Chun Cheng Fishery v Chuang: Breach of Duty & Damages Assessment

In Chun Cheng Fishery Enterprise Pte Ltd v Chuang Hern Hsiung and another, the Singapore High Court heard appeals regarding the Assistant Registrar's assessment of damages in a case where Chun Cheng Fishery sued its former executives for breach of contractual and fiduciary duties. The court affirmed part of the AR's award, but varied the award concerning loss of revenue from the suspension/reduction of credit facilities and loss from overstocking mahi mahi. The court awarded US$435,111 (S$657,017.61) for loss of revenue and US$16,016 (S$24,184.16) for loss from overstocking mahi mahi.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

The court affirmed part of the Assistant Registrar's award but varied the award regarding loss of revenue from credit facilities and loss from overstocking mahi mahi.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore High Court case involving Chun Cheng Fishery's claim against former executives for breach of duty, assessing damages related to credit facilities and overstocked fish.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Chun Cheng Fishery Enterprise Pte LtdPlaintiff, AppellantCorporationAppeal allowed in partPartial
Chuang Hern HsiungDefendant, AppellantIndividualAppeal dismissed in partPartial
Chuang Hsin-YiDefendant, AppellantIndividualAppeal dismissed in partPartial

3. Judges

Judge NameTitleDelivered Judgment
Andrew AngJudgeYes

4. Counsels

Counsel NameOrganization
Lim Kim HongKim & Co
Tan Cheng HanTSMP Law Corporation
Lok Vi MingRodyk & Davidson LLP
Vanessa YongRodyk & Davidson LLP

4. Facts

  1. Plaintiff, Chun Cheng Fishery, sued the defendants for breaches of contractual and fiduciary duties.
  2. The first defendant was the Group President and CEO of the plaintiff.
  3. The second defendant was the Vice-President of Development of the plaintiff.
  4. The plaintiff claimed damages for conspiracy and unlawful interference in its business.
  5. The Court of Appeal confined damages to those caused by the defendants' acts from 1 May 2005 onwards.
  6. The plaintiff's credit facilities were substantially reduced between 6 July 2005 and 16 July 2005.
  7. The defendants failed to sell overstocked mahi mahi in CCUSA despite instructions from the plaintiff's chairman.

5. Formal Citations

  1. Chun Cheng Fishery Enterprise Pte Ltd v Chuang Hern Hsiung and another, Suit No 763 of 2005 (Registrar's Appeal Nos 422 and 423 of 2010), [2011] SGHC 167

6. Timeline

DateEvent
Plaintiff commenced action against the first and second defendants in Suit No 763 of 2005.
Plaintiff’s credit facilities were substantially reduced.
Plaintiff’s credit facilities were substantially reduced.
Conference held with the plaintiff’s bankers to dispel the rumours.
Chee was appointed as a Special Accountant to monitor/report on the financial position of the plaintiff.
Banks agreed to a moratorium until November 2005.
BOT, CTB, CHB and CB terminated their facilities and recalled loans granted to the plaintiff.
DBS, UOB, SCB and UFJ, normalised their banking relationship with the plaintiff.
Hearing regarding corrections to figures in the AR’s Judgment.
Decision Date

7. Legal Issues

  1. Breach of Contract
    • Outcome: Interlocutory judgment was given in favour of the plaintiff with damages to be assessed by the Registrar.
    • Category: Substantive
  2. Breach of Fiduciary Duty
    • Outcome: Interlocutory judgment was given in favour of the plaintiff with damages to be assessed by the Registrar.
    • Category: Substantive
  3. Assessment of Damages
    • Outcome: The court affirmed part of the Assistant Registrar's award but varied the award regarding loss of revenue from credit facilities and loss from overstocking mahi mahi.
    • Category: Procedural

8. Remedies Sought

  1. Damages

9. Cause of Actions

  • Breach of Contract
  • Breach of Fiduciary Duty
  • Conspiracy to Injure
  • Unlawful Interference in Business

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Fishery
  • Banking

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

  • Credit Facilities
  • Gross Profit Margin
  • Quantification Period
  • Mahi Mahi
  • Overstocking
  • Trust Receipts
  • Moratorium

15.2 Keywords

  • fishery
  • breach of contract
  • fiduciary duty
  • damages
  • credit facilities
  • mahi mahi
  • overstocking

17. Areas of Law

Area NameRelevance Score
Damages80
Breach of Contract70
Fiduciary Duties70
Conspiracy by Unlawful Means60
Contract Law60
Inducement of Breach of Contract60
Commercial Disputes50
Civil Procedure40
Duty to Account30
Estoppel30
Agency Law30

16. Subjects

  • Contract Law
  • Fiduciary Duty
  • Damages
  • Banking
  • Fisheries