DEFECTS LIABILITY CLAUSE AND RIGHT TO RECOVER DAMAGES AT COMMON LAW

In Sandy Island Pte Ltd v Thio Keng Thay [2020] SGCA 86 (“Sandy Island v TKT”), the Court of Appeal clarified what happens if a party in the position of an owner refuses access to a party in the position of a main contractor to perform rectification works, and the owner then seeks to recover damages for defects at common law, when the contract has a defects liability clauses.

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Xian Ying Tan
RESTRAINING CALLS ON PERFORMANCE BOND POST ADJUDICATION

The Court of Appeal has recently delivered an important decision on the interaction between the calling of performance bonds and the adjudication regime established under the Building and Construction Industry Security of Payment Act (“SOPA”) in Samsung C&T Group v Soon Li Heng Civil Engineering Pte Ltd [2020] SGCA 79 (“SCT v SLH”). In summary, the Court of Appeal made clear that calls on performance bonds which have the effect of negating the decision of an adjudication determination prior to the circumstances allowed under SOPA would be unconscionable.

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Xian Ying Tan
PURE OMISSIONS AND DUTY OF CARE

Would you be liable in negligence if you are given a key to inspect a house, and because you left the door open, someone else entered the house and started a fire, causing damage? Rushbond Plc v The J S Design Partnership LLP [2020] EWHC 1982 (TCC) (“Rushbond v JS Design”) deals with the above scenario, and makes clear that, in general, pure omission cases are not so easy to succeed.

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Xian Ying Tan
CASE UPDATE: SULZER PUMPS V HYFLUX [2020] SGHC 122

In Sulzer Pumps Spain S.A. v Hyflux Membrane Manufacturing (S) Pte Ltd [2020] SGHC 122 ("Sulzer Pumps v Hyflux"), the Singapore High Court considered what amounted to unconscionability in resisting a call on an unconditional performance bond, and in particular whether it would be unconscionable for one party in a near-liquidation scenario / undergoing restructuring to make a call on such a performance bond.

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Xian Ying Tan
CASE UPDATE: LEIMAN, RICARDO AND ANOTHER V NOBLE RESOURCES LTD AND ANOTHER [2020] SGCA 52

The Court of Appeal in Leiman, Ricardo and another v Noble Resources Ltd and another [2020] SGCA 52 (“Leiman v Noble Resources”) considered various issues, including touching on the issue of the approach to liquidated damages. This short update briefly examines some of the points raised by the Court of Appeal in this regard, given the importance of certainty in the approach to liquidated damages.

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Xian Ying Tan
CASE UPDATE: GLENCAIRN IP HOLDINGS LTD & ANOR V PRODUCT SPECIALITIES INC & ORS [2020] EWCA CIV 609

In Glencairn IP Holdings Ltd & Anor v Product Specialities Inc & Ors [2020] EWCA Civ 609 (“Glencairn v Product Specialities”), the England and Wales Court of Appeal (“EWCA”) dealt with whether a firm of solicitors who previously acted for Party A against Party B in a set of litigation can be restrained from acting for Party C against Party B in a similar set of litigation, when the earlier set of litigation has been settled through a mediation and/or confidential settlement.

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Xian Ying Tan
CASE UPDATE: BXH V BXI [2020] SGCA 28

In BXH v BXI [2020] SGCA 29 (“BXH v BXI”), the Singapore Court of Appeal dealt with the approach to be taken for inconsistent arbitration and litigation clauses, as well as some important issues in relation to the assignment of arbitration rights.

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Xian Ying Tan