Thode Gerd Walter v Mintwell Industry: Breach of Contract & Misrepresentation in Tenancy Agreement

In Thode Gerd Walter v Mintwell Industry Pte Ltd, the Singapore High Court addressed claims of breach of contract and misrepresentation brought by the plaintiff, Gerd Walter Thode, against Mintwell Industry Pte Ltd, Seah Bak Kheow, and Tan Kee Hock, Eddy, relating to tenancy agreements for units in Mintwell Building. The court found Mintwell Industry liable for breach of contract and negligent misrepresentation, and held Seah Bak Kheow personally liable as a joint tortfeasor. The claim against Tan Kee Hock was dismissed. The court ordered damages to be assessed against Mintwell Industry and Seah Bak Kheow.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for the plaintiff against the first defendant, Mintwell Industry Pte Ltd, and the second defendant, Seah Bak Kheow, with damages to be assessed. The claim against the third defendant, Tan Kee Hock, Eddy, is dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

High Court case involving Thode Gerd Walter and Mintwell Industry. The court addressed breach of contract and misrepresentation claims related to a tenancy agreement.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Thode Gerd WalterPlaintiffIndividualJudgment for PlaintiffWon
Mintwell Industry Pte LtdDefendantCorporationJudgment against DefendantLost
Seah Bak KheowDefendantIndividualJudgment against DefendantLost
Tan Kee Hock, EddyDefendantIndividualClaim DismissedDismissed

3. Judges

Judge NameTitleDelivered Judgment
Belinda Ang Saw EanJudgeYes

4. Counsels

4. Facts

  1. The plaintiff leased Unit 01-02 from the first defendant for two years with an option for an additional two years.
  2. The plaintiff leased Unit 03-02 from the first defendant for 33 months with an option for an additional two years.
  3. The first defendant had mortgaged the property and covenanted not to let any part of the property without the mortgagee's consent.
  4. The first defendant fell into arrears with its mortgage repayments, and the mortgagee obtained an Order for possession.
  5. The mortgagee enforced the Order for possession, leading to the eviction of the plaintiff.
  6. The first defendant did not obtain written consent from the mortgagee for the tenancies granted to the plaintiff.
  7. The second defendant controlled the first defendant and had a personal interest in securing the tenancies.

5. Formal Citations

  1. Thode Gerd Walter v Mintwell Industry Pte Ltd and Others, Suit 351/2007, [2009] SGHC 44

6. Timeline

DateEvent
Mintwell Industry Pte Ltd leased land from the Housing and Development Board.
Keppel Tat Lee Bank Limited obtained judgment in default of appearance against Mintwell Industry Pte Ltd.
Oversea-Chinese Banking Corporation Limited obtained an Order for possession of the property.
Mintwell Industry Pte Ltd granted Gerd Walter Thode a tenancy of Unit 01-02.
Oversea-Chinese Banking Corporation Limited enforced the Order for possession and filed a Writ of Possession.
Notice of eviction was served on four tenants of Mintwell Building.
Mintwell Industry Pte Ltd granted Gerd Walter Thode a tenancy in respect of Unit 03-02.
Gerd Walter Thode received notice of the Writ of Possession and eviction notice.
Order of Court granted Oversea-Chinese Banking Corporation Limited liberty to enforce the Order for possession and to execute the Writ of Possession.
Gerd Walter Thode gave up Unit 03-02.
Gerd Walter Thode vacated Unit 01-02.
Mintwell Industry Pte Ltd and Oversea-Chinese Banking Corporation Limited reached an amicable settlement, and the Writ of Possession was treated as withdrawn.
Consent judgment was entered against Mintwell Industry Pte Ltd.
Both sides were directed to consider the effect of the Order for possession.
Judgment reserved.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found the first defendant liable for breach of contract.
    • Category: Substantive
    • Sub-Issues:
      • Breach of covenant for quiet use and enjoyment
  2. Misrepresentation
    • Outcome: The court found the first and second defendants liable for negligent misrepresentation.
    • Category: Substantive
    • Sub-Issues:
      • Negligent misrepresentation
      • Implied representation
  3. Lifting the Corporate Veil
    • Outcome: The court declined to lift the corporate veil to impose personal liability on the directors for the company's breach of contract.
    • Category: Substantive
  4. Personal Liability of Directors
    • Outcome: The court found one of the directors personally liable as a joint tortfeasor for procuring the negligent misrepresentation.
    • Category: Substantive
    • Sub-Issues:
      • Joint tortfeasor

