Smart Modular Technologies v Federal Express: Contract of Carriage & Bailment Dispute
Smart Modular Technologies Sdn Bhd and Sun Technosystems Pte Ltd sued Federal Express (Singapore) Pte Ltd in the High Court of Singapore, with Judith Prakash J presiding, for the loss of a consignment of memory modules. Smart Modular Technologies withdrew from the action. Sun Tech claimed Federal Express was liable as a carrier and/or bailee. The court found no contract of carriage or bailment relationship existed between Sun Tech and Federal Express, dismissing Sun Tech's claim with costs.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Sun Tech’s claim must be dismissed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment reserved
1.5 Jurisdiction
Singapore
1.6 Description
Malaysian company Smart Modular Technologies sues Federal Express for loss of goods. Court finds no contract or bailment relationship existed.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Smart Modular Technologies Sdn Bhd | Plaintiff | Corporation | Withdrew from action | Withdrawn | Goh Kok Leong, Gan Seng Chee, Anna Quah |
| Sun Technosystems Pte Ltd | Plaintiff | Corporation | Claim Dismissed | Dismissed | Goh Kok Leong, Gan Seng Chee, Anna Quah |
| Federal Express (Singapore) Pte Ltd | Defendant | Corporation | Judgment for Defendant | Won | Charles Lin Ming Khin, Twang Kern Zern |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Judith Prakash | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Goh Kok Leong | Ang and Partners |
| Gan Seng Chee | Ang and Partners |
| Anna Quah | Ang and Partners |
| Charles Lin Ming Khin | Donaldson and Burkinshaw |
| Twang Kern Zern | Donaldson and Burkinshaw |
4. Facts
- Smart is a Malaysian company manufacturing electronic components.
- Sun Tech is a Singaporean company purchasing memory modules from Smart.
- Federal Express (Singapore) is a freight forwarder.
- FedEx M is a Malaysian freight forwarder with a branch in Penang.
- Sun Tech had an account with Federal Express (Singapore).
- Smart was instructed to contact FedEx in Malaysia for collections.
- A consignment of memory modules was hijacked after pick-up by FedEx M.
- The goods were purchased on Free on Board terms.
5. Formal Citations
- Smart Modular Technologies Sdn Bhd and Another v Federal Express (Singapore) Pte Ltd, Suit 260/2002, [2004] SGHC 139
6. Timeline
| Date | Event |
|---|---|
| Sun Tech started buying memory modules from Smart. | |
| Sun Tech placed an order with Smart for memory modules. | |
| Smart accepted Sun Tech's order. | |
| Goods were ready for shipment to Sun Tech. | |
| Smart issued its invoice to Sun Tech. | |
| FedEx M picked up the package from Smart’s factory. | |
| The FedEx M truck was hijacked and the goods stolen. | |
| Defendant's original defence filed. | |
| Defendant's amended defence filed. | |
| Defendant's defence further amended. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that there was no contract between Sun Tech and Federal Express (Singapore) Pte Ltd.
- Category: Substantive
- Bailment
- Outcome: The court found that Federal Express (Singapore) Pte Ltd was not the bailee of the goods.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Negligence
10. Practice Areas
- Commercial Litigation
11. Industries
- Manufacturing
- Logistics
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| The Proprietors of the Cork Distilleries Company v The Directors, &c, of the Great Southern and Western Railway Company (Ireland) | House of Lords | Yes | (1874) LR 7 HL 269 | Ireland | Cited for the principle that the contract of carriage is between the carrier and the consignee when goods are consigned with the consignee's knowledge and consent, and the consignee is responsible for freight payment. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Evidence Act (Cap 97, 1997 Rev Ed) | Singapore |
| Sale of Goods Act (Cap 393, 1999 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Freight Forwarder
- Bailment
- Carriage of Goods
- Air Waybill
- Reverse Pick-Up Arrangement
- Free on Board
- Consignee
- Consignor
15.2 Keywords
- freight forwarder
- bailment
- carriage of goods
- contract
- Federal Express
- Smart Modular Technologies
- Sun Technosystems
16. Subjects
- Contract Law
- Bailment
- Transportation Law
17. Areas of Law
- Bailment
- Carriage of Goods by Air
- Contract Law