Korea Jonmyong Trading Co v Sea-shore Transportation: Breach of Contract & Remoteness of Damage

Korea Jonmyong Trading Co (JY) sued Sea-Shore Transportation Pte Ltd (SST) in the High Court of Singapore for breach of contract regarding the supply of high-speed diesel. JY claimed damages for losses suffered under sub-contracts with third parties, while SST claimed a set-off of USD230,000. The court, presided over by Justice Tan Lee Meng, dismissed JY's claim for consequential losses, finding them too remote, and also dismissed SST's claim for a set-off. Judgment was entered in JY's favour for USD600,200 for the breach of contract.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiffs’ claim for consequential losses and the first defendants’ claim for set-off dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The case concerns a breach of contract for the supply of high-speed diesel. The court dismissed the plaintiff's claim for consequential losses and the defendant's claim for set-off.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Sea-Shore Transportation Pte LtdDefendantCorporationClaim DismissedLost
Korea Jonmyong Trading CoPlaintiffCorporationJudgment for PlaintiffPartial
Mr Sharafdeen s/o Abdul RasakDefendantIndividualClaim WithdrawnWithdrawn

3. Judges

Judge NameTitleDelivered Judgment
Tan Lee MengJudgeYes

4. Counsels

Counsel NameOrganization
Subashini NarayanasamyHaridass Ho & Partners
Yoga Sharmini YogarajahHaridass Ho & Partners
Andre ArulArul Chew & Partners
C ArulC Arul & Partners

4. Facts

  1. JY agreed to purchase high speed diesel from SST.
  2. SST failed to deliver the agreed quantity of high speed diesel.
  3. JY had a sub-contract with Sasan Farm to deliver high speed diesel.
  4. JY claimed losses suffered under their sub-contract with Sasan.
  5. SST claimed a set-off of USD230,000 paid to secure Danny's release.
  6. Danny was accused of offences in DPRK.
  7. USD230,000 was transferred to JY to secure Danny’s release.

5. Formal Citations

  1. Korea Jonmyong Trading Co v Sea-shore Transportation Pte Ltd & Another, Suit 230/2002, [2002] SGHC 276

6. Timeline

DateEvent
Contract signed for the purchase of high speed diesel
MT Princess Sarah reached Nampo port
DPRK Central Public Prosecutors’ Authority issued Order No 572
Deen arranged for a total of USD230,000 to be transferred to JY
Deen wrote to JY’s Kwon regarding Danny’s release
Claim against second defendant withdrawn
Judgment issued

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that SST breached the contract by failing to deliver the agreed quantity of high speed diesel.
    • Category: Substantive
  2. Remoteness of Damage
    • Outcome: The court held that JY's loss under their sub-contract with Sasan was too remote a consequence of SST's breach of contract.
    • Category: Substantive
    • Related Cases:
      • [1854] 9 Exch 341
      • [1949] 2 KB 528
      • [1969] 1 AC 350
  3. Right of Set-Off
    • Outcome: The court dismissed SST's claim for a set-off, finding that they failed to prove their entitlement to it.
    • Category: Substantive
  4. Jurisdiction over Foreign Government Acts
    • Outcome: The court cited Aksionairnoye Obschestvo A M Luther v James Sagor & Co, stating that the validity of the acts of an independent sovereign government within its jurisdiction cannot be questioned in the courts of another country.
    • Category: Jurisdictional
    • Related Cases:
      • [1921] All ER 138

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Commodities Trading
  • Transportation

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Aksionairnoye Obschestvo A M Luther v James Sagor & CoN/AYes[1921] All ER 138N/ACited for the principle that the validity of the acts of an independent sovereign government within its jurisdiction cannot be questioned in the courts of another country.
Hadley v BaxendaleN/AYes(1854) 9 Exch 341N/AApplied the rule on remoteness of damage in contract law.
Koufos v C CzarnikowN/AYes[1969] 1 AC 350N/AFollowed the principles on remoteness of damage.
Victoria Laundry (Windsor) Ltd v Newman Industries LtdN/AYes[1949] 2 KB 528N/AFollowed the principles on remoteness of damage.

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

  • High speed diesel
  • Breach of contract
  • Remoteness of damage
  • Set-off
  • Sub-contract
  • Apology money
  • DPRK Central Public Prosecutors’ Authority

15.2 Keywords

  • breach of contract
  • high speed diesel
  • remoteness of damage
  • set-off
  • Korea
  • Singapore

17. Areas of Law

Area NameRelevance Score
Breach of Contract75
Damages70
Remoteness of damage70
Set-off65
Consequential losses60
Contract Law60
International Law50
Jurisdiction40
Judgments and Orders30

16. Subjects

  • Contract Dispute
  • International Trade