Robertson Quay Investment v Steen Consultants: Delay Damages Assessment
In a suit before the High Court of Singapore, Robertson Quay Investment Pte Ltd sued Steen Consultants Pte Ltd and others for damages resulting from construction delays at The Gallery Hotel. The first and third defendants admitted liability, and the court assessed damages. The defendants appealed the assistant registrar's assessment of management fees, salaries, interest on loans, and loss of rental income. The plaintiff cross-appealed the dismissal of its claim for loss of rental income. The court dismissed the appeals on management fees, salaries and loss of rental income, allowed the appeal regarding interest on loans, dismissed the cross-appeal, and varied the interest award date.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal allowed in part; cross-appeal dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Robertson Quay Investment sued Steen Consultants for construction delays. The court assessed damages related to management fees, salaries, interest, and rental income.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Robertson Quay Investment Pte Ltd | Plaintiff, Respondent | Corporation | Appeal dismissed in part; cross-appeal dismissed | Partial | |
| Steen Consultants Pte Ltd | Defendant, Appellant | Corporation | Appeal allowed in part | Partial | |
| Shahbaz Ahmad | Defendant | Individual | Action discontinued | Dismissed | |
| Goh Joon Yap | Defendant | Individual | Interlocutory judgment entered | Default |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Chua Sui Tong | Wong Partnership |
| John Morris | Drew & Napier LLC |
4. Facts
- The plaintiff was the owner and developer of The Gallery Hotel.
- The first defendant provided civil and engineering services for the hotel's construction.
- The third defendant was the engineer responsible for the structural drawings.
- The 1996 drawings were underdesigned and corrected in 1997.
- The uncorrected 1996 drawings were given to the building contractor.
- Some structural columns were under built, requiring remedial work.
- The remedial work caused a delay of 101 days.
5. Formal Citations
- Robertson Quay Investment Pte Ltd v Steen Consultants Pte Ltd and Others, Suit 324/2005, RA 353/2006, 372/2006, [2007] SGHC 30
6. Timeline
| Date | Event |
|---|---|
| Drawings were done for the structural drawings for the project. | |
| Drawings were corrected and submitted to the building authorities. | |
| Delay of 101 days began. | |
| Delay of 101 days ended. | |
| Prospective tenant's letter of intent. | |
| Writ issued. | |
| Plaintiff sued the defendants. | |
| Writ served. | |
| Judgment reserved. |
7. Legal Issues
- Assessment of Damages
- Outcome: The court varied the orders below relating to items (iv) and (v) accordingly.
- Category: Substantive
- Related Cases:
- [1854] 9 Ex 341
- Loss of Rental Income
- Outcome: The court found that the plaintiff failed to prove that it was within the reasonable contemplation of the parties at the time of the contract that the hotel would be rented out.
- Category: Substantive
- Interest on Loans
- Outcome: The court found that the capitalisation of interest, through an accounting procedure, does not change its nature from interest to capital.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Negligence
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Construction Litigation
11. Industries
- Construction
- Hospitality
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Hadley v Baxendale | Court of Exchequer | Yes | [1854] 9 Ex 341 | England and Wales | Cited for the principle of loss contemplated in determining damages. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Remedial Work
- Period of Delay
- Capitalised Interest
- Loss of Rental Income
- Management Fees
- Executive Directors
- Structural Columns
- Underdesigned
15.2 Keywords
- construction delay
- damages
- management fees
- interest
- rental income
- Robertson Quay Investment
- Steen Consultants
- Singapore High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Damages | 80 |
| Construction Law | 70 |
| Breach of Contract | 60 |
| Contract Law | 50 |
| Civil and Engineering Services | 40 |
| Business Litigation | 30 |
16. Subjects
- Construction Dispute
- Damages Assessment
- Contract Law