Liao Eng Kiat v Burswood Nominees Ltd: Enforcement of Foreign Judgment on Dishonoured Cheque for Gambling Debt
In Liao Eng Kiat v Burswood Nominees Ltd, the Singapore Court of Appeal dismissed Liao Eng Kiat's appeal against the registration of an Australian judgment in favour of Burswood Nominees Ltd, a casino, for a dishonoured cheque. The court, with Yong Pung How CJ delivering the judgment, found that while Singapore's Civil Law Act typically prevents the enforcement of gambling debts, the higher threshold of public policy under the Reciprocal Enforcement of Commonwealth Judgments Act allowed the registration of the Australian judgment. The court considered evolving societal attitudes towards gambling in Singapore and the reciprocal nature of judgment enforcement with Australia.
1. Case Overview
1.1 Court
Court of Appeal1.2 Outcome
Appeal dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore Court of Appeal enforced an Australian judgment against Liao Eng Kiat for a dishonoured cheque issued to Burswood casino, despite Singapore's stance on gambling debts.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Liao Eng Kiat | Appellant | Individual | Appeal dismissed | Lost | Jeanny Ng of Jeanny Ng |
| Burswood Nominees Ltd | Respondent | Corporation | Registration of Australian judgment upheld | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Belinda Ang Saw Ean | Judge | No |
| Chao Hick Tin | Justice of the Court of Appeal | No |
| Yong Pung How | Chief Justice | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Jeanny Ng | Jeanny Ng |
| Andrew Chan | Allen and Gledhill |
| K Shanmugam | Allen and Gledhill |
| Tay Mui Leng Sharon | Donaldson and Burkinshaw |
4. Facts
- Liao issued a cheque for SGD 52,900 to Burswood casino in exchange for a voucher of A$50,000.
- Liao exchanged the voucher for gambling chips and lost the entire amount at the casino.
- Liao's personal cheque was dishonoured upon presentation.
- Burswood sued Liao in the District Court of Western Australia and obtained a default judgment.
- Burswood sought to register the Australian judgment in Singapore under the RECJA.
- Liao applied to set aside the registration, arguing it was against public policy due to the gambling debt.
5. Formal Citations
- Liao Eng Kiat v Burswood Nominees Ltd, CA 6/2004, [2004] SGCA 45
6. Timeline
| Date | Event |
|---|---|
| Liao flew to Perth and checked into Burswood’s hotel. | |
| Liao issued a cheque for SGD 52,900 and was given a voucher of A$50,000 in return. | |
| Burswood obtained a default judgment against Liao for A$78,331.50 with costs of A$2,765.28. | |
| Burswood successfully applied for registration of the Australian judgment in the Singapore High Court. | |
| Appeal dismissed. |
7. Legal Issues
- Enforcement of Foreign Judgment
- Outcome: The court ruled that the Australian judgment was enforceable in Singapore.
- Category: Substantive
- Public Policy Exception to Enforcement
- Outcome: The court held that the domestic public policy against enforcing gambling debts did not outweigh the principles of comity and reciprocity in enforcing foreign judgments.
- Category: Substantive
- Characterization of Transaction
- Outcome: The court determined that the transaction was for money won upon a wager, but this characterization did not preclude enforcement of the foreign judgment.
