Monex Group v E-Clearing: Breach of Contract Dispute over Dynamic Currency Conversion System

Monex Group (Singapore) Pte Ltd (“MXS”) sued E-Clearing (Singapore) Pte Ltd (“ECS”) in the High Court of Singapore on 26 February 2010, for breach of contract relating to a dynamic currency conversion system. ECS denied owing MXS any money and counterclaimed for losses suffered as a result of the latter’s alleged breach of contract. The court ruled in favor of MXS, ordering ECS to account for revenue earned from the utilization of the Monex system from January 2007 until March 2009, with the amount due to be assessed by the Registrar. ECS's counterclaim was dismissed.

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

Monex Group sued E-Clearing for breach of contract related to a dynamic currency conversion system. The court ruled in favor of Monex Group, ordering an assessment of revenue owed.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Monex Group (Singapore) Pte LtdPlaintiffCorporationJudgment for PlaintiffWon
E-Clearing (Singapore) Pte LtdDefendantCorporationCounterclaim DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Tan Lee MengJudgeYes

4. Counsels

Counsel NameOrganization
Low Chai ChongRodyk & Davidson LLP
Suchitra RagupathyRodyk & Davidson LLP
Arthur YapATMD Bird & Bird LLP
Koh Chia LingATMD Bird & Bird LLP

4. Facts

  1. Monex Group (Singapore) Pte Ltd (MXS) sued E-Clearing (Singapore) Pte Ltd (ECS) for amounts due under a contract.
  2. ECS denied owing money and counterclaimed for losses due to MXS's alleged breach.
  3. MXS and ECS had an agreement to exploit the Monex system in Singapore.
  4. ECS signed a contract with DBS Bank Ltd (DBS) to supply terminals with access to the Monex system.
  5. It was agreed that MXS and ECS would each be entitled to 50% of the agreed net turnover under the DBS contract.
  6. ECS terminated its contract with MXS, alleging failure to provide proof that the Monex system did not infringe a patent.
  7. ECS continued to use the Monex system and add merchants even after terminating the contract with MXS.

5. Formal Citations

  1. Monex Group (Singapore) Pte Ltd v E-Clearing (Singapore) Pte Ltd, Suit No 54 of 2008, [2010] SGHC 63

6. Timeline

DateEvent
Monex Financial Services Limited concluded a business cooperation agreement with Luzi Matzig.
Monex Thailand Pte Ltd was incorporated.
Monex Financial Services Limited entered into a Strategic Association Agreement with XOR Technologies Ltd.
Monex Group (Singapore) Pte Ltd entered into a multi-currency conversion agreement with Citibank Singapore Ltd.
Monex Group (Singapore) Pte Ltd and E-Clearing (Singapore) Pte Ltd entered into a contract.
Citibank Singapore Ltd terminated the Citibank contract.
E-Clearing (Singapore) Pte Ltd signed the contract with DBS Bank Ltd.
The Monex system was in operation in Singapore.
Luzi Matzig offered to buy the intellectual property rights in the Monex system for Asia.
Luzi Matzig threatened Monex Group's director in an e-mail.
Monex Thailand Pte Ltd entered into an agreement with XOR Technologies Ltd.
E-Clearing (Singapore) Pte Ltd claimed that Monex Group (Singapore) Pte Ltd stopped providing essential support services.
E-Clearing (Singapore) Pte Ltd unilaterally reduced Monex Group (Singapore) Pte Ltd’s share of the agreed net turnover to 30%.
E-Clearing (Singapore) Pte Ltd terminated its contract with Monex Group (Singapore) Pte Ltd.
E-Clearing (Singapore) Pte Ltd stated the Monex system would be wound down completely.
DBS Bank Ltd served notice on E-Clearing (Singapore) Pte Ltd that it was terminating the DBS contract.
E-Clearing (Singapore) Pte Ltd finally ceased to make use of the Monex system.
Judgment was reserved.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that E-Clearing (Singapore) Pte Ltd breached the contract by failing to pay Monex Group (Singapore) Pte Ltd its share of the agreed net turnover.
    • Category: Substantive
    • Sub-Issues:
      • Failure to provide essential support services
  2. Patent Infringement
    • Outcome: The court found insufficient evidence to prove that the Monex system infringed the Mainline patent.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages
  2. Account of Profits

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Financial Services
  • Technology

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

  • Dynamic currency conversion system
  • Agreed net turnover
  • Essential support services
  • Mainline patent
  • First level support
  • Second level support
  • Third level support

15.2 Keywords

  • breach of contract
  • currency conversion
  • Monex
  • E-Clearing
  • dynamic currency conversion
  • patent infringement

17. Areas of Law

Area NameRelevance Score
Breach of Contract75
Contract Law70
Commercial Disputes65
Dynamic Currency Conversion System40
Estoppel30
Company Law25
Mentally disordered offenders5

16. Subjects

  • Contract Dispute
  • Currency Conversion
  • Technology Licensing