Chau Kwok Fun Kevin v Etons Management: Rectification of Settlement Agreement
In Chau Kwok Fun Kevin and Another v Etons Management Consultants Pte Ltd and Others, the High Court of Singapore addressed a dispute arising from a settlement agreement in Suit No. 1112/96. The plaintiffs, Chau Kwok Fun Kevin and Jay Henry Leung, brought a claim against the defendants, including Etons Management Consultants Pte Ltd. Goh Joon Seng J allowed the application of the 4th to 13th defendants to rectify the agreement to give effect to the terms of the agreement of 11 August 1998. The plaintiffs’ claim was dismissed.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Application for rectification allowed; Plaintiffs’ claim dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Oral Judgment
1.5 Jurisdiction
Singapore
1.6 Description
The High Court allowed the rectification of a settlement agreement due to a mistake, clarifying payment obligations. The plaintiffs' claim was dismissed.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Chau Kwok Fun Kevin | Plaintiff | Individual | Claim Dismissed | Lost | |
| Jay Henry Leung | Plaintiff | Individual | Claim Dismissed | Lost | |
| Etons Management Consultants Pte Ltd formerly known as Eng Kheng Management Consultants Pte Ltd | Defendant | Corporation | Application for Rectification Allowed | Won | |
| Stone Overseas Projects Pte Ltd formerly known as Eng Kheng Overseas Projects Pte Ltd | Defendant | Corporation | Application for Rectification Allowed | Won | |
| Chan Kung Git | Defendant | Individual | Application for Rectification Allowed | Won | |
| Poon Sau Yuk | Defendant | Individual | Application for Rectification Allowed | Won | |
| Anthony Chan Hing Ka | Defendant | Individual | Application for Rectification Allowed | Won | |
| Chan Xiao Li | Defendant | Individual | Application for Rectification Allowed | Won | |
| Eng Kheng (Singapore) Pte Ltd | Defendant | Corporation | Application for Rectification Allowed | Won | |
| Cisco Ltd | Defendant | Corporation | Application for Rectification Allowed | Won | |
| Eng Kheng Enterprise Pte Ltd formerly known as Eng Kheng Investments Pte Ltd | Defendant | Corporation | Application for Rectification Allowed | Won | |
| Eng Kheng International Development Pte Ltd | Defendant | Corporation | Application for Rectification Allowed | Won | |
| Octavus Properties Pte Ltd | Defendant | Corporation | Application for Rectification Allowed | Won | |
| Eng Kheng Holdings Pte Ltd | Defendant | Corporation | Application for Rectification Allowed | Won | |
| German Automobiles Pte Ltd formerly known as German Motors Pte Ltd | Defendant | Corporation | Application for Rectification Allowed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Goh Joon Seng | Judge | Yes |
4. Counsels
4. Facts
- Plaintiffs and 1st to 3rd Defendants were parties to a settlement agreement in Suit No. 1112/96.
- A binding agreement was reached on 11 August 1998.
- The terms of the agreement were based on letters from Cheo Yeoh & Associates.
- An additional term required a banker’s guarantee for $6,000,000.
- The settlement was intended to effect total severance of the relationship between the parties.
- A draft agreement by Mr. Yeoh Lam Hock included a definition of ‘our clients’ that extended liability.
- Mr. Yang Ing Loong rejected the draft, stating the payment obligations were by the 1st to 3rd Defendants only.
- The definition of ‘our clients’ was an oversight and a mistake not appreciated by all present.
5. Formal Citations
- Chau Kwok Fun Kevin and Another v Etons Management Consultants Pte Ltd formerly known as Eng Kheng Management Consultants Pte Ltd and Others, Suit 282/1999, [2000] SGHC 32
6. Timeline
| Date | Event |
|---|---|
| Suit No. 1112/96 filed | |
| Cheo Yeoh & Associates’ letter sent | |
| Cheo Yeoh & Associates’ letter sent | |
| Cheo Yeoh & Associates’ letter sent | |
| Binding agreement reached | |
| Mr Yeoh Lam Hock sent his draft | |
| Mr Yang Ing Loong rejected the draft | |
| Parties met again | |
| Yeoh’s confirmation letter sent | |
| Mr Yang Ing Loong's understanding changed | |
| Suit No. 1646/98 filed | |
| Payment of second tranche due | |
| Judgment issued |
7. Legal Issues
- Rectification of Contract
- Outcome: The court allowed the rectification of the agreement to reflect the original intention of the parties.
- Category: Substantive
- Sub-Issues:
- Mistake in contract drafting
- Oversight in contract terms
8. Remedies Sought
- Enforcement of Settlement Agreement
- Rectification of Agreement
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
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
- Settlement Agreement
- Rectification
- Banker's Guarantee
- Payment Obligation
- Mistake
- Oversight
15.2 Keywords
- Settlement
- Agreement
- Rectification
- Contract
- Singapore
- High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Rectification of Contract | 80 |
| Contract Law | 75 |
| Settlement Agreement | 70 |
| Mistake | 60 |
| Rescission | 50 |
| Judgments and Orders | 40 |
| Breach of Contract | 30 |
16. Subjects
- Contract Dispute
- Settlement Agreements