Dongwoo Mann+Hummel v Mann+Hummel: Setting Aside Arbitration Award for Breach of Natural Justice
In Dongwoo Mann+Hummel Co Ltd v Mann+Hummel GmbH, the High Court of Singapore dismissed Dongwoo's action to set aside an arbitration award. Dongwoo sought to set aside the award on grounds of breach of natural justice and public policy, alleging that it was not given a full opportunity to present its case regarding the Crank Case Ventilation oil separator and the S-Engine oil filter. The court, presided over by Justice Chan Seng Onn, found no merit in Dongwoo's claims and dismissed the action, ordering Dongwoo to pay costs.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Action dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Dongwoo's action to set aside an arbitration award was dismissed, as the court found no breach of natural justice or public policy.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Dongwoo Mann+Hummel Co Ltd | Plaintiff | Corporation | Action dismissed | Lost | |
| Mann+Hummel GmbH | Defendant | Corporation | Action dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chan Seng Onn | Judge | Yes |
4. Counsels
4. Facts
- Dongwoo sought to set aside an arbitration award.
- The arbitration concerned a technical assistance and trademark licensing agreement (TATLA).
- Dongwoo alleged M+H failed to provide necessary technical information.
- Dongwoo terminated the TATLA, which M+H disputed.
- Dongwoo claimed M+H's conduct breached natural justice and conflicted with public policy.
- The tribunal made rulings on discovery and document production.
- M+H did not produce certain documents related to the CCV oil separator, citing confidentiality.
5. Formal Citations
- Dongwoo Mann+Hummel Co Ltd v Mann+Hummel GmbH, OS 713/2007, [2008] SGHC 67
6. Timeline
| Date | Event |
|---|---|
| Memorandum of understanding entered into between Mann+Hummel GmbH and Mr Choonsung Ley. | |
| Share purchase agreement signed between Dongwoo’s shareholders and Mann+Hummel GmbH. | |
| Shareholders agreement signed between Dongwoo, Dongwoo’s shareholders and Mann+Hummel GmbH. | |
| Technical assistance and trademark licensing agreement signed between Dongwoo and Mann+Hummel GmbH. | |
| Amended and restated shareholders agreement entered into between Dongwoo’s shareholders and Mann+Hummel GmbH. | |
| Dongwoo sent a letter to Mann+Hummel GmbH regarding difficulties in obtaining technical cooperation. | |
| Dongwoo sent a further letter to Mann+Hummel GmbH stating that the technical information provided continued to fall short. | |
| Dongwoo sent a letter terminating the technical assistance and trademark licensing agreement. | |
| Dongwoo’s shareholders sent a letter terminating the amended and restated shareholders agreement. | |
| Dongwoo’s Korean counsel sent a request to Mann+Hummel GmbH for the production of 7 categories of documents as part of its discovery. | |
| Tribunal issued a ruling ordering Mann+Hummel GmbH to comply with Dongwoo’s narrowed and clarified Request No 7. | |
| Tribunal issued a second ruling dismissing Mann+Hummel GmbH’s application for modification of the 1st Ruling and Dongwoo’s application for an order for further and better production of documents by Mann+Hummel GmbH. | |
| Arbitration hearing began. | |
| Arbitration hearing concluded. | |
| Tribunal issued the award. | |
| Dongwoo commenced action to set aside the final award. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Natural Justice
- Outcome: The court found no breach of natural justice that prejudiced Dongwoo's rights.
- Category: Procedural
- Sub-Issues:
- Failure to disclose documents
- Tribunal relying on undisclosed information
- Denial of opportunity to present case
- Conflict with Public Policy
- Outcome: The court found that the award was not in conflict with the public policy of Singapore.
- Category: Substantive
- Sub-Issues:
- Deliberate flouting of tribunal directions
- Award procured contrary to public policy
- Validity of Termination of Contract
- Outcome: The tribunal found that Dongwoo's termination notice was invalid.
- Category: Substantive
- Sub-Issues:
- Material breach of contract
- Sufficiency of notice of termination
8. Remedies Sought
- Setting aside of arbitration award
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Arbitration
11. Industries
- Automotive
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte Ltd | Court of Appeal | Yes | [2007] 3 SLR 86 | Singapore | Cited for the principles regarding breach of natural justice in arbitration and the need to establish actual prejudice. |
| PT Asuransi Jasa Indonesia (Persero) v Dexia Bank SA | Court of Appeal | Yes | [2007] 1 SLR 597 | Singapore | Cited for the definition of 'public policy' in the context of setting aside arbitration awards and the narrow scope of its application. |
| Zermalt Holdings SA v Nu-Life Upholstery Repairs Ltd | N/A | Yes | [1985] 2 EGLR 14 | N/A | Cited for the principle that arbitrators must expose specific matters likely to form the subject of decision for the comments and submissions of the parties. |
| Profilati Italia SRL v Paine Webber Inc | N/A | Yes | [2001] 1 Lloyd’s Rep 715 | N/A | Cited for the principle that non-disclosure of material documents can constitute a breach of public policy if it involves reprehensible conduct and contributes to obtaining a favorable award. |
| Elektrim SA v Vivendi Universal SA | N/A | Yes | [2007] 1 Lloyd’s Rep 693 | N/A | Cited for the principle that deliberate concealment of documents with the intention of misleading the tribunal constitutes fraud for the purposes of setting aside an award. |
13. Applicable Rules
| Rule Name |
|---|
| Singapore International Arbitration Centre Rules (2nd Ed, 22 October 1997) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| International Arbitration Act (Cap 143A, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration
- Natural Justice
- Public Policy
- Technical Assistance
- Document Production
- Confidentiality
- CCV oil separator
- S-Engine oil filter
- TATLA
- UNCITRAL Model Law
- International Arbitration Act
- SIAC Rules
15.2 Keywords
- arbitration
- natural justice
- public policy
- Singapore
- Dongwoo
- Mann+Hummel
- technical assistance
- contract
17. Areas of Law
16. Subjects
- Arbitration
- Contract Law
- Civil Procedure