Elan Impex v Daewoo: Wrongful Termination, Service Out of Jurisdiction, and Forum Non Conveniens
In Elan Impex (Singapore) Pte Ltd and Another v Daewoo Corporation and Others, the Singapore High Court addressed claims of wrongful termination of licensing agreements by Elan Impex against Daewoo Corporation, Daewoo International Corporation, Nair Sudhir Krishnan, and Irene Nair. The court struck out the action against the first and fourth defendants, set aside orders for service out of jurisdiction, discharged interim injunctions, and stayed the claim and Mareva injunction against the third defendant, finding South Africa to be the more appropriate forum. The claim involved breach of contract and inducement of breach of contract.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Action against the first defendant and fourth defendant struck out; orders giving leave to serve outside jurisdiction set aside; interim injunctions discharged; claim against the third defendant and the Mareva injunction against him stayed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case involving Elan Impex and Daewoo concerning wrongful termination of licensing agreements. The court addressed service out of jurisdiction and forum non conveniens.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Elan Impex (Singapore) Pte Ltd | Plaintiff | Corporation | Partial Loss | Partial | |
| Elan S.A. (Pty) Ltd | Plaintiff | Corporation | Partial Loss | Partial | |
| Daewoo Corporation | Defendant | Corporation | Won | Won | |
| Daewoo International Corporation | Defendant | Corporation | Partial Win | Partial | |
| Nair Sudhir Krishnan | Defendant | Individual | Partial Win | Partial | |
| Irene Nair | Defendant | Individual | Won | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Kan Ting Chiu | Judge | Yes |
4. Counsels
4. Facts
- The first plaintiff is a Singapore company, and the second plaintiff is its South African distribution agent.
- The first and second defendants are South Korean companies.
- The third defendant is a former employee of the first plaintiff and the husband of the fourth defendant; they reside in South Africa.
- The plaintiffs and defendants entered into three licensing agreements: one in 2000, another in August 2000, and the third in June 2001.
- The agreements permitted the first plaintiff to use the defendants' 'Daytek' and 'Daewoo' names and logos on electrical appliances.
- The second agreement was terminated by the second defendant in December 2001 for lack of performance.
- The third agreement was terminated by the second defendant in February 2002 for failure to pay royalties.
- The plaintiffs claimed the terminations were wrongful and that the third defendant induced the breach of contract.
5. Formal Citations
- Elan Impex (Singapore) Pte Ltd and Another v Daewoo Corporation and Others, Suit 282/2002,SIC 2498/2002,SIC 4545/2002, [2003] SGHC 20
6. Timeline
| Date | Event |
|---|---|
| First agreement dated | |
| Second agreement dated | |
| Third agreement dated | |
| Second agreement terminated | |
| Third agreement terminated | |
| Order of Court | |
| Suit 282/2002 filed | |
| Decision Date |
7. Legal Issues
- Wrongful Termination of Contract
- Outcome: The court did not rule on the merits of the wrongful termination claim, but discharged the interim injunctions preventing the defendants from using the Daytek and Daewoo names and logos.
- Category: Substantive
- Sub-Issues:
- Insufficient Particulars for Termination
- Breach of Contract by Defendant
- Service Out of Jurisdiction
- Outcome: The court set aside the orders giving leave to serve outside the jurisdiction because the first defendant was not a party duly served in or out of Singapore and there was no basis to seek relief from it.
- Category: Procedural
- Sub-Issues:
- Necessary or Proper Party
- Failure to Duly Serve Defendant Within Jurisdiction
- Forum Non Conveniens
- Outcome: The court stayed the claim against the third defendant, finding South Africa to be the more appropriate forum.
- Category: Jurisdictional
- Sub-Issues:
- More Appropriate Forum
- Connection to South Africa
- Mareva Injunction
- Outcome: The court discharged the Mareva injunctions due to the plaintiffs' failure to make full and frank disclosure and because the balance of convenience did not favor their continuation.
- Category: Procedural
- Sub-Issues:
- Material Non-Disclosure
- Balance of Convenience
8. Remedies Sought
- Restraining Orders
- Damages
- Specific Performance
9. Cause of Actions
- Breach of Contract
- Inducement of Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Manufacturing
- Distribution
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Kuwait Oil Tanker Co. S.A.K v Al Bader | English Court of Appeal | Yes | [1997] 1 WLR 1410 | England and Wales | Cited regarding the requirement of service on a defendant within jurisdiction before leave can be granted to serve another defendant outside the jurisdiction. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Order 11 rule 1(a) of the Rules of Court | Singapore |
| Order 11 r 1(c) of the Rules of Court | Singapore |
| Close Corporations Act No. 69 of 1984 | South Africa |
15. Key Terms and Keywords
15.1 Key Terms
- Licensing Agreements
- Daytek
- Daewoo
- Royalties
- Termination
- Service out of jurisdiction
- Mareva Injunction
- Forum Non Conveniens
15.2 Keywords
- wrongful termination
- licensing agreement
- service out of jurisdiction
- injunction
- Singapore
- South Korea
- South Africa
17. Areas of Law
16. Subjects
- Contract Law
- Civil Procedure
- International Litigation