Tavica Design v Schindler Lifts: Arbitration of Sub-Contract Dispute over Liquidated Damages

In Tavica Design Pte Ltd v Schindler Lifts (Singapore) Pte Ltd, the Singapore High Court addressed an appeal against an order to refer a dispute to arbitration. Tavica Design, the main contractor, and Schindler Lifts, the sub-contractor, were in dispute over a payment claim by Schindler Lifts, which Tavica Design disputed based on a counterclaim for liquidated damages. The High Court dismissed the appeal, affirming the order for arbitration, finding that a dispute existed and Tavica Design had demonstrated readiness and willingness to arbitrate.

1. Case Overview

1.1 Court

High Court

1.2 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 ordered arbitration in a sub-contract dispute between Tavica Design and Schindler Lifts regarding liquidated damages and payment.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Tavica Design Pte LtdAppellant, DefendantCorporationAppeal dismissedLostPaul Wong
Schindler Lifts (Singapore) Pte LtdRespondent, PlaintiffCorporationOrder for arbitration upheldWonKaram Singh Parmar

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Paul WongHelen Yeo & Partners
Karam Singh ParmarTan Kok Quan Partnership

4. Facts

  1. Tavica Design was the main contractor for a flatted factory.
  2. Schindler Lifts was the nominated sub-contractor for the lift system.
  3. Schindler Lifts commenced action in the district court for payment of $78,193.99.
  4. Tavica Design disputed the claim, asserting a counterclaim for liquidated damages.
  5. The contract contained an arbitration clause.
  6. Tavica Design claimed liquidated damages of $3,000 per day for delay.

5. Formal Citations

  1. Tavica Design Pte Ltd v Schindler Lifts (Singapore) Pte Ltd, , [2002] SGHC 6

6. Timeline

DateEvent
District court action commenced by Schindler Lifts
District court papers served on Tavica Design
Letter from Tavica Design stating they will be claiming liquidated damages from Schindler Lifts
Originating summons applied by Tavica Design
Assistant registrar granted order for arbitration
Appeal dismissed

7. Legal Issues

  1. Enforceability of Arbitration Clause
    • Outcome: The court upheld the enforceability of the arbitration clause.
    • Category: Procedural
  2. Validity of Liquidated Damages Clause
    • Outcome: The court determined that the validity of the liquidated damages clause should be decided by the arbitrator.
    • Category: Substantive

8. Remedies Sought

  1. Stay of Court Proceedings
  2. Referral to Arbitration

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Arbitration
  • Construction Law
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Arbitration Act, Ch 10Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Arbitration
  • Liquidated Damages
  • Sub-Contract
  • Penalty Clause
  • Readiness and Willingness to Arbitrate

15.2 Keywords

  • arbitration
  • liquidated damages
  • construction
  • contract
  • singapore

16. Subjects

  • Arbitration
  • Contract Dispute
  • Construction Dispute

17. Areas of Law

  • Arbitration Law
  • Contract Law
  • Construction Law