Guobena Sdn Bhd v New Civilbuild Pte Ltd: Damages for Breach of Sub-Contract

Guobena Sdn Bhd, the main contractor for the Tanglin Regency project, appealed against the High Court's decision ordering them to pay New Civilbuild Pte Ltd, the sub-contractor, $1,748,624.65 for monies due under the sub-contract. The Court of Appeal dismissed the appeal, affirming the High Court's decision. The court determined that Guobena's argument to ignore the original contract sum when calculating the final accounts was incorrect, and that New Civilbuild was entitled to the outstanding amount.

1. Case Overview

1.1 Court

Court of Appeal

1.2 Outcome

Appeal dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding damages for breach of sub-contract. The Court of Appeal held Guobena liable to pay New Civilbuild $1,748,624.65.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Guobena Sdn BhdAppellantCorporationAppeal dismissedLost
New Civilbuild Pte LtdRespondentCorporationJudgment for RespondentWon

3. Judges

Judge NameTitleDelivered Judgment
Chao Hick TinJudge of AppealNo
Tan Lee MengJudgeNo
Yong Pung HowChief JusticeYes

4. Counsels

Counsel NameOrganization
Tan Chee MengHarry Elias Partnership
Tan Lee ChengHarry Elias Partnership
James YuYu & Co
Yu-Ting Hi KengYu & Co

4. Facts

  1. New Civilbuild (NCB) was a sub-contractor for a condominium project, Tanglin Regency.
  2. Guobena (GSB) was the main contractor of the Tanglin Regency project.
  3. The sub-contract between NCB and GSB was for structural and architectural works, valued at $16,413,047.88, later increased to $16,800,732.03.
  4. NCB claimed outstanding progress payments and return of retention monies.
  5. GSB counter-claimed for damages for delay and non-compliance, including expenses to complete the project.
  6. GSB made a demand on the performance bond issued by Tai Ping Insurance Co Ltd.
  7. The Assistant Registrar gave judgment in favour of GSB for $72,150.61, which was appealed by NCB.

5. Formal Citations

  1. Guobena Sdn Bhd v New Civilbuild Pte Ltd, CA 600140/2001, [2002] SGCA 39

6. Timeline

DateEvent
Action instituted by New Civilbuild Pte Ltd
Trial judge ruled on progress claims and counterclaim
Case Number CA 600140/2001
Appeal dismissed

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court held that Guobena was liable for breach of contract and had to pay New Civilbuild the outstanding amount.
    • Category: Substantive
  2. Assessment of Damages
    • Outcome: The court determined the correct measure of damages claimable by the aggrieved party, emphasizing the principle of restitutio in integrum.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Construction Law

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Victoria Laundry (Winsdor) Ltd v Newman Industries LtdKBYes[1949] 2 KB 528England and WalesCited regarding the principle of remoteness and measure of damages in contract law.

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

  • Sub-contract
  • Performance bond
  • Restitutio in integrum
  • Damages
  • Progress payments
  • Retention monies
  • Counterclaim
  • Mutual set-offs
  • Contract sum
  • Agreed variations

15.2 Keywords

  • Breach of contract
  • Damages
  • Construction
  • Sub-contract
  • Singapore
  • Court of Appeal

17. Areas of Law

Area NameRelevance Score
Breach of Contract95
Contract Law90
Damages85
Contracts80
Restituo in integrum70
Assessment of Damages65

16. Subjects

  • Contract Law
  • Construction Law
  • Damages