Tullett Prebon v Chua Leong Chuan: Interlocutory Injunction for Breach of Employment Contract
In Tullett Prebon (Singapore) Ltd and Another v Chua Leong Chuan Simon and Others and Another, the High Court of Singapore heard applications for interlocutory injunctions by Tullett Prebon against its employees, Chua Leong Chuan Simon, Chong Pheng Woon, Loh Chee Boon, Tan Lee Seng William, and another defendant, to prevent them from working for a rival company, BGC International (S) Branch, after allegedly breaching their employment contracts. The court granted the injunctions, enforcing the employees' contractual obligations and emphasizing the importance of upholding contractual agreements.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiffs' applications for interlocutory injunctions allowed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court granted an interlocutory injunction restraining employees from breaching their employment contracts by working for a rival company.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Tullett Prebon (Singapore) Ltd | Plaintiff | Corporation | Applications for interlocutory injunctions allowed | Won | Vinodh S Coomaraswamy, Yip Weng, Elaine Wong |
| Tullett Liberty Pte Ltd | Plaintiff | Corporation | Applications for interlocutory injunctions allowed | Won | Vinodh S Coomaraswamy, Yip Weng, Elaine Wong |
| Chua Leong Chuan Simon | Defendant | Individual | Injunction granted | Lost | Suresh Damodara, Sunil S Gill |
| Chong Pheng Woon | Defendant | Individual | Injunction granted | Lost | Suresh Damodara, Sunil S Gill |
| Loh Chee Boon | Defendant | Individual | Injunction granted | Lost | Suresh Damodara, Sunil S Gill |
| Tan Lee Seng William | Defendant | Individual | Injunction granted | Lost | Suresh Damodara, Sunil S Gill |
| BGC International (S) Branch | Other | Corporation | Christopher Anand Daniel, Ginny Chew Jee Ling |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | J | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Vinodh S Coomaraswamy | Shook Lin and Bok |
| Yip Weng | Shook Lin and Bok |
| Elaine Wong | Shook Lin and Bok |
| Suresh Damodara | David Lim and Partners |
| Sunil S Gill | David Lim and Partners |
| N K Rajarh | N K Rajarh |
| Christopher Anand Daniel | Allen and Gledhill |
| Ginny Chew Jee Ling | Allen and Gledhill |
4. Facts
- Five employees of Tullett Prebon resigned between 17 June 2005 and 14 July 2005.
- The employees' contracts required them to give three months' notice after two years of service.
- One employee had not yet served the requisite two years.
- Tullett Prebon did not accept the resignations and claimed breach of contract.
- The employees began working for a rival company, BGC International (S) Branch, on 25 July 2005.
- Tullett Prebon sought interlocutory injunctions to restrain the employees from working for the rival company.
5. Formal Citations
- Tullett Prebon (Singapore) Ltd and Another v Chua Leong Chuan Simon and Others and Another Suit, Suit 498/2005, 515/2005, SIC 3507/2005, 3608/2005, [2005] SGHC 150
6. Timeline
| Date | Event |
|---|---|
| Defendants submitted resignation letters to Tullett Prebon. | |
| Defendants submitted resignation letters to Tullett Prebon. | |
| Applications for interlocutory injunctions were heard and adjourned. | |
| Defendants were employed by BGC International (S) Branch. | |
| BGC International (S) Branch applied to intervene in the suits. | |
| Court granted the interlocutory injunctions. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found a prima facie breach of contract by the employees.
- Category: Substantive
- Sub-Issues:
- Improper termination
- Failure to serve notice period
- Interlocutory Injunction
- Outcome: The court granted the interlocutory injunctions, finding that the balance of convenience favored the plaintiffs.
- Category: Procedural
- Sub-Issues:
- Balance of convenience
- Adequacy of damages
8. Remedies Sought
- Interlocutory Injunction
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Employment Contracts
- Injunctions
11. Industries
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Chiam Heng Hsien v Jurong Town Corp | High Court | Yes | [1984–1985] SLR 256 | Singapore | Cited regarding the court's reluctance to compel the performance of an employment contract directly. |
| Esso Petroleum Co Ltd v Harper’s Garage (Stourport) Ltd | House of Lords | Yes | [1968] AC 269 | United Kingdom | Cited for the principle that agreements to do something over a period inherently restrict one's freedom to engage in other business activities, which is generally acceptable in employment contracts. |
| Provident Financial Group plc v Hayward | Court of Appeal | Yes | [1989] 3 All ER 298 | United Kingdom | Cited regarding the court's discretion in granting injunctive relief and balancing prejudice and convenience of damages. |
| Cantor Fitzgerald v Wallace | N/A | Yes | [1992] IRLR 215 | N/A | Cited in relation to trade connections and legitimate interests, but distinguished by the judge. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Interlocutory injunction
- Breach of contract
- Employment contract
- Notice period
- Inter-dealer money broking
- Mutual trust and confidence
15.2 Keywords
- Employment
- Contract
- Injunction
- Breach
- Singapore
16. Subjects
- Employment Law
- Contract Law
- Injunctions
17. Areas of Law
- Employment Law
- Contract Law
- Injunctions