Wishing Star Ltd v Jurong Town Corp: Security for Costs & Company Residency
Wishing Star Ltd, a company registered in Hong Kong with a registered branch in Singapore, sued Jurong Town Corp in the High Court of Singapore for wrongful termination of their employment as a nominated sub-contractor. Jurong Town Corp applied for security for costs, arguing that Wishing Star Ltd was 'ordinarily resident out of jurisdiction'. The assistant registrar dismissed the application, and Jurong Town Corp appealed. Choo Han Teck J dismissed the appeal, finding that while having a registered branch does not automatically mean a company is 'ordinarily resident' in Singapore, the court should not exercise its discretion to order security for costs in this case, considering the overlapping claims and the plaintiffs' viable claim.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Defendants’ appeal dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding security for costs. The court considered whether a company with a branch in Singapore is 'ordinarily resident out of jurisdiction'.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Jurong Town Corp | Defendant, Appellant | Statutory Board | Appeal dismissed | Lost | |
| Wishing Star Ltd | Plaintiff | Corporation | Appeal dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Ho Chien Mien | Allen & Gledhill |
| Edmund Kronenburg | Drew & Napier LLC |
4. Facts
- Wishing Star Ltd is a company registered in Hong Kong with a registered branch in Singapore.
- Jurong Town Corp applied for security for costs, arguing Wishing Star Ltd is 'ordinarily resident out of jurisdiction'.
- Wishing Star Ltd sued Jurong Town Corp for wrongful termination of their employment as a nominated sub-contractor.
- The contract awarded to Wishing Star Ltd was valued at $54 million.
- Jurong Town Corp terminated the contract on the grounds of misrepresentation.
- Jurong Town Corp launched a counter-claim for damages arising from having to engage new contractors.
- The suit was commenced on 13 January 2003 and security was applied for only on 15 August 2003.
5. Formal Citations
- Wishing Star Ltd v Jurong Town Corp, Suit 31/2003, RA 315/2003, [2003] SGHC 276
6. Timeline
| Date | Event |
|---|---|
| Suit commenced | |
| Security applied for | |
| Appeal against registrar's decision heard | |
| Appeal against registrar's decision heard | |
| Decision Date | |
| Further arguments heard | |
| Trial commenced |
7. Legal Issues
- Security for Costs
- Outcome: The court dismissed the defendant's appeal for security for costs.
- Category: Procedural
- Company Residency
- Outcome: The court found that having a registered branch does not automatically mean a company is 'ordinarily resident' in Singapore.
- Category: Jurisdictional
8. Remedies Sought
- Damages
9. Cause of Actions
- Wrongful Termination
10. Practice Areas
- Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Re Little Olympian Each Ways | N/A | Yes | [1994] 4 All ER 561 | N/A | Cited to distinguish the present case, as the plaintiffs in that case were not carrying on business in Singapore. |
| Jones v Scottish Accident Co | N/A | Yes | (1886) 17 QBD 421 | N/A | Cited for the principle that a company is resident at the place where it carries on its business. |
| De Beers Consolidated Mines Ltd v Howe | N/A | Yes | [1906] AC 455 | N/A | Cited for the application of the 'central management and command of the company' test in determining residency. |
| Canadian Railway Accident Co. v Kelly | N/A | Yes | (1907) Vol XVI, Manitoba R. 608 | N/A | Cited to support the proposition that the mere presence of a branch within the jurisdiction does not deny a defendant from getting security for costs. |
| B J Crabtree (Insulation) Ltd v G P T Communication Systems Ltd | N/A | Yes | [1994] 59 BLR 43 | N/A | Cited regarding the consequences of ordering security when there are overlapping claims. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| O 23 r 1(1)(a) Rules of Court (Cap 322, R 5, 1997 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Security for costs
- Ordinarily resident
- Branch
- Central management and control
- Over-lapping claims
- Impecuniosity
- Reciprocal enforcement of judgments
15.2 Keywords
- Security for costs
- Company residency
- Singapore
- Hong Kong
- Civil Procedure
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Costs | 95 |
| Civil Practice | 90 |
| Jurisdiction | 50 |
16. Subjects
- Civil Procedure
- Company Law
- Costs