Wishing Star Ltd v Jurong Town Corp: Misrepresentation, Contract Breach & Damages

In Wishing Star Ltd v Jurong Town Corp, the High Court of Singapore heard a case where Wishing Star Ltd, a façade cladding contractor, sued Jurong Town Corp for wrongful termination of a contract for façade works on the Biopolis project. Jurong Town Corp counterclaimed for damages, alleging misrepresentation and breach of contract. The court, presided over by Justice Choo Han Teck, ruled in favor of Wishing Star Ltd, finding that Jurong Town Corp was not induced by the alleged misrepresentations to enter the contract and had affirmed the contract despite knowledge of the misrepresentations. The issue of breach of contract was deferred for later determination.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff; the court found that the defendant was not induced into the contract by any of the representations that had been found to be untrue, and further, that in the event, the defendant had, by its conduct, elected to affirm the contract after it had full notice of the facts and its rights in law.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Wishing Star Ltd sues Jurong Town Corp for wrongful termination. Jurong Town Corp counterclaims for damages due to misrepresentation and breach of contract.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Jurong Town CorpDefendantStatutory BoardCounterclaim DismissedLost
Wishing Star LtdPlaintiffCorporationJudgment for PlaintiffWon

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudgeYes

4. Counsels

Counsel NameOrganization
Ng Lip ChihAllen and Gledhill
Ho Chien MienAllen and Gledhill
J. SathiaseelanAllen and Gledhill
K Shanmugam SCAllen and Gledhill
Karen TeohAllen and Gledhill
Eugene TanDrew and Napier LLC
Christopher Chuah Chee KianDrew and Napier LLC
Tan Liam BengDrew and Napier LLC

4. Facts

  1. Wishing Star Ltd was engaged by Jurong Town Corp for façade works in the Biopolis project.
  2. Jurong Town Corp terminated the contract, alleging misrepresentation and breach of contract by Wishing Star Ltd.
  3. Wishing Star Ltd's tender was the lowest among the competitors.
  4. JCPL recommended Wishing Star Ltd despite objections from Samsung.
  5. The alleged misrepresentations were contained in the tender documents.
  6. JCPL and defendant members visited the plaintiff's facilities in China and found them inadequate.
  7. Samsung raised concerns about Wishing Star Ltd's capabilities from the beginning.

5. Formal Citations

  1. Wishing Star Ltd v Jurong Town Corp (No 2), Suit 31/2003, [2004] SGHC 255

6. Timeline

DateEvent
Plaintiff submitted its tender document
Contract stipulated that the plaintiff had to commence work
Defendant issued letter of award through JCPL
JCPL made a trip to China to examine the plaintiff’s facilities
JCPL made a second trip to China to examine the plaintiff’s facilities
Defendant’s senior officers made a trip to inspect the plaintiff’s facilities
Defendant terminated the appointment on the ground of misrepresentation and breach of contract by the plaintiff
Decision Date

7. Legal Issues

  1. Misrepresentation
    • Outcome: The court found that the defendant was not induced into the contract by any of the representations that had been found to be untrue.
    • Category: Substantive
    • Sub-Issues:
      • Inducement
      • Right to rescind
      • Affirmation of contract
    • Related Cases:
      • [2004] SGHC 255
      • Horsfall v Thomas (1862) 1 H & C 90; 158 ER 813
      • Avon Insurance plc v Swire Fraser Ltd [2000] 1 All ER (Comm) 573
      • Motor Oil Hellas (Corinth) Refineries SA v Shipping Corporation of India (The Kanchenjunga) [1990] 1 Lloyd’s Rep 391
      • Peyman v Lanjani [1985] Ch 457
      • Evans v Bartlam [1937] AC 473
  2. Breach of Contract
    • Outcome: The issue of breach of contract was deferred for later determination.
    • Category: Substantive

8. Remedies Sought

  1. Damages

9. Cause of Actions

  • Wrongful Termination
  • Misrepresentation
  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Construction Law

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Horsfall v ThomasCourt of ExchequerYesHorsfall v Thomas (1862) 1 H & C 90; 158 ER 813England and WalesCited for the principle that a misrepresentation must induce the contract to be effective.
Avon Insurance plc v Swire Fraser LtdHigh CourtYesAvon Insurance plc v Swire Fraser Ltd [2000] 1 All ER (Comm) 573England and WalesCited as an example of a complex case where misrepresentation was difficult to prove due to the complexity of the facts.
Motor Oil Hellas (Corinth) Refineries SA v Shipping Corporation of India (The Kanchenjunga)House of LordsYesMotor Oil Hellas (Corinth) Refineries SA v Shipping Corporation of India (The Kanchenjunga) [1990] 1 Lloyd’s Rep 391England and WalesCited for the state of the law concerning the doctrine of election, applicable in cases of misrepresentation and breach of contract.
Peyman v LanjaniCourt of AppealYesPeyman v Lanjani [1985] Ch 457England and WalesCited regarding the knowledge required to rescind a contract, specifically whether knowledge of the facts alone is sufficient or if knowledge of the right to rescind is also necessary.
Evans v BartlamHouse of LordsYesEvans v Bartlam [1937] AC 473England and WalesCited regarding the knowledge required to rescind a contract, specifically whether knowledge of the facts alone is sufficient or if knowledge of the right to rescind is also necessary.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Jurong Town Corporation Act (Cap 150, 1998 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Façade Works
  • Biopolis
  • Misrepresentation
  • Repudiation
  • Termination
  • Election
  • Affirmation
  • Tender Documents
  • Critical Criteria
  • Other Criteria
  • Superintending Officer
  • Nominated Sub-Contractor

15.2 Keywords

  • contract
  • misrepresentation
  • breach of contract
  • construction
  • Singapore
  • wrongful termination
  • damages
  • facade works
  • Biopolis

17. Areas of Law

Area NameRelevance Score
Misrepresentation95
Contract Law90
Breach of Contract75
Damages60
Wrongful Termination50
Election or Affirmation40

16. Subjects

  • Contract Law
  • Misrepresentation
  • Construction Law
  • Civil Litigation