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 Court

1.2 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 NameRoleTypeOutcomeOutcome TypeCounsels
Chau Kwok Fun KevinPlaintiffIndividualClaim DismissedLostMichael Khoo, Cheah Kok Lim, Josephine Low, Marjorie Wee
Jay Henry LeungPlaintiffIndividualClaim DismissedLostMichael Khoo, Cheah Kok Lim, Josephine Low, Marjorie Wee
Etons Management Consultants Pte Ltd formerly known as Eng Kheng Management Consultants Pte LtdDefendantCorporationApplication for Rectification AllowedWon
Stone Overseas Projects Pte Ltd formerly known as Eng Kheng Overseas Projects Pte LtdDefendantCorporationApplication for Rectification AllowedWon
Chan Kung GitDefendantIndividualApplication for Rectification AllowedWonAlvin Yeo, Tay Peng Cheng, Lena Wong
Poon Sau YukDefendantIndividualApplication for Rectification AllowedWonAlvin Yeo, Tay Peng Cheng, Lena Wong
Anthony Chan Hing KaDefendantIndividualApplication for Rectification AllowedWonAlvin Yeo, Tay Peng Cheng, Lena Wong
Chan Xiao LiDefendantIndividualApplication for Rectification AllowedWonAlvin Yeo, Tay Peng Cheng, Lena Wong
Eng Kheng (Singapore) Pte LtdDefendantCorporationApplication for Rectification AllowedWonAlvin Yeo, Tay Peng Cheng, Lena Wong
Cisco LtdDefendantCorporationApplication for Rectification AllowedWonAlvin Yeo, Tay Peng Cheng, Lena Wong
Eng Kheng Enterprise Pte Ltd formerly known as Eng Kheng Investments Pte LtdDefendantCorporationApplication for Rectification AllowedWonAlvin Yeo, Tay Peng Cheng, Lena Wong
Eng Kheng International Development Pte LtdDefendantCorporationApplication for Rectification AllowedWonAlvin Yeo, Tay Peng Cheng, Lena Wong
Octavus Properties Pte LtdDefendantCorporationApplication for Rectification AllowedWonAlvin Yeo, Tay Peng Cheng, Lena Wong
Eng Kheng Holdings Pte LtdDefendantCorporationApplication for Rectification AllowedWonAlvin Yeo, Tay Peng Cheng, Lena Wong
German Automobiles Pte Ltd formerly known as German Motors Pte LtdDefendantCorporationApplication for Rectification AllowedWonC R Rajah, Dave Panaech, Archana Patel

3. Judges

Judge NameTitleDelivered Judgment
Goh Joon SengJudgeYes

4. Counsels

Counsel NameOrganization
Michael KhooMichael Khoo & Partners
Cheah Kok LimMichael Khoo & Partners
Josephine LowMichael Khoo & Partners
Marjorie WeeMichael Khoo & Partners
Alvin YeoWong Partnership
Tay Peng ChengWong Partnership
Lena WongWong Partnership
C R RajahTan Rajah & Cheah
Dave PanaechTan Rajah & Cheah
Archana PatelTan Rajah & Cheah

4. Facts

  1. Plaintiffs and 1st to 3rd Defendants were parties to a settlement agreement in Suit No. 1112/96.
  2. A binding agreement was reached on 11 August 1998.
  3. The terms of the agreement were based on letters from Cheo Yeoh & Associates.
  4. An additional term required a banker’s guarantee for $6,000,000.
  5. The settlement was intended to effect total severance of the relationship between the parties.
  6. A draft agreement by Mr. Yeoh Lam Hock included a definition of ‘our clients’ that extended liability.
  7. Mr. Yang Ing Loong rejected the draft, stating the payment obligations were by the 1st to 3rd Defendants only.
  8. The definition of ‘our clients’ was an oversight and a mistake not appreciated by all present.

5. Formal Citations

  1. 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

DateEvent
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

  1. 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

  1. Enforcement of Settlement Agreement
  2. Rectification of Agreement

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
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

16. Subjects

  • Contract Dispute
  • Settlement Agreements

17. Areas of Law

  • Contract Law
  • Civil Procedure