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 | |
| Mikio Shiga | Plaintiff | Individual | Appeal allowed in part | Partial | |
| KK SPJC and Company, Tokyo | Plaintiff | Corporation | Appeal allowed in part | Partial | |
| Netlock Technologies Japan KK | Plaintiff | Corporation | Appeal allowed in part | Partial | |
| Fuminori Paul Naruse | Defendant | Individual | Neutral | Neutral | |
| Suzanne Liau | Defendant | Individual | Neutral | Neutral | |
| SK Partners Pte Ltd | Defendant | Corporation | Neutral | Neutral | |
| SPJC Enterprise | Defendant | Corporation | Neutral | Neutral | |
| Yuenming Ltd | Defendant | Corporation | Neutral | Neutral | |
| SPJC & Co USA | Defendant | Corporation | Neutral | Neutral | |
| SPJC Singapore Pte Ltd (in liquidation) | Defendant | Corporation | Neutral | Neutral | |
| Netlock Tecnologies Asia Pte Ltd (in liquidation) | Defendant | Corporation | Neutral | Neutral | |
| Netlock Holdings Pte Ltd (in liquidation) | Defendant | Corporation | Neutral | Neutral | |
| Pyramix Consulting & Investments Co Pte Ltd | Defendant | Corporation | Neutral | Neutral | |
| Chew Chung Huang | Defendant | Individual | Neutral | Neutral | |
| Chan Siew Po Jennifer | Defendant | Individual | Neutral | Neutral | |
| Elfron International Ltd | Defendant | Corporation | Neutral | Neutral | |
| Think Masters & Assoc Pte Ltd | Defendant | Corporation | Neutral | Neutral | |
| Aspentrees Pte Ltd (in liquidation) | Defendant | Corporation | Neutral | Neutral |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
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
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Security for Costs | 90 |
| Civil Practice | 75 |
| Fraud and Deceit | 60 |
| Fiduciary Duties | 60 |
| Variation of Order | 60 |
| Interim Orders | 50 |
| Disclosure of documents | 40 |
| Appeal | 30 |
| Commercial Disputes | 30 |
16. Subjects
- Civil Procedure
- Security for Costs