Choi Peng Kum v Tan Poh Eng Construction: SOPA & Termination of Contract Dispute
In Choi Peng Kum and Pay Ah Lui v Tan Poh Eng Construction Pte Ltd, the Singapore High Court addressed a dispute arising from a construction contract terminated by the Plaintiffs, Choi Peng Kum and Pay Ah Lui. The Defendant, Tan Poh Eng Construction Pte Ltd, lodged an adjudication application under the Building and Construction Industry Security of Payment Act (SOPA). The Plaintiffs filed an originating summons to set aside the adjudication determination. The High Court dismissed the Plaintiffs' appeal, finding the payment claim valid under SOPA despite the absence of a prior valuation and that the adjudicator had jurisdiction despite the contract's termination. The court ordered a stay of execution on a portion of the adjudicated amount pending appeal.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal Dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Dispute over payment claim under SOPA after contract termination. Court addresses validity of claim and adjudicator's jurisdiction. Appeal dismissed.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Choi Peng Kum | Plaintiff, Appellant | Individual | Appeal Dismissed | Lost | |
| Pay Ah Lui | Plaintiff, Appellant | Individual | Appeal Dismissed | Lost | |
| Tan Poh Eng Construction Pte Ltd | Defendant, Respondent | Corporation | Judgment for Defendant | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | J | Yes |
4. Counsels
4. Facts
- Plaintiffs contracted with Defendant for reconstruction works on their house.
- The contract was subject to the Singapore Institute of Architects Conditions.
- Disputes arose, and the Defendant lodged an adjudication application under SOPA.
- The Adjudicator decided that the Plaintiffs were to pay the Defendant $480,109.97.
- Plaintiffs filed an originating summons to set aside the adjudication determination.
- Plaintiffs paid $486,076.26 into court as security.
- Plaintiffs terminated the contract with the Defendant.
5. Formal Citations
- Choi Peng Kum and another v Tan Poh Eng Construction Pte Ltd, Originating Summons No 275 of 2013 (Registrar's Appeal Nos 218 and 261 of 2013), [2013] SGHC 272
6. Timeline
| Date | Event |
|---|---|
| Contract signed | |
| Contract terminated | |
| Adjudication application lodged | |
| Adjudication application served | |
| Progress Valuation No 9 prepared | |
| Adjudication response lodged | |
| Adjudication determination made | |
| Originating summons filed | |
| Sum paid into court | |
| Plaintiffs’ application dismissed | |
| Assistant Registrar decided that the Sum paid into court by the Plaintiffs was to remain in court pending the outcome of RA 218/2013 | |
| Arguments on RA 261/2013 heard | |
| Appeal heard | |
| Appeal dismissed | |
| Decision Date |
7. Legal Issues
- Validity of Payment Claim under SOPA
- Outcome: The court held that the payment claim was valid under SOPA despite the absence of a prior valuation.
- Category: Substantive
- Sub-Issues:
- Absence of valuation
- Compliance with SOPA requirements
- Jurisdiction of Adjudicator after Contract Termination
- Outcome: The court held that the adjudicator had jurisdiction despite the contract's termination.
- Category: Jurisdictional
- Sub-Issues:
- Effect of termination clause
- Applicability of SIA Conditions
- Interpretation of 'Final Determination' under Section 27(5) SOPA
- Outcome: The court determined that 'final determination' refers to the decision of the first court hearing the setting aside proceedings, not the exhaustion of all appeals.
- Category: Procedural
8. Remedies Sought
- Setting aside of adjudication determination
- Stay of execution
9. Cause of Actions
- Breach of Contract
- Claim for payment under SOPA
10. Practice Areas
- Construction Litigation
- Commercial Litigation
- Adjudication
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| S A Shee & Co (Pte) Ltd v Kaki Bukit Industrial Park Pte Ltd | Court of Appeal | Yes | [2000] 1 SLR(R) 192 | Singapore | Cited regarding the effect of termination clauses on interim certificates and cash flow considerations. |
| Walter Construction Group Ltd v CPL (Surry Hills) Pty Ltd | New South Wales Supreme Court | Yes | [2003] NSWSC 266 | Australia | Cited as authority for the proposition that the absence of a payment certificate no longer presents an impediment against a contractor’s recovery of payment for work done provided that a payment claim has been issued in accordance with section 10(1) of the Act. |
| Consolidated Constructions Pty Ltd v Ettamogah Pub (Rouse Hill) Pty Ltd | New South Wales Supreme Court | Yes | (2004) | Australia | Cited regarding a claimant’s ‘ability to serve a valid payment claim depends on either actual or claimed entitlement’. |
| VN Pte Ltd v VO Pte Ltd | Singapore Court of Appeal | Yes | [2010] SCAdjR 259 | Singapore | Cited for the view that cl 32(8)(a) did not preclude a contractor from lodging an AA or an adjudicator from making an AD. |
| Roseville Bridge Marina Pty Ltd v Bellingham Marine Australia Pty Ltd | New South Wales Supreme Court | Yes | [2009] NSWSC 320 | Australia | Cited to argue that if cl 38(2)(a) had the effect it contended for, cl 38(2)(a) did not run afoul of s 36(1) or (2) SOPA. |
| Regina v Kuxhaus | Queen's Bench | Yes | [1988] 1 QB 631 | England and Wales | Cited regarding the meaning of 'final determination of those proceedings'. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 322, R 5 2006 Rev Ed) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Adjudication Application
- Adjudication Determination
- Progress Claim
- Progress Payment
- SOPA
- SIA Conditions
- Payment Response
- Valuation
- Termination
- Security of Payment
15.2 Keywords
- SOPA
- adjudication
- construction contract
- payment claim
- termination
- Singapore
- building
- construction
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Building and Construction Industry Security of Payment Act | 95 |
| Construction Law | 75 |
| Contract Law | 60 |
| Arbitration | 30 |
16. Subjects
- Construction Dispute
- Adjudication
- Contract Law
- Security of Payment