Management Corp v Goodview: Strata Titles, Management Corp Action on Behalf of Some Subsidiary Proprietors

The Management Corporation Strata Title Plan No 1938, the management corporation of a condominium, sued Goodview Properties Pte Ltd, the developers, on behalf of 24 subsidiary proprietors for breach of contract related to defects in common property. The High Court struck out the claim, but the Court of Appeal allowed the appeal, holding that the management corporation could bring the action on behalf of some subsidiary proprietors under Section 116(1) of the Land Titles (Strata) Act.

1. Case Overview

1.1 Court

Court of Appeal of the Republic of Singapore

1.2 Outcome

Appeal allowed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The Management Corporation sued Goodview Properties for breach of contract. The Court of Appeal held that the management corporation could bring the action.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Management Corporation Strata Title Plan No 1938AppellantCorporationAppeal AllowedWon
Goodview Properties Pte LtdRespondentCorporationApplication DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Chao Hick TinJustice of the Court of AppealYes
L P TheanJustice of the Court of AppealNo

4. Counsels

Counsel NameOrganization
Rodney KeongBih Li & Lee
Choi Yok HungBih Li & Lee
Philip JeyaretnamHelen Yeo & Partners
Brendon ChoaHelen Yeo & Partners

4. Facts

  1. The Management Corporation Strata Title Plan No 1938 is the management corporation of Orchid Park condominium.
  2. Goodview Properties Pte Ltd was the developer of the condominium, completed in 1994.
  3. The condominium has 615 units.
  4. The Management Corporation instituted a representative action on behalf of 24 subsidiary proprietors.
  5. The action claimed damages for breach of contract due to faulty construction of common property.
  6. The 24 subsidiary proprietors had separate sale and purchase agreements with identical terms.
  7. The Management Corporation sought proportionately abated damages.

5. Formal Citations

  1. Management Corporation Strata Title Plan No 1938 v Goodview Properties Pte Ltd, CA 29/ 2000, [2000] SGCA 56

6. Timeline

DateEvent
Condominium completed
Representative action instituted in Suit 1374/99
Further and better particulars dated
Appeal allowed

7. Legal Issues

  1. Interpretation of Section 116(1) of the Land Titles (Strata) Act
    • Outcome: The court held that Section 116(1) does not require subsidiary proprietors to be 'specially affected' by common property defects for the management corporation to represent them.
    • Category: Statutory Interpretation
    • Sub-Issues:
      • Meaning of 'jointly entitled'
      • Meaning of 'the lots concerned'
      • Applicability to actions on behalf of some subsidiary proprietors
    • Related Cases:
      • [1995] 1 SLR 593
      • [1996] 1 SLR 113
      • [1995] 1 SLR 751
  2. Breach of Contract
    • Outcome: The court did not make a final determination on the breach of contract claim itself, but ruled on the management corporation's ability to bring the claim.
    • Category: Substantive
    • Sub-Issues:
      • Defective construction
      • Failure to erect in a good and workmanlike manner
      • Breach of implied term

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Real Estate Law
  • Commercial Litigation

11. Industries

  • Construction
  • Real Estate

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Roberts v HollandQueen's BenchYes[1893] 1 QB 665England and WalesCited to support the principle that one tenant-in-common can sue on covenants without joining other tenants-in-common.
United Dairies Ltd v Public TrusteeKing's BenchYes[1923] 1 KB 469England and WalesCited to support the principle that a lessor can recover full damages from either of two tenants-in-common.
Sheehan v Great Eastern Rly CoChancery DivisionYes[1880-81] 16 Ch D 59England and WalesCited to support the principle that one co-owner of a patent can sue for an account of profits.
MCST Plan No 1279 v Khong Guan Realty Pte LtdHigh CourtYes[1995] 1 SLR 593SingaporeCited as precedent for the principle that a management corporation can bring an action on behalf of subsidiary proprietors for defects in common property.
RSP Architects Planners & Engineers v Ocean Front Pte Ltd and another appealCourt of AppealYes[1996] 1 SLR 113SingaporeCited for the interpretation of Section 116(1) of the Strata Act and the purpose of enabling management corporations to bring actions on behalf of subsidiary proprietors.
Bradburne v BotfieldExchequer of PleasNo14 M & W 559England and WalesDistinguished as not applicable because the agreements were made severally, not jointly.
MCST Plan No 1272 v Ocean Front Pte Ltd (Ssangyong Engineering & Construction Co Ltd & Ors)High CourtNo[1995] 1 SLR 751SingaporeDiscussed in relation to the interpretation of s 116(1) of the Land Titles (Strata) Act, specifically regarding the phrase 'the lots concerned'.

13. Applicable Rules

Rule Name
Rules of Court

14. Applicable Statutes

Statute NameJurisdiction
Land Titles (Strata) Act (Cap 158, 1999 Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Management corporation
  • Subsidiary proprietors
  • Common property
  • Strata titles
  • Sale and purchase agreement
  • Jointly entitled
  • Lots concerned
  • Tenants-in-common
  • Defective construction

15.2 Keywords

  • strata
  • management corporation
  • common property
  • subsidiary proprietors
  • breach of contract
  • Singapore
  • construction defects

17. Areas of Law

Area NameRelevance Score
Strata Titles80
Property Law75
Management Corporation70
Breach of Contract60
Contract Law60
Civil Procedure40
Construction Law30
Corporate Law20

16. Subjects

  • Strata Titles
  • Contract Law
  • Civil Procedure
  • Real Estate Law