LK Ang Construction v Chubb Singapore: Offer to Settle & Cost Implications
In LK Ang Construction Pte Ltd v Chubb Singapore Pte Ltd, the High Court of Singapore addressed the issue of costs following a suit by LK Ang Construction against Chubb Singapore for breach of contract and libel. The court, presided over by Justice Kan Ting Chiu, had previously entered interlocutory judgment for the plaintiff on the libel claim, with damages to be assessed. The defendant had made two offers of settlement, which were not accepted. The court directed that the plaintiff tax its costs on a standard basis up to the date of service of the second offer. The final determination of costs depended on whether the aggregate of the costs, the principal sum, and interest was $30,000 or more.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Costs to be taxed; plaintiff to receive costs on standard basis up to the date of the second offer if the aggregate of costs, principal sum, and interest is less than $30,000; otherwise, plaintiff to receive half of the costs taxed up to the date of judgment.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Judgment on costs after LK Ang Construction sued Chubb Singapore for breach of contract and libel, focusing on offers to settle.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| LK Ang Construction Pte Ltd | Plaintiff | Corporation | Partial Win | Partial | |
| Chubb Singapore Pte Ltd | Defendant | Corporation | Partial Win | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Kan Ting Chiu | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Raymond Chan | Chan Tan LLC |
| Wong Yoong Phin | Wong Yoong Phin and Co |
4. Facts
- Plaintiff sued the defendant for breach of contract and libel.
- The plaintiff succeeded in the libel claim, but failed in the breach of contract claim.
- Interlocutory judgment was entered for the plaintiff on 18 December 2002.
- Damages were assessed at $15,000 with interest at 6% p.a. from the date of the writ to the date of assessment, totaling $424.84.
- The defendant made two offers of settlement: $20,000 and $30,000 inclusive of costs.
- Neither offer was accepted by the plaintiff.
- The court had to determine the costs of the trial.
5. Formal Citations
- LK Ang Construction Pte Ltd v Chubb Singapore Pte Ltd (judgment on costs), Suit 355/2002, [2003] SGHC 263
6. Timeline
| Date | Event |
|---|---|
| Defendant made first offer of settlement for $20,000. | |
| Defendant made second offer of settlement for $30,000 inclusive of costs. | |
| Trial began. | |
| Trial concluded. | |
| Interlocutory judgment entered for the plaintiff. | |
| Damages assessed at $15,000 with interest of $424.84. | |
| Judgment on costs issued. |
7. Legal Issues
- Offer to Settle
- Outcome: The court determined that an offer should not be deemed to withdraw a previous offer unless expressly stated. The court also addressed the criteria for determining favourability, stating that it is not restricted to monetary terms.
- Category: Procedural
- Sub-Issues:
- Withdrawal of offer
- Favourability of judgment compared to offer
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Libel
10. Practice Areas
- Commercial Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Associated Confectionery (Aust) Ltd v Mineral and Chemical Traders Pty Ltd | Supreme Court of New South Wales | Yes | (1991) 25 NSWLR 349 | Australia | Cited regarding the practicality of offers of compromise inclusive of costs and the determination of whether a judgment is more or less favorable than the offer. |
| Te An Nyah v Tan Jenny & Anor | High Court | Yes | Suit No. 1373 of 1996 | Singapore | Cited regarding the argument that a subsequent offer is deemed to withdraw a previous offer. |
| Tan Shwu Leng v Singapore Airlines Ltd and Airbus Industries | High Court | Yes | Suit No 1906 of 1997 | Singapore | Cited regarding the determination of whether the judgment obtained is less or more favorable than the terms of the offer to settle. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Order 22A rule 9(3) of the Rules of Court (Cap 322, R 5, 1997 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Offer to settle
- Indemnity costs
- Standard costs
- Taxation of costs
- Favourability
- Withdrawal of offer
15.2 Keywords
- offer to settle
- costs
- civil procedure
- singapore
- high court
- LK Ang Construction
- Chubb Singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Offer to Settle | 90 |
| Costs | 85 |
| Civil Practice | 75 |
| Civil Procedure | 75 |
| Cannabis Law | 30 |
| Contract Law | 30 |
16. Subjects
- Civil Procedure
- Costs
- Settlement Offers