LAWFUL ACT ECONOMIC DURESS – PAKISTAN INTERNATIONAL V TIMES TRAVEL

It is not common to come across a case of duress. In the recent United Kingdom Supreme Court (“UKSC”) decision of Pakistan International Airline Corporation v Times Travel (UK) Ltd [2021] UKSC 40 (“Pakistan International”), the UKSC considered whether a party can set aside a contract on the ground that it was entered into because of the other party threatening to carry out a lawful act.

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Xian Ying Tan
THE DEEMING EFFECT OF SECTION 4(6) OF THE ARBITRATION ACT

In Cheung Teck Cheong Richard and others v LVND Investments Pte Ltd [2021] SGCA 77, the Court of Appeal overturned the High Court’s decision to stay the proceedings in favour of arbitration, finding that there was no arbitration agreement, whether ad hoc or otherwise. The Court of Appeal also disagreed with the High Court’s observations in obiter, stating that Section 4(6) of the Arbitration Act (Cap 10, 2002 Rev Ed) (“AA”) is limited in its application and “cannot be construed to permit the creation or formation of a new arbitration agreement through the operation of its deeming effect”.

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Xian Ying Tan
PARTIAL POSSESSION AND LIQUIDATED DAMAGES

In Eco World – Ballymore Embassy Gardens Company Ltd v Dobler UK Ltd [2021] EWHC 2207 (TCC) (“Eco World v Dobler”), the English Technology and Construction Court dealt with the issue of whether the liquidated damages provision in question is void and/or unenforceable because it does not contain any mechanism for reducing the amount of liquidated damages in the event of partial possession in advance of practical completion.

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Xian Ying Tan
ENTITLEMENT TO LIQUIDATED DAMAGES FOR TERMINATION BEFORE COMPLETION

In Triple Point Technology, Inc (Respondent) v PTT Public Company Ltd (Appellant) [2021] UKSC 29, the Supreme Court unanimously allowed the appeal on the issue of entitlement to liquidated damages, holding that on the construction of the liquidated damages clause, although work was not completed, the clause applied so that rights to liquidated damages accrued prior to termination were not lost.

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Xian Ying Tan
AWARDING INDEMNITY COSTS

In Beattie Passive Norse Ltd & Anor v Canham Consulting Ltd (No. 2 Costs) [2021] EWHC 1414 (TCC) (“Beattie v Canham”), the court awarded indemnity costs. It is useful as an illustration of the various factors that courts will take into consideration when determining whether indemnity costs should (or should not) be awarded.

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Xian Ying Tan
WINDING UP AND SOPA

In Diamond Glass Enterprise Pte Ltd v Zhong Kai Construction Co Pte Ltd [2021] SGCA 61 (“Diamond Glass”), the Court of Appeal made clear that while an adjudication debtor cannot dispute the adjudication determination as a ground for staying or setting aside a winding up petition founded upon that very adjudication determination, it is nonetheless open to such an adjudication debtor to stay or set aside the winding up petition by showing, on a prima facie standard, the existence of a justificiable cross-claim that is likely to equal or exceed the claim.

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Xian Ying Tan
THE LANGUAGE OF PERFORMANCE BONDS

In AXA Insurance Pte Ltd v Chiu Teng Construction Co Pte Ltd [2021] SGCA 62, the Court of Appeal made clear that while it is open to the issuer to define its risk appetite by the terms of the performance bonds, the court cannot rewrite the bargain between the parties.

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Xian Ying Tan
ENFORCEMENT OF ARBITRATION AWARD ISSUED IN FAVOUR OF NON-EXISTENT PARTY

In National Oilwell Varco Norway AS (formerly known as Hydralift AS) v Keppel FELS Ltd (formerly known as Far East Levingston Shipbuilding Ltd) [2021] SGHC 124, the High Court set aside leave which the plaintiff had obtained to enforce an award issued in favour of “another legal person”. In reaching its decision, the High Court considered that the proper approach to enforcement of an arbitral award under the statute was a pure mechanical one.

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Xian Ying Tan