Baiduri Bank Bhd v Dong Sui Hung: Forum Non Conveniens & Enforcement of Guarantee
In Baiduri Bank Bhd v Dong Sui Hung, the Singapore High Court addressed the defendants' appeal to stay the bank's action in Singapore, arguing Brunei was the more appropriate forum. The bank sued the defendants as guarantors of a Brunei construction company. The court, per Chan Seng Onn JC, dismissed the appeal, finding the defendants failed to demonstrate strong cause for a stay, given a non-exclusive jurisdiction clause allowing the bank to enforce the guarantee in any competent court.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court addresses forum non conveniens in a guarantee enforcement action, dismissing stay application based on a non-exclusive jurisdiction clause.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Baiduri Bank Bhd | Plaintiff | Corporation | Judgment for Plaintiff | Won | Leslie Chew SC |
| Dong Sui Hung | Defendant, Appellant | Individual | Appeal Dismissed | Lost | Ng Siew Hoong |
| Another | Defendant, Appellant | Individual | Appeal Dismissed | Lost | Ng Siew Hoong |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chan Seng Onn | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Leslie Chew SC | Khattar Wong & Partners |
| Ng Siew Hoong | Peter Moe & Partners |
4. Facts
- Baiduri Bank sued Dong Sui Hung and another as guarantors of Borneo Builders Sdn Bhd.
- The guarantee was up to BND9,283,900 plus accrued interest.
- The guarantee contained a clause allowing the bank to enforce it in any court of competent jurisdiction.
- The defendants applied to stay the Singapore action, arguing Brunei was the proper forum.
- The High Court in Brunei refused to restrain the bank from continuing the Singapore proceedings.
- The defendants are Singapore citizens and residents.
- The defendants own real estate property in Singapore.
5. Formal Citations
- Baiduri Bank Bhd v Dong Sui Hung and Another, Suit 1495/1999, [2000] SGHC 118
6. Timeline
| Date | Event |
|---|---|
| Lawsuit filed (Suit 1495/1999) | |
| Borneo Builders Sdn Bhd placed under provisional liquidation | |
| Judgment of Dato Sir Denys Roberts CJ in the High Court of Brunei Darussalam in OS 70/99 | |
| Appeal dismissed |
7. Legal Issues
- Forum Non Conveniens
- Outcome: The court held that the defendants failed to establish that Brunei was a clearly more appropriate forum.
- Category: Procedural
- Related Cases:
- [1987] AC 460
- [1992] 2 SLR 776
- [1995] 3 SLR 97
- Enforcement of Guarantee
- Outcome: The court held that the bank was entitled to enforce the guarantee in Singapore, based on the non-exclusive jurisdiction clause.
- Category: Substantive
- Related Cases:
- [1989] 2 Lloyd`s Rep 319
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Guarantee
10. Practice Areas
- Commercial Litigation
- Banking Litigation
11. Industries
- Banking
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Spiliada Maritime Corp v Cansulex Ltd | House of Lords | Yes | [1987] AC 460 | England and Wales | Cited for the forum non conveniens principle. |
| Brinkerhoff Maritime Drilling Corp & Anor v PT Airfast Services Indonesia and another appeal | Court of Appeal | Yes | [1992] 2 SLR 776 | Singapore | Cited for adopting the Spiliada principles in the Singapore context. |
| Eng Liat Kiang v Eng Bak Hern | Court of Appeal | Yes | [1995] 3 SLR 97 | Singapore | Cited for summarizing the forum non conveniens principles. |
| The Asian Plutus | High Court | Yes | [1990] SLR 543 | Singapore | Cited for the principle that contracts freely entered into must be upheld. |
| Amerco Timbers Pte Ltd v Chatsworth Timber Corp Pte Ltd | Court of Appeal | Yes | [1977] 2 MLJ 18 | Singapore | Cited for the law concerning an application for stay where an exclusive foreign jurisdiction clause exists. |
| The Eleftheria | Admiralty Court | Yes | [1970] P 94 | England and Wales | Cited for the test laid down by Brandon J in relation to exclusive foreign jurisdiction clauses. |
| The Vishva Apurva | Court of Appeal | Yes | [1992] 2 SLR 175 | Singapore | Cited for reaffirming the principles in Amerco Timbers regarding exclusive jurisdiction clauses. |
| The Eastern Trust | High Court | Yes | [1994] 2 SLR 526 | Singapore | Cited for the court's discretion in staying proceedings where there is an exclusive jurisdiction clause. |
| Commercial Bank of the Near East plc v ABC and D | Unknown | Yes | [1989] 2 Lloyd`s Rep 319 | England and Wales | Cited for the principle that the court will hold parties to their bargain with regard to jurisdiction in the absence of strong reasons to the contrary. |
| The Chaparral | Unknown | Yes | [1968] 2 Lloyd`s Rep 158 | England and Wales | Cited to distinguish from cases with exclusive jurisdiction clauses. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Forum Non Conveniens
- Guarantee
- Jurisdiction Clause
- Stay of Proceedings
- Enforcement of Guarantee
- Primary Debtor
- Provisional Liquidation
15.2 Keywords
- Baiduri Bank
- Dong Sui Hung
- Guarantee
- Forum Non Conveniens
- Singapore High Court
- Brunei
- Jurisdiction Clause
- Banking
- Construction
16. Subjects
- Conflict of Laws
- Contract Law
- Banking Law
- Civil Procedure
- Forum Non Conveniens
- Guarantees
17. Areas of Law
- Conflict of Laws
- Contract Law
- Banking Law
- Civil Procedure