Kong Chee Chui v Soh Ghee Hong: Fraudulent Misrepresentation, Breach of Trust, and Unjust Enrichment Claim
In Kong Chee Chui and others v Soh Ghee Hong, the High Court of Singapore heard a case involving seven plaintiffs who claimed that the defendant, Soh Ghee Hong, induced them to invest in a business venture in Indonesia through fraudulent misrepresentations, and subsequently committed breach of trust and unjust enrichment. The plaintiffs sought a return of their money and an account of profits. The court, presided over by Choo Han Teck J, dismissed the plaintiffs' claims of fraudulent misrepresentation, breach of trust, and unjust enrichment, finding insufficient evidence of misuse of funds. However, the court allowed the sixth plaintiff's claim for repayment of a loan amounting to S$166,458.00.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiff's claims dismissed, except for the sixth plaintiff's claim against the defendant for S$166,458, which is allowed.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment Reserved
1.5 Jurisdiction
Singapore
1.6 Description
Kong Chee Chui v Soh Ghee Hong involves claims of fraudulent misrepresentation, breach of trust, and unjust enrichment. The court dismissed most claims but allowed the sixth plaintiff's loan repayment claim.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Kong Chee Chui | Plaintiff | Individual | Claim Dismissed | Lost | Mohamed Baiross, Alice Tan-Goh Song Gek |
| Soh Ghee Hong | Defendant | Individual | Judgment for Defendant | Won | Roy Yeo, Paul Yong Wei Kuen |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | J | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Mohamed Baiross | IRB Law LLP |
| Alice Tan-Goh Song Gek | A C Fergusson Law Corporation |
| Roy Yeo | Sterling Law Corporation |
| Paul Yong Wei Kuen | Thames Law LLP |
4. Facts
- The defendant started a business venture in Indonesia.
- The plaintiffs invested money in the business venture.
- The plaintiffs claim the defendant made false statements.
- The plaintiffs claim the defendant pocketed or embezzled money.
- The fourth plaintiff settled with the defendant.
- The defendant claimed entertainment expenses.
- The sixth plaintiff extended a loan to the defendant.
5. Formal Citations
- Kong Chee Chui and others v Soh Ghee Hong, Suit No 881 of 2011, [2014] SGHC 8
6. Timeline
| Date | Event |
|---|---|
| Defendant started Indonesian business venture. | |
| Second to fourth plaintiffs invested money periodically. | |
| First plaintiff agreed to contribute financially. | |
| Defendant represented opportunity to purchase logging rights. | |
| Shareholders of PT Pan United approved payment of entertainment expenses. | |
| Sixth plaintiff extended loan to the defendant. | |
| Defendant orally agreed to return S$3,305,119.35 to the plaintiffs. | |
| Suit No 881 of 2011 filed. | |
| Judgment Reserved. |
7. Legal Issues
- Fraudulent Misrepresentation
- Outcome: The court found that the plaintiffs failed to prove that the defendant made false statements of fact that induced them to invest in the business.
- Category: Substantive
- Breach of Trust
- Outcome: The court dismissed the breach of trust claim due to insufficient evidence that the defendant misused the money entrusted to him.
- Category: Substantive
- Unjust Enrichment
- Outcome: The court dismissed the unjust enrichment claim due to insufficient evidence that the defendant did not apply the plaintiffs' money towards the business.
- Category: Substantive
- Breach of Oral Agreement
- Outcome: The court dismissed the claim that the defendant had an obligation to pay S$1,665,811.34 to the plaintiffs.
- Category: Substantive
- Loan Repayment
- Outcome: The court allowed the sixth plaintiff's claim for repayment of a loan amounting to S$166,458.
- Category: Substantive
8. Remedies Sought
- Return of Money
- Account of Profits
9. Cause of Actions
- Deceit
- Fraudulent Misrepresentation
- Breach of Trust
- Unjust Enrichment
- Breach of Oral Agreement
- Loan Repayment
10. Practice Areas
- Commercial Litigation
11. Industries
- Timber
- Agriculture
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Alwie Handoyo v Tjong Very Sumito and another and another appeal | Court of Appeal | Yes | [2013] 4 SLR 308 | Singapore | Cited for the principle that 'money had and received' is embraced under the rubric of unjust enrichment. |
| Panatron Pte Ltd and another v Lee Cheow Lee and another | Court of Appeal | Yes | [2001] 2 SLR(R) 435 | Singapore | Cited for the elements of fraudulent misrepresentation. |
| Deutsche Bank AG v Chang Tse Wen | N/A | Yes | [2013] 1 SLR 1310 | Singapore | Cited to distinguish statements of fact from statements as to future intention, predictions, statements of opinion or belief, sales puffs, exaggerations and statements of law. |
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
- Business Venture
- Logging Rights
- Capital Top-Up
- Entertainment Expenses
- Shareholders
- PT Pan United
15.2 Keywords
- Fraudulent Misrepresentation
- Breach of Trust
- Unjust Enrichment
- Loan
- Indonesia
- Investment
16. Subjects
- Fraud
- Trusts
- Contract Law
- Unjust Enrichment
17. Areas of Law
- Fraudulent Misrepresentation
- Breach of Trust
- Unjust Enrichment
- Contract Law