Hwa Lai Heng Ricky v DBS Bank: Fraudulent Misrepresentation & Damages

In Hwa Lai Heng Ricky v DBS Bank Ltd, the Court of Appeal of Singapore heard appeals regarding a summary judgment against Hwa Lai Heng Ricky for fraudulent misrepresentation. The court allowed Ricky to amend his defense to argue a loss-sharing arrangement between DBS Bank and the Economic Development Board (EDB). The court allowed the appeal in part, granting judgment for DBS Bank to the extent of 30% of its claim and granting Hwa Lai Heng Ricky leave to defend the remaining 70%.

1. Case Overview

1.1 Court

Court of Appeal

1.2 Outcome

Appeal allowed in part.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal concerning fraudulent misrepresentation. Court allowed partial defense against DBS Bank's claim, addressing loss sharing with EDB.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Hwa Lai Heng RickyAppellantIndividualAppeal allowed in partPartialGoh Kok Leong, Sunita Carmel Netto
DBS Bank LtdRespondentCorporationJudgment for Respondent to the extent of 30% of its claimPartialLek Siang Pheng, Tan Ky Won Terence, Melissa Thng Hui Lin

3. Judges

Judge NameTitleDelivered Judgment
Chan Sek KeongChief JusticeYes
Andrew Phang Boon LeongJustice of the Court of AppealYes
V K RajahJustice of the Court of AppealYes

4. Counsels

Counsel NameOrganization
Goh Kok LeongAng & Partners
Sunita Carmel NettoAng & Partners
Lek Siang PhengRodyk & Davidson LLP
Tan Ky Won TerenceRodyk & Davidson LLP
Melissa Thng Hui LinRodyk & Davidson LLP

4. Facts

  1. Appellant falsely represented that Yamazaki had received payments from SY Industries.
  2. Respondent disbursed a loan of $1.94 million to SY Industries based on the false representation.
  3. SY Industries proved to be financially unsound and defaulted on the loan.
  4. Appellant was convicted of cheating for the false representation.
  5. Respondent brought a civil claim against the Appellant for fraudulent misrepresentation.
  6. Respondent and EDB had a 30:70 Loss Sharing Arrangement.
  7. The loan was extended by the Respondent to SY Industries pursuant to the RFS and with the approval of the EDB.

5. Formal Citations

  1. Hwa Lai Heng Ricky v DBS Bank Ltd, , [2010] SGCA 5
  2. DBS Bank Ltd v Yamazaki Mazak Singapore Pte Ltd and Another, , [2008] SGHC 181

6. Timeline

DateEvent
Appellant wrote a letter to the Respondent making false representations.
Respondent disbursed the Loan to SY Industries.
Winding up order made against SY Industries.
Appellant convicted of cheating by the District Court.
Respondent obtained summary judgment against the Appellant.
High Court reduced the judgment sum.
Court granted the Respondent an extension of time to file its case.
Court of Appeal delivered the grounds of decision.

7. Legal Issues

  1. Fraudulent Misrepresentation
    • Outcome: The court found that the Appellant was liable to the Respondent on the basis of fraudulent misrepresentation or deceit.
    • Category: Substantive
    • Sub-Issues:
      • False representation
      • Deceit
      • Reliance on misrepresentation
      • Damages flowing from misrepresentation
    • Related Cases:
      • [2008] SGHC 181
      • [2005] SGHC 195
      • [1997] AC 254
  2. Amendment of Pleadings
    • Outcome: The court allowed the Appellant to amend his defense.
    • Category: Procedural
    • Sub-Issues:
      • Post-judgment amendment
      • Prejudice to other party
      • Justice of the case
    • Related Cases:
      • [2010] 1 SLR 52
      • [2005] 1 SLR(R) 502
      • [1990] 2 SLR(R) 66
  3. Damages for Fraudulent Misrepresentation
    • Outcome: The court held that the Appellant was liable for damages flowing directly from his misrepresentation, but the extent of liability was subject to the loss-sharing arrangement.
    • Category: Substantive
    • Sub-Issues:
      • Direct loss
      • Causation
      • Remoteness
      • Mitigation of loss
    • Related Cases:
      • [2008] 2 SLR(R) 909
      • [1997] AC 254

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Fraudulent Misrepresentation
  • Deceit

