DBS Vickers v Chin Pang Joo: Agent's Authority & Trading Losses

DBS Vickers Securities (Singapore) Pte Ltd sued Chin Pang Joo for S$775,124.97 in contra losses incurred on his securities trading account. Alternatively, DBS Vickers claimed against Tang Boon Hai for breach of warranty of authority. The High Court of Singapore found that Chin Pang Joo had authorized Tang Boon Hai to trade on his account, making Chin liable for the losses. The court ruled in favor of DBS Vickers against Chin Pang Joo.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

DBS Vickers sues Chin for trading losses. Court finds Chin authorized agent, Tang, to trade on his account, making Chin liable.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
DBS Vickers Securities (Singapore) Pte LtdPlaintiffCorporationJudgment for PlaintiffWon
Chin Pang JooDefendantIndividualClaim DismissedLost
Tang Boon HaiDefendantIndividualClaim DismissedNeutral

3. Judges

Judge NameTitleDelivered Judgment
Philip PillaiJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Joanna PohTan Kok Quan Partnership
Eddee NgTan Kok Quan Partnership
Serene GanTan Kok Quan Partnership
Clarence TanUniLegal LLC
Suresh s/o DamodaraDamodara, Hazra, K Sureshan LLP
Leonard HazraDamodara, Hazra, K Sureshan LLP

4. Facts

  1. Chin opened a DBSV Account in April 2008.
  2. Chin did not sign a mandate authorizing Tang to trade on his DBSV Account.
  3. Tang gave trade instructions to DBSV's remisier, Tay.
  4. Trade confirmations were emailed to Tang.
  5. Account statements were sent to Chin's residential address.
  6. Chin disputed the trades after receiving a letter of demand.
  7. Chin had a prior trading relationship with Tang at UOB KH.

5. Formal Citations

  1. DBS Vickers Securities (Singapore) Pte Ltd v Chin Pang Joo and Another, Suit No 601/2008, [2009] SGHC 248

6. Timeline

DateEvent
DBSV Account opened
Trading commenced on DBSV Account
Chin admitted to hospital
Chin discharged from hospital
Contra losses incurred on securities trading account
DBSV's solicitors issued letter of demand
Chin disputed trades and lodged police report
Judgment issued

7. Legal Issues

  1. Agent's Warranty of Authority
    • Outcome: The court found that the second defendant did not breach his warranty of authority because the first defendant had authorized him to trade on his behalf.
    • Category: Substantive
    • Sub-Issues:
      • Construction of agent's authority
      • Oral authority
      • Implied authority of agent
  2. Implied Authority
    • Outcome: The court found sufficient evidence of a continuing arrangement such as would constitute implied authority for Steven Tang to trade on the DBSV Account on behalf of Chin.
    • Category: Substantive
    • Related Cases:
      • [2002] 1 SLR 29
  3. Apparent Authority
    • Outcome: The court found sufficient representation to the plaintiff as would constitute apparent authority.
    • Category: Substantive
  4. Contributory Negligence
    • Outcome: The court found no merit in the defence of contributory negligence.
    • Category: Substantive
    • Related Cases:
      • [2006] 3 SLR 769

8. Remedies Sought

  1. Monetary Damages
  2. Interest

9. Cause of Actions

  • Breach of Contract
  • Breach of Warranty of Authority

10. Practice Areas

  • Securities Law
  • Commercial Litigation

11. Industries

  • Finance
  • Securities

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Banque Nationale de Paris v Tan Nancy & AnorHigh CourtYes[2002] 1 SLR 29SingaporeCited for the principle that actual authority may be implied or inferred from the conduct of the parties and the circumstances.
Jet Holding Ltd & Ors v Cooper Cameron (Singapore) Pte LtdCourt of AppealYes[2006] 3 SLR 769SingaporeCited for the principle that the doctrine of contributory negligence is applicable where the defendant’s liability is the same as his or her liability in the tort of negligence independently of the existence of any contract.
Denis Matthew Harte v Dr Tan Hun Hoe and Gleneagles Hospital LtdHigh CourtYes[2001] SGHC 19SingaporeCited for the principles to be considered relating to a Bullock or Sanderson Order.

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

  • Contra losses
  • Securities trading account
  • Implied authority
  • Apparent authority
  • General Trading Agreement
  • Remisier
  • Trade confirmations
  • Mandate
  • Trading losses

15.2 Keywords

  • DBS Vickers
  • Chin Pang Joo
  • Tang Boon Hai
  • Agent's authority
  • Trading losses
  • Securities
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Agency Law75
Contract Law70
Civil Procedure50
Costs30
Summary Judgement20

16. Subjects

  • Agency
  • Securities Trading
  • Contract Law
  • Financial Law