Northern Elevator v United Engineers: Appeal on Arbitration Award & Damages Assessment
Northern Elevator Manufacturing Sdn Bhd appealed against the decision to grant United Engineers (Singapore) Pte Ltd leave to appeal against an arbitration award. The dispute arose from a subcontract agreement for the design, manufacture, supply, and delivery of passenger and cargo lifts. United Engineers claimed damages against Northern Elevator for defective installation, while Northern Elevator counterclaimed for the balance sum due under the agreement. The Court of Appeal allowed the appeal, holding that no valid question of law arose from the award to justify granting leave to appeal.
1. Case Overview
1.1 Court
Court of Appeal of the Republic of Singapore1.2 Outcome
Appeal Allowed
1.3 Case Type
Arbitration
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding an arbitration award. The court held that leave to appeal should not have been granted as no question of law arose.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| United Engineers (Singapore) Pte Ltd | Respondent | Corporation | Leave to Appeal Denied | Lost | |
| Northern Elevator Manufacturing Sdn Bhd | Appellant | Corporation | Appeal Allowed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chao Hick Tin | Justice of the Court of Appeal | No |
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Monica Neo | ChanTan LLC |
| Mary Ong | Hoh Law Corporation |
| C R Rajah | Tan Rajah and Cheah |
4. Facts
- United engaged Northern as a sub-contractor for lift design, manufacture, supply, and delivery.
- Disputes arose regarding the quality of work done.
- United claimed damages against Northern for defective installation of lifts.
- Northern counterclaimed for the balance sum due under the agreement.
- The parties went to arbitration before Yang Yung Chong.
- The Arbitrator found Northern had breached the agreement in failing to supply adequately-sized guide rails and safety devices.
- United presented quotations for the cost of rectification, which Northern disputed.
5. Formal Citations
- Northern Elevator Manufacturing Sdn Bhd v United Engineers (Singapore) Pte Ltd (No 2), CA 57/2003, [2004] SGCA 11
6. Timeline
| Date | Event |
|---|---|
| Agreement signed between United Engineers and Northern Elevator. | |
| Arbitration commenced before Yang Yung Chong. | |
| First interim award delivered by the Arbitrator. | |
| Assessment of damages held. | |
| Second interim award released by the Arbitrator. | |
| Appeal allowed. |
7. Legal Issues
- Recourse against arbitration award
- Outcome: The court held that leave to appeal should not have been granted.
- Category: Procedural
- Sub-Issues:
- Whether question of law
- Whether leave to appeal should have been granted
- Application of compensatory principle in assessment of damages
- Outcome: The court found that the arbitrator did not err in law in applying the compensatory principle, but rather in the application of the principle.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Arbitration
- Commercial Litigation
- Construction Law
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Pioneer Shipping Ltd v BTP Tioxide Ltd | House of Lords | Yes | [1982] AC 724 | England and Wales | Cited for guidelines on granting leave to appeal in arbitration cases. |
| Antaios Compania Naviera SA v Salen Rederierna AB | House of Lords | Yes | [1985] AC 191 | England and Wales | Cited for guidelines on granting leave to appeal in arbitration cases. |
| Hong Huat Development Co (Pte) Ltd v Hiap Hong & Co Pte Ltd | Court of Appeal | Yes | [2000] 2 SLR 609 | Singapore | Affirmed the Nema-Antaios guidelines for determining whether leave should be granted. |
| Ruxley Electronics and Construction Ltd v Forsyth | N/A | Yes | [1995] 3 All ER 268 | N/A | Cited in relation to the compensatory nature of damages. |
| Ahong Construction (S) Pte Ltd v United Boulevard Pte Ltd | N/A | Yes | [2000] 1 SLR 749 | Singapore | Cited to differentiate between a 'question of law' and an 'error of law'. |
| American Home Assurance Co v Hong Lam Marine Pte Ltd | N/A | Yes | [1999] 3 SLR 682 | Singapore | Cited for the approach to characterising whether a question of construction falls within or without either guideline. |
| Invar Realty Pte Ltd v JDC Corp | N/A | Yes | [1998] SLR 444 | Singapore | Cited regarding the requirement to show that the Arbitrator was obviously wrong. |
| Pioneer Shipping Pte Ltd v BTP Tioxide Ltd | English Court of Appeal | Yes | [1980] QB 547 | England and Wales | Cited for the interpretation of the phrase 'substantially affect the rights'. |
| The Evimeria | N/A | Yes | [1982] 1 Lloyd’s Rep 55 | N/A | Cited regarding the discretionary nature of granting leave. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Arbitration Act (Cap 10, 1985 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration Award
- Leave to Appeal
- Compensatory Principle
- Assessment of Damages
- Sub-Contractor
- Cost of Rectification
- One-Off Point
15.2 Keywords
- arbitration
- award
- appeal
- damages
- construction
- contract
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Arbitration | 90 |
| Damages | 70 |
| Contract Law | 60 |
| Construction Contracts | 50 |
16. Subjects
- Arbitration
- Contract Law
- Civil Procedure