United Engineers v Northern Elevator: Appeal of Arbitration Award on Damages for Defective Lifts
In United Engineers (Singapore) Pte Ltd v Northern Elevator Manufacturing Sdn Bhd, the High Court of Singapore heard an appeal by United Engineers against an arbitration award concerning damages for defective lifts supplied by Northern Elevator. The arbitrator's assessment of damages was found to be flawed, as he relied on Northern Elevator's estimates rather than the actual costs incurred by United Engineers. The court remitted the award to the arbitrator for re-computation of damages, specifically regarding the cost of replacement works and car rail brackets.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Award remitted to arbitrator for re-computation of damages.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
United Engineers appealed an arbitration award regarding damages for defective lifts supplied by Northern Elevator. The court remitted the award for re-computation of damages.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| United Engineers (Singapore) Pte Ltd | Applicant | Corporation | Appeal allowed in part | Partial | |
| Northern Elevator Manufacturing Sdn Bhd | Respondent | Corporation | Appeal dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Siu Chiu | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Monica Neo | Chan Tan LLC |
| Mary Ong | Hoh Law Corporation |
4. Facts
- United Engineers engaged Northern Elevator as a sub-sub-contractor for lift design and installation.
- A dispute arose over defective design and failure to supply parts for the lifts.
- The arbitrator found Northern Elevator liable for providing undersized guide rails.
- The arbitrator awarded damages based on Northern Elevator's estimates, not actual replacement costs.
- Elevator Service was engaged to carry out the rectification works.
- The arbitrator used a unit rate for 18 kg lifts despite finding Northern Elevator liable for 33 kg lifts.
5. Formal Citations
- United Engineers (Singapore) Pte Ltd v Northern Elevator Manufacturing Sdn Bhd, OM 1/2003, [2003] SGHC 158
6. Timeline
| Date | Event |
|---|---|
| Agreement made between United Engineers and Northern Elevator for lift design, manufacture, supply and delivery. | |
| First hearing of arbitration proceedings began. | |
| First hearing of arbitration proceedings concluded. | |
| Arbitrator delivered first interim award. | |
| Arbitration Act 2001 came into operation. | |
| Kok Peng Koon filed affidavit. | |
| Second hearing of the arbitration dealing with quantum was held. | |
| Arbitrator gave notice that the second interim award would be ready for collection. | |
| Arbitrator delivered second award. | |
| Applicants' Notice of Motion filed. | |
| Notice of Motion came up before the court for hearing. | |
| Decision Date |
7. Legal Issues
- Assessment of Damages
- Outcome: The court found that the arbitrator erred in law on the amount of damages awarded and remitted the award for re-computation.
- Category: Substantive
- Sub-Issues:
- Inconsistent application of unit rates
- Under-compensation of damages
- Reliance on self-serving quotations
- Timeliness of Appeal
- Outcome: The court held that the appeal was filed on time, counting from the date the award was published.
- Category: Procedural
8. Remedies Sought
- Monetary Damages
- Leave to appeal on a question of law
9. Cause of Actions
- Breach of Contract
- Negligence
10. Practice Areas
- Arbitration
- Construction Disputes
- Commercial Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Hong Huat Development Co (Pte) Ltd v Hiap Hong & Co Pte Ltd | Court of Appeal | Yes | [2000] 2 SLR 609 | Singapore | Cited for the principle that an award is made and published when the arbitrator gives notice that the award is ready for collection. |
| Hong Huat Development Co (Pte) Ltd v Hiap Hong & Co Pte Ltd | Court of Appeal | Yes | [2002] 2 SLR 609 | Singapore | Cited for the principle that an award is made and published when the arbitrator gives notice that the award is ready for collection. |
| The Nema: Pioneer Shipping Ltd v BTP Tioxide | House of Lords | Yes | [1982] AC 724 | United Kingdom | Cited for guidelines on granting leave to appeal in arbitration cases. |
| The Antaios: Antaios Compania Naviera SA v Salen Rederierna AB | House of Lords | Yes | [1985] AC 191 | United Kingdom | Cited for guidelines on granting leave to appeal in arbitration cases. |
| Jaya Offshore Pte Ltd v World Marine Co Ltd | High Court | Yes | [1997] 2 SLR 109 | Singapore | Cited in support of the submission that there was nothing wrong in the Arbitrator's award to indicate that he had 'obviously gone wrong'. |
| Ruxley Electronics & Construction Ltd v Forsyth | House of Lords | Yes | (1995) 73 BLR 1 | United Kingdom | Cited regarding the appropriate compensation for loss in construction contracts. |
| Ruxley Electronics & Construction Ltd v Forsyth | Court of Appeal | Yes | (1994) 66 BLR 23 | United Kingdom | Cited regarding the appropriate compensation for loss in construction contracts. |
13. Applicable Rules
| Rule Name |
|---|
| O 69 r 16 of the Rules of Court |
| O 69 r 4(2) of the Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Arbitration Act Cap 10 | Singapore |
| Arbitration Act 2001 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration Award
- Damages Assessment
- Defective Lifts
- Guide Rails
- Sub-Sub-Contractor
- Rectification Works
- Unit Rate
- Interim Award
15.2 Keywords
- arbitration
- construction
- damages
- defective lifts
- appeal
- singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Arbitration | 90 |
| Damages | 80 |
| Recourse against award | 75 |
| Breach of Contract | 70 |
| Contract Law | 60 |
16. Subjects
- Arbitration
- Construction Law
- Contract Law
- Civil Procedure