Jurong Town Corp v Wishing Star Ltd: Security for Costs & Admission of Fresh Evidence in Interlocutory Appeals

In Jurong Town Corp v Wishing Star Ltd, the Court of Appeal of Singapore heard an appeal by Jurong Town Corporation (JTC) against the High Court's decision to deny JTC's application for security for costs from Wishing Star Limited (WSL), a Hong Kong-based construction company, in their ongoing lawsuit regarding a terminated construction contract. JTC also sought to introduce fresh evidence. The Court of Appeal dismissed both the appeal and the motion to admit fresh evidence, citing JTC's delay in applying for security for costs and the overlap between JTC's defense and counterclaim. The court found that ordering security for costs would be unjust in the circumstances.

1. Case Overview

1.1 Court

Court of Appeal

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 regarding security for costs and admission of fresh evidence. The Court of Appeal dismissed the appeal, citing delay and counterclaim overlap.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Jurong Town CorpAppellant, DefendantStatutory BoardAppeal DismissedLost
Wishing Star LtdRespondent, PlaintiffCorporationAppeal DismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Chao Hick TinJustice of the Court of AppealYes
Lai Siu ChiuJudgeNo

4. Counsels

4. Facts

  1. WSL, a Hong Kong construction company, was awarded a $54m contract by JTC for façade works.
  2. JTC terminated the contract, alleging material misrepresentations in WSL's tender submission.
  3. WSL commenced an action against JTC for wrongful termination and payment for work done.
  4. JTC counterclaimed for damages suffered due to the alleged misrepresentations.
  5. JTC applied for security for costs, arguing WSL was ordinarily resident out of jurisdiction.
  6. The application for security for costs was made after the trial date was set and substantial work had been undertaken.
  7. JTC sought to introduce fresh evidence of alleged dishonesty by WSL's managing director.

5. Formal Citations

  1. Jurong Town Corp v Wishing Star Ltd, CA 126/2003, [2004] SGCA 14

6. Timeline

DateEvent
WSL started work on the Biopolis Project.
JTC awarded WSL a contract for the Biopolis Project.
JTC terminated the contract with WSL.
WSL commenced action against JTC.
Registrar set trial date for 3 November 2002.
JTC requested security for costs from WSL.
JTC made a formal application for security for costs.
Judge dismissed JTC's application for security for costs.
Trial commenced in the High Court.
JTC lodged its appeal to the Court of Appeal.
Trial hearing adjourned.
Court of Appeal dismissed the appeal.
Resumed hearing scheduled to start.

7. Legal Issues

  1. Security for Costs
    • Outcome: The court dismissed the appeal, declining to order WSL to furnish security for costs.
    • Category: Procedural
  2. Admission of Fresh Evidence
    • Outcome: The court disallowed the admission of fresh evidence.
    • Category: Procedural

8. Remedies Sought

  1. Payment for work done
  2. Damages for wrongful termination

9. Cause of Actions

  • Breach of Contract
  • Wrongful Termination
  • Quantum Meruit

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Keary Developments Ltd v Tarmac Construction LtdNot specified in documentYes[1995] 3 All ER 534England and WalesCited for the principle that the court has complete discretion in ordering security for costs.
Porzelack KG v Porzelack (UK) LtdNot specified in documentYes[1987] 1 All ER 1074England and WalesCited for the principle that the court has a general discretion to award or refuse security for costs, considering all circumstances.
B J Crabtree (Insulation) Ltd v GPT Communication Systems LtdEnglish Court of AppealYes(1990) 59 BLR 43England and WalesCited for the principle that there is no rule of thumb regarding the grant or refusal of an order for security and that costs incurred in defending a claim may be regarded as costs necessary to prosecute a counterclaim.
Hutchison Telephone (UK) Ltd v Ultimate Response LtdNot specified in documentNo[1993] BCLC 307England and WalesCited for the principle that security should not be awarded where the counterclaim is essentially akin to the defense to the claim.
Ladd v MarshallNot specified in documentNo[1954] 1 WLR 1489England and WalesCited regarding the principles for admitting fresh evidence, noting that the strict principles do not apply in this case.
Electra Private Equity Partners v KPMG Peat MarwickNot specified in documentYes[2001] 1 BCLC 589England and WalesCited to caution against parties attempting to retrieve lost ground in interlocutory appeals with evidence that could have been presented earlier.
Jurong Town Corporation v Wishing Star LtdHigh CourtNo[2004] 1 SLR 1SingaporeThe High Court decision that is being appealed in this case.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Order 57 r 13(2) Rules of Court (Cap 322, R 5, 1997 Rev Ed)Singapore
Order 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
  • Interlocutory appeal
  • Fresh evidence
  • Wrongful termination
  • Material misrepresentation
  • Counterclaim
  • Ordinarily resident
  • Balance of justice
  • Delay in application
  • Overlap between claim and counterclaim

15.2 Keywords

  • security for costs
  • interlocutory appeals
  • fresh evidence
  • civil procedure
  • construction contract
  • wrongful termination

17. Areas of Law

16. Subjects

  • Civil Procedure
  • Costs
  • Appeals