- Category: Substantive
8. Remedies Sought
- Enforcement of foreign judgment
- Monetary damages
9. Cause of Actions
- Claim on dishonoured cheque
- Breach of contract
10. Practice Areas
- Enforcement of Foreign Judgments
- Casino Law
11. Industries
- Gambling
- Hospitality
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Star City Pty Ltd v Tan Hong Woon | High Court | Yes | [2002] 2 SLR 22 | Singapore | Cited as a case of particular importance in the course of deliberations. The facts of the present case differed from those of Star City in one essential aspect. |
| Star City Pty Ltd v Tan Hong Woon | High Court | Yes | [2001] 3 SLR 206 | Singapore | Cited for the High Court decision where the casino’s claim was dismissed. |
| Soleimany v Soleimany | English Court of Appeal | Yes | [1999] QB 785 | England | Cited to emphasize that a high standard of public policy must be met before courts will refuse to enforce a foreign judgment. |
| Fender v St John-Mildmay | House of Lords | Yes | [1938] AC 1 | England | Cited for the doctrine of public policy, which should only be invoked in clear cases in which the harm to the public is substantially incontestable. |
| Vervaeke v Smith | House of Lords | Yes | [1983] 1 AC 145 | England | Cited for the principle that the court will be even slower to invoke public policy in the field of conflict of laws than when a purely municipal legal issue is involved. |
| Fauntleroy v Lum | US Supreme Court | Yes | 210 US 230 (1908) | United States | Cited to show that US courts are required to honor gambling judgments rendered by sister states. |
| Loucks v Standard Oil Co of New York | Court of Appeals of New York | Yes | 224 NY 99 (1918) | United States | Cited for the principle that courts are not free to refuse to enforce a foreign right at the pleasure of the judges. |
| Aspinall’s Club Limited v Eskander Aryeh | Appellate Division of the Supreme Court of New York | Yes | 86 AD 2d 428 (1982) | United States | Cited as an illustration of the American courts' approach to enforcing judgments emanating from other countries. |
| Boardwalk Regency Corp v Maalouf | Ontario Court of Appeal | Yes | (1992) 88 DLR (4th) 612 | Canada | Cited to show the Canadian courts' reluctance to refuse recognition of foreign judgments. |
| Re An Arbitration between Hainan Machinery Import and Export Corporation and Donald & McArthy Pte Ltd | High Court | Yes | [1996] 1 SLR 34 | Singapore | Cited for the principle of comity of nations requires that the awards of foreign arbitration tribunals be given due deference and be enforced unless exceptional circumstances exist. |
| Parsons & Whittemore Overseas Co, Inc v Societe Generale de l’Industrie du Papier (RAKTA) | US Court of Appeal | Yes | 508 F 2d 969 (1974) | United States | Cited for the public policy limitation in the New York Convention is to be construed narrowly and applied only where enforcement would violate the forum state’s most basic notions of morality and justice. |
| Hebei Import & Export Corp v Polytek Engineering Co Ltd (No 2) | Hong Kong Court of Appeal | Yes | [1998] 1 HKC 192 | Hong Kong | Cited for the test of whether in all the circumstances of the case, it would violate the most basic notions of morality and justice of the Hong Kong system if the foreign award in question is to be enforced. |
| Renusagar Power Co Ltd v General Electric Co | Supreme Court of India | Yes | AIR 1994 SC 860 | India | Cited for the distinction drawn while applying the rule of public policy between a matter governed by domestic law and a matter involving conflict of laws. |
| The Aspinall Curzon Ltd v Khoo Teng Hock | High Court of Kuala Lumpur | Yes | [1991] 2 MLJ 484 | Malaysia | Cited as a Malaysian case where the court recognized an English judgment for a gambling debt, noting that public policy was an 'unruly horse'. |
| Intercontinental Hotels Corporation (Puerto Rico) v Golden | Court of Appeals of New York | Yes | 15 NY 2d 9 (1964) | United States | Cited for the principle that public policy is not determinable by mere reference to the laws of the forum alone. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Civil Law Act (Cap 43, 1994 Rev Ed) | Singapore |
| Reciprocal Enforcement of Commonwealth Judgments Act (Cap 264, 1985 Rev Ed) | Singapore |
| Supreme Court Act 1935 | Western Australia |
15. Key Terms and Keywords
15.1 Key Terms
- Reciprocal Enforcement of Commonwealth Judgments Act
- Civil Law Act
- Public policy
- Dishonoured cheque
- Gambling debt
- Cheque cashing facility
- Foreign judgment
- Comity
- Reciprocity
15.2 Keywords
- Foreign Judgment Enforcement
- Gambling Debt
- Singapore
- Australia
- Conflict of Laws
- Public Policy
17. Areas of Law
16. Subjects
- Conflict of Laws
- Gaming Law
- Civil Procedure