Oei Hong Leong v Goldman Sachs: Stay of Proceedings & Arbitration vs Jurisdiction Clause
Oei Hong Leong sued Goldman Sachs International for alleged fraudulent misrepresentations made by Goldman Sachs (Asia) LLC employees regarding currency options. Goldman Sachs sought a stay of proceedings under the International Arbitration Act, arguing the dispute was subject to an arbitration agreement in the Account Agreement Pack. Oei Hong Leong contended a non-exclusive jurisdiction clause in the ISDA Master Agreement should apply. The High Court dismissed Oei Hong Leong's appeal, finding the arbitration clauses in the Account Agreement Pack applied, staying the proceedings.
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
Appeal regarding stay of proceedings. Court decides whether arbitration or jurisdiction clause applies in fraudulent misrepresentation claim.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Oei Hong Leong | Plaintiff, Appellant | Individual | Appeal Dismissed | Lost | |
| Goldman Sachs International | Defendant, Respondent | Corporation | Stay of Proceedings Granted | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge | Yes |
4. Counsels
4. Facts
- Plaintiff met with GSA employees regarding investment in currency options.
- GSA employee allegedly made fraudulent representations about BRL/JPY option trades.
- Plaintiff entered into two BRL/JPY option trades with the defendant.
- BRL/JPY rate fell significantly, resulting in losses for the plaintiff.
- Plaintiff claims the alleged misrepresentations induced him to enter the trades.
- The Account Agreement Pack contains an agency clause (cl A4 of Part B).
- The Account Agreement Pack contains a non-advice clause (cl 10 of Part D).
5. Formal Citations
- Oei Hong Leong v Goldman Sachs International, Suit No 834 of 2013, (Registrar's Appeal No 32 of 2014), [2014] SGHC 128
- Oei Hong Leong, , [2014] SGHCR 2
6. Timeline
| Date | Event |
|---|---|
| ISDA Master Agreement dated | |
| Cover letter from GSA to the plaintiff dated | |
| Plaintiff signed and returned an acknowledgement receipt | |
| Plaintiff met with two GSA employees | |
| GSA employee sent emails to the plaintiff | |
| BRL/JPY rate fell significantly | |
| Plaintiff gave instructions to unwind the BRL/JPY option trades | |
| Plaintiff commenced action | |
| Parties heard in court | |
| Decision Date |
7. Legal Issues
- Stay of Proceedings
- Outcome: The court dismissed the appeal, upholding the stay of proceedings in favour of arbitration.
- Category: Procedural
- Related Cases:
- [2009] 4 SLR(R) 732
- [2010] 2 SLR 821
- [2011] EWHC 1842 (Comm)
- Applicability of Arbitration Clause
- Outcome: The court held that the arbitration clauses in the Account Agreement Pack applied to the dispute.
- Category: Substantive
- Related Cases:
- [2010] 2 SLR 821
- [2011] EWHC 1842 (Comm)
- [2010] EWCA Civ 998
- [2009] EWCA Civ 585
8. Remedies Sought
- Compensation for Losses
9. Cause of Actions
- Fraudulent Misrepresentation
10. Practice Areas
- Commercial Litigation
- Arbitration
- Banking Litigation
- Financial Regulation
11. Industries
- Finance
- Banking
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Tjong Very Sumito and others v Antig Investments Pte Ltd | Court of Appeal | Yes | [2009] 4 SLR(R) 732 | Singapore | Cited regarding the court's jurisdiction to decide whether a matter is the subject of an arbitration agreement and the principle of kompetenz-kompetenz. |
| Transocean Offshore International Ventures Ltd v Burgundy Global Exploration Corp | High Court | Yes | [2010] 2 SLR 821 | Singapore | Cited for the principle that where different agreements contain overlapping and inconsistent dispute resolution clauses, the nature of the claim and the agreement out of which the claim arose ought to be considered. |
| PT Thiess Contractors Indonesia v PT Kaltim Prima Coal and another | English High Court | Yes | [2011] EWHC 1842 (Comm) | England and Wales | Cited for the principle that the essential question is whether the substance of the dispute arose under or in connection with the contract with the arbitration clause. |
| Sebastian Holdings Inc v Deutsche Bank AG | England and Wales Court of Appeal | Yes | [2010] EWCA Civ 998 | England and Wales | Cited for the principle of locating the 'centre of gravity of the dispute' when determining which dispute resolution clause applies. |
| UBS AG v HSH Nordbank AG | England and Wales Court of Appeal | Yes | [2009] EWCA Civ 585 | England and Wales | Cited for the principle of searching for 'the agreements which are at the commercial centre of the transaction' and the presumption that parties would not intend for similar claims to be subject to inconsistent clauses. |
| Agrawest Investments Limited and another v BMA Nederland BV | Prince Edward Island Supreme Court, Trial Division | Yes | 2005 PESCTD 36 | Canada | Cited regarding the scope of an arbitration clause. |
| David John Cooper and others v Paul Deggan | British Columbia Court of Appeal | Yes | 2003 BCCA 395 | Canada | Cited regarding the scope of an arbitration clause. |
| Gulf Canada Resources Ltd v Arochem International Ltd | British Columbia Court of Appeal | Yes | (1992) 66 BCLR (2d) 113 | Canada | Cited regarding the scope of an arbitration clause. |
| PCCW Global Ltd v Interactive Communications Service Ltd | Hong Kong Court of First Instance | Yes | [2007] 1 HKLRD 309 | Hong Kong | Cited regarding the scope of an arbitration clause. |
| Pacific Crown Engineering Ltd v Hyundai Engineering & Construction Co Ltd | Hong Kong Court of First Instance | Yes | [2003] 3 HKLRD 440 | Hong Kong | Cited regarding the existence of an arbitration agreement between parties. |
| Pacific International Lines (Pte) Ltd and another v Tsinlien Metals and Minerals Co (HK) Ltd | Hong Kong Court of Appeal | Yes | [1993] 2 HKLR 249 | Hong Kong | Cited regarding the existence of an arbitration agreement between parties. |
| Star (Universal) Co Ltd and another v Private Company “Triple V” Inc | Hong Kong Court of Appeal | Yes | [1995] 2 HKLR 62 | Hong Kong | Cited regarding the existence of an arbitration agreement between parties. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| International Arbitration Act (Cap 143A, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration Clause
- Jurisdiction Clause
- Stay of Proceedings
- Fraudulent Misrepresentation
- ISDA Master Agreement
- Account Agreement Pack
- BRL/JPY Option Trades
- Agency
- Kompetenz-Kompetenz
- Objective Intention
15.2 Keywords
- arbitration
- jurisdiction
- fraudulent misrepresentation
- stay of proceedings
- currency options
- Singapore
- High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Misrepresentation | 80 |
| Arbitration | 75 |
| Contract Law | 70 |
| Fraud and Deceit | 70 |
| Financial Derivatives | 65 |
| Jurisdiction | 60 |
| Breach of Contract | 60 |
| Commercial Fraud | 60 |
| Agency Law | 50 |
| Banking | 40 |
| International Commercial Law | 40 |
| Estoppel | 30 |
16. Subjects
- Arbitration
- Contract Law
- Civil Procedure
- Financial Law
- Banking Law