Burswood Nominees Ltd v Liao Eng Kiat: Enforceability of Foreign Wagering Contract in Singapore
In Burswood Nominees Ltd v Liao Eng Kiat, the High Court of Singapore addressed the enforceability of a Western Australian judgment in Singapore. Burswood Nominees Ltd sought to register a judgment obtained in Western Australia against Liao Eng Kiat, a patron of their casino, for a dishonored cheque. The court, Lai Siu Chiu J, dismissed Liao Eng Kiat's appeal, holding that enforcing the foreign judgment did not violate Singapore's public policy, as the original transaction was deemed a loan for gambling purposes, and the doctrine of comity of nations should be respected.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court considers whether a foreign judgment based on a wagering contract is enforceable, balancing public policy and comity.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Liao Eng Kiat | Respondent | Individual | Appeal dismissed | Lost | Jeanny Ng of Jeanny Ng |
| Burswood Nominees Ltd (formerly Burswood Nominees Pty Ltd) | Applicant | Corporation | Appeal dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Siu Chiu | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Jeanny Ng | Jeanny Ng |
| Sharon Tay | Donaldson and Burkinshaw |
4. Facts
- Burswood Nominees Ltd sought to register a Western Australian judgment against Liao Eng Kiat.
- Liao Eng Kiat was a patron of the Burswood International Resort Casino.
- Liao Eng Kiat signed a cheque cashing facility agreement with the Casino.
- Liao Eng Kiat delivered a cheque for S$52,900 to the Casino in exchange for a A$50,000 voucher.
- Liao Eng Kiat exchanged the voucher for gaming chips and lost the entire sum.
- The cheque was dishonored by United Overseas Bank Limited.
- Burswood Nominees Ltd sued Liao Eng Kiat in Western Australia and obtained a default judgment.
5. Formal Citations
- Burswood Nominees Ltd (formerly Burswood Nominees Pty Ltd) v Liao Eng Kiat, OS 1217/2003/F, [2004] SGHC 64
6. Timeline
| Date | Event |
|---|---|
| Respondent signed a cheque cashing facility agreement with the Casino. | |
| Respondent delivered a cheque to the applicants in exchange for a voucher in the sum of A$50,000. | |
| Applicants presented the cheque to UOB for payment. | |
| UOB dishonored the cheque. | |
| Respondent asked for time to pay the advances. | |
| Western Australian courts granted leave to issue a writ for service outside jurisdiction. | |
| Notice of the writ of summons was effected on the respondent at his Singapore residence. | |
| Applicants obtained judgment in default of appearance against the respondent. | |
| Costs were taxed at A$2,765.28. | |
| Applicants obtained a certificate from the Western Australian courts. | |
| Applicants applied to register the Judgment in Singapore. | |
| The originating summons was granted an order in terms by the Registrar. | |
| Respondent applied to set aside the order of court dated 26 August 2003 and the registration of the Judgment. | |
| The learned assistant registrar dismissed the respondent’s application. | |
| Registrar’s Appeal No 378 of 2003 came up for hearing. | |
| Leave granted to file a notice of appeal. | |
| Appeal dismissed. |
7. Legal Issues
- Enforceability of Foreign Judgment
- Outcome: The court held that the foreign judgment was enforceable in Singapore.
- Category: Substantive
- Validity of Wagering Contract
- Outcome: The court held that the transaction was a loan, not a wagering contract, and therefore not barred by Section 5 of the Civil Law Act.
- Category: Substantive
- Public Policy Considerations
- Outcome: The court held that enforcing the foreign judgment did not violate Singapore's public policy.
- Category: Substantive
8. Remedies Sought
- Registration of Foreign Judgment
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Enforcement of Foreign Judgment
10. Practice Areas
- Commercial Litigation
- Enforcement of Foreign Judgments
11. Industries
- Gambling
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Star City Pty Ltd v Tan Hong Woon | High Court | Yes | [2001] 3 SLR 206 | Singapore | Distinguished from the present case; cited regarding the principle that Singapore courts will not enforce gambling debts disguised as loans. |
| Star City Pty Ltd v Tan Hong Woon | Court of Appeal | Yes | [2002] 2 SLR 22 | Singapore | Distinguished from the present case; cited regarding the principle that Singapore courts will not enforce gambling debts disguised as loans. |
| Star Cruise Services Ltd v Overseas Union Bank Ltd | High Court | Yes | [1999] 3 SLR 412 | Singapore | Cited for the principle that courts should not be used to enforce gambling debts disguised as loans. |
| Las Vegas Hilton Corp v Khoo Teng Hock Sunny | High Court | Yes | [1997] 1 SLR 341 | Singapore | Distinguished from Star City Pty Ltd v Tan Hong Woon; cited as an example where a casino was allowed to recover money lent for gambling. |
| The Aspinall Curzon Ltd v Khoo Teng Hock | High Court | Yes | [1991] 2 MLJ 484 | Malaysia | Cited as a case where a Malaysian court allowed the registration of a UK judgment obtained by an English casino. |
| Auerbach v Resorts International Hotel Inc | Quebec Court of Appeal | Yes | (1991) 89 DLR (4th) 688 | Canada | Cited for the principle that it would be contrary to public policy to allow gamblers to refuse to pay debts they had previously contracted. |
| Boardwalk Regency Corp v Maalouf | Unknown | Yes | (1992) 88 DLR (4th) 612 | Canada | Cited in the same vein as Auerbach v Resorts International Hotel Inc. |
| MGM Grand Hotel Inc v Kiani | Unknown | Yes | [1998] 5 WWR 118 | Canada | Cited in the same vein as Auerbach v Resorts International Hotel Inc. |
| Hill v William Hill (Park Lane) Ltd | House of Lords | Yes | [1949] AC 530 | United Kingdom | Quoted regarding the interpretation of the Gaming Act 1845. |
| Loh Chee Song v Liew Yong Chian | High Court | Yes | [1998] 2 SLR 641 | Singapore | Cited for adopting the reasoning that a credit facility extended by a casino is enforceable as a loan. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 322, R 5, 1997 Rev Ed) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Civil Law Act (Cap 43, 1999 Rev Ed) | Singapore |
| Reciprocal Enforcement of Commonwealth Judgments Act (Cap 264, 1985 Rev Ed) | Singapore |
| Casino Control Act 1984 | Western Australia |
| Supreme Court Act 1935 | Western Australia |
| Foreign Judgments (Reciprocal Enforcement) Act 1963 | Western Australia |
| Gaming Act 1945 | United Kingdom |
15. Key Terms and Keywords
15.1 Key Terms
- Wagering Contract
- Cheque Cashing Facility
- Comity of Nations
- Public Policy
- Foreign Judgment
- Gaming Chips
- Dishonored Cheque
- Loan
- Casino
- Voucher
15.2 Keywords
- Foreign Judgment
- Enforcement
- Wagering Contract
- Casino
- Singapore
- Australia
- Public Policy
- Comity
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Casinos and Gambling | 75 |
| Civil Procedure | 70 |
| Judgments and Orders | 65 |
| Enforcement of Foreign Judgments | 60 |
| Conventions | 50 |
| International Law | 40 |
| Commercial Law | 35 |
| Banking Law | 30 |
| Guarantee | 25 |
16. Subjects
- Conflict of Laws
- Gaming Law
- Civil Procedure
- Contract Law