Areco International v Lam Cheng Yee: Agent Commission Dispute over Nassim Road Property Sale
In Areco International Pte Ltd v Lam Cheng Yee, the High Court of Singapore addressed a dispute over an agent's commission for the sale of a property. Areco International, the plaintiff, sued Lam Cheng Yee, the defendant, for refusing to pay the agreed commission after the sale of her property. Lam Cheng Yee alleged misrepresentation by Areco's agent, Cindy Wong, regarding the purchaser's interest and the property's value, and filed a counterclaim. The Assistant Registrar granted summary judgment to Areco, which Lam Cheng Yee appealed. Justice Kan Ting Chiu dismissed the appeal, finding no basis for the misrepresentation claims and affirming the summary judgment in favor of Areco International.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed; summary judgment for the plaintiff affirmed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Agent Areco International sued Lam Cheng Yee for unpaid commission on a property sale. The court addressed misrepresentation claims and upheld summary judgment for Areco.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Areco International Pte Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | Beh Eng Siew |
| Lam Cheng Yee | Defendant | Individual | Claim Dismissed | Lost | Lin Ming Khin |
| Wong Mau Lan Cindy | Third Party | Individual | Claim Dismissed | Dismissed | |
| Chew Hua Seng | Third Party | Individual | Claim Dismissed | Dismissed |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Kan Ting Chiu | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Beh Eng Siew | Lee Bon Leong & Co |
| Lin Ming Khin | Donaldson & Burkinshaw |
4. Facts
- Lam Cheng Yee engaged Areco International to sell her property.
- Cindy Wong, an agent from Areco International, secured a buyer for the property.
- The agreed commission was $382,500.
- Lam Cheng Yee initially agreed to sell the property for $18 million, then increased the price to $25.5 million.
- The buyer, Chew Hua Seng, owned the adjacent property.
- Lam Cheng Yee revoked the irrevocable authority to pay the commission.
- Lam Cheng Yee alleged misrepresentation by Cindy Wong regarding the buyer's interest and the property's value.
5. Formal Citations
- Areco International Pte Ltd v Lam Cheng Yee, Suit 101/2008, RA 245/2008, 246/2008, [2009] SGHC 9
6. Timeline
| Date | Event |
|---|---|
| Areco International contacted Lam Cheng Yee about selling the property. | |
| Areco International informed Lam Cheng Yee of a buyer at $18 million. | |
| Lam Cheng Yee withdrew the offer to sell at $18 million. | |
| Lam Cheng Yee offered to sell the property at $25 million. | |
| Lam Cheng Yee stated the price was $25 million and forwarded an option. | |
| Areco International forwarded a list of property prices to Lam Cheng Yee. | |
| Lam Cheng Yee sent a new option at the price of $25.5 million. | |
| Lam Cheng Yee's price was accepted, and an option was issued. | |
| Thio Keng Thay filed affidavit of evidence-in-chief. | |
| Cindy Wong filed affidavit of evidence-in-chief. | |
| Suit 101/2008 filed. | |
| Judgment delivered. |
7. Legal Issues
- Misrepresentation
- Outcome: The court found no evidence of misrepresentation by the plaintiff's agent.
- Category: Substantive
- Sub-Issues:
- False statement of fact
- Inducement
- Reliance
- Breach of Contract
- Outcome: The court found the defendant liable for breach of contract for failing to pay the agreed commission.
- Category: Substantive
- Sub-Issues:
- Failure to pay commission
- Revocation of authority
8. Remedies Sought
- Agent's commission
- Damages for misrepresentation
- Indemnity
9. Cause of Actions
- Breach of Contract
- Misrepresentation
10. Practice Areas
- Commercial Litigation
- Real Estate Transactions
11. Industries
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Agent's commission
- Misrepresentation
- Irrevocable authority
- Feng shui
- Summary judgment
- Property sale
- Third party notice
15.2 Keywords
- Agent commission
- Property sale
- Misrepresentation
- Singapore
- Real estate agent
16. Subjects
- Agency
- Real Estate
- Contract
- Civil Litigation
17. Areas of Law
- Agency Law
- Real Estate Law
- Contract Law
- Civil Procedure