Smith & Associates v Britestone: Breach of Contract & Damages for Counterfeit Electronic Components
In Smith & Associates Far East, Ltd v Britestone Pte Ltd, the Singapore High Court heard a case regarding the breach of contract. Smith & Associates, the plaintiff, sued Britestone, the defendant, for supplying counterfeit capacitors. The court had previously entered a consent judgment in favor of the plaintiff on the issue of liability. The remaining issue was the assessment of damages. The court awarded US$302,184 in damages to the plaintiff, comprising US$2,184 for loss of profits and US$300,000 for compensation paid to Celestica Thailand Ltd.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for the Plaintiff.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case involving Smith & Associates and Britestone, concerning breach of contract due to counterfeit capacitors and the assessment of damages.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Britestone Pte Ltd | Defendant | Corporation | Claim Dismissed | Lost | |
| Smith & Associates Far East, Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Dorcas Quek | Assistant Registrar | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Sham Chee Kiat | Ramdas & Wong |
| Andy Leck | Wong & Leow LLC |
| Terence Tay | Wong & Leow LLC |
4. Facts
- Plaintiff purchased 52,000 units of capacitors from Defendant.
- The capacitors were discovered to be counterfeit.
- Plaintiff resold the capacitors to Celestica Thailand Ltd (CTH).
- CTH installed the capacitors on printed circuit boards and sent them to EMC Corporation.
- EMC incurred costs of US$444,680 to purge the counterfeit capacitors.
- Plaintiff and CTH agreed to a settlement of US$300,000.
- Parties agreed that an implied condition that the goods conform to their description had been breached.
5. Formal Citations
- Smith & Associates Far East, Ltd v Britestone Pte Ltd, Suit 108/2005, NA 45/2006, [2006] SGHC 186
6. Timeline
| Date | Event |
|---|---|
| Plaintiff purchased capacitors from Defendant. | |
| Capacitors discovered to be counterfeit. | |
| Agreement entered for Plaintiff to pay US$300,000 to Celestica Thailand Ltd. | |
| Plaintiff commenced proceedings against Defendant. | |
| Consent judgment entered for liability to be resolved in Plaintiff's favor. | |
| Judgment issued. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that the defendant breached the implied condition of the agreement.
- Category: Substantive
- Sub-Issues:
- Breach of implied condition of conformity to description
- Remoteness of Damages
- Outcome: The court applied the principles of remoteness of damages to determine the quantum of damages.
- Category: Substantive
- Damages for Breach of Contract
- Outcome: The court awarded damages for loss of profits and compensation paid to the sub-buyer.
- Category: Substantive
- Sub-Issues:
- Loss of profits
- Compensation paid to sub-buyer
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Electronics
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Popular Industries Ltd v Eastern Garment Manufacturing Sdn Bhd | Unknown | Yes | [1989] 3 MLJ 360 | Malaysia | Cited for the principle that damages claimed must be caused by the defendant's breach and not be too remote. |
| Hadley v Baxendale | Court of Exchequer | Yes | [1854] 9 Ex 341 | England | Cited for the principle of remoteness of damages, stating that only damages within the contemplation of both parties may be recovered. |
| Bence Graphics International Ltd v Fasson UK Ltd | Queen's Bench | Yes | [1988] QB 87 | United Kingdom | Cited regarding special damages under s 54 of the Sale of Goods Act and the prima facie measure of damages. |
| Richard Holden Ltd v Bostock & Co Ltd | Unknown | Yes | [1902] 17 TLR 317 | United Kingdom | Cited for the principle of awarding loss of profits under a sub-sale if within the reasonable contemplation of the parties. |
| Biggin & Co Ltd v Permanite Ltd & Ors | Court of Appeal | Yes | [1951] 2 KB 314 | England | Cited for the principle that a reasonable settlement should be recoverable as damages payable by the seller to the buyer. |
| Brown Noel Trading Pte Ltd v Donald & McArthy Pte Ltd | Singapore Court of Appeal | Yes | [1997] 1 SLR 1 | Singapore | Cited for adopting the holding in Biggin that a reasonable settlement is recoverable as damages. |
| Unity Insurance Brokers Pty Limited v Rocco Pezzano Pty Limited | Australian High Court | Yes | [1998] 193 CLR 603 | Australia | Cited as questioning the reasoning in Biggin regarding causation and remoteness. |
| White Industries QLD Pty Ltd v Hennessey Glass & Aluminium Systems Pty Ltd | Australian Court of Appeal | Yes | [1999] 1 QdR 210 | Australia | Cited as questioning the extent to which Biggin qualifies the proposition that a reasonable settlement is recoverable. |
| Christopher Hill Ltd v Ashington Piggeries Ltd | Unknown | Yes | [1969] 3 All ER 1496 | United Kingdom | Cited for the principle that a contract-breaker need not contemplate the precise manner of damage occurring, only that damage of that kind is not unlikely. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Sale of Goods Act (Cap 393, 199 Rev Ed) | Singapore |
| Sale of Goods Act (Cap 393, 199 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Counterfeit capacitors
- Breach of implied condition
- Remoteness of damages
- Reasonable settlement
- String contracts
- Purging process
- Printed circuit boards
15.2 Keywords
- counterfeit
- capacitors
- breach of contract
- damages
- settlement
- electronic components
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Breach of Contract | 90 |
| Contract Law | 90 |
| Sale of Goods | 85 |
| Damages | 80 |
| Misrepresentation | 60 |
| Counterfeit Goods | 50 |
16. Subjects
- Contract Law
- Sale of Goods
- Damages