Compact Metal Industries v PPG Industries: Construction Dispute, Defective Paint & Damages
In a construction dispute before the High Court of Singapore, Compact Metal Industries Ltd (plaintiff) sued PPG Industries (Singapore) Pte Ltd (defendant) for damages arising from defective paint supplied for the refurbishment of the Monetary Authority of Singapore Building. The court dismissed the defendant's appeal and allowed the plaintiff's appeal, holding the defendant liable for damages, including reimbursement for liquidated damages imposed on the plaintiff by the main contractor, Taisei Corporation. The plaintiff's claim included rectification costs and damages arising from delay.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Defendant's appeal dismissed; Plaintiff's appeal allowed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Construction dispute over defective paint. Court awarded damages to Compact Metal Industries, including liquidated damages reimbursement.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| PPG Industries (Singapore) Pte Ltd | Defendant, Appellant | Corporation | Appeal Dismissed | Lost | |
| Compact Metal Industries Ltd | Plaintiff, Respondent | Corporation | Appeal Allowed in Part | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Siu Chiu | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Nicholas Narayanan | Nicholas & Tan Partnership LLP |
| Michael Por | Michael Por Law Corporation |
4. Facts
- Compact Metal Industries Ltd (plaintiff) was a subcontractor for painting aluminum panels.
- PPG Industries (Singapore) Pte Ltd (defendant) supplied customized paint for the project.
- The paint initially supplied by the defendant was defective, causing delays.
- The project completion was delayed by 273 days due to the paint problem.
- Taisei Corporation, the main contractor, imposed liquidated damages on the plaintiff.
- The plaintiff incurred rectification costs due to the defective paint.
- The paint was a customized paint that was featured in the defendant’s standard colour charts.
5. Formal Citations
- Compact Metal Industries Ltd v PPG Industries (Singapore) Pte Ltd, Suit No 442 of 2005 (Registrar's Appeal Nos 43 and 49 of 2010), [2012] SGHC 91
6. Timeline
| Date | Event |
|---|---|
| Refurbishment of the Monetary Authority of Singapore Building commenced. | |
| Original completion date of the project. | |
| Project completed. | |
| Writ issued. | |
| Trial held in two tranches. | |
| Assessment of damages began. | |
| Assessment hearing concluded. | |
| Assistant Registrar delivered first grounds of decision. | |
| Assistant Registrar delivered second grounds of decision. | |
| Plaintiff's application granted to adduce further evidence. | |
| Additional orders granted to the plaintiff. | |
| Hearing before the Assistant Registrar. | |
| Hearing to clarify the issue of interest. | |
| Judgment delivered by Lai Siu Chiu J. |
7. Legal Issues
- Breach of Contract
- Outcome: The court held that the defendant breached the contract by supplying defective paint.
- Category: Substantive
- Sub-Issues:
- Defective paint supply
- Failure to supply paint in accordance with contract conditions
- Related Cases:
- (1854) 9 Exch 341
- Assessment of Damages
- Outcome: The court upheld the Assistant Registrar's assessment of damages, with some modifications.
- Category: Procedural
- Sub-Issues:
- Rectification costs
- Delay damages
- Site preliminaries
- Overtime costs
- Backcharges
- Liquidated Damages
- Outcome: The court held that the defendant was liable to reimburse the plaintiff for liquidated damages imposed by the main contractor.
- Category: Substantive
- Sub-Issues:
- Remoteness of damages
- Foreseeability of damages
- Related Cases:
- (1854) 9 Exch 341
8. Remedies Sought
- Monetary Damages
- Indemnity
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Construction Disputes
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Hong Fok Realty Pte Ltd v Bima Investment Pte Ltd | High Court | Yes | [1992] 2 SLR(R) 834 | Singapore | Cited regarding the principle of rectification costs. |
| Hadley v Baxendale | Court of Exchequer | Yes | (1854) 9 Exch 341 | England | Cited for the principles governing the recovery of damages for breach of contract. |
| Tullio Planeta v Maoro Andrea G | Court of Appeal | Yes | [1994] SLR(R) 501 | Singapore | Cited for the general rule that costs follow the event. |
| In Re Elgindata Ltd (No 2) | UK appellate court | Yes | [1992] 1 WLR 1207 | United Kingdom | Cited for the general rule that costs should follow the event. |
| Lassiter Ann Masters v To Keng Lam | High Court | Yes | [2004] 2 SLR(R) 392 | Singapore | Cited regarding the nature of a Registrar's Appeal as an actual rehearing. |
| Ladd v Marshall | Court of Appeal | Yes | [1954] 1 WLR 1489 | England | Cited regarding the principles for admitting new evidence. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Civil Law Act (Cap 43, 1999 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Defective Paint
- Rectification Costs
- Liquidated Damages
- Construction Dispute
- Delay Damages
- Site Preliminaries
- Recoating Costs
- Abortive Installation
- Tonality
- Cladding
15.2 Keywords
- construction
- contract
- paint
- damages
- liquidated damages
- Singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Breach of Contract | 80 |
| Construction Law | 75 |
| Contract Law | 70 |
| Construction Disputes | 65 |
| Damages | 60 |
16. Subjects
- Construction Dispute
- Contract Law
- Damages