Cheng Fu Zay v Management Corp: Loss of Rent Due to Negligence in Condo Common Roof Maintenance

Cheng Fu Zay and Lai Foong Har, owners of units in Harbour View Towers, sued Management Corporation Strata Title Plan No 1919 in the High Court of Singapore on April 14, 2008, for negligence and breach of duty under the Land Titles (Strata) Act due to the MC's failure to properly maintain the common roof, resulting in water leakage and loss of rental income. The High Court allowed the Owners’ appeal regarding loss of rent in principle but reduced the amount granted to the Owners by the Deputy Registrar.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal Allowed in Part

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Owners Cheng Fu Zay and Lai Foong Har sued Management Corporation for negligence in maintaining the common roof, leading to loss of rent. The court allowed the appeal, awarding damages for loss of rent.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Cheng Fu ZayPlaintiffIndividualAppeal Allowed in PartPartial
Lai Foong HarPlaintiffIndividualAppeal Allowed in PartPartial
Management Corporation Strata Title Plan No 1919DefendantCorporationAppeal Partially AllowedPartial
Scott Vickers Engineering Pte LtdThird PartyCorporation

3. Judges

Judge NameTitleDelivered Judgment
Woo Bih LiJudgeYes

4. Counsels

Counsel NameOrganization
Wong Yoong PhinWong Yoong Phin & Co
Leo Cheng SuanInfinitus Law Corporation

4. Facts

  1. The plaintiffs owned units directly below the common roof of the condominium.
  2. The defendant was responsible for the management and maintenance of the common property.
  3. The common roof leaked, causing damage to the plaintiffs' units.
  4. The plaintiffs claimed for losses and damages, including loss of rental income.
  5. The defendant admitted to the leakage from the common roof.
  6. The defendant re-waterproofed the common roof in November 2005.
  7. The plaintiffs did not realize the roof was re-waterproofed until April 2006.

5. Formal Citations

  1. Cheng Fu Zay and Another v Management Corporation Strata Title Plan No 1919 (Scott Vickers Engineering Pte Ltd, Third Party), DC Suit 863/2002, RAS 92/2007, [2008] SGHC 56

6. Timeline

DateEvent
Action filed
Court Dispute Resolution attempted
Court Dispute Resolution unsuccessfully attempted
Action transferred from District Court to High Court
Memorandum of Agreement executed
Interlocutory judgment entered against the MC
Defendants re-waterproofed the common roof
Deputy Registrar delivered grounds of decision
Deputy Registrar delivered grounds of decision
MC filed a Notice of Appeal
Owners filed a Notice of Appeal
District Judge issued judgment
Owners filed a Notice of Appeal
Judgment reserved

7. Legal Issues

  1. Breach of Duty
    • Outcome: The court found the Management Corporation breached its duty to maintain the common roof.
    • Category: Substantive
  2. Mitigation of Loss
    • Outcome: The court held that the Owners were not required to take the risk of temporary repairs (jet-grouting) to mitigate their loss.
    • Category: Substantive
  3. Assessment of Damages
    • Outcome: The court reduced the quantum of damages for loss of rent, accounting for income tax the Owners would have paid.
    • Category: Substantive

8. Remedies Sought

  1. Order to re-waterproof the common roof
  2. Losses and damages, including loss of rental income

9. Cause of Actions

  • Negligence
  • Breach of Statutory Duty

10. Practice Areas

  • Litigation
  • Real Estate Law

11. Industries

  • Construction
  • Real Estate

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Land Titles (Strata) Act (Cap 158, 1999 Rev Ed)Singapore
Section 48(1)(b)(i) Land Titles (Strata) Act (Cap 158, 1999 Rev Ed)Singapore
Section 23 Subordinate Courts Act (Cap 321, 1999 Rev Ed)Singapore
Section 118 Land Titles (Strata) Act, (Cap 158, 1999 Rev Ed)Singapore
Section 87 Building Maintenance and Strata Management Act 2004 (Act 47 of 2004)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Common roof
  • Management Corporation
  • Strata title
  • Loss of rent
  • Mitigation
  • Jet-grouting
  • Re-waterproofing
  • Subsidiary proprietors

15.2 Keywords

  • Condominium
  • Roof leakage
  • Rental income
  • Negligence
  • Strata
  • Singapore

17. Areas of Law

Area NameRelevance Score
Strata Title80
Loss of Rent70
Property Law70
Mitigation of Loss60
Damages60
Negligence40
Contract Law30
Construction Law30

16. Subjects

  • Strata Management
  • Property Damage
  • Real Estate
  • Civil Litigation