Sandar Aung v Parkway Hospitals: Contractual Terms & Hospital Bill Dispute

In Sandar Aung v Parkway Hospitals Singapore Pte Ltd, the Court of Appeal of Singapore heard an appeal on March 30, 2007, regarding a contractual dispute over a hospital bill. Sandar Aung, the appellant, challenged the decision to hold her liable for a hospital bill that greatly exceeded the initial estimate for her mother's angioplasty. The court allowed the appeal, finding that the contract's scope was limited to the angioplasty procedure, and not the subsequent unforeseen medical complications. The claim was based on a breach of contract claim.

1. Case Overview

1.1 Court

Court of Appeal

1.2 Outcome

Appeal Allowed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding a hospital bill exceeding the estimate. The court allowed the appeal, construing the contract scope as limited to the angioplasty procedure.

1.7 Decision Date

2. Parties and Outcomes

3. Judges

Judge NameTitleDelivered Judgment
Andrew Ang JJudgeNo
Chan Sek Keong CJChief JusticeNo
Andrew Phang Boon Leong JAJustice of the Court of AppealYes

4. Counsels

4. Facts

  1. Appellant's mother admitted to Mount Elizabeth Hospital for angioplasty on January 7, 2004.
  2. Appellant signed an 'Estimate of Hospital Charges' and a 'Conditions of Services/Hospital Policies' document.
  3. The estimate for the angioplasty was $15,227.30.
  4. The angioplasty did not have the intended outcome, requiring urgent open heart bypass surgery.
  5. Patient suffered multiple complications, including a stroke, infection, and gangrene, requiring 11 months of hospitalization.
  6. Hospital rendered an invoice for $537,432.34 after deposit payments.
  7. Appellant denied liability, arguing the undertaking was limited to the angioplasty procedure.

5. Formal Citations

  1. Sandar Aung v Parkway Hospitals Singapore Pte Ltd (trading as Mount Elizabeth Hospital) and Another, CA 102/2006, [2007] SGCA 20

6. Timeline

DateEvent
Patient admitted to Mount Elizabeth Hospital for angioplasty
Corporate restructuring; assets transferred from second respondent to first respondent
Patient discharged from hospital
Judgment reserved

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court held that the contract's scope was limited to the angioplasty procedure, not covering subsequent unforeseen medical complications.
    • Category: Substantive
    • Sub-Issues:
      • Scope of contractual terms
      • Construction of contract
      • Interpretation of undertaking
    • Related Cases:
      • [2007] 1 SLR 227
  2. Construction of Contract
    • Outcome: The court determined that the factual matrix, including the Estimate, demonstrated that the contract was confined to the angioplasty procedure.
    • Category: Substantive
    • Sub-Issues:
      • Relevance of factual matrix
      • Parol evidence rule
      • Intention of parties
    • Related Cases:
      • [1996] 2 WLR 726
      • [1976] 1 WLR 989
      • [2005] 2 SLR 509
      • [1998] 1 WLR 896
      • [2002] 1 AC 251

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Healthcare

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Parkway Hospitals Singapore Pte Ltd (trading as Mount Elizabeth Hospital) v Sandar AungHigh CourtNo[2007] 1 SLR 227SingaporeCited for the trial judge's decision that the contract was binding and the appellant was liable to pay for all medical services provided.
Charter Reinsurance Co Ltd v FaganHouse of LordsYes[1996] 2 WLR 726England and WalesCited for the principle that the meaning of words is sensitive to syntax and context.
Reardon Smith Line Ltd v Yngvar Hansen-TangenHouse of LordsYes[1976] 1 WLR 989England and WalesCited for the principle that the court should place itself in the same factual matrix as the parties when construing a contract.
China Insurance Co (Singapore) Pte Ltd v Liberty Insurance Pte LtdHigh CourtYes[2005] 2 SLR 509SingaporeCited for endorsing the common law principle of considering the factual matrix when construing contracts.
Investors Compensation Scheme Ltd v West Bromwich Building SocietyHouse of LordsYes[1998] 1 WLR 896England and WalesCited for the principles of contractual interpretation, including considering the background knowledge reasonably available to the parties.
Bank of Credit and Commerce International SA v AliHouse of LordsYes[2002] 1 AC 251England and WalesCited for the principle that there is no conceptual limit to what can be regarded as background in contractual interpretation.
The Commercial Bank of Australia Limited v AmadioHigh CourtNo(1983) 151 CLR 447AustraliaCited in relation to the doctrine of unconscionability.
William Brandt’s Sons & Co v Dunlop Rubber Company, LimitedHouse of LordsYes[1905] AC 454England and WalesCited regarding the validity of the assignment as an equitable assignment.
Prenn v. SimmondsN/AYes[1971] 1 W.L.R. 1381N/ACited as a case that led to a fundamental change in the way contractual documents are interpreted.
Antaios Compania Naviera S.A. v. Salen Rederierna A.B.N/AYes[1985] A.C. 191N/ACited for the principle that if detailed semantic and syntactical analysis of words in a commercial contract is going to lead to a conclusion that flouts business commonsense, it must be made to yield to business commonsense.
Mannai Investments Co. Ltd. v. Eagle Star Life Assurance Co. Ltd.N/AYes[1997] A.C. 749N/ACited for the principle that the parties must, for whatever reason, have used the wrong words or syntax.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Evidence Act (Cap 97, 1997 Rev Ed)Singapore
Evidence Act (Cap 97, 1997 Rev Ed) s 2(2)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Angioplasty
  • Estimate of Hospital Charges
  • Conditions of Services/Hospital Policies
  • Undertaking
  • Factual Matrix
  • Construction of Contract
  • Unconscionability

15.2 Keywords

  • contract
  • hospital
  • medical
  • angioplasty
  • estimate
  • liability
  • Singapore
  • Court of Appeal

17. Areas of Law

16. Subjects

  • Contract Law
  • Medical Negligence
  • Hospital Services
  • Contractual Interpretation