Tan Liang Chong v Chou Lai Tiang: Assessment of Damages for Breach of Partnership Agreement

In Tan Liang Chong v Chou Lai Tiang, the High Court of Singapore heard an appeal regarding the assessment of damages for breach of a partnership agreement. Tan Liang Chong and Tan Liang Teck sued Chou Lai Tiang for excluding them from their partnership, Chop Bee Seng. The court affirmed the assistant registrar's findings regarding a sundry creditor, undisclosed rental income, and estimated profits for 1999, ultimately dismissing Chou's appeal.

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

Appeal concerning the assessment of damages for breach of a partnership agreement. The court affirmed the assistant registrar's findings, addressing issues of undisclosed rental income and profit estimation.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Tan Liang ChongPlaintiff, AppellantIndividualAppeal dismissedLostZero Nalpon
Chou Lai TiangDefendantIndividualAppeal dismissedLostSean Tan Kim Kang, Lim Tiang Yao
Tan Liang TeckPlaintiffIndividualClaim AllowedWon

3. Judges

Judge NameTitleDelivered Judgment
Tan Lee MengJudgeYes

4. Counsels

Counsel NameOrganization
Zero NalponNalpon & Co
Sean Tan Kim KangTan Kok Quan Partnership
Lim Tiang YaoWinston Low & Partners

4. Facts

  1. Tan Liang Chong, Tan Liang Teck, and Chou Lai Tiang were partners in Chop Bee Seng.
  2. TLC and TLT each had a 45% stake, while Chou had a 10% stake.
  3. Chou took over the management of the partnership in 1996.
  4. TLC and TLT contended that Chou breached the partnership agreement in 1999.
  5. Chou accepted that he breached the partnership agreement by excluding the other partners.
  6. Chou was ordered to account for profits from 28 August 1996 to 31 July 1999.
  7. The accounts furnished by Chou contained discrepancies and were not prepared in accordance with accounting standards.

5. Formal Citations

  1. Tan Liang Chong v Chou Lai Tiang, RA 600017/2003, Suit 606/1999, 1473/1999, [2003] SGHC 225

6. Timeline

DateEvent
Chou took over the management of the partnership.
Tan Liang Chong excluded from the business.
Tan Liang Teck excluded from the business.
Consent judgment recorded by Selvam J.
Solicitors filed a summons for directions for the taking of accounts.
Case heard by the assistant registrar.
Decision date.

7. Legal Issues

  1. Breach of Partnership Agreement
    • Outcome: The court found that Chou breached the partnership agreement by excluding the other partners from the business.
    • Category: Substantive
    • Sub-Issues:
      • Exclusion of partners from business
      • Denial of access to business records
  2. Assessment of Damages
    • Outcome: The court affirmed the assistant registrar's assessment of damages, including findings on undisclosed rental income and estimated profits.
    • Category: Procedural
    • Sub-Issues:
      • Reliance on auditor's evidence
      • Estimation of profits in absence of proper accounts
      • Non-disclosure of rental income

8. Remedies Sought

  1. Damages
  2. Account of Profits

9. Cause of Actions

  • Breach of Partnership Agreement

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Retail
  • Energy

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Trego v HuntN/AYes[1896] AC 7N/ACited for the principle that every partner has a right to accurate accounts of the partnership and access to the partnership’s books and accounts.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Partnership Act (Cap 391, 1994 Rev Ed) s 24Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Partnership Agreement
  • Breach of Contract
  • Assessment of Damages
  • Partnership Accounts
  • Undisclosed Rental Income
  • Estimated Profits
  • Sundry Creditor
  • Exclusion of Partners

15.2 Keywords

  • partnership
  • breach of contract
  • damages
  • accounts
  • rental income
  • profits

16. Subjects

  • Partnership Law
  • Damages
  • Accounting

17. Areas of Law

  • Partnership Law
  • Civil Procedure
  • Damages Assessment