10. Practice Areas

  • Commercial Litigation
  • Appeals

11. Industries

  • Banking
  • Finance

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
DBS Bank Ltd v Yamazaki Mazak Singapore Pte Ltd and AnotherHigh CourtYes[2008] SGHC 181SingaporeCited as the decision under appeal.
Hwa Lai Heng Ricky v PPHigh CourtYes[2005] SGHC 195SingaporeCited to show that the Appellant's conviction for cheating was upheld on appeal.
Invar Realty Pte Ltd v Kenzo Tange Urtec Inc and anotherHigh CourtYes[1990] 2 SLR(R) 66SingaporeCited for the principle that the power to permit amendment of pleadings should be exercised sparingly in the post-judgment context.
Chwee Kin Keong and others v Digilandmall.com Pte LtdHigh CourtYes[2004] 2 SLR(R) 594SingaporeCited for the tension between fairness and finality in the legal system when considering amendments to pleadings.
Chwee Kin Keong and others v Digilandmall.com Pte LtdCourt of AppealYes[2005] 1 SLR(R) 502SingaporeCited for the principle that the court may grant leave to amend a pleading at any stage of the proceedings.
Review Publishing Co Ltd and another v Lee Hsien Loong and another appealCourt of AppealYes[2010] 1 SLR 52SingaporeCited for a comprehensive overview of the law regarding amendments to pleadings.
Ketteman v Hansel Properties LtdHouse of LordsYes[1987] AC 189England and WalesCited for the principle that allowing an amendment before a trial begins is different from allowing it at the end of the trial.
Lee Siew Chun v Sourgrapes Packaging Products Trading Pte LtdHigh CourtYes[1992] 3 SLR(R) 855SingaporeCited as an example of a case where amendments were allowed at the final stages of a trial.
Soon Peng Yam v Maimon bte AhmadHigh CourtYes[1995] 1 SLR(R) 279SingaporeCited as an example of a case where amendments were allowed pending an appeal.
Asia Business Forum Pte Ltd v Long Ai SinHigh CourtYes[2004] 2 SLR(R) 173SingaporeCited for the key factors in determining whether to grant leave to amend pleadings.
Susilawati v American Express Bank LtdHigh CourtYes[2009] 2 SLR(R) 737SingaporeCited for the key factors in determining whether to grant leave to amend pleadings.
Midlink Development Pte Ltd v The Stansfield Group Pte LtdHigh CourtYes[2004] 4 SLR(R) 258SingaporeCited regarding leading further evidence at trial.
Wishing Star Ltd v Jurong Town CorpCourt of AppealYes[2008] 2 SLR(R) 909SingaporeCited for the principles of awarding damages in contract and tort, and the scope of damages for fraudulent misrepresentation.
Robinson v HarmanCourt of ExchequerYes[1848] 1 Ex 850England and WalesCited for the object of damages for breach of contract.
Smith New Court Securities Ltd v Citibank NAHouse of LordsYes[1997] AC 254England and WalesCited for the principle that damages for fraudulent misrepresentation include all loss that flowed directly as a result of the entry by the plaintiff into the transaction.
Robertson Quay Investment Pte Ltd v Steen Consultants Pte LtdCourt of AppealYes[2008] 2 SLR(R) 623SingaporeCited for the general requirement that the plaintiff must prove its loss.
Hedley Byrne & Co Ltd v Heller & Partners LtdHouse of LordsYes[1964] AC 465England and WalesCited in relation to negligent misrepresentation.
Overseas Tankship (UK) Ltd v Morts Dock & Engineering Co Ltd (The Wagon Mound)Privy CouncilYes[1961] AC 388England and WalesCited in relation to the doctrine of remoteness of damage.

13. Applicable Rules

Rule Name
Order 20 r 5(1) of the Rules of Court

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Fraudulent Misrepresentation
  • Scheme Funding Line Agreement
  • Loss Sharing Arrangement
  • Regionalisation Finance Scheme
  • Summary Judgment
  • Amendment of Pleadings

15.2 Keywords

  • fraudulent misrepresentation
  • damages
  • loss sharing
  • amendment of pleadings
  • summary judgment
  • singapore
  • court of appeal

16. Subjects

  • Fraud
  • Banking
  • Civil Litigation
  • Appeals
  • Financial Law

17. Areas of Law

  • Civil Procedure
  • Tort Law
  • Contract Law
  • Fraudulent Misrepresentation
  • Banking Law