Sakata v Naruse: Security for Costs Appeal After Change of Solicitors
In Sumio Sakata and Others v Fuminori Paul Naruse and Others, the High Court of Singapore heard an appeal by the plaintiffs against an order varying the security for costs. The court allowed the appeal in part, varying the assistant registrar’s orders by apportioning $50,000 from the original sum of $375,000 to cover the second defendant’s costs and setting aside the order for the provision of a further sum of $300,000.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal allowed in part.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding security for costs after a defendant changed solicitors. The court varied the order, apportioning costs from the original sum.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Sumio Sakata | Plaintiff | Individual | Appeal allowed in part | Partial | Edmund Kronenburg, Adrian Ng, Ronald Choo |
| Mikio Shiga | Plaintiff | Individual | Appeal allowed in part | Partial | Edmund Kronenburg, Adrian Ng, Ronald Choo |
| KK SPJC and Company, Tokyo | Plaintiff | Corporation | Appeal allowed in part | Partial | Edmund Kronenburg, Adrian Ng, Ronald Choo |
| Netlock Technologies Japan KK | Plaintiff | Corporation | Appeal allowed in part | Partial | Edmund Kronenburg, Adrian Ng, Ronald Choo |
| Fuminori Paul Naruse | Defendant | Individual | Neutral | Neutral | Suresh Nair |
| Suzanne Liau | Defendant | Individual | Neutral | Neutral | Tan Kok Quan SC, Audrey Thng |
| SK Partners Pte Ltd | Defendant | Corporation | Neutral | Neutral | Suresh Nair |
| SPJC Enterprise | Defendant | Corporation | Neutral | Neutral | Suresh Nair |
| Yuenming Ltd | Defendant | Corporation | Neutral | Neutral | Suresh Nair |
| SPJC & Co USA | Defendant | Corporation | Neutral | Neutral | Suresh Nair |
| SPJC Singapore Pte Ltd (in liquidation) | Defendant | Corporation | Neutral | Neutral | Suresh Nair |
| Netlock Tecnologies Asia Pte Ltd (in liquidation) | Defendant | Corporation | Neutral | Neutral | Suresh Nair |
| Netlock Holdings Pte Ltd (in liquidation) | Defendant | Corporation | Neutral | Neutral | Suresh Nair |
| Pyramix Consulting & Investments Co Pte Ltd | Defendant | Corporation | Neutral | Neutral | Suresh Nair |
| Chew Chung Huang | Defendant | Individual | Neutral | Neutral | Suresh Nair |
| Chan Siew Po Jennifer | Defendant | Individual | Neutral | Neutral | Suresh Nair |
| Elfron International Ltd | Defendant | Corporation | Neutral | Neutral | Suresh Nair |
| Think Masters & Assoc Pte Ltd | Defendant | Corporation | Neutral | Neutral | Suresh Nair |
| Aspentrees Pte Ltd (in liquidation) | Defendant | Corporation | Neutral | Neutral | Suresh Nair |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Edmund Kronenburg | Tan Peng Chin LLC |
| Adrian Ng | Tan Peng Chin LLC |
| Ronald Choo | Rajah and Tann |
| Tan Kok Quan SC | Tan Kok Quan Partnership |
| Audrey Thng | Tan Kok Quan Partnership |
| Suresh Nair | Allen and Gledhill |
4. Facts
- Plaintiffs appealed against an order varying security for costs.
- Second defendant changed solicitors after the security for costs order was made.
- The assistant registrar ordered $20,000 to be apportioned from the original sum and a further $300,000 to be provided for the second defendant.
- The plaintiffs are Japanese and the defendants argued for security for costs to avoid pursuing costs in a foreign jurisdiction.
- The claims against the defendants exceeded $30,000,000 and were based on breaches of fiduciary duty and conspiracy to defraud.
5. Formal Citations
- Sumio Sakata and Others v Fuminori Paul Naruse and Others, Suit 401/2003, RA 61/2004, [2004] SGHC 102
6. Timeline
| Date | Event |
|---|---|
| Security for costs of $75,000 was ordered against the plaintiffs. | |
| Additional security of $300,000 was ordered. | |
| Second defendant changed solicitors. | |
| Appeal decision date. |
7. Legal Issues
- Security for costs
- Outcome: The court varied the assistant registrar’s orders by apportioning $50,000 (to cover the second defendant’s costs) from the sum of $375,000 and by setting aside the order for the provision of a further sum of $300,000.
- Category: Procedural
- Sub-Issues:
- Variation of security of costs order upon change of solicitors
- Apportionment of security for costs
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of fiduciary duty
- Conspiracy to defraud
10. Practice Areas
- Civil Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Security for costs
- Variation of order
- Apportionment
- Change of solicitors
- Foreign plaintiff
15.2 Keywords
- Security for costs
- Appeal
- Change of solicitors
- Singapore High Court
- Civil Procedure
16. Subjects
- Civil Procedure
- Security for Costs
17. Areas of Law
- Civil Procedure