ABC Supermarket v Kosma Holdings: Claim for Operational Losses Due to Defective Air-Conditioning

ABC Supermarket Pte Ltd sued Kosma Holdings Pte Ltd in the High Court of Singapore, appealing a district judge's decision regarding damages for losses incurred due to defective air-conditioning in a leased supermarket. The court, presided over by Justice Kan Ting Chiu, found that while ABC Supermarket failed to prove it would have been profitable without the defect, the defective air-conditioning aggravated its losses. The court awarded ABC Supermarket $54,623.50, including rectification costs and compensation for additional losses.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal allowed in part.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

ABC Supermarket sued Kosma Holdings for losses due to defective air-conditioning. The court awarded damages for additional losses incurred.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Kosma Holdings Pte LtdRespondentCorporationAppeal partially unsuccessfulPartial
ABC Supermarket Pte LtdAppellantCorporationAppeal allowed in partPartial

3. Judges

Judge NameTitleDelivered Judgment
Kan Ting ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Gan Theng ChongLee and Lee
Lee Ming Hui KelvinAssomull and Partners
Andrew GohAssomull and Partners
Madan AssomullAssomull and Partners
Rathna NathanAssomull and Partners

4. Facts

  1. ABC Supermarket leased premises from Kosma Holdings in Peninsula Plaza.
  2. The lease was for five years commencing 1 September 2001.
  3. ABC Supermarket operated a supermarket at the leased premises.
  4. The supermarket started business in September 2001 and closed in May 2002.
  5. ABC Supermarket claimed the respondent did not provide proper air-conditioning.
  6. The appellant relied on audited profit and loss accounts to claim losses.
  7. The Yishun supermarket was not an overnight success, running at a loss for 17 months.

5. Formal Citations

  1. ABC Supermarket Pte Ltd v Kosma Holdings Pte Ltd, DC Suit 1850/2002, RAS 34/2004, [2005] SGHC 44
  2. , , [2004] SGDC 193

6. Timeline

DateEvent
ABC Supermarket bought the Yishun supermarket as a going concern.
Lease commenced for the Peninsula Plaza premises.
ABC Supermarket started business at Peninsula Plaza.
ABC Supermarket closed at Peninsula Plaza.
Matter went before the district judge on appeal from a deputy registrar’s assessment of the damages.
Judgment reserved.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the respondent breached the lease agreement by failing to provide proper air-conditioning.
    • Category: Substantive
    • Sub-Issues:
      • Failure to provide proper air-conditioning
  2. Assessment of Damages
    • Outcome: The court determined the proper method for assessing damages, considering the audited accounts and the impact of the defective air-conditioning.
    • Category: Procedural
    • Sub-Issues:
      • Quantification of operational losses
      • Proof of causation
      • Admissibility of audited accounts
  3. Causation
    • Outcome: The court found that while the appellant failed to prove that the defective air-conditioning caused the supermarket to be unprofitable, it did aggravate the losses.
    • Category: Substantive
    • Sub-Issues:
      • Whether defective air-conditioning caused the supermarket's losses
      • Whether defective air-conditioning aggravated the supermarket's losses

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Retail

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Arts Niche Cyber Distribution Pte Ltd v PPHigh CourtYes[1999] 4 SLR 111SingaporeCited regarding the rule in Browne v Dunn.
Browne v DunnN/AYes(1893) 6 R 67N/ACited for the principle that a witness should be given the opportunity to respond to a challenge to their credibility.
Liza bte Ismail v PPHigh CourtYes[1997] 2 SLR 454SingaporeCited for the flexible application of the rule in Browne v Dunn.
Paric v John Holland Constructions Pty LtdSupreme Court of New South WalesYes[1984] 2 NSWLR 505New South WalesCited regarding the court's entitlement to reject unchallenged testimony.
Allied Pastoral Holdings [Pty Ltd v Commissioner of TaxationN/AYes[1983] 1 NSWLR 1New South WalesCited regarding the court's entitlement to reject unchallenged testimony.
Straits Engineering Contracting Pte Ltd v Merteks Pte LtdCourt of AppealYes[1996] 1 SLR 227SingaporeCited regarding the award of damages for lost profits even when the business has not commenced.
Chaplin v HicksN/AYes[1911] 2 QB 455England and WalesCited regarding the distinction between a real chance and a mere chance in awarding damages.
Battik Pty Ltd v Hawkesbury Nominees Pty LtdSupreme Court of the Australian Capital TerritoryYes[1999] ACTSC 55Australian Capital TerritoryCited regarding a case where loss of profits was awarded due to defective systems, but distinguished due to a lack of finding that the business would have been profitable.

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

  • Air-conditioning
  • Operational losses
  • Audited profit and loss accounts
  • Rectification costs
  • Loss of profits
  • Damages assessment
  • Lease
  • Supermarket

15.2 Keywords

  • air-conditioning
  • supermarket
  • lease
  • damages
  • losses
  • Singapore

17. Areas of Law

Area NameRelevance Score
Damages80
Breach of Contract75
Contract Law70
Quantification of Damages65
Commercial Disputes60
Operational Losses55
Commercial Leasing50

16. Subjects

  • Contract Law
  • Landlord and Tenant Law
  • Damages