RBS Coutts Bank v Brunner: Stay of Proceedings Due to Multiplicity and Zurich Labour Court Action

In RBS Coutts Bank Ltd v Brunner Hans-Peter, the High Court of Singapore granted the defendant, Brunner Hans-Peter's application for a temporary stay of proceedings pending the resolution of an ongoing action in the Zurich Labour Court. The plaintiff, RBS Coutts Bank Ltd, had commenced an action in Singapore to recover a loan amount from the defendant, while the defendant had initiated proceedings in Zurich concerning his termination and entitlement to deferred awards. The court, presided over by Eunice Chua AR, granted the stay due to the multiplicity of proceedings and the risk of conflicting judgments, considering the Zurich action to be at a more advanced stage.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Application for a stay of proceedings granted.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Stay of proceedings granted in favor of Brunner due to a parallel action in Zurich Labour Court concerning termination and deferred awards.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
RBS Coutts Bank LtdPlaintiffCorporationStay of proceedings grantedStayed
Brunner Hans-PeterDefendantIndividualStay of proceedings grantedWon

3. Judges

Judge NameTitleDelivered Judgment
Eunice ChuaAssistant RegistrarYes

4. Counsels

Counsel NameOrganization
Gopinath PillaiEldan Law LLP
Tan Kian Hong AloysiusEldan Law LLP
Yam Wern-JhienRajah & Tann LLP
Adrian WongRajah & Tann LLP

4. Facts

  1. The defendant applied for a temporary stay of proceedings pending the resolution of an ongoing action in the Zurich Labour Court.
  2. The plaintiff commenced an action against the defendant to recover $171,022.00 plus interest under a loan agreement.
  3. The defendant's employment with the plaintiff was terminated on 28 February 2010.
  4. The defendant commenced the Zurich action against the plaintiff claiming wrongful termination of employment under Swiss law.
  5. The loan agreement contained an exclusive jurisdiction clause in favor of Singapore.
  6. The loan agreement stipulated that the loan would become due if the Deferred Award lapsed.
  7. The issue of whether the defendant was a 'good leaver' was before both the Singapore and Swiss courts.

5. Formal Citations

  1. RBS Coutts Bank Ltd v Brunner Hans-Peter, Suit No 560 of 2010 (Summons No 4012 of 2010), [2010] SGHC 342

6. Timeline

DateEvent
Defendant employed by plaintiff as General Manager of its Singapore branch.
Defendant returned to Zurich as Chief Executive Officer.
International Assignment Contract signed.
Defendant seconded to Singapore branch as Chief Executive Officer, Coutts International.
RBS Group implemented the Deferral Plan.
Defendant received letter certifying initial Deferred Award of $427,077.00.
Defendant entered into loan agreement with plaintiff for $171,022.00.
Defendant's employment with plaintiff terminated.
Defendant commenced Zurich action against plaintiff.
Oral arguments took place in the Zurich Labour Court.
Plaintiff commenced action against defendant in Singapore to recover $171,022.00 plus interest.
High Court granted temporary stay of proceedings.
Next hearing scheduled in the Zurich action.

7. Legal Issues

  1. Multiplicity of Proceedings
    • Outcome: The court found that the parallel Zurich action resulted in a multiplicity of proceedings.
    • Category: Procedural
    • Related Cases:
      • [2010] 1 SLR 1192
  2. Stay of Proceedings
    • Outcome: The court exercised its discretion to grant a temporary stay pending the resolution of the Zurich action.
    • Category: Procedural
    • Related Cases:
      • [2010] 1 SLR 1192
      • [2009] 1 SLR(R) 1000
      • [2004] 1 SLR(R) 6
      • (1992) 34 FCR 287
      • (1996) 185 CLR 571
      • (1997) 189 CLR 345
      • [2009] FCA 868
  3. Exclusive Jurisdiction Clause
    • Outcome: The court considered the exclusive jurisdiction clause in the loan agreement as a neutral factor in the analysis of whether or not a temporary stay ought to be granted.
    • Category: Jurisdictional
    • Related Cases:
      • [2004] 1 SLR(R) 6

8. Remedies Sought

  1. Monetary Damages
  2. Recovery of Debt

9. Cause of Actions

  • Breach of Contract
  • Debt Recovery

10. Practice Areas

  • Commercial Litigation
  • International Litigation

11. Industries

  • Banking
  • Finance

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Chan Chin Cheung v Chan Fatt CheungCourt of AppealYes[2010] 1 SLR 1192SingaporeCited for the principle that granting a limited stay order pending conclusion of foreign proceedings does not require the application of forum non conveniens principles.
Multi-Code Electronics Industries (M) Bhd v Toh Chun Toh GordonHigh CourtYes[2009] 1 SLR(R) 1000SingaporeCited regarding the threshold for granting a stay in cases where the plaintiff is not the plaintiff in the foreign action, but found unpersuasive in this case.
Golden Shore Transportation Pte Ltd v UCO BankHigh CourtYes[2004] 1 SLR(R) 6SingaporeCited regarding the principle that a court should exercise its discretion to assist a party in breaching his contractual commitment to an exclusive jurisdiction clause only where there are exceptional circumstances amounting to strong cause, but distinguished in the context of a temporary stay.
Sterling Pharmaceuticals Pty Ltd v Boots & Co (Aust) Pty LtdFederal Court of AustraliaYes(1992) 34 FCR 287AustraliaCited for the factors to be taken into account in considering an application for a temporary stay pending the conclusion of proceedings in another court.
Henry v HenryHigh Court of AustraliaYes(1996) 185 CLR 571AustraliaCited approvingly Sterling Pharmaceuticals.
CSR Ltd v Signa Insurance Australia LtdHigh Court of AustraliaYes(1997) 189 CLR 345AustraliaCited approvingly Sterling Pharmaceuticals.
Bella Products Pty Ltd v Creative Designs International LtdFederal Court of AustraliaYes[2009] FCA 868AustraliaCited for the principles that it is undesirable that two courts should determine the same dispute and that practical considerations based on common sense and fairness should dictate which action should proceed first.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Supreme Court of Judicature ActSingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Stay of proceedings
  • Multiplicity of proceedings
  • Zurich action
  • Deferred Award
  • Loan agreement
  • Exclusive jurisdiction clause
  • Good leaver
  • International comity

15.2 Keywords

  • stay of proceedings
  • multiplicity
  • Zurich Labour Court
  • RBS Coutts
  • Brunner
  • loan agreement
  • deferred award

17. Areas of Law

Area NameRelevance Score
Contract Law70
Jurisdiction60
Civil Procedure50
Employment Law40
International Comity40
Arbitration30

16. Subjects

  • Civil Procedure
  • Conflict of Laws
  • Banking
  • Employment