Rotor Mix v Feng Ming: Breach of Contract & Subletting Dispute over Ready-Mixed Concrete Supply
In 2012, Rotor Mix Pte Ltd sued Feng Ming Construction Pte Ltd in the High Court of Singapore, alleging breach of a ready-mixed concrete supply agreement and a subletting agreement. Rotor Mix claimed Feng Ming failed to purchase the agreed quantity of concrete and sought damages. Feng Ming counterclaimed for outstanding outgoings and reinstatement costs. Justice Lai Siu Chiu dismissed Rotor Mix's claim, finding no contractual obligation for Feng Ming to order a specific quantity of concrete. The court awarded judgment to Feng Ming on its counterclaim for outstanding outgoings, but denied the claim for reinstatement costs due to lack of evidence.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiff's claim dismissed with costs; Judgment for Defendant on counterclaim.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Rotor Mix sued Feng Ming for breach of contract over a ready-mixed concrete supply agreement. The court dismissed the claim and awarded judgment to Feng Ming on its counterclaim.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Rotor Mix Pte Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | |
| Feng Ming Construction Pte Ltd | Defendant | Corporation | Judgment for Defendant on counterclaim | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Siu Chiu | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Ranjit Singh | Francis Khoo & Lim |
| Tan Kah Hin | Choo Hin & Partners |
4. Facts
- Plaintiff and defendant entered into a subletting agreement for the plaintiff to set up a concrete batching plant on land leased by the defendant.
- Plaintiff and defendant entered into a supply agreement for the plaintiff to supply ready-mixed concrete to the defendant for the Jurong Port project.
- The supply agreement stated an estimated total quantity of 10,000 cubic meters of concrete.
- The defendant purchased only 2,532m3 of ready-mixed concrete from the plaintiff.
- The plaintiff terminated the supply agreement and the subletting agreement.
- The defendant counterclaimed for outstanding outgoings and reinstatement costs.
5. Formal Citations
- Rotor Mix Pte Ltd v Feng Ming Construction Pte Ltd, Suit No 478 of 2011, [2012] SGHC 131
6. Timeline
| Date | Event |
|---|---|
| Defendant informed the plaintiff that it could sublet the Jalan Bahar land to the plaintiff to set up a concrete batching plant. | |
| Defendant stated in a letter to the National Environment Agency the benefits of setting up the concrete batching plant. | |
| Approval for the batching plant was granted by Jurong Town Corporation. | |
| Plaintiff and defendant entered into a subletting agreement. | |
| Defendant secured the contract for the Jurong Port project. | |
| Batching plant was fully set up. | |
| Agreement to supply ready-mixed concrete to the defendant for the Jurong Port project was entered into. | |
| Defendant accepted the supply agreement. | |
| Plaintiff started supplying ready-mixed concrete to the defendant. | |
| Defendant stopped its purchase of ready-mixed concrete from the plaintiff. | |
| Plaintiff reduced the price of ready-mixed concrete by $18.00 per m³. | |
| Defendant allegedly abandoned the supply agreement. | |
| Plaintiff notified the defendant of its intention to terminate the supply agreement and the subletting agreement. | |
| Plaintiff handed over the site to the defendant’s storeman. | |
| Defendant handed the land back to Jurong Town Corporation. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Contract
- Outcome: The court held that the defendant did not breach the contract by failing to place orders for the shortfall of ready-mixed concrete.
- Category: Substantive
- Sub-Issues:
- Failure to purchase contractual quantity
- Unilateral termination of contract
- Related Cases:
- [1994] 3 SLR(R) 452
- Termination of Subletting Agreement
- Outcome: The court held that the plaintiff wrongfully terminated the subletting agreement and the defendant was entitled to forfeit the deposit.
- Category: Substantive
- Sub-Issues:
- Wrongful termination of subletting agreement
- Forfeiture of deposit
8. Remedies Sought
- Loss of profit
- Return of deposit
- Payment for ready-mixed concrete supplied
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Construction Contracts
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Turner (East Asia) Pte Ltd v Pioneer Concrete (Singapore) Pte Ltd | Court of Appeal | Yes | [1994] 3 SLR(R) 452 | Singapore | Cited for the principle that the nature and effect of a contract must be sought from the provisions of the contract themselves, having regard to the circumstances in which the contract came into being. |
| Percival, Lim v London County Council Asylums and Mental Deficiency Committee | N/A | Yes | Percival, Lim v London County Council Asylums and Mental Deficiency Committee (1918) 87 LJ KB 677 | N/A | Cited for the three types of contracts for the supply of goods and materials. |
| Chong Ah Kwee and another v Viva Realty Pte Ltd | High Court | Yes | [1990] 1 SLR(R) 244 | Singapore | Cited to construe the word “estimated” as a warranty. |
| RDC Concrete Pte Ltd v Seto Kogyo (S) Pte Ltd | N/A | Yes | [2007] 4 SLR(R) 413 | Singapore | Cited for the situations where a breach of a term in the contract deprived the innocent party of substantially the whole benefit which it was intended to obtain from a contract. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Ready-mixed concrete
- Subletting agreement
- Supply agreement
- Estimated quantity
- Batching plant
- Jurong Port project
- Reinstatement costs
- Outgoings
15.2 Keywords
- breach of contract
- ready-mixed concrete
- subletting agreement
- construction
- Singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Breach of Contract | 75 |
| Contract Law | 70 |
| Performance of Contract | 65 |
| Supply Agreement | 60 |
| Subletting Agreement | 55 |
| Property Law | 50 |
| Ready-Mixed Concrete | 50 |
| Landlord and Tenant Law | 40 |
| Reinstatement Costs | 30 |
16. Subjects
- Contract Dispute
- Construction Dispute
- Subletting