Tan Chin Seng v Raffles Town Club: Damages for Breach of Contract & Loss of Club Amenity

In Tan Chin Seng and Others v Raffles Town Club Pte Ltd, the Singapore High Court assessed damages for breach of contract after the Court of Appeal found Raffles Town Club (RTC) liable for admitting too many members, thereby failing to deliver a 'premier club' experience to its founder members. The plaintiffs, representing over 4,800 members, sought damages for diminution in membership value and loss of amenity. The court awarded damages of $1,000 to each plaintiff for loss of amenity, accessibility, and enjoyment of club facilities, but disallowed the claim for diminution in membership value.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for the plaintiffs; damages awarded for loss of amenity, accessibility and enjoyment.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Raffles Town Club breached its contract by admitting too many members, diminishing the value and amenity of founder memberships. The court awarded damages for loss of amenity.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Raffles Town Club Pte LtdDefendantCorporationJudgment against defendantLost
Tan Chin SengPlaintiffIndividualDamages awarded for loss of amenityPartial
Lee Ah Sim AlanPlaintiffIndividualDamages awarded for loss of amenityPartial
Wong Leong Thong PeterPlaintiffIndividualDamages awarded for loss of amenityPartial
Kong Cheong Hin StevenPlaintiffIndividualDamages awarded for loss of amenityPartial
Chia Ee Lin EvelynPlaintiffIndividualDamages awarded for loss of amenityPartial
Liu Hui NanPlaintiffIndividualDamages awarded for loss of amenityPartial
Lim ChooPlaintiffIndividualDamages awarded for loss of amenityPartial
Ng Cheng HwaPlaintiffIndividualDamages awarded for loss of amenityPartial
Meta Mui Khim IrenePlaintiffIndividualDamages awarded for loss of amenityPartial
Yong Kah TeckPlaintiffIndividualDamages awarded for loss of amenityPartial

3. Judges

Judge NameTitleDelivered Judgment
Belinda Ang Saw EanJudgeYes

4. Counsels

Counsel NameOrganization
Stanley LaiAllen and Gledhill
K ShanmugamAllen and Gledhill
Candace LerAllen and Gledhill
Molly LimWong Tan and Molly Lim LLC
Roland TongWong Tan and Molly Lim LLC
Ambrose ChiaWong Tan and Molly Lim LLC
Wang Shao-IngWong Tan and Molly Lim LLC

4. Facts

  1. Plaintiffs purchased founder memberships in Raffles Town Club for $28,000 each.
  2. Raffles Town Club launched ordinary memberships at higher prices after the founder memberships.
  3. The club's membership grew to over 19,000 members.
  4. Plaintiffs claimed the club failed to provide a 'premier club' experience due to overcrowding.
  5. The Court of Appeal found the defendant in breach of contract.
  6. Plaintiffs sought damages for diminution in membership value and loss of amenity.
  7. The club's facilities were deemed inadequate for the large membership.

5. Formal Citations

  1. Tan Chin Seng and Others v Raffles Town Club Pte Ltd (No 2), Suit 1441/2001, [2005] SGHC 38
  2. Tan Chin Seng v Raffles Town Club Pte Ltd (No 2), , [2003] 3 SLR 307

6. Timeline

DateEvent
Plaintiffs purchased founder memberships for $28,000.
Membership launches for ordinary memberships at $40,000.
Further membership launches for ordinary memberships at $48,000.
Moratorium on the sale of RTC membership.
Club commenced operations.
Fourth plaintiff inquired about the membership size of the Club.
Plaintiffs learned of the size of the membership (ie, 19,048 members).
Plaintiffs sued.
Court of Appeal confirmed the Club to be in breach of contract.
Judgment issued.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found the defendant in breach of contract for failing to provide a premier club experience due to excessive membership.
    • Category: Substantive
    • Sub-Issues:
      • Failure to provide a premier club experience
      • Breach of implied term
  2. Assessment of Damages
    • Outcome: The court awarded damages for loss of amenity, accessibility, and enjoyment, but disallowed the claim for diminution in membership value.
    • Category: Substantive
    • Sub-Issues:
      • Diminution in value of membership
      • Loss of amenity, accessibility and enjoyment

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Recreation

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Robinson v HarmanExchequer of PleasYes(1848) 1 Exch 850England and WalesCited for the principle that damages should place the plaintiff in the same position as if the contract had been performed.
Hadley v BaxendaleCourt of ExchequerYes(1854) 9 Exch 341England and WalesCited for the rule limiting recoverable losses to those reasonably foreseeable at the time of contract.
Tan Chin Seng v Raffles Town Club Pte Ltd (No 2)Court of AppealYes[2003] 3 SLR 307SingaporeCited for the Court of Appeal's findings of fact on liability, specifically the breach of the implied term to provide a premier club.
White Arrow Express Ltd v Lamey’s Distribution LtdEnglish Court of AppealYes[1995] TLR 430England and WalesCited as an analogy for the principle that damages for breach of contract for enhanced services is the difference between the market value of what was contracted for and what was provided, but distinguished on the facts.
Ruxley Electronics and Construction Ltd v ForsythHouse of LordsYes[1996] AC 344United KingdomCited for the principle of awarding damages for loss of amenity, even in the absence of pecuniary loss, where the contract was for the provision of a pleasurable amenity.
Farley v SkinnerHouse of LordsYes[2002] 2 AC 732United KingdomCited for upholding the concept of an award for loss of amenity in compensation of a non-pecuniary loss arising out of a breach of contract.
Watts v MorrowNot AvailableYes[1991] 1 WLR 1421England and WalesCited to determine whether and when contractual damages for inconvenience or discomfort can be recovered.

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

  • Premier club
  • Founder membership
  • Diminution in value
  • Loss of amenity
  • Breach of contract
  • Membership size
  • Club facilities

15.2 Keywords

  • breach of contract
  • damages
  • loss of amenity
  • premier club
  • raffles town club
  • membership
  • singapore

17. Areas of Law

Area NameRelevance Score
Breach of Contract90
Damages80
Assessment of Damages75
Contract Law70
Loss of Amenity60
Commercial Disputes30

16. Subjects

  • Contract Law
  • Clubs
  • Damages