Highness Electrical Engineering v Sigma Cable: Breach of Contract & Damages Assessment

Highness Electrical Engineering Pte Ltd sued Sigma Cable Company (Pte) Ltd in the High Court of Singapore for breach of contract relating to a supply agreement. The Assistant Registrar assessed damages in favour of Highness Electrical Engineering. Chan Seng Onn J dismissed Sigma Cable's appeal regarding certain damages but allowed the appeal concerning cables purchased under the Keystone contract, ordering a re-assessment to consider additional costs Highness Electrical Engineering might have incurred had they exercised their option to purchase all remaining cables before the contract's expiry.

1. Case Overview

1.1 Court

High Court of Singapore

1.2 Outcome

Appeal allowed in part; damages to be re-assessed for one item.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Highness Electrical Engineering sued Sigma Cable for breach of contract. The court dismissed Sigma Cable's appeal regarding damages, except for the Keystone contract.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Highness Electrical Engineering Pte LtdPlaintiffCorporationAppeal allowed in partPartial
Sigma Cable Company (Pte) LtdDefendant, AppellantCorporationAppeal dismissed in partLost

3. Judges

Judge NameTitleDelivered Judgment
Chan Seng OnnJudgeYes

4. Counsels

Counsel NameOrganization
Alvin Chang Jit HuaM & A Law Corporation
Gan Kam YuinBih Li & Lee

4. Facts

  1. Plaintiff and defendant entered into a supply contract for electrical cables.
  2. Defendant failed to deliver cables under five delivery instructions.
  3. Plaintiff purchased cables from other suppliers to meet project deadlines.
  4. Plaintiff entered into a long-term supply contract with Keystone Cable.
  5. The original contract was for a fixed term from December 2003 to December 2005.
  6. The plaintiff's claim was for loss and damage suffered as a result of various breaches by the defendant of a supply contract

5. Formal Citations

  1. Highness Electrical Engineering Pte Ltd v Sigma Cable Company (Pte) Ltd, Suit 403/2005, NA 47/2007, RA 58/2008, [2008] SGHC 95

6. Timeline

DateEvent
Plaintiff issued purchase order HE/PO/03/0175
Defendant accepted purchase order
Plaintiff terminated the original contract
Plaintiff accelerated work to complete project
Chinese New Year holiday
Chinese New Year holiday
Alternative suppliers could not deliver cables due to holiday period
Building Control Authority of Singapore issued Temporary Occupation Permit
Plaintiff carried out further finishing works
Architects issued certificate of completion
Plaintiff handed works over to main contractors
Plaintiff entered into long term supply contract with Keystone Cable
Plaintiff obtained interlocutory judgment against the defendant
Defendant’s appeal to the Court of Appeal against Tan J’s decision was dismissed
Decision Date

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court upheld the finding of breach of contract.
    • Category: Substantive
    • Related Cases:
      • [2006] 3 SLR 640
  2. Damages Assessment
    • Outcome: The court ordered a re-assessment of damages for one item, considering additional costs.
    • Category: Procedural
  3. Mitigation of Loss
    • Outcome: The court considered whether the plaintiff adequately mitigated its loss by entering into a long-term supply contract.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Construction Disputes

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Highness Electrical Engineering Pte Ltd v Sigma Cable Co (Pte) LtdHigh CourtYes[2006] 3 SLR 640SingaporeThe judgment refers to a prior decision in the same case, establishing the defendant's liability for breach of contract.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Supply contract
  • Delivery Instructions
  • Temporary Occupation Permit
  • Repudiatory breach
  • Mitigation of loss
  • Keystone contract

15.2 Keywords

  • contract
  • breach
  • damages
  • cable
  • construction

17. Areas of Law

Area NameRelevance Score
Breach of Contract90
Contract Law85
Supply Contract75
Commercial Disputes70
Repudiatory breach65
Measure of Damages60
Mitigation of Loss55

16. Subjects

  • Contract Law
  • Construction Dispute
  • Damages