SM Trading v Intersanctuary: Conspiracy & Fiduciary Duty in Columbarium Contract Dispute

SM Trading Services sued Intersanctuary Ltd for breach of contract related to the sale of goods for a columbarium. Intersanctuary defended by alleging a conspiracy between SM Trading and a third party, Kek Kim Hok, to supply goods at inflated prices and a breach of fiduciary duty by Kek. The High Court of Singapore, on 15 June 2006, dismissed SM Trading's claim, granted judgment for Intersanctuary on its counterclaim, and ordered damages to be assessed against Kek Kim Hok.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiff's claim dismissed; judgment for Defendant on counterclaim; damages to be assessed against Third Party.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment reserved

1.5 Jurisdiction

Singapore

1.6 Description

SM Trading sued Intersanctuary for breach of contract. Intersanctuary alleged a conspiracy between SM Trading and a third party, Kek Kim Hok, to inflate prices and breach fiduciary duties. The court dismissed SM Trading's claim and ruled in favor of Intersanctuary.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
SM Trading Services (a firm)PlaintiffPartnershipClaim DismissedLostJimmy Yap
Intersanctuary LtdDefendantCorporationJudgment for Defendant on counterclaimWonIsmail bin Atan
Kek Kim HokThird PartyIndividualDamages to be assessedLostSean Lim Thian Siong, Tan Aik How

3. Judges

Judge NameTitleDelivered Judgment
Judith PrakashJudgeYes

4. Counsels

Counsel NameOrganization
Jimmy YapNgaw Tan & Yap
Ismail bin AtanGabriel Law Corporation
Sean Lim Thian SiongHin Tat Augustine & Partners
Tan Aik HowHin Tat Augustine & Partners

4. Facts

  1. SM Trading Services was set up by Tan Swee Mong in July 2004 after being approached by Kek Kim Hok.
  2. SM Trading Services supplied ancestral tablets, niche covers, and urns to Intersanctuary Ltd.
  3. Kek Kim Hok was actively involved in running Intersanctuary's columbarium business.
  4. Kek Kim Hok advised Intersanctuary on the management of its columbarium business.
  5. Intersanctuary alleged that Kek Kim Hok and SM Trading Services conspired to supply goods at inflated prices.
  6. Intersanctuary claimed Kek Kim Hok breached his fiduciary duties to them.
  7. Tan Swee Mong used Kek Kim Hok's office as the registered address for SM Trading Services.

5. Formal Citations

  1. SM Trading Services (a firm) v Intersanctuary Ltd (Kek Kim Hok, Third Party), Suit 14/2005, [2006] SGHC 102

6. Timeline

DateEvent
Tan Swee Mong set up SM Trading Services.
Written contract between SM Trading Services and Intersanctuary Ltd for ancestral tablets.
Written contract between SM Trading Services and Intersanctuary Ltd for niche covers.
Written contract between SM Trading Services and Intersanctuary Ltd for niche covers.
Intersanctuary Ltd paid deposit of $90,000 to SM Trading Services.
Intersanctuary Ltd paid deposit of $20,000 to SM Trading Services.
Intersanctuary Ltd completed purchase of columbarium.
SM Trading Services sent invoice to Intersanctuary Ltd for urns.
Intersanctuary Ltd paid deposit of $12,750 to SM Trading Services for urns.
Written contract between SM Trading Services and Intersanctuary Ltd for ancestral tablets.
Directors meeting of An Le Management Private Limited.
SM Trading Services sent invoice to Intersanctuary Ltd for engraving work ($514).
SM Trading Services sent invoice to Intersanctuary Ltd for engraving work ($1,636).
SM Trading Services delivered 40 urns to Intersanctuary Ltd.
SM Trading Services issued invoice for $3,400 for urns.
Meeting between Tan Swee Mong, Thomas Chua, Horison, and David Chong.
Intersanctuary Ltd instructed SM Trading Services to stop production and shipment of niche covers.
Intersanctuary Ltd rejected urns.
SM Trading Services wrote to Intersanctuary Ltd regarding urns.
SM Trading Services gave Intersanctuary Ltd five days’ notice to accept delivery.
Lawyer's letter of demand sent by SM Trading Services.
Tan Swee Mong saw architectural model at road show.
Judgment reserved.

7. Legal Issues

  1. Breach of Fiduciary Duty
    • Outcome: The court found that Kek Kim Hok breached his fiduciary duty to Intersanctuary Ltd.
    • Category: Substantive
    • Sub-Issues:
      • Failure to disclose dealings
      • Conflict of interest
      • Breach of duty of loyalty
  2. Conspiracy to Defraud
    • Outcome: The court found that SM Trading Services and Kek Kim Hok conspired to defraud Intersanctuary Ltd.
    • Category: Substantive
    • Sub-Issues:
      • Agreement to injure
      • Unlawful acts
      • Inflated prices
  3. Breach of Contract
    • Outcome: The court dismissed the plaintiff's claim for breach of contract.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages
  2. Repayment of Deposits

9. Cause of Actions

  • Breach of Contract
  • Conspiracy
  • Breach of Fiduciary Duty

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Religious Services
  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Quah Kay Tee v Ong & Co Pte LtdCourt of AppealYes[1997] 1 SLR 390SingaporeCited for the principles required to prove conspiracy via unlawful means.
Bristol and West Building Society v MothewN/AYes[1998] Ch 1England and WalesCited for the definition of a fiduciary and their obligations.

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

  • Columbarium
  • Ancestral Tablets
  • Niche Covers
  • Urns
  • Fiduciary Duty
  • Conspiracy
  • Inflated Prices

15.2 Keywords

  • breach of contract
  • fiduciary duty
  • conspiracy
  • columbarium
  • ancestral tablets
  • niche covers
  • urns
  • singapore
  • high court

16. Subjects

  • Contract Dispute
  • Fiduciary Duty
  • Conspiracy
  • Sale of Goods
  • Equity

17. Areas of Law

  • Equity
  • Fiduciary relationships
  • Tort
  • Conspiracy
  • Contract Law
  • Sale of Goods