Ashlock William Grover v SetClear Pte Ltd: Anti-Suit Injunction & Contract Interpretation

Ashlock William Grover appealed against the High Court's decision in favor of SetClear Pte Ltd and others, which granted an anti-suit injunction preventing Grover from pursuing claims in the United States related to founder benefits. The Court of Appeal of Singapore, comprising Justices Chao Hick Tin, Andrew Phang Boon Leong, and Tan Lee Meng, dismissed the appeal, upholding the High Court's interpretation of a settlement agreement. The court found that Grover had agreed not to pursue any future claims against SetClear and its affiliated companies, and the American Action constituted a breach of that agreement.

1. Case Overview

1.1 Court

Court of Appeal

1.2 Outcome

Appeal Dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding an anti-suit injunction. The court upheld the High Court's decision, enforcing a settlement agreement and preventing the appellant from pursuing claims in the US.

1.7 Decision Date

2. Parties and Outcomes

3. Judges

Judge NameTitleDelivered Judgment
Chao Hick TinJustice of the Court of AppealYes
Andrew Phang Boon LeongJustice of the Court of AppealNo
Tan Lee MengJudgeNo

4. Counsels

4. Facts

  1. Appellant and Slone co-founded IX Net Holding Limited.
  2. Appellant entered into an employment agreement with SetClear Pte Ltd.
  3. Appellant signed a separation agreement with SetClear Pte Ltd.
  4. The separation agreement contained a clause for full and final settlement of all claims.
  5. Appellant commenced proceedings in the United States seeking founder benefits.
  6. Respondents commenced proceedings in Singapore seeking a declaration and an anti-suit injunction.
  7. The High Court granted the anti-suit injunction.

5. Formal Citations

  1. Ashlock William Grover v SetClear Pte Ltd and others, Civil Appeal No 66 of 2011, [2012] SGCA 20
  2. SetClear Pte Ltd and others v Ashlock William Grover, , [2011] SGHC 130

6. Timeline

DateEvent
Appellant and Jonathan Slone co-founded a start-up business operated in New York by IX Net Holding Limited.
Appellant designated as Chief Operating Officer of IX Net Holding Limited and seconded to Credit Agricole Securities (USA) Inc in New York.
Appellant offered employment by SetClear Pte Ltd.
Appellant put on leave after disagreement with Slone.
Appellant and Young signed an agreement providing for the cessation of the Appellant’s employment with the 1st Respondent.
Appellant reaffirmed terms of 17 July 2008 Agreement.
Appellant reaffirmed terms of 17 July 2008 Agreement.
Appellant commenced proceedings against the Respondents and Slone in the United States District Court, Southern District of New York.
Respondents commenced the Singapore Action.
Appeal heard.
Court dismissed the appeal with costs.

7. Legal Issues

  1. Interpretation of Contractual Clauses
    • Outcome: The court held that clause 14 of the 17 July 2008 Agreement was unambiguous and provided for a full and final settlement of all claims, including claims for founder benefits.
    • Category: Substantive
    • Sub-Issues:
      • Ambiguity of contract terms
      • Scope of settlement agreement
  2. Anti-Suit Injunctions
    • Outcome: The court upheld the grant of the anti-suit injunction, finding that the American Action was in breach of contract and vexatious and oppressive.
    • Category: Procedural
    • Sub-Issues:
      • Breach of contract
      • Vexatious and oppressive conduct
      • International comity

8. Remedies Sought

  1. Declaration
  2. Damages
  3. Injunction

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • International Litigation
  • Dispute Resolution

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
SetClear Pte Ltd and others v Ashlock William GroverHigh CourtYes[2011] SGHC 130SingaporeThe High Court decision that was appealed against in this case.
Bank of Credit and Commerce International SA v Ali and othersHouse of LordsYes[2002] 1 AC 251England and WalesCited for the principle that a court undertaking a contextual approach in the construction of a contract does not inquire into the parties’ subjective states of mind but makes an objective judgment based on the materials already identified.
CSR Ltd v Cigna Insurance Australia LtdHigh Court of AustraliaYes(1997) 71 ALJR 1143 (HCA)AustraliaCited to illustrate a case where an interlocutory anti-suit injunction was applied for while the determination on the merits of the Singapore Action was still pending, which is different from the present case.
John Reginald Stott Kirkham and others v Trane US Inc and othersCourt of AppealYes[2009] 4 SLR(R) 428SingaporeApplied the principles applicable to the grant of anti-suit injunctions.
Evergreen International SA v Volkswagen Group Singapore Pte LtdHigh CourtYes[2004] 2 SLR(R) 457SingaporeApproved the elements to consider in determining whether an anti-suit injunction ought to be granted.
South Carolina Insurance Co v Assurantie Maatschappij "De Zeven Provincien" NVHouse of LordsYes[1987] AC 24England and WalesCited as an element to consider whether the institution of the foreign proceedings is in breach of any agreement between the parties.
The Angelic GraceCourt of AppealYes[1995] 1 Lloyd's Rep 87England and WalesCited for the principle that the court may not feel diffident about granting an anti-suit injunction as it would only be enforcing a contractual promise and the question of international comity is not as relevant.
WSG Nimbus Pte Ltd v Board of Control for Cricket in Sri LankaHigh CourtYes[2002] 1 SLR(R) 1088SingaporeCited for the principle that the court may not feel diffident about granting an anti-suit injunction as it would only be enforcing a contractual promise and the question of international comity is not as relevant.
National Westminster Bank plc v Utrecht-America Finance CoCourt of AppealYes[2001] CLC 1372England and WalesDiscussed the principles applicable to the grant of anti-suit injunctions, especially where a permanent injunction is sought after a judgment on the merits.
Amchem Products Inc v British Columbia (Workers Compensation Board)Supreme Court of CanadaYes[1993] 1 SCR 897CanadaQuoted with approval by Lord Goff in the Airbus Industrie case regarding comity and respecting the foreign court's decision on jurisdiction.
Continental Bank NA v Aeakos Compania Naviera SACourt of AppealYes[1994] 1 WLR 588England and WalesCited for the principle that the English court will readily grant an injunction restraining a party from commencing or continuing foreign proceedings which are in breach of contract.
Donohue v Armco IncCourt of AppealYes[2000] CLC 1090England and WalesCited for the principle that the English court will readily grant an injunction restraining a party from commencing or continuing foreign proceedings which are in breach of contract.
Société Nationale Industrielle Aérospatiale v Lee Kui JakHouse of LordsYes[1987] AC 871England and WalesConsidered the locus classicus on anti-suit injunctions.
Bank of America National Trust and Savings Association v Djoni WidjajaHigh CourtYes[1994] 2 SLR(R) 898SingaporeCited for the principle that an anti-suit injunction in the present case would not, strictly-speaking, offend against the notion of international comity because the injunction would effectively be no more than an in personam order made against the Appellant following his breach of a specific contractual promise encapsulated in cl 14.
Koh Kay Yew v Inno-Pacific Holdings LtdHigh CourtYes[1997] 2 SLR(R) 148SingaporeOn meaning of “amenable” to a jurisdiction

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

  • Anti-suit injunction
  • Founder benefits
  • Settlement agreement
  • Full and final settlement
  • Breach of contract
  • Jurisdiction clause
  • Vexatious and oppressive
  • International comity

15.2 Keywords

  • Anti-suit injunction
  • Contract interpretation
  • Settlement agreement
  • Founder benefits
  • Singapore
  • Court of Appeal

17. Areas of Law

16. Subjects

  • Contract Law
  • Civil Procedure
  • Conflict of Laws
  • Injunctions