Herbst Ehud v Sampoerna Putera: Forum Non Conveniens & Stay of Proceedings
In Herbst Ehud v Sampoerna Putera, the High Court of Singapore heard an appeal by the defendants, Sampoerna Putera and Albert Balthasar Kloti, against the dismissal of their application for a stay of proceedings in favor of Indonesia based on forum non conveniens. The plaintiff, Herbst Ehud, claimed US$250,000 from the defendants based on a refund agreement and breach of warranty of authority. Tay Yong Kwang J dismissed the defendants' appeal, finding that the defendants failed to demonstrate that Indonesia was a clearly more appropriate forum than Singapore. The court ordered the defendants to pay costs to the plaintiff.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Defendants’ appeal dismissed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding stay of proceedings in favor of Indonesia based on forum non conveniens. The court dismissed the appeal, finding Singapore to be the appropriate forum.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Herbst Ehud | Plaintiff | Individual | Appeal allowed | Won | |
| Sampoerna Putera | Defendant, Appellant | Individual | Appeal dismissed | Lost | |
| Albert Balthasar Kloti | Defendant, Appellant | Individual | Appeal dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tay Yong Kwang | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Alvin Tan | Wong Thomas and Leong |
| Tan Yah Piang | Wong Thomas and Leong |
| Andrew Ong | Rajah and Tann |
4. Facts
- Plaintiff claimed US$250,000 pursuant to a refund agreement.
- Plaintiff claimed damages for breach of warranty of authority.
- Plaintiff claimed an account of the sale of certain shares.
- The defendants applied for a stay of proceedings in favour of Indonesia.
- The plaintiff is an Israeli citizen.
- The first defendant is a prominent Indonesian businessman.
- The second defendant is said to be a member of the first defendant’s inner circle of advisors.
5. Formal Citations
- Herbst Ehud v Sampoerna Putera and Another, Suit 255/2004, RA 218/2004, [2004] SGHC 236
6. Timeline
| Date | Event |
|---|---|
| First defendant asked by the Indonesian government to help improve the country’s agricultural sector. | |
| Plaintiff engaged by the Sampoerna group as a consultant. | |
| Contemplated finalization of the joint venture agreement. | |
| PT Sampoerna Agro and PT Indo Nature established. | |
| Second defendant asked the plaintiff for US$250,000 as capital contribution. | |
| Plaintiff and second defendant agreed to the refund agreement. | |
| Plaintiff remitted US$176,743 to the nominated account. | |
| Discussions took place among the partners to explore ways for the Sampoerna family to divest its interests in the joint venture. | |
| Plaintiff’s appointment as deputy managing director of PTSA was terminated. | |
| Notice of termination of service given to the plaintiff in Lombok, Indonesia. | |
| Plaintiff asked about his ideas for turning the farm business around. | |
| Second defendant informed the plaintiff that he was not entitled to a refund of the US$250,000. | |
| Sampoerna family sold its entire shareholding in PTSA to a third party. | |
| Second defendant sold the shares in PTSA and/or the farm business without the knowledge or consent of the plaintiff. | |
| Appeal dismissed with costs. |
7. Legal Issues
- Stay of Proceedings
- Outcome: The court dismissed the appeal for a stay of proceedings, finding that the defendants failed to demonstrate that Indonesia was a clearly more appropriate forum than Singapore.
- Category: Procedural
- Sub-Issues:
- Forum non conveniens
- Related Cases:
- [1995] 3 SLR 97
- [1998] 1 SLR 253
- [2002] 4 SLR 667
8. Remedies Sought
- Monetary Damages
- Account of Profits
9. Cause of Actions
- Breach of Contract
- Breach of Warranty of Authority
- Breach of Trust
10. Practice Areas
- Litigation
11. Industries
- Agriculture
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Eng Liat Kiang v Eng Bak Hern | Court of Appeal | Yes | [1995] 3 SLR 97 | Singapore | Cited for the principle that a stay will only be granted on the ground of forum non conveniens where there is another available and appropriate forum, and the burden of proof rests on the defendant to show that the other forum is clearly more appropriate. |
| Oriental Insurance Co Ltd v Bhavani Stores Pte Ltd | Court of Appeal | Yes | [1998] 1 SLR 253 | Singapore | Cited as a case that followed the decision in Eng Liat Kiang v Eng Bak Hern regarding the principles of forum non conveniens. |
| Praptono Honggopati Tjitrohupojo v His Royal Highness Tunku Ibrahim Ismail Ibni Sultan Iskandar Al-Haj | High Court | No | [2002] 4 SLR 667 | Singapore | Cited for a proposition regarding the balance of justice between parties in forum non conveniens cases, but the court noted that the proposition appeared to contradict the principles stated in Eng Liat Kiang v Eng Bak Hern. |
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
- Forum non conveniens
- Stay of proceedings
- Refund agreement
- Joint venture
- Capital contribution
- Breach of warranty of authority
15.2 Keywords
- Forum non conveniens
- Stay of proceedings
- Singapore
- Indonesia
- Civil procedure
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Forum Non Conveniens | 90 |
| Natural forum | 80 |
| Civil Practice | 75 |
| Jurisdiction | 70 |
| Contract Law | 60 |
16. Subjects
- Civil Procedure
- Conflict of Laws