SingTel v Starhub: Breach of Contract for Unauthorized Use of Leased Fibre Optic Network

Singapore Telecommunications Ltd (SingTel) sued Starhub Cable Vision Ltd (Starhub) in the High Court of Singapore, alleging breach of contract for unauthorized use of leased fibre optic network facilities. SingTel claimed Starhub improperly 'tapped' into the network to serve properties not covered by their agreement. The court (Kan Ting Chiu J) found that Starhub had breached the agreement, but ruled that SingTel could not recover damages due to a limitation of liability clause in the contract. Judgment reserved on April 28, 2005.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff; damages not recoverable due to Article 8.5(a).

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

SingTel sued Starhub for breach of contract for 'tapping' into leased fibre optic network. The court found a breach but disallowed damages due to a limitation clause.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Singapore Telecommunications LtdPlaintiffCorporationJudgment for PlaintiffPartial
Starhub Cable Vision LtdDefendantCorporationBreached AgreementLost

3. Judges

Judge NameTitleDelivered Judgment
Kan Ting ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Kannan RameshTan Kok Quan Partnership
Sean Tan Kim KangTan Kok Quan Partnership
Tan Kok QuanTan Kok Quan Partnership
Lam Sin YeeTan Kok Quan Partnership
Low Chai ChongRodyk and Davidson
Ajinderpal SinghRodyk and Davidson
Philip JeyaretnamRodyk and Davidson
Andrea CheeRodyk and Davidson

4. Facts

  1. SingTel leased fibre optic network and duct space to SCV.
  2. The agreement covered high-rise residential properties but excluded landed and commercial properties.
  3. SCV 'tapped' into the leased facilities to serve landed and commercial properties.
  4. SingTel claimed this was a breach of the agreement.
  5. SCV argued there was no express prohibition against tapping.
  6. SCV informed SingTel it would build its own infrastructure to serve landed properties.
  7. SingTel acknowledged SCV's decision to self-provide.
  8. The agreement contained a clause excluding liability for lost revenues or profits.

5. Formal Citations

  1. Singapore Telecommunications Ltd v Starhub Cable Vision Ltd, Suit 634/2003, [2005] SGHC 80

6. Timeline

DateEvent
Network lease agreement signed between SingTel and SCV.
SCV wrote to SingTel regarding fiber and duct lease for landed and commercial properties.
SingTel replied to SCV regarding pricing for commercial and landed properties.
SCV informed SingTel it would build its own infrastructure to serve landed properties.
SingTel replied, respecting SCV's decision to build its own infrastructure.
Director-General of TAS sent a paper to the Chairman of SCV regarding SingTel's lease of ducts/fibre to SCV for its roll-out to landed properties.
IDA issued a direction to the parties to negotiate and conclude a network lease agreement to supercede the Agreement.
Internal memorandum within SCV regarding tapping to serve buildings in the Nanyang Technological University campus.
Starhub Cable Vision Ltd formed upon the merger of Singapore Cable Vision Ltd and Starhub Pte Ltd.
IDA set out determinations in relation to the disputes between the parties.
Suit 634/2003 filed.
Judgment reserved.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that Starhub breached the agreement by tapping.
    • Category: Substantive
    • Sub-Issues:
      • Unauthorized use of leased facilities
      • Interpretation of contract terms
  2. Limitation of Liability
    • Outcome: The court held that the limitation of liability clause (Article 8.5(a)) precluded SingTel from recovering damages for lost revenue.
    • Category: Substantive
    • Sub-Issues:
      • Interpretation of limitation clause
      • Exclusion of lost revenue
  3. Estoppel
    • Outcome: The court held that Starhub could not rely on estoppel because it was not properly pleaded in its defence.
    • Category: Procedural
    • Sub-Issues:
      • Failure to plead estoppel
      • Lack of proper particulars

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Telecommunications

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Hadley v BaxendaleCourt of ExchequerYes(1854) 9 Exch 341; 156 ER 145England and WalesCited for principles on remoteness of damage in contractual situations.

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

  • Tapping
  • Included Properties
  • Excluded Properties
  • Dark Fibre
  • High-rise residential apartments
  • Landed properties
  • Commercial properties
  • Network Lease Agreement
  • Self-provide
  • Shop-houses

15.2 Keywords

  • contract
  • breach
  • fibre optic
  • telecommunications
  • SingTel
  • Starhub
  • tapping
  • lease
  • damages
  • limitation of liability

17. Areas of Law

Area NameRelevance Score
Breach of Contract90
Contract Law85
Damages70
Telecommunications Law50

16. Subjects

  • Contract Law
  • Telecommunications
  • Breach of Contract