Maryani Sadeli v Arjun Permanand Samtani: Equitable Compensation & Breach of Fiduciary Duties in Horizon Towers Collective Sale
In Maryani Sadeli v Arjun Permanand Samtani, the Court of Appeal of Singapore heard appeals against a decision regarding claims by Maryani Sadeli and others against Arjun Permanand Samtani and another, seeking equitable compensation for breach of fiduciary duties related to the unsuccessful Horizon Towers collective sale. The Appellants sought damages for unrecovered costs from previous proceedings. The Court of Appeal dismissed the appeals, holding that the Appellants were not entitled to recover the unrecovered legal costs as damages.
1. Case Overview
1.1 Court
Court of Appeal1.2 Outcome
Appeals dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding equitable compensation for breach of fiduciary duties in the Horizon Towers collective sale. Court dismissed the appeal, finding no entitlement to unrecovered costs.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Maryani Sadeli | Appellant | Individual | Appeal Dismissed | Lost | Kannan Ramesh, Eddee Ng Ka Luan, Ho Xin Ling, Ian Ho, Ooi Huey Hien |
| Arjun Permanand Samtani | Respondent | Individual | Appeal Dismissed | Won | N Sreenivasan, Shankar s/o Angammah |
| Mamata Kapildev Dave | Respondent | Individual | Appeal Dismissed | Won | Anparasan s/o Kamachi, Tan Wei Ming |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Sundaresh Menon | Chief Justice | No |
| Chao Hick Tin | Justice of the Court of Appeal | No |
| Andrew Phang Boon Leong | Justice of the Court of Appeal | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Kannan Ramesh | Tan Kok Quan Partnership |
| Eddee Ng Ka Luan | Tan Kok Quan Partnership |
| Ho Xin Ling | Tan Kok Quan Partnership |
| Ian Ho | Tan Kok Quan Partnership |
| Ooi Huey Hien | Tan Kok Quan Partnership |
| N Sreenivasan | Straits Law Practice LLC |
| Shankar s/o Angammah | Straits Law Practice LLC |
| Anparasan s/o Kamachi | KhattarWong LLP |
| Tan Wei Ming | KhattarWong LLP |
4. Facts
- The Appellants claimed equitable compensation for breach of fiduciary duties by the Respondents.
- The Appellants sought damages for the shortfall in costs from previous proceedings.
- The Court of Appeal previously set aside the collective sale of Horizon Towers.
- The Court of Appeal previously found that the Respondents breached fiduciary duties.
- The Appellants were awarded costs in the previous proceedings, but the recovered amount did not cover all legal fees.
- The Appellants considered seeking costs against the Respondents in their individual capacities in the previous proceedings but decided not to.
- The Appellants had the opportunity to seek costs from the court in Ng Eng Ghee (Costs) but decided not to avail themselves of that opportunity.
5. Formal Citations
- Maryani Sadeli v Arjun Permanand Samtani and another and other appeals, Civil Appeals Nos 152, 153 and 154 of 2013, [2014] SGCA 55
- Then Khek Koon and another v Arjun Permanand Samtani and another and other suits, , [2014] 1 SLR 245
- Ng Eng Ghee and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and another appeal, , [2009] 4 SLR(R) 155
- Ng Eng Ghee and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and another appeal, , [2009] 3 SLR(R) 109
- Lo Pui Sang and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and other appeals, , [2008] 4 SLR(R) 754
6. Timeline
| Date | Event |
|---|---|
| Judge's decision in Then Khek Koon and another v Arjun Permanand Samtani and another and other suits [2014] 1 SLR 245. | |
| Court of Appeal decision in Ng Eng Ghee and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and another appeal [2009] 3 SLR(R) 109. | |
| Award of costs in favour of the Appellants in Ng Eng Ghee and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and another appeal [2009] 4 SLR(R) 155. | |
| High Court proceedings in Lo Pui Sang and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and other appeals [2008] 4 SLR(R) 754. | |
| Court of Appeal dismissed the appeals. |
7. Legal Issues
- Breach of Fiduciary Duty
- Outcome: The court previously found a breach of fiduciary duty in Ng Eng Ghee (CA).
- Category: Substantive
- Related Cases:
- [2009] 3 SLR(R) 109
- Equitable Compensation
- Outcome: The court did not rule on whether the claim based on equitable compensation could be established.
- Category: Substantive
- Related Cases:
- [1934] 3 DLR 465
- [1996] 1 AC 421
- [2014] UKSC 58
- Recovery of Legal Costs
- Outcome: The court held that the Appellants were not entitled to recover the unrecovered legal costs of the previous proceedings as damages.
- Category: Procedural
- Related Cases:
- (1883) 11 QBD 674
- [1962] 1 QB 306
- (1807) 1 Camp 151
- [1996] 3 All ER 667
- (1858) 8 E & B 647
- (1888) 20 QBD 79
- [2012] PNLR 28
- [1997] 1 WLR 1356
- [1995] 1 SLR(R) 358
- Abuse of Process
- Outcome: The court found that it was an abuse of process for the Appellants to raise the issue of costs against the Respondents in the present proceedings.
