Island Concrete v Sim Lian Construction: Dispute over Ready-Mixed Concrete Supply Contract Settlement
Island Concrete (Pte) Ltd sued Sim Lian Construction Co Pte Ltd in the High Court of Singapore, alleging breach of an oral compromise agreement reached on 25 May 2007. The agreement purportedly settled claims related to ready-mixed concrete supplies for several construction projects. Tay Yong Kwang J found in favor of Island Concrete, holding that a valid compromise agreement existed and was breached by Sim Lian Construction. The court awarded Island Concrete $606,031.23 plus interest and costs.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Island Concrete sued Sim Lian Construction for breach of a settlement agreement regarding concrete supply. The court found in favor of Island Concrete.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Island Concrete (Pte) Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | K Muralidharan Pillai, Sim Wei Na, Luo Qingui |
| Sim Lian Construction Co Pte Ltd | Defendant | Corporation | Claim Dismissed | Lost | David Ong Lian Min |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tay Yong Kwang | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| K Muralidharan Pillai | Rajah & Tann LLP |
| Sim Wei Na | Rajah & Tann LLP |
| Luo Qingui | Rajah & Tann LLP |
| David Ong Lian Min | David Ong & Co |
4. Facts
- Plaintiff and defendant had a business relationship since 1998.
- Plaintiff supplied ready-mixed concrete to the defendant for construction projects.
- A dispute arose over unpaid invoices for ready-mixed concrete supplies.
- A settlement conference was held on 25 May 2007 to resolve the dispute.
- A handwritten note outlining settlement terms was created and signed by the defendant's representative.
- Delta Link, a related company, made payment according to the settlement terms.
- The defendant failed to make payment by the agreed deadline.
5. Formal Citations
- Island Concrete (Pte) Ltd v Sim Lian Construction Co Pte Ltd, Suit 389/2007, [2008] SGHC 245
6. Timeline
| Date | Event |
|---|---|
| Parties began dealing with each other. | |
| Plaintiff entered into fixed price supply contracts with the defendant and Delta Link. | |
| Defendant and Delta Link owed the plaintiff about $650,000. | |
| Singapore government began releasing sand from its strategic stockpile. | |
| SCAL issued an advisory regarding sand prices. | |
| Building Control Authority issued a notice regarding sand prices. | |
| Sand sold at $60 per tonne from BCA stockpile. | |
| Plaintiff sent letters of demand for payment to both the defendant and Delta Link. | |
| Plaintiff suspended supply of RMC. | |
| Settlement conference held. | |
| Delta Link made payment to Rajah & Tann. | |
| Deadline for defendant to respond on accuracy of invoices. | |
| Victor Leong discussed the failure by the defendant to pay the agreed amount with Peggy Quek. | |
| Peggy Quek spoke to George Wan about the payment that was due. | |
| Peggy Quek called George Wan again. | |
| Plaintiff discontinued the Delta Link suit. | |
| Plaintiff discontinued the Sim Lian suit. | |
| Commencement of the present action. | |
| Completion date of the Holland project. | |
| Offer to settle served on the defendant. | |
| End date for costs on the standard basis. | |
| Decision Date |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that the defendant breached the compromise agreement.
- Category: Substantive
- Enforceability of Settlement Agreement
- Outcome: The court held that a valid and enforceable settlement agreement was reached between the parties.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Construction Law
11. Industries
- Construction
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| O 22A r9 of the Rules of Court (Cap 322, R 5) |
| O 22A r 3 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Ready-mixed concrete
- Settlement conference
- Compromise agreement
- Invoices
- Cost-sharing
- Settlement Terms
- RMC
- Global Settlement
15.2 Keywords
- concrete
- settlement
- construction
- contract
- agreement
16. Subjects
- Contract Dispute
- Settlement Agreement
- Construction Dispute
17. Areas of Law
- Contract Law
- Civil Procedure