Lee Pei-Ru Alice v Airtrust: Oral Assurances & Investment Repayment Dispute

In Lee Pei-Ru Alice and another v Airtrust (Singapore) Pte Ltd, the High Court of Singapore addressed a claim by Alice Lee Pei-Ru and Fong Wei Heng against Airtrust (Singapore) Pte Ltd, concerning alleged oral assurances made by the late Peter Fong regarding the repayment of investments. The plaintiffs claimed Peter assured them their investments in the MV Cobalt project would be repaid by Airtrust. The court allowed the plaintiffs' claim, ordering Airtrust to repay S$431,750 and S$863,000, finding that Peter had bound Airtrust to be primarily liable for the repayment.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

High Court case involving a dispute over oral assurances for investment repayment. The court allowed the claim, ordering Airtrust to repay investment sums.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Fong Wei HengPlaintiffIndividualClaim AllowedWon
Airtrust (Singapore) Pte LtdDefendantCorporationClaim DismissedLost
Lee Pei-Ru AlicePlaintiffIndividualClaim AllowedWon

3. Judges

Judge NameTitleDelivered Judgment
Tay Yong KwangJudgeYes

4. Counsels

Counsel NameOrganization
Aaron LeeAllen & Gledhill LLP
Seow Wan JunAllen & Gledhill LLP
Clement Julien TanAllen & Gledhill LLP
Koh En YingAllen & Gledhill LLP
Mohamed Nawaz KamilWongPartnership LLP
Rajan Menon SmithaWongPartnership LLP
Michelle NeoWongPartnership LLP

4. Facts

  1. Alice and Wei Heng invested in the MV Cobalt project based on Peter Fong's assurances.
  2. Peter Fong assured investors their investments were safe and repayable by Airtrust.
  3. Peter Fong was the chairman and a director of Airtrust until his death.
  4. Airtrust was facing cash-flow problems when the investment was made.
  5. Other investors (Dr Goh, Henry, Professor Yeoh) were repaid their investments.
  6. Linda Kao, Airtrust's managing director, acknowledged Peter's assurances in an email.
  7. Peter Fong had a habit of not documenting things in writing.

5. Formal Citations

  1. Lee Pei-Ru Alice and another v Airtrust (Singapore) Pte Ltd, Suit No 523 of 2011, [2013] SGHC 259

6. Timeline

DateEvent
Airtrust founded by Peter Fong
Airtrust became a 40% shareholder in Southern Cross Ltd
Peter transferred 51% of Airtrust shares to Fong Foundation
Initial investments made in Southern Cross project
Alice halved her and Wei Heng’s investment
Dr Goh withdrew his investment; Alice took over
Henry withdrew his investment; Airtrust repaid him
Peter Fong passed away
Professor Yeoh withdrew his investment; Airtrust repaid him
Plaintiffs filed suit seeking repayment of S$1,295,250 from Airtrust
Receivers and managers appointed to manage Airtrust
Offer to settle made by the plaintiffs to the defendant
Judgment issued

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that Peter Fong, acting on behalf of Airtrust, made representations to the plaintiffs that their investments would be repaid, and these representations were legally binding.
    • Category: Substantive
    • Sub-Issues:
      • Oral assurances
      • Enforceability of representations
  2. Agency
    • Outcome: The court determined that Peter Fong acted as an agent of Airtrust when making the assurances, thus binding Airtrust to the agreement.
    • Category: Substantive
    • Sub-Issues:
      • Authority of agent
      • Principal's liability for agent's actions
  3. Intention to Create Legal Relations
    • Outcome: The court held that there was an intention to create legal relations, despite the familial relationship between the parties.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages
  2. Repayment of Investment

9. Cause of Actions

  • Breach of Contract
  • Breach of Oral Agreement

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Oil and Gas

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

  • Oral assurances
  • Investment repayment
  • MV Cobalt
  • Airtrust
  • Alter ego
  • Agency
  • Intention to create legal relations

15.2 Keywords

  • oral assurances
  • investment
  • repayment
  • Airtrust
  • MV Cobalt
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Contract Law75
Commercial Disputes65
Agency Law60
Breach of Assurance55
Company Law50
Oral contract40
Damages30
Estoppel25

16. Subjects

  • Contract Law
  • Agency Law
  • Investment Disputes