Zhu Yong Zhen v American International Assurance: Breach of Contract & Collusion Claims
In the High Court of Singapore, Mdm Zhu Yong Zhen sued American International Assurance Company, Limited (AIA) for breach of contract and her former solicitor, Mr. Chia Ti Lik, for collusion. Mdm Zhu appealed against the Assistant Registrar's orders, which included striking out her claim against AIA and Mr. Chia, and dismissing her application to strike out AIA's defence and counterclaim and Mr. Chia's defence. The court dismissed Mdm Zhu’s appeal, affirming the Assistant Registrar's decisions.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Mdm Zhu sued AIA for breach of contract and Mr. Chia for collusion. The court dismissed her appeal, striking out her claims.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Zhu Yong Zhen | Plaintiff, Appellant | Individual | Appeal dismissed | Lost | |
| American International Assurance Co, Ltd | Defendant, Respondent | Corporation | Claim Dismissed | Won | |
| Chia Ti Lik | Defendant, Respondent | Individual | Claim Dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tan Lee Meng | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Adrian Wong | Rajah & Tann LLP |
4. Facts
- Mdm Zhu purchased a "Financial Guardian" life policy from AIA in 1993.
- The policy included a "critical year" feature, projecting when dividends would cover premiums.
- AIA provided Mdm Zhu with a document illustrating the critical year feature.
- The document stated that dividends and interest rates were not guaranteed.
- The policy contained an "entire agreement" clause, excluding prior agreements.
- Mdm Zhu claimed the document was a contractual promise of a critical year in 2008.
- AIA declined Mdm Zhu's request to invest $1.5m in her business.
- Mdm Zhu published a blog accusing AIA of misleading policyholders.
5. Formal Citations
- Zhu Yong Zhen v American International Assurance Co, Ltd and another, Suit No 515 of 2009 (Registrar's Appeal No 189 of 2010), [2010] SGHC 238
6. Timeline
| Date | Event |
|---|---|
| Mdm Zhu applied for a "Financial Guardian" life policy with AIA. | |
| AIA appointed an independent Adjudicator to resolve individual cases of policyholders. | |
| AIA wrote to Mdm Zhu about alternatives for her policy. | |
| Mdm Zhu wrote to AIA claiming she didn't have to pay premiums after 2008. | |
| Mdm Zhu proposed AIA invest $1.5m in her business to resolve the dispute. | |
| Mdm Zhu asked AIA to compensate her $1.5m for surrendering her policy. | |
| Mdm Zhu wrote to AIA about her blog. | |
| AIA's solicitors demanded Mdm Zhu deactivate her blog. | |
| Mdm Zhu deactivated her blog. | |
| Mdm Zhu instructed Engelin Teh Partnership to act for her. | |
| Engelin Teh Partnership ceased to act for Mdm Zhu. | |
| Mdm Zhu wrote to Mr Chia expressing dissatisfaction with his draft Statement of Claim. | |
| Mr Chia replied that Mdm Zhu could find someone else and requested payment. | |
| Mdm Zhu filed her writ of summons. | |
| Pre-Trial Conference arranged by Senior Assistant Registrar Yeong Zee Kin. | |
| Pre-Trial Conference arranged by Senior Assistant Registrar Yeong Zee Kin. | |
| Pre-Trial Conference arranged by Senior Assistant Registrar Yeong Zee Kin. | |
| Mdm Zhu objected to publication of Assistant Registrar Chan's judgment. | |
| Decision Date |
7. Legal Issues
- Breach of Contract
- Outcome: The court held that the CY document was not part of the contract of assurance and did not guarantee the critical year would be reached in 2008.
- Category: Substantive
- Collusion
- Outcome: The court found no evidence of collusion between Mr. Chia and AIA.
- Category: Substantive
- Defamation
- Outcome: The court disagreed that the meaning of the allegedly defamatory words should have been determined at this stage.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
- Injunction
9. Cause of Actions
- Breach of Contract
- Conspiracy
- Defamation
10. Practice Areas
- Commercial Litigation
11. Industries
- Insurance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lee Chee Wei v Tan Hor Peow Victor and others and another appeal | Court of Appeal | Yes | [2007] 3 SLR(R) 537 | Singapore | Approved the statement by Lightman J on the intent of an entire agreement clause. |
| Inntrepreneur Pub Co v East Crown Ltd | N/A | Yes | [2000] 2 Lloyd’s Rep 611 | N/A | Defined the purpose of an entire agreement clause to preclude reliance on prior negotiations. |
| PT Panasonic Gobel Indonesia v Stratech Systems Ltd | N/A | Yes | [2009] 1 SLR(R) 470 | Singapore | Stated that an entire agreement clause makes clear that obligations are contained within the written agreement. |
| IBM Singapore Pte Ltd v UNIG Pte Ltd | High Court | Yes | [2003] SGHC 71 | Singapore | Held that the contractual relationship was circumscribed by the signed agreements alone when construing an entire agreement clause. |
| Gabriel Peter & Partners (suing as a firm) v Wee Chong Jin and others | Court of Appeal | Yes | [1997] 3 SLR(R) 649 | Singapore | Explained that the power of striking out should be invoked only in plain and obvious cases. |
| Bandung Shipping Pte Ltd v Keppel TatLee Bank Ltd | N/A | Yes | [2003] 1 SLR(R) 295 | Singapore | Explained that allowing a hopeless claim to proceed to trial would compel the defendant to expend time and money defending a case with no merit. |
| Drummond-Jackson v British Medical Association | N/A | Yes | [1970] 1 All ER 1094 | N/A | Defined a reasonable cause of action as one with some chance of success when only the allegations in the pleading are considered. |
13. Applicable Rules
| Rule Name |
|---|
| O 14 r 12 of the Rules of Court |
| O 14 r 12(2) of the Rules of Court |
| O 18 r 19(1) of the Rules of Court |
| O 18 r 19 (1)(a) of the Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 322, R 5, 2006 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Critical Year
- Financial Guardian
- Policy Benefit Illustration
- Entire Agreement Clause
- Collusion
- Defamation
15.2 Keywords
- insurance policy
- breach of contract
- collusion
- critical year
- defamation
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Breach of Contract | 75 |
| Contract Law | 70 |
| Defamation | 60 |
| Insurance Policies | 40 |
| Collusion | 35 |
| Legal Ethics | 30 |
| Professional Ethics | 30 |
| Pre-judgment interest | 20 |
| Best Efforts Clause | 10 |
16. Subjects
- Insurance Law
- Contract Law
- Civil Litigation