Low Kin Kok v Lee Chiow Seng: Breach of Contract in Beach Resort Investment

In Low Kin Kok v Lee Chiow Seng, the Singapore High Court addressed a dispute between Low Kin Kok and Lim Hun Wan (Plaintiffs) and Lee Chiow Seng and Lee Chiow Poh (Defendants) concerning a failed beach resort investment in Indonesia. The Plaintiffs claimed breach of contract, misrepresentation, and restitution. The court, presided over by George Wei JC, disallowed the claims for misrepresentation and restitution but allowed the breach of contract claim, granting judgment of S$750,000 to the Plaintiffs. The court found that the Defendants breached an undertaking to take over the purchase of the Plaintiffs' allotted plots of land when the sale was aborted due to the Defendants' failure to release the title deeds.

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

Singapore High Court judgment on a breach of contract claim arising from a failed beach resort investment project in Indonesia. Judgment for Plaintiff.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Low Kin Kok (alias Low Kong Song)PlaintiffIndividualJudgment for PlaintiffWon
Lim Hun WanPlaintiffIndividualJudgment for PlaintiffWon
Lee Chiow SengDefendantIndividualJudgment against DefendantLost
Lee Chiow PohDefendantIndividualJudgment against DefendantLost

3. Judges

Judge NameTitleDelivered Judgment
George WeiJudicial CommissionerYes

4. Counsels

4. Facts

  1. Plaintiffs and Defendants invested in a beach resort project in Indonesia.
  2. Plaintiffs each invested S$100,000 in the project.
  3. Defendants represented they would develop the land into a beach resort.
  4. The project did not proceed as planned.
  5. Defendants agreed to allow Plaintiffs to find buyers for the land.
  6. Defendants later refused to release title deeds for the Plaintiffs' plots.
  7. Plaintiffs found a buyer for their plots for S$750,000.

5. Formal Citations

  1. Low Kin Kok (alias Low Kong Song) and another v Lee Chiow Seng and another, Suit No 747 of 2012, [2014] SGHC 208

6. Timeline

DateEvent
D1 informed P1 about Indonesian landowner Tarigan and land in Padang.
P1 agreed to stand as guarantor and transferred S$230,000.
P2 invested S$100,000 in the beach resort project.
Defendants informed Plaintiffs that the beach resort project was called off.
Plaintiffs began seeking buyers for the nine plots of land.
D1 confirmed change of mind via email.
Defendants informed Plaintiffs they would not be selling their plots of land.
Plaintiffs' solicitors requested a date to exchange cashier's order for title deeds.
Plaintiffs sent another letter to Defendants.
Defendants requested a sale and purchase agreement draft.
D1 stated he was prepared to release all nine title deeds.
Plaintiffs stated they might look to D1 for the lost opportunity.
D1's Affidavit filed.
P1 and P2's Affidavit-of-Evidence-in-Chief filed.
Trial began.
Trial concluded.
Plaintiffs' and D1's Closing Submissions filed.
Judgment delivered.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the Defendants breached their undertaking to take over the purchase of the Plaintiffs’ allotted plots of land.
    • Category: Substantive
  2. Misrepresentation
    • Outcome: The court dismissed the Plaintiffs’ claim in misrepresentation.
    • Category: Substantive
  3. Restitution
    • Outcome: The court disallowed the Plaintiffs’ claim in restitution.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Misrepresentation
  • Restitution

10. Practice Areas

  • Commercial Litigation
  • Investment Disputes

11. Industries

  • Real Estate
  • Hospitality

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Lim Koon Park and another v Yap Jin Meng Bryan and anotherCourt of AppealYes[2013] 4 SLR 150SingaporeCited for the legal principles on what constitutes an operative misrepresentation.
Tan Chin Seng and others v Raffles Town Club Pte LtdCourt of AppealYes[2003] 3 SLR(R) 307SingaporeCited for the principle that a statement as to intention could be a statement of fact.
Edgington v FitzmauriceChancery DivisionYes(1885) 29 Ch D 459England and WalesCited for the principle that a misstatement of the state of a man’s mind is a misrepresentation of fact.
Wales v WadhamHigh CourtYes[1977] 2 All ER 125England and WalesCited for the principle that a statement of intention is not a representation of existing fact, unless the person making it does not honestly hold the intention he is expressing.
Colliers International (Singapore) Pte Ltd v Senkee Logistics Pte LtdHigh CourtYes[2007] 2 SLR(R) 230SingaporeCited as an example of how a court would approach the issue of whether there was a contract in the absence of a proper written agreement.
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA (trading as Rabobank International), Singapore Branch v Motorola Electronics Pte LtdCourt of AppealYes[2011] 2 SLR 63SingaporeCited for the principle that contracts may in certain cases be implied from a course of conduct or dealings between the parties or from correspondence or all relevant circumstances.
Tribune Investment Trust Inc v Soosan Trading Co LtdHigh CourtYes[2000] 2 SLR(R) 407SingaporeCited for the principles of law relating to the formation of contracts.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Limitation Act (Cap 163, 1996 Rev Ed) s 6(1)Singapore
Limitation Act s 4Singapore
Rules of Court (Cap 322, R 5, 2014 Rev Ed) O 18 r 8Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Beach Resort Project
  • Title Deeds
  • Investment
  • Plots of Land
  • Oral Agreement
  • Undertaking
  • Reimbursement

15.2 Keywords

  • Breach of Contract
  • Misrepresentation
  • Investment
  • Beach Resort
  • Singapore
  • High Court

17. Areas of Law

16. Subjects

  • Contract Dispute
  • Investment Litigation