Abdul Latif v Saeed Husain: Breach of Fiduciary Duty & Employee Competition

In Abdul Latif Bin Mohamed Tahiar (trading as Canary Agencies) v Saeed Husain s/o Hakim Gulam Mohiudin (trading as United Limousine), the High Court of Singapore heard an appeal by Abdul Latif against the decision of the District Judge regarding Saeed Husain's breach of fiduciary duty. The plaintiff claimed damages for the defendant's actions of setting up a competing business while still employed by the plaintiff. The High Court allowed the appeal in part, awarding additional damages to the plaintiff for the 'Combi contract' component.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal allowed in part.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding breach of fiduciary duty. Employee started competing business while employed. Court allowed appeal, awarding damages for lost profits.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Abdul Latif Bin Mohamed Tahiar (trading as Canary Agencies)Plaintiff, AppellantIndividualAppeal allowed in partPartial
Saeed Husain s/o Hakim Gulam Mohiudin (trading as United Limousine)Defendant, RespondentIndividualDamages awarded to PlaintiffLost

3. Judges

Judge NameTitleDelivered Judgment
MPH RubinJudgeYes

4. Counsels

4. Facts

  1. Plaintiff engaged in providing chauffeur driven cars.
  2. Defendant was employed by the plaintiff as a driver.
  3. Defendant registered a business to supply chauffeur driven cars while employed by the plaintiff.
  4. Defendant obtained a contract from Mitsubishi while still employed by the plaintiff.
  5. Plaintiff terminated the defendant's services upon discovering his actions.
  6. Plaintiff commenced action against the defendant for breach of fiduciary duties.
  7. The District Judge disallowed the Combi claim but the High Court allowed the appeal in part.

5. Formal Citations

  1. Abdul Latif Bin Mohamed Tahiar (trading as Canary Agencies) v Saeed Husain s/o Hakim Gulam Mohiudin (trading as United Limousine), DCA 22/2002, [2003] SGHC 15

6. Timeline

DateEvent
Defendant employed by the plaintiff.
Plaintiff entered into contract with Mitsubishi.
Defendant registered United Limousine.
Defendant sent quotation to Mitsubishi.
Plaintiff submitted quotation to Mitsubishi.
Defendant's services terminated by the plaintiff.
Defendant secured contract from Mitsubishi.
District Judge Zainol Abeedin handed down decision.
Decision Date

7. Legal Issues

  1. Breach of Fiduciary Duty
    • Outcome: The court found that the defendant breached his fiduciary duty by competing with his employer while still employed.
    • Category: Substantive
    • Sub-Issues:
      • Employee competing with employer
      • Solicitation of employer's customers
    • Related Cases:
      • [1935] 2 KB 80
  2. Amendment of Pleadings
    • Outcome: The court held that the plaintiff was bound by the amount claimed in the pleadings, as no application to amend the pleadings was made.
    • Category: Procedural
    • Related Cases:
      • [1892] 2 QB 14
      • [1987] 1 MLJ 210
      • (1888) 38 Ch D 410

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Fiduciary Duty

10. Practice Areas

  • Commercial Litigation
  • Employment Law

11. Industries

  • Transportation

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Gold Ores Reduction Co v PainN/AYes[1892] 2 QB 14EnglandCited for the principle that parties stand by their pleaded case and defects in pleadings cannot be cured by averments in affidavits.
Novotel Societe D’ Investissements Et D’ Exploitation Hoteliers & Anor v Pernas Hotel Chain (Selangor) BhdN/AYes[1987] 1 MLJ 210N/ACited for the principle that parties stand by their pleaded case and defects in pleadings cannot be cured by averments in affidavits.
Spedding v FitzpatrickN/AYes(1888) 38 Ch D 410N/ACited for the principle that parties stand by their pleaded case and defects in pleadings cannot be cured by averments in affidavits.
Wessex Dairies Limited v SmithCourt of AppealYes[1935] 2 KB 80EnglandCited for the principle that a servant who solicits the customers of his master to transfer their custom to himself while still in service commits a breach of duty.

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

  • Chauffeur driven cars
  • Fiduciary duty
  • Competing business
  • Mercedes Contract
  • Combi Contract
  • Pleadings
  • Solicitation of customers

15.2 Keywords

  • Breach of fiduciary duty
  • Employee competition
  • Chauffeur services
  • Singapore High Court

17. Areas of Law

16. Subjects

  • Employment Law
  • Civil Procedure
  • Breach of Fiduciary Duty