Chan Miu Yin v Philip Morris: Unfair Dismissal & Bad Faith Claim

Chan Miu Yin, a former employee, sued Philip Morris Singapore Pte Ltd in the High Court of Singapore, alleging unfair dismissal and bad faith. The court, presided over by Shaun Leong Li Shiong AR, struck out the claim, finding it frivolous, vexatious, and an abuse of proceedings. The court determined that the claim was fundamentally flawed due to the plaintiff's admissions in the pleadings, and that its continuance would only serve the plaintiff's collateral interests in seeking payments beyond her contractual entitlements.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Claim struck out as frivolous, vexatious, and an abuse of proceedings.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Former employee Chan Miu Yin sues Philip Morris for unfair dismissal and bad faith. The court struck out the claim as frivolous and vexatious.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Chan Miu YinPlaintiffIndividualClaim Struck OutDismissedTan Chau Yee
Philip Morris Singapore Pte LtdDefendantCorporationApplication to Strike Out GrantedWonJ. Sathiaseelan, Ramesh Kumar

3. Judges

Judge NameTitleDelivered Judgment
Shaun Leong Li ShiongAssistant RegistrarYes

4. Counsels

Counsel NameOrganization
Tan Chau YeeHarry Elias Partnership LLP
J. SathiaseelanAllen & Gledhill LLP
Ramesh KumarAllen & Gledhill LLP

4. Facts

  1. Plaintiff was employed by the defendant for 13 years.
  2. Plaintiff's employment was terminated on 21 January 2011.
  3. Plaintiff claimed termination was to silence her regarding unlawful activities.
  4. Plaintiff received 'improvable' performance ratings for three years prior to dismissal.
  5. Defendant offered one month's salary in lieu of notice plus an ex gratia payment.
  6. Plaintiff rejected the offer.
  7. Plaintiff admitted she had no contractual right to an incentive compensation.

5. Formal Citations

  1. Chan Miu Yin v Philip Morris Singapore Pte Ltd, Suit No 152 of 2011 (Summons No 1924 of 2011), [2011] SGHC 161

6. Timeline

DateEvent
Plaintiff appointed manager of Information Systems.
Plaintiff raised questions regarding defendant’s alleged unlawful marketing activities.
Health Sciences Authority preferred two charges against the defendant.
Plaintiff highlighted defendant’s alleged unlawful marketing activities to Mr. Martin Inkster.
Plaintiff's work performance for 2010 assessed as 'improvable'.
Defendant offered to terminate plaintiff’s employment with payment of one month’s salary in lieu of notice and an ex gratia payment of S$40,000.
Plaintiff rejected defendant’s offer; defendant terminated plaintiff’s employment.
Judgment issued.

7. Legal Issues

  1. Unfair Dismissal
    • Outcome: The court found that it was not plain and obvious that the law does not recognize a claim for damages based on unfair dismissal.
    • Category: Substantive
    • Related Cases:
      • [2003] 1 A.C. 518
  2. Dismissal in Bad Faith
    • Outcome: The court found that it was not plain and obvious that the law does not recognize a claim for damages based on dismissal in bad faith.
    • Category: Substantive
    • Related Cases:
      • [2000] 2 SLR(R) 30
  3. Abuse of Process
    • Outcome: The court found that the plaintiff's claim was an abuse of process because it was frivolous and vexatious.
    • Category: Procedural