- Category: Procedural
- Related Cases:
- [2007] 1 SLR(R) 453
- Costs Against Non-Party
- Outcome: The court held that it was possible for costs to have been awarded against the Respondents even if the two factors in DB Trustees had not been met.
- Category: Procedural
- Related Cases:
- [2010] 3 SLR 542
8. Remedies Sought
- Equitable Compensation
- Damages for unrecovered costs
9. Cause of Actions
- Breach of Fiduciary Duty
- Equitable Compensation
10. Practice Areas
- Commercial Litigation
- Appeals
- Trust Litigation
- Real Estate Litigation
11. Industries
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Then Khek Koon and another v Arjun Permanand Samtani and another and other suits | High Court | Yes | [2014] 1 SLR 245 | Singapore | The judgment under appeal in the present proceedings. |
| Ng Eng Ghee and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and another appeal | Court of Appeal | Yes | [2009] 4 SLR(R) 155 | Singapore | Cited for the award of costs in favour of the Appellants. |
| Ng Eng Ghee and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and another appeal | Court of Appeal | Yes | [2009] 3 SLR(R) 109 | Singapore | Cited for setting aside the collective sale and finding a breach of fiduciary duties. |
| Lo Pui Sang and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and other appeals | High Court | Yes | [2008] 4 SLR(R) 754 | Singapore | Cited as the High Court decision where the court held against the subsidiary proprietors. |
| Brickenden v London Loan & Savings Company of Canada | Privy Council | Yes | [1934] 3 DLR 465 | Canada | Cited in the context of causation in equitable compensation for breach of fiduciary duties. |
| Target Holdings Ltd v Redferns (a firm) | House of Lords | Yes | [1996] 1 AC 421 | England and Wales | Cited in the context of causation in equitable compensation for breach of fiduciary duties. |
| AIB Group (UK) Plc v Mark Redler & Co Solicitors | UK Supreme Court | Yes | [2014] UKSC 58 | United Kingdom | Cited in the context of causation in equitable compensation for breach of fiduciary duties. |
| The Quartz Hill Consolidated Gold Mining Company v Eyre | English Court of Appeal | Yes | (1883) 11 QBD 674 | England and Wales | Cited for the general rule that unrecovered costs in relation to previous legal proceedings cannot be recovered in a subsequent claim for damages. |
| Berry v British Transport Commission | English Court of Appeal | Yes | [1962] 1 QB 306 | England and Wales | Cited for the legal basis of the rule against recovering unrecovered costs in subsequent proceedings. |
| Hathaway v Barrow | King's Bench | Yes | (1807) 1 Camp 151 | England and Wales | Cited as the origin of the rule against recovering unrecovered costs in subsequent proceedings. |
| British Racing Drivers’ Club Ltd and another v Hextall Erskine & Co (a firm) | English High Court | Yes | [1996] 3 All ER 667 | England and Wales | Cited for the view that there is no distinction of principle between same-party cases and third-party cases regarding the recovery of costs. |
| Collen v Wright | Queen's Bench | Yes | (1858) 8 E & B 647 | England and Wales | Cited as a case establishing the law on costs as damages in third-party cases. |
| Hammond v Bussey | Queen's Bench Division | Yes | (1888) 20 QBD 79 | England and Wales | Cited as a case establishing the law on costs as damages in third-party cases. |
| Herrmann v Withers LLP | English High Court | Yes | [2012] PNLR 28 | England and Wales | Cited as a decision where the court viewed that the approach in British Racing was no longer appropriate. |
| Penn v Bristol & West Building Society | English Court of Appeal | Yes | [1997] 1 WLR 1356 | England and Wales | Cited for the principle that in a single action, costs cannot be recovered on more than the standard basis. |
| Ganesan Carlose & Partners v Lee Siew Chun | Court of Appeal | Yes | [1995] 1 SLR(R) 358 | Singapore | Cited for the principle that a party is not entitled to a second bite at costs under the guise of damages. |
| Goh Nellie v Goh Lian Teck and others | Singapore High Court | Yes | [2007] 1 SLR(R) 453 | Singapore | Cited for the legal principles regarding abuse of process. |
| DB Trustees (Hong Kong) Ltd v Consult Asia Pte Ltd and another appeal | Court of Appeal | Yes | [2010] 3 SLR 542 | Singapore | Cited for the factors to consider when awarding costs against a non-party. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 322, R 5, 2006 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Equitable Compensation
- Fiduciary Duties
- Collective Sale
- Horizon Towers
- Unrecovered Costs
- Indemnity Principle
- Abuse of Process
- Third-Party Case
- Same-Party Case
- Standard Basis Costs
- Indemnity Basis Costs
15.2 Keywords
- Equitable Compensation
- Fiduciary Duty
- Collective Sale
- Horizon Towers
- Legal Costs
- Singapore Court of Appeal
16. Subjects
- Trusts
- Equity
- Civil Procedure
- Real Estate
- Collective Sales
- Fiduciary Duties
- Costs
17. Areas of Law
- Equity
- Trust Law
- Civil Procedure
- Remedies
- Breach of Fiduciary Duty
- Collective Sale
- Real Property Law