Afro-Asia Shipping v Da Zhong Investment: Costs Allocation for Trevi & CKK after Partially Successful Claim
In a High Court decision on 21 May 2004, Judith Prakash J addressed the issue of costs in Afro-Asia Shipping Co (Pte) Ltd's action against Da Zhong Investment Pte Ltd, Trevi Contractors (Singapore) Pte Ltd, and Chin Kok Kwong Design & Build Pte Ltd. The court awarded Trevi the costs of defending the claim but ordered them to pay 85% of the hearing fees wasted due to their election not to call evidence. CKK was awarded 85% of their costs of defending the claim regarding liability, considering the plaintiffs only proved a minor portion of their claim. The costs of assessment will be determined by the Registrar.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Trevi awarded costs of defending the claim; ordered to pay 85% of hearing fees thrown away. CKK awarded 85% of costs of defending the claim regarding liability.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
High Court judgment on costs after Afro-Asia Shipping's partially successful claim against Da Zhong Investment, Trevi, and CKK.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Afro-Asia Shipping Co (Pte) Ltd | Plaintiff | Corporation | Partial Success | Partial | |
| Da Zhong Investment Pte Ltd | Defendant | Corporation | |||
| Ong Hoo Kim Constructions (Pte) Ltd | Defendant | Corporation | |||
| Falcon Piling Pte Ltd | Defendant | Corporation | |||
| Trevi Contractors (S) Pte Ltd | Defendant | Corporation | Won | Won | |
| Chin Kok Kwong Design and Build Pte Ltd | Defendant | Corporation | Partial Win | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Judith Prakash | Judge | Yes |
4. Counsels
4. Facts
- Afro-Asia Shipping sued Da Zhong Investment, Trevi, and CKK for damages to AA Building.
- Trevi initially intended to call seven witnesses but elected not to present evidence after the plaintiffs closed their case.
- The plaintiffs prepared to cross-examine Trevi's witnesses, incurring costs for reviewing 17,000 pages of documents.
- The plaintiffs only proved a minor portion of their claim against CKK, relating to damage to the roof of AA Building.
- Trevi made an offer to settle, offering $5,000 to the plaintiffs, but the plaintiffs rejected it.
- The plaintiffs sought indemnity costs from Trevi for preparing to cross-examine witnesses who were not called.
- The plaintiffs sought to recover unrefunded hearing fees from Trevi and CKK due to their election not to call evidence.
5. Formal Citations
- Afro-Asia Shipping Co (Pte) Ltd v Da Zhong Investment Pte Ltd and Others (No 2), Suit 352/2001, [2004] SGHC 105
- Afro-Asia Shipping Co (Pte) Ltd v Da Zhong Investment Pte Ltd and Others, , [2004] 2 SLR 117
6. Timeline
| Date | Event |
|---|---|
| Suit filed (Suit 352/2001) | |
| Trial began | |
| Plaintiffs served a formal offer to settle on Trevi | |
| Plaintiffs' case closed | |
| First three defendants opened their joint defence | |
| Case adjourned part heard for the second time | |
| Trevi filed an application to strike out the plaintiffs’ claim against them | |
| Trial resumed | |
| First to third defendants concluded their case | |
| Judgment issued dealing with the substantive issues in the case | |
| Parties appeared before the court on the issue of costs | |
| Parties appeared before the court on the issue of costs | |
| Plaintiffs filed supplementary submissions | |
| Judgment reserved |
7. Legal Issues
- Allocation of Costs
- Outcome: The court determined the allocation of costs between the parties, considering the defendants' election not to call witnesses, the reasonableness of the offer to settle, and the extent of the plaintiffs' success.
- Category: Procedural
- Sub-Issues:
- Principles for awarding costs
- Impact of defendants electing not to call witnesses
- Reasonableness of offer to settle
- Proportionality of costs to success
- Offer to Settle
- Outcome: The court found that Trevi's offer to settle was not a reasonable or genuine one and did not contain any element that could have induced a settlement.
- Category: Procedural
- Sub-Issues:
- Reasonableness of offer
- Genuine attempt at settlement
- Inducement to settle
- Related Cases:
- [1999] 1 SLR 661
- [2001] 1 SLR 532
8. Remedies Sought
- Costs
- Indemnity Costs
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Litigation
11. Industries
- Shipping
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| The Endurance 1 | Court of Appeal | Yes | [1999] 1 SLR 661 | Singapore | Cited for the principle that an offer to settle must be serious and genuine to attract costs consequences under Order 22A. |
| Singapore Airlines Ltd v Fujitsu Microelectronics (Malaysia) Sdn Bhd (No 2) | Unknown | Yes | [2001] 1 SLR 532 | Singapore | Cited for the principle that an effective offer to settle must contain an element that would induce or facilitate settlement. |
| Oksuzoglu v Kay | English Court of Appeal | Yes | [1998] 2 All ER 361 | England and Wales | Cited for the principle that the court should determine who was essentially the winning party when the plaintiff recovers a small percentage of the original claim. |
| Re Elgindata Ltd (No 2) | Unknown | Yes | [1993] 1 All ER 232 | England and Wales | Cited as a case to be applied with caution when determining costs where the plaintiff fails on the major claim but succeeds on a minor claim. |
| Beoco Ltd v Alfa Laval Co Ltd | Unknown | Yes | [1994] 4 All ER 464 | England and Wales | Cited for the principle that the court should consider who was substantially the successful party when the plaintiff recovers a small portion of the original claim. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Order 35 r 4(3) Rules of Court | Singapore |
| Order 59 r 3(2) Rules of Court | Singapore |
| Order 22A r 9(3) Rules of Court | Singapore |
| Rules of Court (Cap 332, R 5, 2004 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Costs
- Indemnity Basis
- Offer to Settle
- Hearing Fees
- Election Not to Call Evidence
- Rules of Court
- Substantive Issues
- Minor Portion of Claim
- Successful Party
- Assessment of Damages
15.2 Keywords
- costs
- offer to settle
- hearing fees
- election not to call evidence
- indemnity costs
- civil procedure
- Afro-Asia Shipping
- Da Zhong Investment
- Trevi Contractors
- Chin Kok Kwong
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Costs | 95 |
| Civil Practice | 75 |
| Contract Law | 10 |
16. Subjects
- Civil Procedure
- Costs Allocation