8. Remedies Sought

  1. Damages

9. Cause of Actions

  • Unfair Dismissal
  • Breach of Implied Terms
  • Dismissal in Bad Faith

10. Practice Areas

  • Employment Litigation
  • Contract Litigation

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Johnson v Unisys LtdHouse of LordsYes[2003] 1 A.C. 518United KingdomCited as a seminal case regarding claims for unfair dismissal and the limits of implied terms in employment contracts.
Hui Cheng Wan Agnes v Nippon SP Tech (S) Pte LtdHigh CourtYes[2001] SGHC 271SingaporeCited by the defendant to support the position that the reasons and motivations in terminating a contract of employment are irrelevant under common law.
Aldabe Fermin v Standard Chartered BankHigh CourtYes[2010] 3 SLR 722SingaporeCited by the defendant to support the position that a claim based on unfair dismissal is not applicable under Singapore law.
Wong Leong Wei Edward and another v Acclaim Insurance Brokers Pte Ltd and another suitHigh CourtYes[2010] SGHC 352SingaporeCited for the recognition of the implied term of mutual trust and confidence in employment contracts.
Mahmud v Bank of Credit and Commerce International S.A.House of LordsYes[1998] A.C. 20United KingdomCited for establishing the implied term of trust and confidence between employer and employee.
Addis v Gramophone Co LtdHouse of LordsYes[1909] A.C. 488United KingdomCited in relation to the rule that the law recognizes no claim in damages for injury to feelings, mental distress, loss of reputation, or loss of employment prospects stemming from the unfair, harsh or humiliating manner of dismissal.
Goodway v Zurich Insurance CoHigh Court of JusticeYes[2004] EWHC 2825United KingdomCited for the general duty to co-operate to ensure the performance of the contract.
Kellang Shipping SA v Axa Assurances SenegalCourt not specifiedYes[2007] 1 Lloyd’s Rep. 16SenegalCited for the general duty to co-operate to ensure the performance of the contract.
Spring v. Guardian Assurance Plc.House of LordsYes[1995] 2 A.C. 296United KingdomCited to show the changes which have taken place in the employer-employee relationship.
Scally's caseHouse of LordsYes[1992] 1 A.C. 294United KingdomCited as an illustration of the change in legal culture which made possible the evolution of the implied term of trust and confidence.
Latham Scott v. Credit Suisse First BostonCourt of AppealYes[2000] 2 SLR(R) 30SingaporeCited for the Court of Appeal's consideration of allegations of bad faith in dismissal and the relevance of motivations behind the dismissal.
Port of Singapore Authority v Wallace John BrysonCourt not specifiedYes[19791980] SLR(R) 670SingaporeCited for the common law rule that an employer can rely on any additional reason(s) to justify the dismissal.
Eastwood v Magnox Electric and McCabe v Cornwall County CouncilHouse of LordsYes[2005] 1 A.C. 503United KingdomCited for the 'Johnson exclusion area' and the distinction between claims arising from the dismissal itself versus pre-dismissal events.
Malloch v Aberdeen CorpnCourt not specifiedYes[1971] 1 WLR 1581United KingdomCited as the deficiencies of the law as it stood at the time.
Stansfield Business International Pte Ltd v Minister for Manpower (formerly known as Minister for Labour)Court not specifiedYes[1999] 2 SLR(R) 866SingaporeCited for the requirements of natural justice.
Goh Koon Suan v Heng Gek Kiau and othersCourt not specifiedYes[1990] 2 SLR(R) 705SingaporeCited for the definition of 'vexatious' proceedings.
Afro-Asia Shipping Co (Pte) Ltd v Haridass Ho & Partners and anotherCourt not specifiedYes[2003] 2 SLR(R) 491SingaporeCited for the definition of 'vexatious' proceedings.
Riduan bin Yusof v Khng Thian Huat and anotherCourt not specifiedYes[2005] 2 SLR(R) 188SingaporeCited for the definition of 'vexatious' proceedings.
Chee Siok Chin and others v Minister of Home Affairs and anotherCourt not specifiedYes[2006] 1 SLR(R) 582SingaporeCited for the definitions of 'frivolous', 'vexatious' and an 'abuse of process'.
Ng Giap Hon v Westcomb Securities Pte Ltd and othersCourt of AppealYes[2009] 3 SLR(R) 518SingaporeCited for the Court of Appeal's decision not to endorse the doctrine of good faith in contracts in Singapore.

13. Applicable Rules

Rule Name
O 18 r 19(1) of the Rules of Court

14. Applicable Statutes

Statute NameJurisdiction
Employment Act (Cap 91, 2009 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Unfair Dismissal
  • Bad Faith
  • Implied Term
  • Ex Gratia
  • Incentive Compensation
  • Termination Clause
  • Abuse of Process
  • Frivolous
  • Vexatious

15.2 Keywords

  • Unfair Dismissal
  • Employment Contract
  • Bad Faith
  • Singapore
  • Philip Morris
  • Termination
  • Employment Law

16. Subjects

  • Employment Law
  • Contract Law
  • Civil Procedure

17. Areas of Law

  • Employment Law
  • Contract Law
  • Civil Procedure