Chua Say Eng v Lee Wee Lick Terence: SOPA Adjudication Determination Dispute

In Chua Say Eng (formerly trading as Weng Fatt Construction Engineering) v Lee Wee Lick Terence (alias Li Weili Terence), the High Court of Singapore heard an appeal against an Assistant Registrar's decision regarding an adjudication determination under the Building and Construction Industry Security of Payment Act (SOPA). The plaintiff, Chua Say Eng, sought to enforce the adjudication determination, while the defendant, Lee Wee Lick Terence, applied to set it aside. Tay Yong Kwang J allowed the defendant's appeal, finding that Payment Claim No. 6 was served out of time, thus setting aside the adjudication determination.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal Allowed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding an adjudication determination under the SOPA. The court allowed the appeal, finding the payment claim was served out of time.

1.7 Decision Date

2. Parties and Outcomes

3. Judges

Judge NameTitleDelivered Judgment
Tay Yong KwangJudgeYes

4. Counsels

4. Facts

  1. The plaintiff was engaged by the defendant in August 2008 to convert his two-story house into a three-story house.
  2. The defendant terminated the contract with the plaintiff via a letter dated 21 April 2010.
  3. The plaintiff was instructed to vacate the construction site by 12 noon on 26 April 2010.
  4. The plaintiff served Payment Claim No. 6 on the defendant on 2 June 2010.
  5. The defendant did not serve a payment response to Payment Claim No. 6.
  6. The plaintiff served a Notice of Intention to Apply for Adjudication on 18 June 2010.
  7. The Adjudication Determination was made on 7 July 2010, awarding the plaintiff $125,450.40.

5. Formal Citations

  1. Chua Say Eng (formerly trading as Weng Fatt Construction Engineering) v Lee Wee Lick Terence (alias Li Weili Terence), Originating Summons No 783 of 2010, [2011] SGHC 109

6. Timeline

DateEvent
Plaintiff engaged as main contractor.
Defendant terminated contract with plaintiff.
Plaintiff instructed to vacate construction site.
Plaintiff served Payment Claim No 6 on defendant.
Plaintiff served Notice of Intention to Apply for Adjudication.
Plaintiff filed adjudication application with the Singapore Mediation Centre.
Adjudication Determination made, awarding plaintiff $125,450.40.
High Court allowed defendant’s appeal.

7. Legal Issues

  1. Validity of Payment Claim
    • Outcome: The court found that Payment Claim No. 6 was a valid payment claim under the SOPA with respect to its form and content.
    • Category: Substantive
    • Related Cases:
      • [2010] 3 SLR 459
      • [2010] 1 SLR 733
      • [2009] SGHC 260
  2. Timeliness of Payment Claim Service
    • Outcome: The court held that Payment Claim No. 6 was served out of time, as it was served after the deadline prescribed by reg 5(1) of the SOPR.
    • Category: Procedural
    • Related Cases:
      • [2010] NSWCA 190

8. Remedies Sought

  1. Enforcement of Adjudication Determination
  2. Monetary compensation

9. Cause of Actions

  • Claim for payment for construction works

10. Practice Areas

  • Construction Disputes
  • Adjudication
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Chip Hup Hup Kee Construction Pte Ltd v Ssangyong Engineering & Construction Co LtdHigh CourtYes[2010] 1 SLR 658SingaporeDiscussed the jurisdiction of the adjudicator and whether it stems from a properly completed and served payment claim.
SEF Construction Pte Ltd v Skoy Connected Pte LtdHigh CourtYes[2010] 1 SLR 733SingaporeDiscussed the court’s role in reviewing adjudication determinations and the essential conditions for a valid determination.
Brodyn Pty Ltd v DavenportNew South Wales Court of AppealYes[2004] NSWCA 394AustraliaDiscussed the essential conditions for the existence of an adjudicator's determination under the New South Wales Act.
AM Associates (Singapore) Pte Ltd v Laguna National Golf and Country Club LtdHigh CourtYes[2009] SGHC 260SingaporeApplied the holdings in SEF Construction regarding the validity of payment claims.
Sungdo Engineering & Construction (S) Pte Ltd v Italcor Pte LtdHigh CourtYes[2010] 3 SLR 459SingaporeDiscussed whether a letter constituted a payment claim under the SOPA and the requirement for communication of intention.
Chase Oyster Bar v Hamo IndustriesNew South Wales Court of AppealYes[2010] NSWCA 190AustraliaDiscussed the importance of time limits in the New South Wales Act and jurisdictional error.
Kirk v Industrial Relations CommissionHigh Court of AustraliaYes[2010] HCA 1AustraliaDiscussed the constitutional dimension of the distinction between jurisdictional and non-jurisdictional error.
Associated Provincial Picture Houses, Limited v Wednesbury CorporationNot AvailableYes[1948] 1 KB 223England and WalesCited in relation to Wednesbury unreasonableness.
Fyntray Constructions Pty Ltd v Macind Drainage & Hydraulic Services Pty LtdNew South Wales Court of AppealYes[2002] NSWCA 238AustraliaCited regarding the interpretation of regulations related to payment claims.
Tiong Seng Contractors (Pte) Ltd v Chuan Lim Construction Pte LtdHigh CourtYes[2007] 4 SLR(R) 364SingaporeFirst case that went up to the High Court challenging the validity of an adjudicator’s determination.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed)Singapore
Supreme Court of Judicature Act (Cap 322, 2007 Rev Ed)Singapore
Residential Property Act (Cap. 274)Singapore
Building Control Act (Cap. 29)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Adjudication Determination
  • Payment Claim
  • Payment Response
  • Security of Payment Act
  • Construction Contract
  • Adjudication Application
  • Limitation Period
  • Progress Payment

15.2 Keywords

  • SOPA
  • adjudication
  • payment claim
  • construction
  • Singapore

17. Areas of Law

16. Subjects

  • Construction Dispute
  • Adjudication
  • Security of Payment