BNP Paribas v Lam Chi Kin: Summary Judgment Appeal on Loan Facility Margin Requirement

In BNP Paribas Wealth Management v Lam Chi Kin David, the High Court of Singapore heard an appeal by Lam Chi Kin David against a summary judgment granted to BNP Paribas Wealth Management for sums due under a multi-currency short term loan facility. The court, Woo Bih Li J, dismissed the appeal, finding that Lam Chi Kin David had sufficient time to respond to the bank's demands to cover a margin shortfall and was liable for the outstanding amount of JPY 29,062,179.35.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal Dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding a summary judgment on a loan facility. The court dismissed the appeal, finding the defendant liable for the outstanding amount.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
BNP Paribas Wealth ManagementPlaintiff, RespondentCorporationJudgment for PlaintiffWonK Muralidharan Pillai
Lam Chi Kin DavidDefendant, AppellantIndividualAppeal DismissedLostSoh Gim Chuan

3. Judges

Judge NameTitleDelivered Judgment
Woo Bih LiJudgeYes

4. Counsels

Counsel NameOrganization
K Muralidharan PillaiRajah &Tann LLP
Soh Gim ChuanSoh Wong & Yap

4. Facts

  1. PWM granted DL a multi-currency short term loan facility.
  2. DL was required to maintain a margin requirement.
  3. On 8 October 2008, DL's liabilities exceeded the loanable value of his portfolio.
  4. PWM sent telefaxes to DL demanding funds to cover the shortfall.
  5. DL gave instructions to sell AUD and NZD.
  6. The remaining NZD position was not executed as the exchange rates were not reached.
  7. PWM closed DL's NZD/JPY position after DL failed to respond.

5. Formal Citations

  1. BNP Paribas Wealth Management v Lam Chi Kin David, Suit 875/2008, RA 24/2009, [2009] SGHC 117

6. Timeline

DateEvent
Facility agreement dated
Facility agreement executed by DL
PWM sent telefax to DL regarding margin shortfall
DL gave instructions to sell AUD and NZD
PWM unable to contact DL
PWM sent telefax to DL requesting instructions
PWM closed DL’s NZD/JPY position
PWM filed Summons No 5543/2008/F
Assistant registrar granted judgment against DL
Appeal dismissed with costs
Decision Date

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the defendant breached the facility agreement by failing to maintain the margin requirement.
    • Category: Substantive
    • Sub-Issues:
      • Failure to maintain margin requirement
  2. Summary Judgment
    • Outcome: The court upheld the summary judgment against the defendant.
    • Category: Procedural

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Banking Litigation

11. Industries

  • Financial Services

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

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

  • Margin Requirement
  • Loan Facility
  • Telefax
  • Shortfall
  • Outstanding Liabilities
  • Business Day

15.2 Keywords

  • Loan Facility
  • Margin Requirement
  • Summary Judgment
  • Banking
  • Singapore

16. Subjects

  • Banking
  • Finance
  • Loans

17. Areas of Law

  • Banking Law
  • Contract Law
  • Credit and Security