Sun Tech v FedEx: Hijacking & Bailee's Duty of Care in Air Carriage

Sun Technosystems Pte Ltd (Sun Tech) sued Federal Express Services (M) Sdn Bhd (FedEx M) in the High Court of Singapore on April 20, 2006, for breach of duty as carrier and/or as bailees, seeking to recover US$860,000 for memory chips lost due to a hijacking while in FedEx M's possession. Sun Tech claimed FedEx M was negligent in its security measures. The court, Judith Prakash J, dismissed Sun Tech's claim, finding that the loss was caused by an event beyond FedEx M's control and that FedEx M was not negligent.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Defendant

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Sun Tech sued FedEx for lost memory chips due to hijacking. The court found FedEx not liable, as the loss was beyond its control and it wasn't negligent.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Smart Modular Technologies Sdn BhdPlaintiffCorporationAction discontinuedWithdrawnGoh Kok Leong, Anna Quah, Gho Sze Kee
Sun Technosystems Pte LtdPlaintiffCorporationClaim DismissedLostGoh Kok Leong, Anna Quah, Gho Sze Kee
Federal Express Services (M) Sdn BhdDefendantCorporationJudgment for DefendantWonLok Vi Ming SC, Ajinderpal Singh, Mark Seah
Federal Express CorporationDefendantCorporationNot ServedNeutral

3. Judges

Judge NameTitleDelivered Judgment
Judith PrakashJudgeYes

4. Counsels

Counsel NameOrganization
Goh Kok LeongAng & Partners
Anna QuahAng & Partners
Gho Sze KeeAng & Partners
Lok Vi Ming SCRodyk & Davidson
Ajinderpal SinghRodyk & Davidson
Mark SeahRodyk & Davidson

4. Facts

  1. Sun Tech ordered 1,000 memory chips from Smart for US$860,000.
  2. Smart contacted FedEx M to transport the chips to Singapore.
  3. A FedEx M courier picked up the goods from Smart's premises in Penang.
  4. The FedEx M vehicle was hijacked en route to the shuttle point.
  5. The memory chips were stolen during the hijacking and never recovered.
  6. FedEx M's contract contained a clause excluding liability for loss beyond its control.

5. Formal Citations

  1. Smart Modular Technologies Sdn Bhd and Another v Federal Express Services (M) Sdn Bhd and Another, Suit 259/2002, [2006] SGHC 66

6. Timeline

DateEvent
Smart contacted FedEx M to transport memory chips to Singapore.
Mr. Turairaj picked up the goods from Smart’s premises.
The van was hijacked and the goods were stolen.
Suit 259/2002 filed.
Suit No 260 of 2002 filed.
Sun Tech’s claim in Suit 260/2002 was dismissed.
Judgment reserved.
Judgment issued.

7. Legal Issues

  1. Breach of Duty of Care
    • Outcome: The court held that FedEx M was not negligent in its duty of care as a bailee.
    • Category: Substantive
    • Sub-Issues:
      • Failure to take reasonable care of cargo
      • Failure to implement adequate security measures
    • Related Cases:
      • [1979] AC 580
  2. Exclusion of Liability
    • Outcome: The court held that the hijacking was an event beyond FedEx M's control, thus potentially excluding liability.
    • Category: Substantive
    • Sub-Issues:
      • Interpretation of exclusion clause
      • Circumstances beyond carrier's control

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Negligence

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Logistics
  • Technology
  • Manufacturing

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Port Swettenham Authority v T W Wu and Co (M) Sdn BhdPrivy CouncilYes[1979] AC 580MalaysiaEstablished the principle that a bailee has the burden of proving that loss occurred without negligence on their part.

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

  • Bailment
  • Airway bill
  • Hijacking
  • Exclusion clause
  • Duty of care
  • Courier
  • Shuttle point
  • Memory chips

15.2 Keywords

  • bailment
  • carriage of goods
  • hijacking
  • negligence
  • FedEx
  • Sun Tech
  • memory chips
  • Singapore
  • contract law

16. Subjects

  • Contract Law
  • Bailment
  • Transportation Law
  • Commercial Law

17. Areas of Law

  • Bailment
  • Carriage of Goods by Air and Land
  • Contract Law