PPG Industries v Compact Metal: Breach of Contract & Delay Costs in Construction
In PPG Industries (Singapore) Pte Ltd v Compact Metal Industries Ltd, the Court of Appeal of Singapore heard an appeal by PPG Industries against the High Court's decision regarding a breach of contract claim. The dispute arose from PPG's supply of non-conforming paint, which caused delays in Compact Metal's construction project. The Court of Appeal partially allowed the appeal, adjusting the damages awarded to Compact Metal for additional site preliminaries, and remitted the defendant’s counterclaim back to the Judge below for her decision. The court affirmed the Judge’s decision and reasoning with regard to all the other issues.
1. Case Overview
1.1 Court
Court of Appeal of the Republic of Singapore1.2 Outcome
Appeal Allowed in Part
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal concerning breach of contract for faulty paint in a construction project. Court partially allowed appeal, adjusting damages for delay costs.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| PPG Industries (Singapore) Pte Ltd | Appellant | Corporation | Appeal Allowed in Part | Partial | |
| Compact Metal Industries Ltd | Respondent | Corporation | Damages Awarded Reduced | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chao Hick Tin | Justice of the Court of Appeal | No |
| Andrew Phang Boon Leong | Justice of the Court of Appeal | Yes |
4. Counsels
4. Facts
- PPG Industries was contracted to supply paint to Compact Metal for a construction project.
- The paint supplied by PPG Industries was not of satisfactory quality.
- The defective paint caused delays in the completion of the construction project.
- RSP Architects granted extensions of time totaling 168 days to Taisei Corporation, the main contractor.
- Compact Metal incurred additional site preliminaries costs due to the delays.
- Compact Metal was liable to pay liquidated damages to Taisei Corporation due to the delays.
5. Formal Citations
- PPG Industries (Singapore) Pte Ltd v Compact Metal Industries Ltd, Civil Appeal No 125 of 2011, [2013] SGCA 23
- Compact Metal Industries Ltd v PPG Industries (Singapore) Pte Ltd, , [2012] SGHC 91
6. Timeline
| Date | Event |
|---|---|
| Civil Appeal No 125 of 2011 | |
| High Court decision in [2012] SGHC 91 | |
| Judgment reserved | |
| Court of Appeal decision |
7. Legal Issues
- Breach of Contract
- Outcome: The defendant was found to be in breach of contract for failing to provide paint of satisfactory quality.
- Category: Substantive
- Sub-Issues:
- Failure to provide paint of satisfactory quality
- Delay in completion of project
- Causation
- Outcome: The court found that the defendant's breach of contract caused a portion of the delay, but not the entire delay claimed by the plaintiff.
- Category: Substantive
- Sub-Issues:
- Concurrent causes of delay
- Impact of extensions of time granted by architects
- Related Cases:
- [2007] 3 SLR(R) 782
- [2012] 1 SLR 427
- Remoteness of Damage
- Outcome: The court held that the claim for liquidated damages fell under the first limb of the rule in Hadley v Baxendale, and knowledge of such damage was imputed to the defendant.
- Category: Substantive
- Sub-Issues:
- Application of Hadley v Baxendale rule
- Imputed knowledge of potential damages
- Related Cases:
- (1854) 9 Exch 341; 165 ER 145
- [2008] 2 SLR(R) 623
8. Remedies Sought
- Monetary Damages
- Recovery of Liquidated Damages
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 |
|---|---|---|---|---|---|
| Compact Metal Industries Ltd v PPG Industries (Singapore) Pte Ltd | High Court | Yes | [2012] SGHC 91 | Singapore | The judgment under appeal; the Court of Appeal affirmed the Judge’s decision and reasoning with regard to all the other issues, except for two particular issues. |
| Sunny Metal & Engineering Pte Ltd v Ng Khim Ming Eric | Court of Appeal | Yes | [2007] 3 SLR(R) 782 | Singapore | Cited for the application of the but-for test to determine factual causation in contract law. |
| Anti-Corrosion Pte Ltd v Berger Paints Singapore Pte Ltd and another appeal | Court of Appeal | Yes | [2012] 1 SLR 427 | Singapore | Cited for the application of the but-for test to determine factual causation in contract law. |
| Hadley v Baxendale | Court of Exchequer | Yes | (1854) 9 Exch 341; 165 ER 145 | England | Cited for the rule on remoteness of damage in contract law. |
| Robertson Quay Investment Pte Ltd v Steen Consultants Pte Ltd and another | Court of Appeal | Yes | [2008] 2 SLR(R) 623 | Singapore | Cited for the principles underlying the rule in Hadley v Baxendale, particularly regarding imputed and actual knowledge of damages. |
| MFM Restaurants Pte Ltd and another v Fish & Co Restaurants Pte Ltd and another appeal | Court of Appeal | Yes | [2011] 1 SLR 150 | Singapore | Cited for affirming the rule in Hadley v Baxendale. |
| Out of the Box Pte Ltd v Wanin Industries Pte Ltd | Court of Appeal | Yes | [2013] SGCA 15 | Singapore | Cited for affirming the rule in Hadley v Baxendale. |
| Susilawati v American Express Bank Ltd | Court of Appeal | Yes | [2009] 2 SLR(R) 737 | Singapore | Cited regarding the introduction of new points late in the proceedings and amendment of pleadings. |
| Compact Metal Industries Ltd v PPG Industries (Singapore) Ltd | High Court | Yes | [2006] SGHC 242 | Singapore | Cited for the fact that the paint ordered by the plaintiff was customised for use in the project to refurbish the MAS building. |
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
- Site Preliminaries
- Liquidated Damages
- Breach of Contract
- Delay Costs
- Extensions of Time
- Concurrent Delay
- But-For Test
- Remoteness of Damage
- Hadley v Baxendale
- Imputed Knowledge
15.2 Keywords
- breach of contract
- construction
- delay
- damages
- liquidated damages
- site preliminaries
- paint
- singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Breach of Contract | 90 |
| Damages | 80 |
| Construction Law | 70 |
| Contract Law | 60 |
| Causation | 50 |
| Remoteness of damage | 40 |
| Civil Procedure | 30 |
16. Subjects
- Contract Law
- Construction Law
- Damages
- Civil Litigation