AL Stainless Industries v Wei Sin Construction: Metal Work Sub-Contract Dispute over Payment and Termination
AL Stainless Industries Pte Ltd ('AL') sued Wei Sin Construction Pte Ltd ('Wei Sin') in the High Court of Singapore on 28 August 2001, for breach of contract relating to two sub-contracts for metal works at Housing and Development Board projects. AL claimed payments due for work done and damages for Wei Sin's repudiation of the contracts. Wei Sin counterclaimed for damages due to AL's alleged delays and defective work. The court found that Wei Sin had wrongfully terminated the sub-contracts and was liable to pay AL for work done. AL's claim for loss of profit was dismissed. Wei Sin's counterclaim was dismissed except for damages related to rectification of defective works and re-testing of anchor bolts, which were to be assessed.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for the Plaintiff, AL Stainless Industries Pte Ltd, in part; Defendant's counterclaim dismissed in part.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
AL Stainless sued Wei Sin Construction for breach of contract regarding metal work sub-contracts. The court found Wei Sin liable for wrongful termination.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Wei Sin Construction Pte Ltd | Defendant | Corporation | Counterclaim Dismissed in Part | Partial | |
| AL Stainless Industries Pte Ltd | Plaintiff | Corporation | Judgment for Plaintiff in part | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Nishith Shetty | Wong Partnership |
| Winston Quek | B T Tan & Company |
4. Facts
- AL was the sub-contractor for metal works for Wei Sin's Housing and Development Board projects.
- Wei Sin was often late in payment and did not pay the entire sums claimed by AL.
- Wei Sin alleged delay and defects in AL's works.
- AL's solicitors sent a fax to Wei Sin alleging breach of contract due to arrears in payment.
- Wei Sin's solicitors replied to deny any breach and purported to terminate the sub-contracts.
- AL's solicitors, in turn, purportedly terminated the sub-contracts.
- Wei Sin withheld $90,000 for Progress Claim No 3 despite agreeing to pay it.
5. Formal Citations
- AL Stainless Industries Pte Ltd v Wei Sin Construction Pte Ltd, Suit 221/2000/H, [2001] SGHC 243
6. Timeline
| Date | Event |
|---|---|
| Letters of award from Wei Sin to AL for the sub-contracts were issued. | |
| Letters of award accepted by AL. | |
| AL's solicitors sent a fax to Wei Sin alleging breach of contract. | |
| Wei Sin's solicitors replied to deny any breach and purported to terminate the sub-contracts. | |
| AL's solicitors replied to, in turn, purportedly terminate the sub-contracts. | |
| AL commenced action against Wei Sin. | |
| Judgment issued by the High Court. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that Wei Sin breached the contract by failing to make progress payments and wrongfully terminating the sub-contracts.
- Category: Substantive
- Sub-Issues:
- Failure to make progress payments
- Wrongful termination of contract
- Related Cases:
- [1995] 1 SLR 205
- Wrongful Termination
- Outcome: The court held that Wei Sin's termination of the sub-contracts was invalid due to failure to comply with the procedural requirements under Clause 7 of the Standard Conditions.
- Category: Substantive
- Sub-Issues:
- Failure to comply with procedural requirements for termination
- Related Cases:
- [1981] 9 Con LR 25
8. Remedies Sought
- Payments due for work done
- Damages for repudiation of contracts
- Loss of profit
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Construction Law
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Supamarl Ltd v Federated Homes Ltd | N/A | Yes | [1981] 9 Con LR 25 | New Zealand | Cited regarding the requirements for a valid termination notice. |
| Brani Readymixed Pte Ltd v Yee Hong Pte Ltd | Court of Appeal | Yes | [1995] 1 SLR 205 | Singapore | Cited for the principle that mere failure or delay in making payment does not amount to repudiation. |
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
- Sub-contract
- Progress claim
- Termination
- Repudiation
- Liquidated damages
- Defective work
- Retention sum
15.2 Keywords
- Construction
- Subcontract
- Breach of Contract
- Wrongful Termination
- Singapore
- Metal Works
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Breach of Contract | 90 |
| Contract Law | 85 |
| Construction Law | 75 |
| Construction Contracts | 70 |
| Building and Construction Contracts | 65 |
| Damages | 60 |
| Contractual terms | 55 |
| Commercial Disputes | 50 |
| Summary Judgement | 30 |
16. Subjects
- Construction Dispute
- Contract Law