Ng Kit Har v Yii Chee Ming: Third-Party Proceedings & Validity of Third-Party Notice Service

In Ng Kit Har v Yii Chee Ming, the Court of Appeal of Singapore addressed the validity of third-party proceedings. Mdm Ng Kit Har ('Mdm Ng') sought to reinstate a third-party notice against Mr. Yii Chee Ming ('Mr. Yii') after judgment in the main action had been entered. The court held that a third-party action is validly constituted only if the third-party notice is served before the main action concludes. Since Mdm Ng served the notice after the main action ended, the court dismissed her appeal, finding no valid third-party action to reinstate.

1. Case Overview

1.1 Court

Court of Appeal

1.2 Outcome

Appeal dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal on third-party proceedings. Court held a third-party action is valid only if the notice is served before the main action ends.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Ng Kit HarAppellantIndividualAppeal DismissedLost
Yii Chee MingRespondentIndividualAppeal DismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Chan Sek KeongChief JusticeNo
Andrew Phang Boon LeongJustice of the Court of AppealNo
V K RajahJustice of the Court of AppealYes

4. Counsels

4. Facts

  1. Banque Nationale de Paris commenced actions against Mdm Ng and Mr Tan based on guarantees.
  2. Mdm Ng and Mr Tan issued third-party notices against Mr Yii, claiming indemnity or contribution.
  3. Mdm Ng failed to effect valid service of the third-party notice on Mr Yii before the main actions ended.
  4. Mdm Ng attempted to serve the third-party notice after the main actions concluded.
  5. Court orders reinstating the Original Third-Party Notices were made on 17 November 2005.
  6. Mr Yii applied to set aside the reinstatement orders.
  7. Assistant Registrar set aside the reinstatement orders on the ground that Mr Yii would have been unduly prejudiced by the long delay in the third-party proceedings against him.

5. Formal Citations

  1. Ng Kit Har v Yii Chee Ming, CA 43/2007, [2008] SGCA 6

6. Timeline

DateEvent
Banque Nationale de Paris filed writ against Mdm Ng Kit Har.
Banque Nationale de Paris filed writ against Mr Tan Teow Gim.
Mdm Ng Kit Har filed defence.
Mr Tan Teow Gim filed defence.
Mdm Ng Kit Har issued third-party notice against Mr Yii Chee Ming.
Mr Tan Teow Gim issued third-party notice against Mr Yii Chee Ming.
Mr Yii Chee Ming entered appearance in response to Mdm Ng’s third-party notice.
Court set aside service of Mdm Ng's third-party notice.
Order for substituted service of the Original Third-Party Notices was made.
Order for substituted service of the Original Third-Party Notices was made.
Pre-trial conference held.
Judgment given in favour of BNP.
Mdm Ng and Mr Tan purported to serve the Original Third-Party Notices by substituted service.
Mdm Ng and Mr Tan applied to enter judgment in default of appearance against Mr Yii.
Mdm Ng obtained leave to issue a fresh third-party notice against Mr Yii.
Mr Tan applied for leave to issue a fresh third-party notice against Mr Yii.
Assistant Registrar directed counsel to apply for reinstatement of the original third-party notice issued by Mr Tan.
Application to reinstate the May 1999 Third Party Notice was served on Mr Yii.
Court orders reinstating the Original Third-Party Notices were made.
Mr Yii applied to set aside the reinstatement orders.
Assistant Registrar set aside the reinstatement orders.
Mdm Ng and Mr Tan appealed against the assistant registrar’s decision.
Appeals were dismissed by the High Court judge.
Court of Appeal delivered grounds of decision.

7. Legal Issues

  1. Validity of Third-Party Action
    • Outcome: The court held that a third-party action is only validly constituted if the third-party notice is served before the main action ends.
    • Category: Procedural
    • Sub-Issues:
      • Failure to serve third-party notice before conclusion of main action

8. Remedies Sought

  1. Indemnity
  2. Contribution

9. Cause of Actions

  • Indemnity
  • Contribution

10. Practice Areas

  • Civil Litigation

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Chong Yew Kee v Wah-Chang International Corp Pte LtdHigh CourtYes[1995] 1 SLR 153SingaporeCited for the principle that a third-party action, once properly constituted, survives independently of the main action.
Stott v West Yorkshire Road Car Co LtdQueen's BenchYes[1971] 2 QB 651England and WalesCited for the principle that if the main action is settled between the plaintiff and the defendant, the third-party action can still proceed as if it had been started by a separate action.
Banque Nationale de Paris v Ng Kit HarHigh CourtNo[2007] SGHC 101SingaporeCited as the decision of the High Court being appealed, which the Court of Appeal disagreed with on the line of reasoning.
The MelatiCourt of AppealYes[2004] 4 SLR 7SingaporeCited to emphasize that a claimant should have his claim adjudicated by the courts on its merits and should not be defeated by non-compliance with procedural requirements, unless there are sufficient grounds which warrant a decision to the contrary effect.
Hunter v Bank of MontrealN/ANo(1988) 12 ACWS (3d) 352N/ACited to show that requiring the defendant to abandon the third-party action and issue a fresh statement of claim against the third party if the main action is subsequently settled may, in some cases, only lead to further costs and delay.
Courtenay-Evans v Stuart Passey & AssociatesN/ANo[1986] 1 All ER 932N/ACited to show that the court may decline to give third-party directions under O 16 r 4 of the Rules, with the effect that the third-party proceedings are rendered nugatory.

13. Applicable Rules

Rule Name
Order 16 of the Rules of Court
Order 16 r 1(1) of the Rules
Order 16 r 1(3)
Order 16 r 7(1)
O 16 r 6 of the Rules
O 16 r 4 of the Rules
O 21 r 2(6) of the Rules of Court

14. Applicable Statutes

Statute NameJurisdiction
Rules of Court (Cap 322, R 5, 2006 Rev Ed)Singapore
Rules of Court (Cap 322, R 5, 2001 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Third-party proceedings
  • Third-party notice
  • Main action
  • Service of notice
  • Reinstatement of notice
  • Constitution of action

15.2 Keywords

  • Third-party
  • proceedings
  • service
  • notice
  • civil
  • procedure

17. Areas of Law

Area NameRelevance Score
Civil Practice90
Civil Procedure90

16. Subjects

  • Civil Procedure
  • Third-Party Proceedings
  • Service of Process