8. Remedies Sought

  1. Damages

9. Cause of Actions

  • Breach of Contract
  • Misrepresentation
  • Breach of Duty

10. Practice Areas

  • Commercial Litigation
  • Property Law

11. Industries

  • Real Estate

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Salomon v Salomon & Co LtdHouse of LordsYes(1897) AC 22United KingdomCited for the principle of separate legal personality of a company.
In Re a CompanyN/AYes[1985] BCLC 333N/ACited regarding the power of the court to lift the corporate veil whenever required by justice.
Adams v Cape Industries plcCourt of AppealYes[1990] Ch 433United KingdomCited for the principle that the court is not free to disregard the principle of Salomon v Salomon merely because it considers that justice so requires.
Trustor AB v Smallbone (No 2)N/AYes[2001] 1 WLR 1177N/ACited for the principle that the court is not free to disregard the principle of Salomon v Salomon merely because it considers that justice so requires.
Ord v Belhaven Pubs LtdN/AYes[1998] BCC 607N/ACited for the principle that the court is not free to disregard the principle of Salomon v Salomon merely because it considers that justice so requires.
Sri Jaya (Sdn) Bhd v RHB Bank BhdHigh CourtYes[2001] 1 SLR 486SingaporeCited to illustrate the reluctance of the Singapore courts to adopt and apply the proposition in Re a Company.
Gerhad Hendrick Gispen v Ling Lee Soon AlexHigh CourtYes[2001] SGHC 350SingaporeCited to illustrate the reluctance of the Singapore courts to adopt and apply the proposition in Re a Company.
Littlewoods Mail Order Stores Ltd v Commissioners of Inland RevenueN/AYes[1969] 1 WLR 1241N/ACited as a case where any suggested departure from the doctrine laid down in Salomon v Salomon & Co Ltd should be watched very carefully.
Wilbraham v LiveseyN/AYes(1854) 18 Beav 206N/ACited for the principle that when a person simply contracts to take a lease, he naturally assumes that the person who proposes to grant a lease has really the power to do so.
Richardson v SilvesterN/AYes(1873) LR 9 QB 34N/ACited for the principle that a lessor represents that he has good title to lease to an intending lessee once he advertises his property for rent.
Spice Girls Ltd v Aprilia World Service BVN/AYes[2002] EMLR 27N/ACited as a case of implied representation where the pop group was held to have made an implied representation when they continued with arrangements to publicise the defendant’s products in the knowledge that one member of the group was intending to leave the group shortly.
Redgrave v HurdN/AYes(1881) 20 Ch D1N/ACited for the proposition that it is no answer to a claim for rescission or damages that the claimant could with reasonable diligence discover that the representation (even innocent) was untrue.
Peekay Intermark Ltd v ANZ Banking Group LtdN/AYes[2006] 2 Lloyd’s Law Rep 511N/ACited for the principle that once a misrepresentation has been made, it is not enough to show that the claimant could have discovered the truth, but that he did discover it.
IFE Fund SA v Goldman Sachs InternationalN/AYes[2007] 2 Lloyd’s Law Rep 449N/ACited for the principle that if the Misrepresentation Act did not, for any reason provide a remedy, there could be no room for the plaintiff being able to succeed against D1 on some other case of negligent misstatement.
Said v ButtN/AYes[1920] 3 KB 497N/ACited for the principle that directors are not liable for the tort of inducing breach of contract, where in exercising their functions as directors they have caused the company to breach its contract.
Standard Chartered Bank v Pakistan National Shipping CorporationN/AYes[2000] 1 Lloyd’s Law Rep 218N/ACited for the principle that a director could be capable of becoming a joint tortfeasor by procuring and inducing the company for which he works to carry out a tortious act.
Performing Right Society Ltd v Ciryl Theatrical Syndicate LtdN/AYes[1924] 1 KB 1N/ACited for the principle that a director could be capable of becoming a joint tortfeasor by procuring and inducing the company for which he works to carry out a tortious act.
C Evans & Sons Ltd v Spritebrand LtdN/AYes[1985] 1 WLR 317N/ACited for the principle that a director could be capable of becoming a joint tortfeasor by procuring and inducing the company for which he works to carry out a tortious act.
Standard Chartered Bank v Pakistan Shipping CorporationHouse of LordsYes[2002] 3 WLR 1547United KingdomCited for the principle that a director could be capable of becoming a joint tortfeasor by procuring and inducing the company for which he works to carry out a tortious act.
Hillgate House Limited v Expert Clothing ServicesN/AYes[1987] 1 EGLR 65N/ACited for the principle that so long as the Order for possession was in force, it had to be obeyed and Mintwell who did not deliver up possession was in default.
Grafton Issac v Emery RobertsonN/AYes[1985] AC 97N/ACited for the principle that so long as the Order for possession was in force, it had to be obeyed and Mintwell who did not deliver up possession was in default.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Companies Act (Cap 50 Rev Ed 2006)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Tenancy Agreement
  • Order for Possession
  • Writ of Possession
  • Eviction Notice
  • Consent Clause
  • Corporate Veil
  • Negligent Misrepresentation
  • Quiet Enjoyment
  • Guarantor
  • Joint Tortfeasor

15.2 Keywords

  • breach of contract
  • misrepresentation
  • tenancy agreement
  • corporate veil
  • director liability
  • singapore
  • high court

17. Areas of Law

16. Subjects

  • Contract Law
  • Property Law
  • Commercial Law
  • Tort Law