Abani Trading v PT Delta Karina & Poh Fang: Inducement of Breach of Contract & Conversion
In a case before the High Court of Singapore on 12 October 2001, Abani Trading Pte Ltd sued PT Delta Karina Mandiri and Poh Fang Pte Ltd for inducement of breach of contract and conversion of goods related to a voyage charterparty. Abani Trading claimed that Poh Fang induced Delta to breach its contract with Abani and converted a shipment of cement. The court, presided over by Justice Kan Ting Chiu, found Poh Fang liable for inducing the breach of contract and conversion, ordering damages to be assessed by the Registrar.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Abani Trading sued PT Delta Karina and Poh Fang for inducement of breach of contract and conversion of goods. The court found Poh Fang liable for inducing the breach and conversion.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Abani Trading Pte Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | |
| P T Delta Karina Mandiri | Defendant | Corporation | Not Served | Neutral | |
| Poh Fang Pte Ltd | Defendant | Corporation | Judgment against Defendant | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Kan Ting Chiu | Judge | Yes |
4. Counsels
4. Facts
- Abani entered into a voyage charterparty with Delta to carry cement to Madagascar.
- Poh Fang was unhappy that Abani did not buy cement from them.
- Delta sought Abani’s assistance to pay US$145,875 due to the head owners of the Jordan II.
- Delta refunded US$126,825 to Abani, with funds provided by Poh Fang.
- Delta cancelled the charterparty with Abani for non-payment.
- Poh Fang informed parties it was the charterer of the vessel.
- Poh Fang took over the cement on the Jordan II.
5. Formal Citations
- Abani Trading Pte Ltd v P T Delta Karina Mandiri and Another, Suit 587/2000, [2001] SGHC 310
6. Timeline
| Date | Event |
|---|---|
| Abani purchased cement from Indo Energy Pte Ltd. | |
| Abani entered into a contract of sale with Tranombarotra Mpangalana. | |
| Voyage charterparty executed between Abani and Delta. | |
| Poh Fang claimed to enter into an agreement with PT Semen Tonasa. | |
| Poh Fang claimed to enter into a charterparty with Delta. | |
| Notice of Readiness issued to Abani. | |
| Delta sought Abani’s assistance to pay US$145,875. | |
| Abani paid US$126,825 on behalf of Delta. | |
| Shoreline reported 2543 metric tons loaded. | |
| Abani agreed to pay another US$110,000 if 50% of its cargo was loaded. | |
| Shoreline demanded payment of US$110,000 from Abani. | |
| US$126,825 was credited back into Abani’s bank account. | |
| Delta requested Abani to pay freight under the charterparty. | |
| Delta informed Abani that the charterparty was cancelled. | |
| Poh Fang wrote to the master of the Jordan II, PT Semen Tonasa, Delta, and the receiver in Madagascar. | |
| PT Semen Tonasa informed Abani that it was stopping loading onto the Jordan II. | |
| Shoreline wrote to Indo Energy and Poh Fang asserting that the charterparty between Delta and Abani was still in force. | |
| PT Semen Tonasa sent a letter to Poh Fang. | |
| PT Semen Tonasa's letter was faxed to Poh Fang. | |
| Decision Date |
7. Legal Issues
- Inducement of Breach of Contract
- Outcome: The court found that Poh Fang induced Delta to breach its charterparty with Abani.
- Category: Substantive
- Related Cases:
- [2000] 3 SLR 405
- Conversion
- Outcome: The court found that Poh Fang converted the cement when it took over the cement on 23 July.
- Category: Substantive
- Related Cases:
- [1986] AC 337
- Damages Assessment
- Outcome: The court ordered damages to be assessed by the Registrar due to insufficient evidence to determine the proper damages.
- Category: Procedural
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Inducement of Breach of Contract
- Conversion
10. Practice Areas
- Commercial Litigation
- Charterparty Disputes
11. Industries
- Shipping
- Trading
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Tribune Investment Trust Inc v Soosan Trading Co Ltd | Court of Appeal | Yes | [2000] 3 SLR 405 | Singapore | Cited for the elements required to establish the tort of inducing a breach of contract. |
| The Jag Shakti | Privy Council | Yes | [1986] AC 337 | N/A | Cited for the principle that the damages payable for conversion of cargo is the full market value of the cargo at the time and place of conversion. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Sales of Goods Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Voyage Charterparty
- Inducement of Breach
- Conversion
- Notice of Readiness
- Cement
- Jordan II
- FOB terms
15.2 Keywords
- breach of contract
- conversion
- voyage charterparty
- cement
- shipping
- singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Inducement of Breach of Contract | 90 |
| Conversion | 80 |
| Contract Law | 70 |
| Shipping Law | 60 |
| Breach of Contract | 50 |
| Bailment | 30 |
16. Subjects
- Contract Law
- Tort Law
- Shipping Law
- Commercial Dispute