Chan Hong Seng Engineering v Vatten International: Subcontract Dispute Over Seletar Sewage Treatment Works

In a dispute between Chan Hong Seng Engineering and Construction Pte Ltd (CHS), the sub-subcontractor, and Vatten International Pte Ltd (Vatten), the subcontractor, regarding painting work for the Seletar Sewage Treatment Works, the High Court of Singapore, presided over by Senior Assistant Registrar Thian Yee Sze, assessed damages following a prior judgment by Judith Prakash J. CHS sued Vatten for wrongful termination, while Vatten counterclaimed for breach of contract. The court determined the amount payable to CHS for work done until contract repudiation and the damages owed to Vatten for CHS's breach, ultimately finding CHS liable to pay Vatten $84,371.06.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Amount payable by Chan Hong Seng Engineering and Construction Pte Ltd to Vatten International Pte Ltd was assessed at $84,371.06.

1.3 Case Type

Civil

1.4 Judgment Type

Assessment of Damages

1.5 Jurisdiction

Singapore

1.6 Description

Subcontract dispute over painting work at Seletar Sewage Treatment Works. Court assessed damages after wrongful termination claim and counterclaim.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Chan Hong Seng Engineering and Construction Pte LtdPlaintiffCorporationDamages payable to Vatten International Pte LtdLost
Vatten International Pte LtdDefendantCorporationDamages awardedWon

3. Judges

Judge NameTitleDelivered Judgment
Thian Yee SzeSenior Assistant RegistrarYes

4. Counsels

Counsel NameOrganization
Tan Liam BengDrew and Napier
Yow Su JoanDrew and Napier
Ginny TanWee Tay and Lim
K RajendranWee Tay and Lim

4. Facts

  1. Hyundai Engineering & Construction Co Ltd was the main contractor for the Seletar Sewage Treatment Works project.
  2. Vatten International Pte Ltd was the painting subcontractor for $1,562,117.62.
  3. Chan Hong Seng Engineering and Construction Pte Ltd was the sub-subcontractor for $1,253,113.
  4. Vatten International Pte Ltd called on the bond furnished by Chan Hong Seng Engineering and Construction Pte Ltd for $60,000.
  5. Vatten International Pte Ltd terminated the subcontract with Chan Hong Seng Engineering and Construction Pte Ltd on 18 October 2000.
  6. Chan Hong Seng Engineering and Construction Pte Ltd stopped work on 5 October 2000.
  7. Vatten International Pte Ltd engaged Tech-3 International to complete and rectify Chan Hong Seng Engineering and Construction Pte Ltd's work for $275,000.

5. Formal Citations

  1. Chan Hong Seng Engineering and Construction Pte Ltd v Vatten International Pte Ltd, Suit 1062/2000/D, NA 43/2003, [2004] SGHC 62

6. Timeline

DateEvent
Chan Hong Seng Engineering and Construction Pte Ltd stopped work.
Vatten International Pte Ltd called on the bond furnished by Chan Hong Seng Engineering and Construction Pte Ltd.
Vatten International Pte Ltd terminated the subcontract with Chan Hong Seng Engineering and Construction Pte Ltd.
Judgment by Judith Prakash J.
Assessment of damages by Senior Assistant Registrar Thian Yee Sze.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that Chan Hong Seng Engineering and Construction Pte Ltd repudiated the contract, and Vatten International Pte Ltd was entitled to damages.
    • Category: Substantive
    • Sub-Issues:
      • Repudiation of contract
      • Wrongful termination

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Wrongful Termination

10. Practice Areas

  • Commercial Litigation
  • Construction Disputes

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

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

  • Subcontract
  • Repudiation
  • Wrongful Termination
  • Assessment of Damages
  • Seletar Sewage Treatment Works
  • Interim Certificate
  • Spark Tests

15.2 Keywords

  • Construction
  • Subcontract
  • Breach of Contract
  • Damages
  • Singapore
  • Seletar Sewage Treatment Works

17. Areas of Law

Area NameRelevance Score
Assessment of Damages95
Damages90
Contract Law85
Construction Law80
Breach of Contract75
Construction70
Subcontracting65

16. Subjects

  • Construction Dispute
  • Contract Law
  • Subcontracting