Abe Isaac (Pte) Ltd v Marieta Montalba Pacudan: Lease Agreement Dispute over Property Condition
Abe Isaac (Pte) Ltd ("AIPL") sued Marieta Montalba Pacudan and Ong Choo Pang in the High Court of Singapore for breaches of a lease agreement concerning premises used as a pub. AIPL claimed damages for failure to reinstate the premises, missing inventory items, arrears of rent, loss of rental income, costs of installing equipment, and indemnity for damages to a neighboring unit. Marieta Montalba Pacudan counterclaimed for the return of the rental deposit. The court, presided over by Sundaresh Menon JC, found for AIPL on the arrears of rental, loss of rental, and indemnity claims, but awarded only nominal damages for the reinstatement and inventory list claims due to lack of sufficient evidence. The court ordered the plaintiff to refund a portion of the security deposit to the 1st defendant.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff in part; Judgment for 1st Defendant for refund of security deposit balance.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Abe Isaac (Pte) Ltd sued Marieta Montalba Pacudan for breach of a lease agreement. The court found for the plaintiff on some claims but awarded only nominal damages on others.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Abe Isaac (Pte) Ltd | Plaintiff | Corporation | Judgment for Plaintiff in part | Partial | |
| Marieta Montalba Pacudan | Defendant | Individual | Judgment for 1st Defendant for refund of security deposit balance | Won | |
| Ong Choo Pang | Defendant | Individual | Claims Dismissed | Dismissed |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Sundaresh Menon | Judicial Commissioner | Yes |
4. Counsels
4. Facts
- Plaintiff leased premises to the 1st defendant for use as a pub, with the 2nd defendant as guarantor.
- The 1st defendant failed to reinstate the premises to its original condition at the end of the lease.
- Certain items listed in an inventory were not returned at the end of the lease.
- The 1st defendant was in arrears of rent.
- The premises caused water damage to a neighboring unit, leading to a claim against Mr. Isaac.
- The 1st defendant renovated the premises without the plaintiff's consent.
- The inventory list attached to the 2002 lease was the same list from the 1997 lease.
5. Formal Citations
- Abe Isaac (Pte) Ltd v Marieta Montalba Pacudan and Another, Suit 73/2006, [2007] SGHC 46
6. Timeline
| Date | Event |
|---|---|
| Plaintiff renovated the premises and operated a pub. | |
| Plaintiff leased the premises to a third party. | |
| Lease with third party ended. | |
| Plaintiff leased the premises to the 2nd defendant (1997 lease). | |
| 2nd defendant renovated the premises and renamed the pub 'The Green Mango'. | |
| Renovations completed. | |
| Lease agreement entered into between the 1st defendant and the plaintiff (2002 lease). | |
| Commencement date of the 2002 lease. | |
| Plaintiff informed that the name of the pub would be changed to 'Makati City'. | |
| End date of the 2002 lease. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that the defendants breached the lease agreement by failing to reinstate the premises and return inventory items, but awarded only nominal damages due to lack of sufficient evidence. The court found the defendant liable for arrears of rental.
- Category: Substantive
- Sub-Issues:
- Failure to reinstate premises
- Failure to return inventory items
- Arrears of rental
- Indemnity
- Outcome: The court found for the plaintiff on the indemnity claim.
- Category: Substantive
- Damages
- Outcome: The court awarded nominal damages for some claims due to lack of sufficient evidence to prove the quantum of loss.
- Category: Substantive
- Sub-Issues:
- Quantification of damages
- Nominal damages
8. Remedies Sought
- Monetary Damages
- Reinstatement of Premises
- Return of Inventory Items
- Payment of Arrears of Rental
- Indemnification
9. Cause of Actions
- Breach of Contract
- Failure to Reinstate Premises
- Failure to Return Inventory
- Claim for Arrears of Rental
- Indemnity
10. Practice Areas
- Commercial Litigation
- Landlord-Tenant Law
11. Industries
- Hospitality
- Entertainment
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Reardon Smith Line Ltd v Yngvar Hansen Tangen | N/A | Yes | [1976] 1 WLR 989 | N/A | Cited with approval for the principle that a contract is to be construed taking due account of the factual matrix in which it was entered into. |
| Riduan bin Yusof v Khng Thian Huat (No 2) | Court of Appeal | Yes | [2005] 4 SLR 234 | Singapore | Cited for the principle that a contract is to be construed taking due account of the factual matrix in which it was entered into. |
| Multi-Pak Singapore Pte Ltd (In receivership) v Intraco Ltd | N/A | No | [1992] 2 SLR 793 | Singapore | Cited regarding the importance of pleading a case. |
| Clarke Quay Pte Ltd v Tan Hun Ling (trading as Sin Lok Cuisine) | N/A | No | [2006] 3 SLR 626 | Singapore | Cited for the construction of 'fixtures' in relation to chattels. |
| L&M Airconditioning & Refrigeration (Pte) Ltd v SA Shee & Co (Pte) Ltd | N/A | Yes | [1993] 3 SLR 482 | Singapore | Cited for the principle that nominal damages may be awarded where the fact of a loss is shown but the necessary evidence as to its amount is not given. |
| Permasteelisa Pacific Holdings Ltd v Hyundai Engineering and Construction Co Ltd | N/A | Yes | [2005] 2 SLR 270 | Singapore | Followed the approach in L&M Airconditioning & Refrigeration (Pte) Ltd v SA Shee & Co (Pte) Ltd regarding nominal damages. |
| Jet Holding Ltd v Cooper Cameron (Singapore) Pte Ltd | N/A | No | [2005] 4 SLR 417 | Singapore | Cited regarding the quantification of damages for lost or damaged equipment. |
| Hong Leong Finance Ltd v Lee Siang Wah and Another | N/A | No | [1993] 3 SLR 857 | Singapore | Cited regarding the court's discretion on costs. |
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
- Lease Agreement
- Reinstatement
- Inventory List
- Arrears of Rental
- Indemnity
- Security Deposit
- Fair Wear and Tear
- Letter of Intent
15.2 Keywords
- lease agreement
- reinstatement
- inventory
- rental arrears
- indemnity
- security deposit
- Singapore
- High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Landlord and Tenant Law | 90 |
| Contract Law | 90 |
| Damages | 70 |
| Evidence | 50 |
| Estoppel | 30 |
16. Subjects
- Contract Law
- Landlord and Tenant
- Lease Agreements
- Commercial Litigation