Meyer Erwin v Lerner Brian: Security for Costs in Consignment Agreement Dispute

In Meyer Erwin v Lerner Brian and Others, the Singapore High Court heard appeals regarding security for costs. Meyer sued Lerner, Leong, and Sanjaya Antiques for an accounting of antiques under a consignment agreement. The first to third defendants sought additional security for costs, while Meyer cross-appealed to discharge the existing security. The High Court dismissed the defendants' appeal and allowed Meyer's appeal, finding it unjust to order additional security.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Meyer's appeal allowed; first to third defendants' appeal dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

High Court case regarding security for costs in a dispute over a consignment agreement for antiques. The court dismissed the appeal for additional security.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Meyer ErwinPlaintiff, RespondentIndividualAppeal AllowedWon
Lerner BrianDefendant, AppellantIndividualAppeal DismissedLost
Leong AnnaDefendant, AppellantIndividualAppeal DismissedLost
Sanjaya Antiques Gallery Pte LtdDefendant, AppellantCorporationAppeal DismissedLost
Sjenny Zahara KremerOtherIndividual

3. Judges

Judge NameTitleDelivered Judgment
Woo Bih LiJYes

4. Counsels

4. Facts

  1. Meyer and Lerner/Leong agreed to sell antiques in Singapore, with Meyer supplying the antiques.
  2. Sanjaya Antiques was incorporated with Meyer holding 50% of the shares.
  3. Meyer claimed the consignment agreement stipulated title remained with him until sale.
  4. Lerner and Leong claimed Sjenny was also a party to the agreement.
  5. Meyer sought an account of antiques supplied and damages for conversion.
  6. The first to third defendants obtained an order for Meyer to provide security for costs.
  7. Meyer is ordinarily resident out of the jurisdiction, residing in Yogyakarta, Indonesia.

5. Formal Citations

  1. Meyer Erwin v Lerner Brian and Others, Suit 411/2005, [2006] SGHC 163

6. Timeline

DateEvent
Meyer agreed with Lerner and Leong to supply Sanjaya Antiques with antiques on a consignment basis.
Sanjaya Antiquities Gallery Pte Ltd incorporated.
Meyer gave written notice that he would no longer allow his antiques to be sold.
Judgment in default of appearance obtained against Sanjaya Antiques for unpaid rent.
Landlord obtained a writ of seizure and sale and executed the seizure on pieces at the gallery.
Court ordered the release of seized pieces to Sjenny.
Court ordered Meyer to provide $20,000 as security for costs.
Meyer provided security via banker's guarantee.
Parties ordered to exchange affidavits of evidence-in-chief by 24 February 2006.
First to third defendants applied for an order that Meyer furnish an additional $80,000 as security for their costs.
Meyer filed affidavit.
Meyer filed affidavit.
Assistant registrar ordered Meyer to furnish an additional $20,000 as security; Meyer's application to vary or discharge the earlier order was dismissed.
Meyer filed affidavit.
Lerner filed tenth affidavit.
High Court heard the two appeals.
High Court dismissed the appeal of the first to third defendants and allowed Meyer’s appeal.

7. Legal Issues

  1. Security for Costs
    • Outcome: The court held that it was not just to order Meyer to furnish additional security for costs.
    • Category: Procedural

8. Remedies Sought

  1. Account of antiques
  2. Delivery up of antiques
  3. Damages for conversion

9. Cause of Actions

  • Breach of Contract
  • Conversion
  • Conspiracy

10. Practice Areas

  • Litigation

11. Industries

  • Retail
  • Antiques

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Pandian Marimuthu v Guan Leong Construction Pte LtdHigh CourtYes[2001] 3 SLR 400SingaporeCited for the principles governing the exercise of the power to order security for costs.
Jurong Town Corp v Wishing Star LtdCourt of AppealYes[2004] 2 SLR 427SingaporeCited for the principle that the court has complete discretion in ordering security for costs and will consider all circumstances to determine whether it is just.
Keary Developments Ltd v Tarmac Construction LtdN/AYes[1995] 3 All ER 534N/ACited for the principle that the court has complete discretion in the matter of security for costs.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Rules of Court (Cap 322, R 5, 2006 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Consignment agreement
  • Security for costs
  • Duty to account
  • Bailment
  • In Price

15.2 Keywords

  • security for costs
  • consignment agreement
  • antiques
  • singapore
  • civil procedure

17. Areas of Law

16. Subjects

  • Civil Procedure
  • Contract Law