Compact Metal v PPG Industries: Defective Paint & MAS Building Refurbishment
Compact Metal Industries Ltd sued PPG Industries (Singapore) Ltd in the High Court of Singapore, with Sundaresh Menon JC presiding, concerning defective paint supplied by PPG for the refurbishment of the Monetary Authority of Singapore Building (MAS Building). Compact Metal, the plaintiff, claimed that the paint supplied by PPG was not of satisfactory quality and not fit for purpose, leading to significant losses. The court found in favor of Compact Metal, ruling that PPG had breached implied conditions of the contract and was liable for damages, to be assessed by a registrar. PPG's counterclaim was partially dismissed.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Interlocutory judgment entered in favor of the plaintiff; damages to be assessed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Compact Metal sued PPG over defective paint supplied for the MAS Building refurbishment. The court found PPG liable for breach of contract.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Compact Metal Industries Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | |
| PPG Industries (Singapore) Ltd | Defendant | Corporation | Counterclaim Partially Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Sundaresh Menon | Judicial Commissioner | Yes |
4. Counsels
4. Facts
- Compact Metal was contracted to do paint application work for the MAS Building refurbishment.
- PPG Industries was to supply the paint for the project.
- The original paint (UCM-40019-XLBC) was a customized paint with exclusively coarse aluminum flakes.
- The architect selected the original paint.
- Problems arose with the appearance of the panels coated with the original paint, including inconsistent color tones.
- The installed panels were rejected by the architect and Taisei.
- PPG suggested a revised formulation of the paint with fine aluminum flakes.
- The architect approved the change in formulation to the new paint (UCM-40023-XLBC).
- PPG failed to produce the new paint in a single batch as required.
- Compact Metal eventually achieved consistent finishes with the new paint using its own line parameters and solvent.
5. Formal Citations
- Compact Metal Industries Ltd v PPG Industries (Singapore) Ltd, Suit 442/2005, [2006] SGHC 242
6. Timeline
| Date | Event |
|---|---|
| Material events took place related to the MAS Building refurbishment project. | |
| First purchase order for the Original Paint was issued to the defendant. | |
| First batch of panels coated with the Original Paint; problems with appearance identified. | |
| First report prepared by Mr. Ong identifying possible causes of the problems. | |
| Mr. Ong forwarded Mr. Fu's report to Mr. Ling regarding the paint issues. | |
| Meeting held to review tests and investigations; possible solutions discussed. | |
| Original Paint tested on the Compact Malaysia line. | |
| Meeting held where consensus was reached that the problem was caused by the inherent quality of the paint. | |
| Mr. Lee Thiam Soon issued a report regarding the inconsistency issues. | |
| Mr. Lee issued another report regarding the inherent quality of the finishes. | |
| Mr. Lee issued a further report noting the color is beyond practical level of management. | |
| Mr. Matsuo Inagaki communicated to Taisei that the problem was unforeseeable and caused by the material used. | |
| Architect's approval obtained to change the paint formulation. | |
| Email from Mr. Ong to TS Lee regarding Gary Altavilla's letter. | |
| Trials continued on the application line with the New Paint. | |
| Plaintiff departed from the recommendations of the defendant and used a drier solvent. | |
| Compact Malaysia was able to achieve consistent finishes. | |
| Episodic instances of paint having to be rejected on account of color differences continued. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that the defendant breached the implied conditions as to satisfactory quality and fitness for purpose in supplying the Original Paint.
- Category: Substantive
- Sub-Issues:
- Failure to supply goods of satisfactory quality
- Failure to supply goods fit for purpose
- Implied Terms
- Outcome: The court held that the implied terms of satisfactory quality and fitness for purpose applied to the contract.
- Category: Substantive
- Sub-Issues:
- Satisfactory quality
- Fitness for purpose
- Sale by sample
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| MCST Plan No. 1166 v Chubb Singapore Pte Ltd | High Court | Yes | [1999] 3 SLR 540 | Singapore | Cited for the principle that the onus is on the party alleging that a term should not be implied in law. |
| Barr v Gibson | N/A | No | Barr v Gibson (1838) 150 ER 1196 | N/A | Cited to show how the legal barometer has changed in respect of used as well as new custom-built goods. |
| Crowther v Shannon Motor Co | Court of Appeal | No | Crowther v Shannon Motor Co [1975] 2 All ER 972 | N/A | Cited as a case on the sale of a used car. |
| Flairis Technology Corporation Ltd v Gan Huan Kee | High Court | No | [2002] SGHC 116 | Singapore | Cited for the proposition that where express terms comprehensively cover by contracting parties’ rights and liabilities, there is no room for the imposition of an implied term. |
| Wren v Holt | N/A | No | [1903] 1 KB 610 | N/A | Cited as an illustration of the strict liability rule as regards goods and materials. |
| Ceramic Brickworks (S) Pte Ltd v Asia-Tech Construction & Engineering Pte Ltd | N/A | No | [1996] 1 SLR 200 | Singapore | Cited in support of the proposition that a sale based on a sample submitted for the architect’s approval could constitute a sale by sample. |
| Re Walkers Winser & Hamm and Shaw, Son & Co | N/A | Yes | Re Walkers Winser & Hamm and Shaw, Son & Co [1904] 2 KB 152 | N/A | Cited to support that an express provision that barley sold to be ‘about as per sample’ constituted a contract by sample. |
| Bramhill v Edwards | N/A | Yes | [2004] 2 Ll Rep 653 | N/A | Cited for the principle that the inquiry whether the goods are of a satisfactory quality is an objective one to be undertaken from the view point of a reasonable person. |
| Cammell Laird & Co Ltd v Manganese Bronze and Brass Co Ltd | N/A | Yes | [1934] AC 402 | N/A | Cited for the principle that in matters such as the choice of components, the nature and properties of which are within the skill and judgment of the seller, the seller assumes the responsibility and there is no need to show reliance. |
13. Applicable Rules
| Rule Name |
|---|
| Order 38 r 2 of the Rules of Court (Cap 322, R 5, 2006 Rev Ed) |
| Order 38 r 2(5) |
| Order 41 r 5(2) |
| O 41 r 6 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Sale of Goods Act | Singapore |
| Sale of Goods Act (Cap 393, 1999 Rev Ed) s 14 | Singapore |
| Sale of Goods Act (Cap 393, 1999 Rev Ed) s 15 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- MAS Building
- Refurbishment
- Paint
- Aluminium Flakes
- Coarse Flakes
- Fine Flakes
- Consistency
- Tonality
- Application Line
- Original Paint
- New Paint
- Side-View Effect
15.2 Keywords
- defective paint
- MAS Building
- refurbishment
- breach of contract
- sale of goods
- implied terms
- aluminium flakes
- color consistency
17. Areas of Law
16. Subjects
- Contract Law
- Sale of Goods
- Construction Dispute