Lanna Resources v Tan Beng Phiau Dick: Stay of Proceedings & Forum Non Conveniens
In Lanna Resources Public Co Ltd v Tan Beng Phiau Dick and another, the Singapore High Court dismissed the defendants' appeal to stay proceedings based on forum non conveniens and lis alibi pendens. The plaintiff, Lanna Resources, sued the defendants, Tan Beng Phiau Dick and another, on a guarantee related to a loan agreement (MOA) with Saraburi Resources Pte Ltd (SRL). The defendants sought a stay, arguing that the dispute should be resolved in ongoing arbitration proceedings between the plaintiff and SRL. Judith Prakash J held that the guarantee contained a jurisdiction clause specifying Singapore courts and that the circumstances did not warrant a stay. The court found no basis to override the contractual agreement for court resolution of disputes under the guarantee.
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
The High Court dismissed an appeal to stay proceedings based on forum non conveniens and lis alibi pendens, enforcing a guarantee's jurisdiction clause.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Lanna Resources Public Co Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | Ng Kim Beng |
| Tan Beng Phiau Dick | Defendant, Appellant | Individual | Appeal Dismissed | Lost | Sujatha Bhargavan |
| another | Defendant, Appellant | Individual | Appeal Dismissed | Lost | Sujatha Bhargavan |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Judith Prakash | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Ng Kim Beng | Rajah & Tann LLP |
| Sujatha Bhargavan | Toh Tan LLP |
4. Facts
- Plaintiff agreed to lend SRL up to US$4m for a coal port and jetty.
- Defendants guaranteed SRL's obligations under the loan agreement.
- Plaintiff paid US$2m to SRL.
- SRL allegedly did not perform the Coal Supply Contracts.
- Plaintiff demanded repayment from SRL and the defendants.
- Plaintiff commenced arbitration against SRL.
- Plaintiff commenced action against the defendants based on the guarantee.
5. Formal Citations
- Lanna Resources Public Co Ltd v Tan Beng Phiau Dick and another, Suit No 50 of 2010 (Registrar's Appeal No 253 of 2010), [2010] SGHC 287
6. Timeline
| Date | Event |
|---|---|
| Memorandum of Agreement entered into between the plaintiff, SRL and SBH | |
| Plaintiff paid the first advance of the loan in the sum of US$2m to SRL | |
| Plaintiff issued a written demand to SRL for the repayment of US$2,115,150 | |
| Plaintiff made a written demand on the defendants to fulfil their obligations under the guarantee | |
| Action started against the defendants | |
| Defendants entered a joint appearance to this action | |
| Defendants filed their defence | |
| Defendants filed a Summons-in-Chambers seeking a stay of proceedings | |
| Defendants’ application was dismissed by Assistant Registrar Then Ling | |
| Appeal heard | |
| Appeal dismissed |
7. Legal Issues
- Stay of Proceedings
- Outcome: The court held that a stay of proceedings was not warranted based on forum non conveniens or lis alibi pendens.
- Category: Procedural
- Sub-Issues:
- Forum non conveniens
- Lis alibi pendens
- Enforceability of Guarantee
- Outcome: The court upheld the enforceability of the guarantee based on its terms and the jurisdiction clause.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Guarantee
10. Practice Areas
- Commercial Litigation
- Arbitration
11. Industries
- Coal Industry
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Spiliada Maritime Corporation v Cansulex Ltd | House of Lords | Yes | [1987] AC 460 | England and Wales | Cited for the principle that a stay will only be granted on the ground of forum non conveniens where there is some other available forum, having competent jurisdiction, which is the appropriate forum for the trial of the action. |
| Etri Fans Ltd. v N.M.B. (U.K.) Ltd. | English Court of Appeal | No | [1987] 1 WLR 1110 | England and Wales | Cited regarding the court's inherent jurisdiction to grant a stay of proceedings and the circumstances in which such jurisdiction should be exercised. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Supreme Court of Judicature Act (Cap 322, 2007 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Forum non conveniens
- Lis alibi pendens
- Guarantee
- Memorandum of Agreement
- Arbitration
- Stay of Proceedings
15.2 Keywords
- Stay of proceedings
- forum non conveniens
- guarantee
- arbitration
- Singapore High Court
16. Subjects
- Civil Procedure
- Contract Law
- Arbitration
17. Areas of Law
- Civil Procedure
- Contract Law
- Arbitration Law
- Forum Non Conveniens
- Lis Alibi Pendens