Raffles Town Club v Tan Chin Seng: Damages for Breach of Contract & Club Membership Value
The Singapore Court of Appeal heard cross-appeals in Raffles Town Club Pte Ltd v Tan Chin Seng and Others regarding the assessment of damages for breach of contract. The plaintiffs, founder members of Raffles Town Club (RTC), claimed damages for the club's failure to provide a premier club experience due to over-subscription of memberships. The court allowed the plaintiffs' appeal in part, awarding damages of $3,000 per plaintiff for the diminution in value of their club memberships, and allowed the defendant's appeal in part, removing the compensation awarded under the second head of claim.
1. Case Overview
1.1 Court
Court of Appeal1.2 Outcome
Appeal Allowed in Part
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The Court of Appeal addressed damages for Raffles Town Club's breach of contract, specifically regarding the diminution in value of club memberships.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Raffles Town Club Pte Ltd | Appellant, Respondent | Corporation | Appeal Allowed in Part | Partial | |
| Tan Chin Seng | Respondent, Appellant | Individual | Appeal Allowed in Part | Partial | |
| Lee Ah Sim Alan | Respondent, Appellant | Individual | Appeal Allowed in Part | Partial | |
| Wong Leong Thong Peter | Respondent, Appellant | Individual | Appeal Allowed in Part | Partial | |
| Kong Cheong Hin Steven | Respondent, Appellant | Individual | Appeal Allowed in Part | Partial | |
| Chia Ee Lin Evelyn | Respondent, Appellant | Individual | Appeal Allowed in Part | Partial | |
| Liu Hui Nan | Respondent, Appellant | Individual | Appeal Allowed in Part | Partial | |
| Lim Choo | Respondent, Appellant | Individual | Appeal Allowed in Part | Partial | |
| Ng Cheng Hwa | Respondent, Appellant | Individual | Appeal Allowed in Part | Partial | |
| Meta Mui Khim Irene | Respondent, Appellant | Individual | Appeal Allowed in Part | Partial | |
| Yong Kah Teck | Respondent, Appellant | Individual | Appeal Allowed in Part | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chao Hick Tin | Justice of the Court of Appeal | Yes |
| Lai Siu Chiu | Judge | No |
| Tan Lee Meng | Judge | No |
4. Counsels
4. Facts
- Plaintiffs were founder members of Raffles Town Club (RTC).
- RTC's promotional material promised a premier club experience.
- The club admitted approximately 19,000 members, far exceeding initial expectations.
- Plaintiffs were unaware of the large membership size until March 2001.
- The increased membership led to overcrowding and reduced accessibility to club facilities.
- The market value of RTC memberships declined significantly after the disclosure of the large membership size.
5. Formal Citations
- Raffles Town Club Pte Ltd v Tan Chin Seng, CA 23/2005, 28/2005, [2005] SGCA 40
6. Timeline
| Date | Event |
|---|---|
| Club opened its premises to members | |
| Disclosure of the Club having close to 19,000 members | |
| Judgment reserved |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that the defendant breached the implied term of the contract to provide a premier club.
- Category: Substantive
- Sub-Issues:
- Failure to provide premier club
- Over-subscription of memberships
- Assessment of Damages
- Outcome: The court awarded damages for the diminution in value of the club membership due to the breach, but disallowed additional damages for loss of amenities to avoid double compensation.
- Category: Substantive
- Sub-Issues:
- Diminution in value of club membership
- Loss of amenities, accessibility and enjoyment
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Recreation
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Raffles Town Club Pte Ltd v Tan Chin Seng | High Court | Yes | [2005] 2 SLR 302 | Singapore | Refers to the High Court's assessment of damages, which was appealed in this case. |
| Raffles Town Club Pte Ltd v Tan Chin Seng | Court of Appeal | Yes | [2003] 3 SLR 307 | Singapore | The first appeal where the defendant was held liable for breach of contract. The current judgment refers to the facts and findings of this earlier decision. |
| Robinson v Harman | Court of Exchequer | Yes | (1848) 1 Exch 850; 154 ER 363 | England and Wales | Cited for the principle that damages for breach of contract should place the injured party in the same position as if the contract had been performed. |
| Biggin & Co Ltd v Permanite Ltd | King's Bench | Yes | [1951] 1 KB 422 | England and Wales | Cited for the principle that the court must do its best to determine damages even when clear proof is not possible. |
| Chaplin v Hicks | Court of Appeal | Yes | [1911] 2 KB 786 | England and Wales | Cited for the principle that the fact that damages cannot be assessed with certainty does not relieve the wrongdoer of the necessity of paying damages for breach of contract. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 322, R 5, 2004 Rev Ed) O 15 r 12(1) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Premier club
- Diminution in value
- Breach of contract
- Club membership
- Assessment of damages
- Eight-club index
- Market value
- Membership size
15.2 Keywords
- Breach of contract
- Damages
- Club membership
- Raffles Town Club
- Diminution in value
- Singapore
- Court of Appeal
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Breach of Contract | 90 |
| Measure of Damages | 80 |
| Diminution in Value | 75 |
| Contract Law | 70 |
| Commercial Disputes | 60 |
16. Subjects
- Contract Law
- Damages
- Membership Clubs