Coterie International v MAE Engineering: Breach of Contract & Incentive Bonus Dispute

In the High Court of Singapore, Coterie International (S) Pte Ltd sued MAE Engineering Ltd for breach of contract, claiming unpaid bonuses. MAE Engineering counterclaimed for damages due to Coterie's breach of the termination clause and sought recovery of a payout made under a mistaken belief. The court, presided over by Choo Han Teck J, dismissed Coterie's claim for the 13th-month bonus but allowed its claim for the incentive bonus for 2001. The court dismissed MAE Engineering's counterclaim for the $50,000 payout but awarded nominal damages for Coterie's failure to provide proper notice of termination.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff in part; nominal damages awarded to Defendant.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Coterie International sues MAE Engineering for breach of contract regarding bonuses. MAE counterclaims for breach of termination clause and mistaken payment. The court partially ruled in favor of Coterie.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
MAE Engineering LtdDefendantCorporationCounterclaim dismissed; nominal damages awardedPartial
Coterie International (S) Pte LtdPlaintiffCorporationClaim allowed in partPartial

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudgeYes

4. Counsels

Counsel NameOrganization
Eric Chew Yee TeckArchilex Law Corporation
Janet Chong Yean YoongArchilex Law Corporation
Anna OeiOei and Charles

4. Facts

  1. The plaintiff provided consultancy services to the defendant.
  2. A contract was signed between the plaintiff and defendant on 1 March 1997.
  3. The contract was extended for two years from 1 September 1997.
  4. The plaintiff stopped work on 21 October 2003 without giving three months’ notice.
  5. The defendant’s accounting records showed a profit of more than $2m after tax for 2001.
  6. The defendant paid the plaintiff $50,000 believing targets for 2000 had been met.

5. Formal Citations

  1. Coterie International (S) Pte Ltd v MAE Engineering Ltd, Suit 1112/2003, [2005] SGHC 18

6. Timeline

DateEvent
Contract signed between Coterie International (S) Pte Ltd and MAE Engineering Ltd.
Defendant's letter extending the agreement for two years and changing the termination clause.
Plaintiff offered to extend the agreement on an ongoing basis.
Defendant accepted the offer of extension with exception to the Incentive Scheme.
Plaintiff stopped work without giving the required notice.
Judgment issued.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the plaintiff was in breach of contract for failing to give the requisite three months’ notice.
    • Category: Substantive
    • Sub-Issues:
      • Failure to give requisite notice of termination
  2. Entitlement to Incentive Bonus
    • Outcome: The court held that the plaintiff was entitled to the incentive bonus for the year 2001.
    • Category: Substantive
  3. Recovery of Money Paid Under Mistake
    • Outcome: The court found that there was no mistake in the payment of $50,000 and dismissed the defendant's claim for refund.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

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

  • Incentive bonus
  • Termination clause
  • 13th month bonus
  • Profitability
  • Fee-in-lieu
  • Notice of termination

15.2 Keywords

  • Contract
  • Breach
  • Bonus
  • Termination
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Breach of Contract95
Contract Law90
Mistake60
Damages50

16. Subjects

  • Contract Law
  • Breach of Contract