Leow Chin Hua v Ng Poh Buan: Fraudulent Misrepresentation in Contract Law

In Leow Chin Hua v Ng Poh Buan, heard in the High Court of Singapore on 25 February 2005, Leow Chin Hua sued Ng Poh Buan for fraudulent misrepresentation, claiming he was induced to invest in Shen Poh Ceramics Pte Ltd (SPC) based on Ng's false representations about the financial status of Ng's previous business, Shen Poh Ceramics Enterprise. The court, presided over by Justice Tan Lee Meng, dismissed Leow's claim, finding that Ng did not make the alleged misrepresentations and that Leow was aware of the company's financial position before investing. The claim was for fraudulent misrepresentation.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Leow's claim against Ng is dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment reserved.

1.5 Jurisdiction

Singapore

1.6 Description

Leow Chin Hua sued Ng Poh Buan for fraudulent misrepresentation, alleging he was induced to invest in Shen Poh Ceramics Pte Ltd. The court dismissed Leow's claim, finding no misrepresentation.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Leow Chin HuaPlaintiffIndividualClaim DismissedLost
Ng Poh BuanDefendantIndividualJudgment for DefendantWon

3. Judges

Judge NameTitleDelivered Judgment
Tan Lee MengJYes

4. Counsels

Counsel NameOrganization
Leonard LooWong M Seow and JYP Chia
Leong Wai NamWong M Seow and JYP Chia
M MahendranSurian and Partners
S SidambaramSurian and Partners
Harvindarjit SinghSurian and Partners

4. Facts

  1. Leow claimed Ng made false representations to induce him to invest in SPC.
  2. Ng denied making any false representations.
  3. Leow invested $20,000 in Enterprise and received $24,000 upon project completion.
  4. Leow provided Ng with $30,000 for a project in Jalan Ahmad Ibrahim.
  5. SPC was formed to take over Enterprise’s business with Leow and Ng as equal shareholders.
  6. Leow ousted Ng from SPC due to concerns about the business's financial state.
  7. Leow claimed Ng misrepresented Enterprise's turnover and profit.

5. Formal Citations

  1. Leow Chin Hua v Ng Poh Buan, Suit 359/2004, [2005] SGHC 39

6. Timeline

DateEvent
Ng approached Leow for financial assistance.
Ng needed money to purchase tiles for a building project.
Written agreement executed by both parties.
Alleged misrepresentations made by Ng.
Alleged date Enterprise would cease business.
Shen Poh Ceramics Pte Ltd (SPC) was formed.
Leow sensed something amiss with SPC’s business.
Leow instituted proceedings against Ng.
Judgment reserved.

7. Legal Issues

  1. Fraudulent Misrepresentation
    • Outcome: The court held that the plaintiff failed to prove that the defendant made fraudulent misrepresentations that induced him to invest in SPC.
    • Category: Substantive
    • Sub-Issues:
      • False representations of fact
      • Inducement
      • Statements of intention
    • Related Cases:
      • (1885) 29 Ch D 459
      • (1881) 20 Ch D 1
      • (1838) 6 Cl & Fin 232; 7 ER 684

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Fraudulent Misrepresentation

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Edgington v FitzmauriceCourt of AppealYes(1885) 29 Ch D 459England and WalesCited for the principle that the state of a person's mind is a fact, but difficult to prove.
Redgrave v HurdCourt of AppealNo(1881) 20 Ch D 1England and WalesCited for the principle that a party who has the opportunity to inspect documents but does not do so is not necessarily deprived of the right to assert that he was deceived by a false representation.
Attwood v SmallHouse of LordsYes(1838) 6 Cl & Fin 232; 7 ER 684United KingdomCited for the principle that if a party conducts his own investigation and does not rely on the misrepresentation, it can no longer be said that the false statement had an effect on him.

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

  • Fraudulent misrepresentation
  • Shen Poh Ceramics Pte Ltd
  • Turnover
  • Net profit
  • Inducement
  • Statements of intention

15.2 Keywords

  • Contract
  • Misrepresentation
  • Fraud
  • Investment
  • Ceramics

17. Areas of Law

Area NameRelevance Score
Misrepresentation95
Fraud and Deceit90
Contract Law85

16. Subjects

  • Contract
  • Misrepresentation
  • Fraud