh Menon CJ and Tay Yong Kwang JA; Woo Bih Li J dissenting) refused recognition of foreign bankruptcy order due to breach of natural justice.

The majority found that the evidence did not prove that:

(i) notices of the bankruptcy application in Indonesia were properly served on the appellants;

(ii) the appellants had actual knowledge of the bankruptcy proceedings but chose not to appear in them.

The appellants were thus deprived of the opportunity to challenge validity of service or liability under the guarantees and object to the making of the bankruptcy orders.

The Court left open the issue of the correctness of the legal principles on recognition of foreign bankruptcy orders: at [22].

Supreme Court case summary found here.

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Case: Sandy Island Pte Ltd v Thio Keng Thay [2020] SGCA 86 – defects liability clause does not extinguish rights to claim damages in common law

Singapore Law; Legal; Lawyer

Significance: Singapore Court of Appeal held that unless there are clear words or strong implication from express words in the contract, a defects liability clause in a property construction or development contract does not cause the owner/employer to lose its right to claim damages at common law for defects.

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Case: Public Prosecutor v Jurong Country Club and another appeal [2019] SGHC 150 – High Court considers factors to determine whether employee or independent contractor

Significance: Singapore High Court considers factors to determine whether a person was engaged as an employee or independent contractor for purposes of the Central Provident Fund Act (CPFA).

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