Exxonmobil v Bombay Dyeing: Forum Non Conveniens & Stay of Proceedings in Contract Dispute

Exxonmobil Asia Pacific Pte Ltd, a Singapore company, sued Bombay Dyeing & Manufacturing Co Ltd, an Indian company, in the Singapore High Court for breach of contract. Bombay Dyeing applied for a stay of proceedings, arguing that India was a more appropriate forum. The High Court dismissed the application, finding that Singapore was the appropriate forum given the contract's governing law clause and Bombay Dyeing's failure to demonstrate that Indian witnesses were unwilling to testify in Singapore.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore court dismisses Bombay Dyeing's appeal for stay of proceedings, finding Singapore the appropriate forum for contract dispute with Exxonmobil.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Exxonmobil Asia Pacific Pte LtdPlaintiff, RespondentCorporationAppeal dismissedWon
Bombay Dyeing & Manufacturing Co LtdDefendant, AppellantCorporationApplication for stay of proceedings dismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Tan Lee MengJudgeYes

4. Counsels

4. Facts

  1. Exxonmobil, a Singapore company, contracted to sell paraxylene to Bombay Dyeing, an Indian company.
  2. Bombay Dyeing claimed it could not take delivery due to problems with its DMT plant.
  3. Bombay Dyeing alleged fraud and misrepresentation regarding the contract price.
  4. Exxonmobil rejected Bombay Dyeing's allegations and sold the paraxylene to another party at a loss.
  5. Exxonmobil sued Bombay Dyeing for breach of contract to recover damages.
  6. Bombay Dyeing applied for a stay of proceedings based on forum non conveniens.

5. Formal Citations

  1. Exxonmobil Asia Pacific Pte Ltd v Bombay Dyeing & Manufacturing Co Ltd, Suit 120/2007, RA 151/2007, [2007] SGHC 137

6. Timeline

DateEvent
Exxonmobil and Bombay Dyeing concluded a contract for the sale of paraxylene.
Bombay Dyeing informed Exxonmobil of problems with its process air compressor.
Bombay Dyeing alleged fraud and misrepresentation and sought to repudiate the contract.
Exxonmobil rejected Bombay Dyeing's allegations and repudiation.
Exxonmobil informed Bombay Dyeing of its loss due to breach of contract.
Exxonmobil instituted a suit against Bombay Dyeing.
Bombay Dyeing's application to stay proceedings was dismissed by AR Tay.
Appeal dismissed

7. Legal Issues

  1. Stay of Proceedings
    • Outcome: The court dismissed the appeal, affirming the decision to deny the stay of proceedings.
    • Category: Procedural
    • Sub-Issues:
      • forum non conveniens
    • Related Cases:
      • [1987] AC 460
      • [1992] 2 SLR 776
      • [2007] 1 SLR 377
      • [1988] AC 92
      • [2006] 2 SLR 381

8. Remedies Sought

  1. Monetary Damages
  2. Interest

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Petrochemicals
  • Textiles

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Spiliada Maritime Corporation v Cansulex LtdHouse of LordsYes[1987] AC 460England and WalesCited for the principle of forum non conveniens in stay of proceedings applications.
Brinkerhoff Maritime Drilling Corp and Another v PT Airfast Services Indonesia and Another AppealCourt of AppealYes[1992] 2 SLR 776SingaporeEndorsed the view of Lord Goff in Spiliada Maritime Corporation v Cansulex Ltd regarding stay of proceedings on the ground of forum non conveniens.
Rickshaw Investments Ltd and Another v Nicolai Baron von UexkullCourt of AppealNo[2007] 1 SLR 377SingaporeCited to highlight the importance of the location and compellability of witnesses in forum non conveniens applications, and that much depends on whether the main disputes revolve around questions of fact.
De Dampierre v De DampierreHouse of LordsNo[1988] AC 92England and WalesCited for the principle that the existence of foreign proceedings may be relevant to the inquiry of stay of proceedings.
Peters Roger May v Pinder Lilian Gek LianHigh CourtYes[2006] 2 SLR 381SingaporeEndorsed the view in De Dampierre v De Dampierre that the existence of foreign proceedings may be relevant to the inquiry of stay of proceedings.

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

  • Paraxylene
  • DMT plant
  • Force majeure
  • Forum non conveniens
  • Stay of proceedings
  • Breach of contract

15.2 Keywords

  • forum non conveniens
  • stay of proceedings
  • breach of contract
  • paraxylene
  • exxonmobil
  • bombay dyeing

17. Areas of Law

16. Subjects

  • Civil Procedure
  • Contract Law
  • Conflict of Laws
  • Forum Non Conveniens