Anwar v Ng Chong & Hue LLC: Duty of Care in Mortgage Transactions and Reasonableness of Settlement
In Anwar Patrick Adrian and another v Ng Chong & Hue LLC and another, the High Court of Singapore addressed the issue of a solicitor's duty of care to clients in a mortgage transaction. The plaintiffs, Anwar's sons, sued the defendants, Ng Chong & Hue LLC, claiming breach of duty of care for failing to advise them on the implications of a personal guarantee within mortgage documents. The Court of Appeal remitted the case to the High Court to determine the reasonableness of a settlement between the plaintiffs and Society Generale Bank & Trust (SGBT). The High Court awarded nominal damages of $1,000 to the plaintiffs, finding that they did not prove the settlement was a reasonable quantification of damages.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Nominal damages of $1,000 awarded to the plaintiffs.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
High Court case regarding a solicitor's duty of care in mortgage transactions and the reasonableness of a settlement. The court awarded nominal damages to the plaintiffs.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Patrick Adrian Anwar | Plaintiff | Individual | Nominal damages awarded | Partial | Tan Cheng Han, Balachandran s/o Ponnampalam, Luo Ling Hui |
| Andrew Francis Anwar | Plaintiff | Individual | Nominal damages awarded | Partial | Tan Cheng Han, Balachandran s/o Ponnampalam, Luo Ling Hui |
| Ng Chong & Hue LLC | Defendant | Corporation | Judgment against defendant | Lost | Michael Khoo, Andy Chiok, Kelvin Ho |
| Ng Soon Kai | Defendant | Individual | Judgment against defendant | Lost | Michael Khoo, Andy Chiok, Kelvin Ho |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | J | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Tan Cheng Han | Robert Wang & Woo LLP |
| Balachandran s/o Ponnampalam | Robert Wang & Woo LLP |
| Luo Ling Hui | Robert Wang & Woo LLP |
| Michael Khoo | Michael Khoo & Partners |
| Andy Chiok | Michael Khoo & Partners |
| Kelvin Ho | Michael Khoo & Partners |
4. Facts
- Anwar purchased properties in his sons' names.
- SGBT demanded payment of US$17m from Anwar.
- Anwar negotiated with SGBT through Ng Soon Kai.
- Plaintiffs signed mortgage documents with a personal guarantee clause.
- SGBT sued Anwar and his sons.
- Plaintiffs settled with SGBT for US$1m.
- Plaintiffs claimed the second defendant breached his duty of care.
5. Formal Citations
- Anwar Patrick Adrian and another v Ng Chong & Hue LLC and another, Suit No 455 of 2012, [2014] SGHC 234
6. Timeline
| Date | Event |
|---|---|
| Society Generale Bank & Trust demanded payment of about US$17m due by Anwar. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Duty of Care
- Outcome: The court found that the defendants owed the plaintiffs a duty of care but awarded only nominal damages.
- Category: Substantive
- Sub-Issues:
- Failure to advise on personal guarantee
- Failure to advise on forfeiture of properties
- Reasonableness of Settlement
- Outcome: The court found that the plaintiffs did not prove that the settlement was a reasonable quantification of damages.
- Category: Substantive
- Sub-Issues:
- Quantification of damages
- Failure to ascertain true amount of debt
8. Remedies Sought
- Payment of US$1m
- Legal costs amounting to $325,287.71
9. Cause of Actions
- Breach of Duty of Care
- Negligence
10. Practice Areas
- Commercial Litigation
11. Industries
- Legal
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Anwar Patrick Adrian and another v Ng Chong & Hue LLC and another | High Court | Yes | [2013] SGHC 202 | Singapore | Cited for the facts of the case. |
| Anwar Patrick Adrian and another v Ng Chong & Hue LLC and another | Court of Appeal | Yes | [2014] 3 SLR 761 | Singapore | Cited for the Court of Appeal's judgment in the same case, which remitted the case to the High Court. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Duty of care
- Personal guarantee
- Mortgage
- Settlement
- Reasonableness
- Nominal damages
15.2 Keywords
- duty of care
- mortgage
- settlement
- negligence
- damages
16. Subjects
- Professional Negligence
- Mortgage Law
- Civil Litigation
17. Areas of Law
- Contract Law
- Tort Law
- Professional Negligence
- Mortgages