Government of the Republic of China (Taiwan) v Ching Chi Ju Charles: Recovery of Funds for PNG Diplomatic Project

The Government of the Republic of China (Taiwan) sued Ching Chi Ju Charles and Wu Shih-Tsai in the High Court of Singapore to recover US$29.8 million intended for projects in Papua New Guinea (PNG) if PNG established diplomatic relations with Taiwan. Judgment was entered against Wu Shih-Tsai. The court, presided over by Justice Tan Lee Meng, ruled in favor of the Government of the Republic of China (Taiwan) on May 10, 2010, finding that Ching Chi Ju Charles was obligated to return the funds as a gratuitous agent after the PNG project was abandoned.

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

The Government of Taiwan sued to recover US$29.8m intended for a PNG diplomatic project. The court ruled in favor of Taiwan, ordering the return of the funds.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
The Government of the Republic of China (Taiwan)PlaintiffGovernment AgencyJudgment for PlaintiffWon
Ching Chi Ju CharlesDefendantIndividualClaim DismissedLost
Wu Shih-TsaiDefendantIndividualJudgment EnteredDefault

3. Judges

Judge NameTitleDelivered Judgment
Tan Lee MengJudgeYes

4. Counsels

Counsel NameOrganization
Chia Foon YeowLoo & Partners LLP
Loo Choon ChiawLoo & Partners LLP
Lawrence Lee Mun KongAptus Law Corporation

4. Facts

  1. The Government of Taiwan transferred US$29.8 million to an OCBC account jointly held by Mr. Ching and Mr. Wu.
  2. The funds were intended for projects in Papua New Guinea if diplomatic relations were established.
  3. The PNG project was abandoned after the plaintiff concluded that full diplomatic ties would not be established.
  4. The plaintiff requested the defendants to return the money, but they did not comply.
  5. Mr. Ching claimed that US$10 million was intended to compensate him for his role as a secret emissary to China.
  6. Mr. Ching also claimed that the remaining US$19.8 million was to compensate him and Mr. Wu for their work as intermediaries.

5. Formal Citations

  1. The Government of the Republic of China (Taiwan) v Ching Chi Ju Charles and another, Suit No 280 of 2008/V, [2010] SGHC 147

6. Timeline

DateEvent
Meeting held regarding the PNG project at the Ministry of Foreign Affairs of the Republic of China (Taiwan).
The plaintiff transferred US$29.8m into the OCBC account.
Delegation from PNG visited Taipei.
Mr Huang met Sir Michael.
Plaintiff asked the defendants to return the money in the OCBC account.
Mr. Chang met Mr. Ching in Taipei to discuss the money in the OCBC account.
Plaintiff commenced proceedings against the defendants.
High Court issued a Mareva injunction.
Judgment was entered against Mr. Wu.
Judgment reserved.

7. Legal Issues

  1. Breach of Agency Duty
    • Outcome: The court held that Mr. Ching, as a gratuitous agent, was obligated to return the funds to the plaintiff when the PNG project was called off.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages
  2. Account of Profits

9. Cause of Actions

  • Breach of Agency
  • Unjust Enrichment

10. Practice Areas

  • Commercial Litigation

11. Industries

  • No industries specified

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

  • Diplomatic Relations
  • Gratuitous Agent
  • Secret Emissary
  • PNG Project
  • OCBC Account

15.2 Keywords

  • Taiwan
  • Papua New Guinea
  • Diplomatic Relations
  • Agency
  • Breach of Duty

17. Areas of Law

Area NameRelevance Score
Agency Law75
Contract Law60
Diplomatic Relations40
Estoppel30
Misrepresentation25
Unjust Enrichment20

16. Subjects

  • Agency
  • International Relations
  • Diplomacy