Hendrawan Setiadi v OCBC Securities: Res Judicata & Negligence Claim
In Hendrawan Setiadi v OCBC Securities Private Limited, the Singapore High Court addressed an appeal by Hendrawan Setiadi against the Deputy Registrar's decision to strike out his claim in the Second Action against OCBC Securities. The High Court dismissed the appeal, finding that the principle of res judicata applied, precluding Setiadi from re-litigating claims against OCBC Securities that had been previously struck out in the First Action. The court determined that Setiadi's additional claim of direct negligence against OCBC Securities should have been brought forward in the initial proceedings.
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
The High Court struck out Hendrawan Setiadi's claim against OCBC Securities, citing res judicata. The court found Setiadi was precluded from re-litigating claims.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Hendrawan Setiadi | Appellant | Individual | Appeal Dismissed | Lost | Molly Lim, Philip Ling |
| OCBC Securities Private Limited | Respondent | Corporation | Claim Struck Out | Won | Muthu Arusu, Mak Wei Munn |
| Ng Haw Hua | Other | Individual | |||
| Tang Boon Hai | Other | Individual |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Molly Lim | Wong Tan & Molly Lim |
| Philip Ling | Wong Tan & Molly Lim |
| Muthu Arusu | Allen & Gledhill |
| Mak Wei Munn | Allen & Gledhill |
4. Facts
- Mr. Setiadi opened an account with OCBC Securities in July 1995 and deposited $5m.
- In May 1996, Mr. Setiadi deposited US$10m with OCBC Securities for investment in Megaworld shares.
- Mr. Setiadi claimed Mr. Ng guaranteed a 20% return on the Megaworld shares investment.
- The value of Megaworld shares plummeted, causing Mr. Setiadi to suffer a loss.
- Mr. Setiadi commenced the First Action against OCBC Securities and Mr. Ng in 1998.
- The First Action was discontinued after OCBC Securities alleged the Guarantee was fabricated.
- Mr. Setiadi commenced the Second Action in October 2000 after locating Mr. Ng.
5. Formal Citations
- Hendrawan Setiadi v OCBC Securities Private Limited and Others, Suit 866/2001, [2001] SGHC 293
6. Timeline
| Date | Event |
|---|---|
| Mr. Setiadi opened an account with OCBC Securities and deposited $5m. | |
| Mr. Setiadi deposited US$10m with OCBC Securities for investment in Megaworld shares. | |
| Writ in the First Action was filed. | |
| Hearing adjourned to November 16, 1998. | |
| Hearing continued; Counsel for OCBC Securities applied for security for costs. | |
| Hearing adjourned; OCBC Securities Counsel applied for leave to amend the Defence. | |
| Hearing continued; Mr. Setiadi was re-called to the stand for continued cross-examination. | |
| Ms. Lim applied for leave to discontinue the action; leave denied; claim struck out. | |
| Mr. Setiadi commenced the Second Action. | |
| Mr. Ng entered an appearance to the writ. | |
| Writ was served on OCBC Securities. | |
| The Deputy Registrar struck out the Second Action. | |
| Appeal dismissed. | |
| Decision Date |
7. Legal Issues
- Res Judicata
- Outcome: The court held that the principle of res judicata applied, precluding Mr. Setiadi from re-litigating claims against OCBC Securities.
- Category: Substantive
- Sub-Issues:
- Cause of action estoppel
- Issue estoppel
- Extended res judicata
- Related Cases:
- [1843-1860] All ER 378
- [1991] 23 NSWLR 508
- Abuse of Process
- Outcome: The court found that allowing Mr. Setiadi to re-litigate the claim would be an abuse of process.
- Category: Procedural
- Negligence
- Outcome: The court determined that the additional claim of direct negligence against OCBC Securities should have been brought forward in the initial proceedings and was therefore barred.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Negligence
10. Practice Areas
- Litigation
- Securities Law
11. Industries
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Henderson v Henderson | Unknown | Yes | [1843-1860] All ER 378 | England | Cited for the principle of res judicata and abuse of process of court. |
| Linprint Pty Ltd v Hexham Textiles Pty Ltd | Court of Appeal of New South Wales | Yes | [1991] 23 NSWLR 508 | New South Wales | Cited regarding res judicata and issue estoppel where a party withdraws from trial. |
| Khan v Golechha International ltd | Court of Appeal | Yes | [1980] 1 WLR 1482 | England | Cited for the principle that a party cannot assert the contrary of what was raised in earlier proceedings. |
| SCF Finance Co Ltd v Masri (No 3) | Unknown | Yes | [1987] QB 1028 | England | Cited in relation to issue estoppel. |
| Thoday v Thoday | Unknown | Yes | [1964] P 181 | England | Cited to define res judicata as cause of action estoppel. |
| Bradford & Bingley Building Society v Seddon | Unknown | Yes | [1999] 4 All ER 217 | England | Cited to argue that mere re-litigation does not necessarily give rise to abuse of process. |
| Ching Mun Fong (executrix of the estate of Tan Geok Tee, deceased) v Liu Cho Chit & another | Unknown | Yes | [2000] 1 SLR 517 | Singapore | Cited to argue that mere re-litigation does not necessarily give rise to abuse of process. |
| Mullen & Conoco Ltd | Court of Appeal | Yes | [1998] QBD 382 | England | Cited to argue that an order made pursuant to an application under O 21 r 3 is similar to one made under O 13 r 9 and is not capable of giving rise to res judicata. |
| Jelson (Estates) Ltd v Harvey | Unknown | Yes | [1984] 1 All ER 12 | England | Cited to explain the rule in Henderson v Henderson. |
| Yat Tung Investment Co Ltd v Dao Heng Bank Ltd | Privy Council | Yes | [1975] AC 581 | England | Cited to explain the rule in Henderson v Henderson. |
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
- Res judicata
- Issue estoppel
- Guarantee
- Megaworld shares
- Discontinuance
- Striking out
- Abuse of process
15.2 Keywords
- res judicata
- OCBC Securities
- negligence
- Hendrawan Setiadi
- Singapore
- High Court
- securities
- stockbroking
16. Subjects
- Civil Litigation
- Securities Dispute
17. Areas of Law
- Civil Procedure
- Res Judicata
- Issue Estoppel
- Abuse of Process