Shia Kian Eng v Nakano Singapore: Construction Dispute over Plastering Works and Wrongful Termination
In a civil suit before the High Court of Singapore on 03 April 2001, Shia Kian Eng (trading as Forest Contractors) sued Nakano Singapore (Pte) Ltd for non-payment, under-payment, and damages related to construction work at the Woodsvale Executive Condominium. Nakano counter-sued for damages, alleging repudiation by Forest. The court, presided over by Judith Prakash J, found that Nakano had wrongfully terminated Forest's contract and awarded Shia Kian Eng $942,992.20 after setting off Nakano's counterclaim for rectification costs.
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
Construction dispute between Shia Kian Eng and Nakano Singapore over payment for plastering works and wrongful termination. Judgment for Shia Kian Eng.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Shia Kian Eng (trading as Forest Contractors) | Plaintiff | Individual | Judgment for Plaintiff | Partial | George Tan, Monica Neo |
| Nakano Singapore (Pte) Ltd | Defendant | Corporation | Counterclaim Allowed in Part | Partial | Thio Ying Ying, Lim Kwee Huat, Cheong Aik Hock |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Judith Prakash | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| George Tan | Chan Tan & Partners |
| Monica Neo | Chan Tan & Partners |
| Thio Ying Ying | Kelvin Chia Partnership |
| Lim Kwee Huat | Kelvin Chia Partnership |
| Cheong Aik Hock | Kelvin Chia Partnership |
4. Facts
- Forest Contractors was subcontracted by Nakano Singapore for plastering works at Woodsvale Executive Condominium.
- Disputes arose over payment for work done, variation orders, and alleged defective workmanship.
- Nakano terminated Forest's contract, claiming repudiation due to delays and defective work.
- Forest sued for non-payment, under-payment, and damages for wrongful termination.
- Nakano counter-sued for damages, claiming additional expenses to complete the works and rectify defects.
- The court found that Nakano wrongfully terminated Forest's contract.
- The court found that the defects in the plastering work were the result of poor workmanship on the part of Forest.
5. Formal Citations
- Shia Kian Eng (trading as Forest Contractors) v Nakano Singapore (Pte) Ltd, Suit 600245/2000, [2001] SGHC 68
6. Timeline
| Date | Event |
|---|---|
| Relationship between Forest Contractors and Nakano Singapore started | |
| Block wall and external wall plastering works commenced | |
| Purchase Order for block and external plastering works signed by Shia Kian Eng | |
| Internal wall plastering works commenced | |
| Nakano Singapore issued Termination Warning to Forest Contractors | |
| Nakano Singapore terminated Forest Contractors' plastering works | |
| SETSCO Services commissioned to investigate plaster defects | |
| Nakano Singapore filed re-re-re-amended defence and counterclaim | |
| Judgment issued by the High Court |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that Nakano wrongfully terminated the contract with Forest. The court also found that Forest's workmanship was defective.
- Category: Substantive
- Sub-Issues:
- Wrongful Termination
- Defective Workmanship
- Failure to Complete
- Related Cases:
- [1998] 3 SLR 871
- Contract Interpretation
- Outcome: The court held that the sub-contracts were partly in writing and partly oral, comprising the quotations and original Purchase Orders signed after commencing work.
- Category: Substantive
- Sub-Issues:
- Incorporation of Terms
- Parol Evidence Rule
8. Remedies Sought
- Monetary Damages
- Payment for Work Done
9. Cause of Actions
- Breach of Contract
- Wrongful Termination
10. Practice Areas
- Construction Dispute
- Commercial Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| San International Pte Ltd v Keppel Engineering Pte Ltd | Court of Appeal | Yes | [1998] 3 SLR 871 | Singapore | Cited for the principle that a defaulting party repudiates a contract when they indicate an inability to perform their obligations in a material respect. |
| Trollope & Colls Ltd. v Atomic Power Construction Ltd | N/A | No | [1962] 3 All ER 1035 | N/A | Cited regarding the retrospective effect of contracts, but distinguished based on differing circumstances. |
| Felton v Wharrie | N/A | Yes | [1906] Hudsons BC 4th ed Vol 2 p 398 | N/A | Cited for the principle that delay to works does not amount to repudiation unless it shows the contractor is unable or has no intention of proceeding with the works. |
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
- Plastering
- Sub-contract
- Termination
- Repudiation
- Defective Workmanship
- Variation Order
- Smartplas
- Debonding
- Rectification
15.2 Keywords
- construction
- contract
- plastering
- termination
- Singapore
16. Subjects
- Construction Dispute
- Contract Law
- Termination of Contract
17. Areas of Law
- Construction Law
- Contract Law
- Civil Procedure