PC Connect v HSBC: Negligence & Nuisance Claims for Water Leakage in Commercial Lease Dispute

In PC Connect Pte Ltd v HSBC Institutional Trust Services (Singapore) Ltd and Bachmann Japanese Restaurant Pte Ltd, the High Court of Singapore heard a case regarding water leakage from a restaurant unit above a computer retail outlet in Funan Digitalife Mall. PC Connect sued HSBC, the landlord, and Bachmann, the restaurant tenant, for negligence and nuisance, seeking damages for goods damaged by the leakage. The court, presided over by Justice Kan Ting Chiu, dismissed the claims against HSBC, finding they did not owe a duty of care. However, the court found Bachmann liable in nuisance for the second incident of leakage but awarded only nominal damages due to the plaintiff's failure to prove actual damages. The court also ordered Bachmann to pay the costs of the third-party proceedings to HSBC. The judgment was delivered on 20 May 2010.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment against the second defendant for the second incident with nominal damages.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

PC Connect sued HSBC and Bachmann for damages from water leakage. The court dismissed claims against HSBC but found Bachmann liable in nuisance, awarding nominal damages.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
PC Connect Pte LtdPlaintiffCorporationClaim DismissedLostTan Ai Ling Jinny
HSBC Institutional Trust Services (Singapore) Ltd (trustee of CapitaMall Trust)DefendantCorporationJudgment for DefendantWonGurbani Prem Kumar, Wilma Gaiyithri d/o Muhundan
Bachmann Japanese Restaurant Pte LtdDefendantCorporationJudgment against DefendantLostEu Hai Meng

3. Judges

Judge NameTitleDelivered Judgment
Kan Ting ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Tan Ai Ling JinnyWee Tay & Lim
Gurbani Prem KumarGurbani & Co
Wilma Gaiyithri d/o MuhundanGurbani & Co
Eu Hai MengUnited Legal Alliance LLC

4. Facts

  1. PC Connect operated a retail outlet at Funan Digitalife Mall.
  2. HSBC managed Funan Digitalife Mall on behalf of CapitaMall Trust and was the landlord.
  3. Bachmann operated a Japanese restaurant in the unit above PC Connect.
  4. Water leakage occurred from Bachmann's unit onto PC Connect's unit on 3 December 2006, 31 August 2007, and 4 September 2007.
  5. PC Connect claimed damages for goods damaged by the water leakage.
  6. The pipe in question served the second defendant’s unit exclusively, and the duty to maintain the pipe had been placed on the second defendant.

5. Formal Citations

  1. PC Connect Pte Ltd v HSBC Institutional Trust Services (Singapore) Ltd (trustee of CapitaMall Trust) and another (Bachmann Japanese Restaurant Pte Ltd, third party), Suit No 674 of 2008, [2010] SGHC 154

6. Timeline

DateEvent
Tenancy agreement between HSBC and Bachmann commenced.
Tenancy agreement between HSBC and Bachmann signed.
First incident of water leakage occurred.
Second incident of water leakage occurred.
Further water leakage observed.
Eric Poh of McLarens Young International issued a report.
Tenancy agreement between HSBC and Bachmann expired.
Suit filed in 2008
Anthony Cheng Shao Hing of Camden Engineering Associates engaged by the second defendant.
Judgment reserved.

7. Legal Issues

  1. Negligence
    • Outcome: The court found that the second defendant owed a duty of care to the plaintiff and had failed to discharge that duty. The court found that the first defendant was not under a duty of care to maintain the pipe.
    • Category: Substantive
    • Sub-Issues:
      • Duty of care
      • Breach of duty
      • Causation
      • Damages
    • Related Cases:
      • [2007] 4 SLR(R) 100
  2. Nuisance
    • Outcome: The court found the second defendant liable in nuisance to the plaintiff. The court found that the first defendant should not be liable for the leakage.
    • Category: Substantive
    • Sub-Issues:
      • Private nuisance
      • Interference with enjoyment of property
    • Related Cases:
      • [1934] 2 KB 56
      • [2003] 2 SLR(R) 198
  3. Indemnity
    • Outcome: The court found that the first defendant was entitled to seek to be indemnified by the second defendant against the plaintiff’s claims against it arising from the water leakage.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Negligence
  • Nuisance

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Retail
  • Food and Beverage
  • Real Estate

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Spandek Engineering (S) Pte Ltd v Defence Science & Technology AgencyCourt of AppealYes[2007] 4 SLR(R) 100SingaporeCited for the governing conditions for the imposition of a duty of care, specifically legal proximity and policy considerations.
Wilchick v Marks & SilverstoneKing's BenchYes[1934] 2 KB 56England and WalesCited by the plaintiff to argue that the first defendant was liable in nuisance even if it was not in occupation of the unit. The court distinguished the facts of the present case from Wilchick and found that the reasoning in Wilchick does not apply.
Epolar System Enterprises Pte Ltd and others v Lee Hock Chuan and othersCourt of AppealYes[2003] 2 SLR(R) 198SingaporeCited for the principle that generally only a person with proprietary interest such as a freehold or leasehold interest can bring proceedings in private nuisance, but that a person in de facto possession by way of exclusive possession may be entitled to sue.

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

  • Water leakage
  • Negligence
  • Nuisance
  • Duty of care
  • Indemnity
  • Tenancy agreement
  • Grease traps
  • Nominal damages

15.2 Keywords

  • water leakage
  • negligence
  • nuisance
  • commercial property
  • landlord
  • tenant
  • damages
  • Singapore
  • Funan Digitalife Mall

16. Subjects

  • Commercial Dispute
  • Property Damage
  • Landlord-Tenant Dispute

17. Areas of Law

  • Tort Law
  • Negligence
  • Nuisance
  • Landlord and Tenant Law