Polar Arts v Hotline KTV: Assessment of Damages for Water Damage to Qing Dynasty Scrolls

In the High Court of Singapore, Senior Assistant Registrar Thian Yee Sze assessed damages in the case of Polar Arts of Asia Pte Ltd v Hotline KTV Karaoke Lounge Pte Ltd and Overseas Union Insurance Ltd, dated 8 March 2004. The claim arose from water leakage from Hotline KTV's premises damaging 57 Chinese ancestral scrolls owned by Polar Arts. The court assessed the loss of market value of the paintings at S$190,525 and awarded special damages of S$18,555.75, totaling S$209,080.75, with interest. The court found that Polar Arts' inaction in selling the damaged paintings was not a failure to mitigate damages.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Damages assessed for the plaintiff.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Assessment of damages for water damage to Chinese ancestral scrolls. The court assessed the loss of market value at S$190,525 plus special damages.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Polar Arts of Asia Pte LtdPlaintiffCorporationJudgment for PlaintiffWonWee Jee Kin
Hotline KTV Karaoke Lounge Pte LtdDefendantCorporationJudgment in DefaultLost
Overseas Union Insurance LtdDefendantCorporationDamages AssessedLostLiew Teck Huat, Chua Hwee Ping

3. Judges

Judge NameTitleDelivered Judgment
Thian Yee SzeSenior Assistant RegistrarYes

4. Counsels

Counsel NameOrganization
Wee Jee KinBogaars & Din
Liew Teck HuatNiru & Co
Chua Hwee PingNiru & Co

4. Facts

  1. Plaintiffs operate an art gallery selling Chinese ancestral scrolls.
  2. First defendants operate a karaoke lounge above the plaintiffs' gallery.
  3. Second defendants are the first defendants' insurers.
  4. Water leakage from the first defendants' premises damaged 57 Chinese ancestral scrolls.
  5. Second defendants repudiated liability under their policy.
  6. Plaintiffs commenced action against the first defendants, and judgment in default was entered.
  7. Second defendants were joined to participate in the assessment of damages.

5. Formal Citations

  1. Polar Arts of Asia Pte Ltd v Hotline KTV Karaoke Lounge Pte Ltd and Another, Suit 1105/2002, [2004] SGHC 53

6. Timeline

DateEvent
Plaintiffs discovered water leakage damaging Chinese ancestral scrolls.
Second defendants repudiated liability under their policy.
Plaintiffs commenced action against the first defendants.
Judgment in default of appearance entered against first defendants.
Second defendants applied to be joined as defendants.
Court granted order for second defendants to be joined.
Damages assessed.

7. Legal Issues

  1. Assessment of Damages
    • Outcome: The court assessed damages to be awarded to the plaintiffs in the sum of S$209,080.75, with interest.
    • Category: Substantive
    • Related Cases:
      • [1880] 5 AppCas 25
      • [1859] Swab 441
  2. Mitigation of Losses
    • Outcome: The court found that the plaintiffs' inaction in selling the damaged paintings was not tantamount to them not mitigating their damages.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Negligence
  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Arts
  • Entertainment

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Livingstone v Wawyards Coal CoN/AYes[1880] 5 AppCas 25N/ACited for the principle of restitutio in integrum in assessing tortious damages.
The IronmasterN/AYes[1859] Swab 441N/ACited for guidance on determining market value in the absence of a clear market.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Chinese ancestral scrolls
  • Water damage
  • Assessment of damages
  • Restitutio in integrum
  • Market value
  • Reserve price
  • Mitigation of losses

15.2 Keywords

  • Chinese ancestral scrolls
  • water damage
  • damages assessment
  • art gallery
  • karaoke lounge

16. Subjects

  • Damages
  • Torts
  • Insurance

17. Areas of Law

  • Tort Law
  • Insurance Law
  • Art Law
  • Civil Procedure