Telemedia v Credit Agricole: Contractual Indemnity and Third-Party Costs
In Telemedia Pacific Group Ltd v Credit Agricole (Suisse) SA (Yeh Mao-Yuan, third party), the High Court of Singapore addressed the issue of costs following the dismissal of Telemedia's claim against Credit Agricole. Telemedia sought to recover losses from Credit Agricole's transfer of shares. The court had previously found that Mr. Yeh had the authority to order the transfer, dismissing Telemedia's claim. The court ordered Telemedia to pay Credit Agricole's costs on an indemnity basis and Credit Agricole to bear Mr. Yeh’s costs on a standard basis.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Defendant
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
High Court judgment on costs following a dismissed claim. Key issues: contractual indemnity for costs and liability for third-party costs.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Telemedia Pacific Group Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | Muralli Rajaram, Claire Tan Kai Ning |
| Credit Agricole (Suisse) SA | Defendant | Corporation | Judgment for Defendant | Won | Benedict Teo Chun-Wei, Terence Tan Wee Kio |
| Yeh Mao-Yuan | Third Party | Individual | Third Party Claim Dismissed | Neutral | Toh Wei Yi |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| George Wei | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Muralli Rajaram | Straits Law Practice LLC |
| Claire Tan Kai Ning | Straits Law Practice LLC |
| Benedict Teo Chun-Wei | Drew & Napier LLC |
| Terence Tan Wee Kio | Drew & Napier LLC |
| Toh Wei Yi | Harry Elias Partnership LLP |
4. Facts
- Telemedia sued Credit Agricole to recover losses from the transfer of NexGen shares.
- The share transfer was executed by Credit Agricole on Mr. Yeh's instructions.
- Telemedia claimed Credit Agricole transferred the shares without authority and breached its duty of care.
- Credit Agricole defended that Mr. Yeh was authorized to operate Telemedia's account.
- Credit Agricole commenced third-party proceedings against Mr. Yeh seeking indemnity.
- The court found that Mr. Yeh had actual authority to order the share transfer.
- Telemedia had a costs agreement with Credit Agricole.
5. Formal Citations
- Telemedia Pacific Group Ltd v Credit Agricole (Suisse) SA (Yeh Mao-Yuan, third party), Suit No 379 of 2012, [2015] SGHC 170
- Telemedia Pacific Group Ltd v Credit Agricole (Suisse) SA (Yeh Mao-Yuan, third party), , [2015] 1 SLR 338
6. Timeline
| Date | Event |
|---|---|
| Suit filed (Suit No 379 of 2012) | |
| Judgment delivered for the main substantive hearing | |
| Hearing on costs | |
| Decision on costs delivered |
7. Legal Issues
- Contractual Indemnity for Costs
- Outcome: The court upheld the contractual agreement for indemnity costs, ordering Telemedia to pay Credit Agricole's costs on an indemnity basis.
- Category: Substantive
- Sub-Issues:
- Interpretation of indemnity clauses
- Enforceability of indemnity clauses
- Related Cases:
- [2015] 1 SLR 338
- [1993] 2 SLR(R) 577
- [1988] 1 SLR(R) 76
- [1928] 2 KB 353
- [2014] 3 SLR 909
- [2008] 1 SLR(R) 237
- [2008] 3 SLR(R) 1029
- Liability for Third-Party Costs
- Outcome: The court held that Credit Agricole should bear Mr. Yeh's costs on a standard basis, as the circumstances were not sufficiently exceptional to justify requiring Telemedia to bear the costs of the third-party proceedings.
- Category: Procedural
- Sub-Issues:
- Inevitability of third-party proceedings
- Plaintiff's conduct in instituting the claim
- Related Cases:
- [2011] 1 SLR 582
- [1964] 1 QB 367
- [1966] 1 WLR 911
- [1998] 1 SLR(R) 501
8. Remedies Sought
- Monetary Damages
- Indemnity
9. Cause of Actions
- Breach of Contract
- Breach of Duty of Care
- Fraudulent Misrepresentation
10. Practice Areas
- Commercial Litigation
- Banking Litigation
11. Industries
- Banking
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Telemedia Pacific Group Ltd v Credit Agricole (Suisse) SA (Yeh Mao-Yuan, third party) | High Court | Yes | [2015] 1 SLR 338 | Singapore | The substantive decision in the case, establishing the facts and dismissing Telemedia's claim. |
| Hong Leong Finance Ltd v Lee Siang Wah and another | High Court | Yes | [1993] 2 SLR(R) 577 | Singapore | Cited regarding the distinction between invoking contractual rights to indemnity costs and relying on the court's statutory discretion. |
| United Overseas Bank Ltd v Sin Leong Ironbed & Furniture Manufacturing Co (Pte) Ltd and others | High Court | Yes | [1988] 1 SLR(R) 76 | Singapore | Cited as an example of a case where a plaintiff sued for costs on a solicitor-client basis as part of the claim. |
| Mansfield v Robinson | King's Bench Division | Yes | [1928] 2 KB 353 | England and Wales | Cited as an example of a case where a plaintiff sued directly on a contractual indemnity clause to recover costs of legal proceedings. |
| Abani Trading Pte Ltd v BNP Paribas and another appeal | Court of Appeal | Yes | [2014] 3 SLR 909 | Singapore | Cited regarding the principle that a costs agreement between parties is a highly relevant factor in the court's statutory discretion to award costs. |
| Susilawati v American Express Bank Ltd | High Court | Yes | [2008] 1 SLR(R) 237 | Singapore | Cited regarding manifest injustice. |
| Zurich Insurance (Singapore) Pte Ltd v B-Gold. Interior Design & Construction Pte Ltd | Court of Appeal | Yes | [2008] 3 SLR(R) 1029 | Singapore | Cited for principles of contractual interpretation. |
| Raffles Town Club Pte Ltd v Lim Eng Hock Peter and others (Tung Yu-Lien Margaret and others, third parties) | High Court | Yes | [2011] 1 SLR 582 | Singapore | Lays down the applicable principles governing when a plaintiff ought to be made to pay the costs of third party proceedings. |
| Edginton v Clark and Another, Macassey and Others (Third Parties) | Queen's Bench | Yes | [1964] 1 QB 367 | England and Wales | Cited regarding the real issue being between the plaintiff and third party. |
| Thomas v Times Book Company Limited; Cox (Third Party) and Cleverdon (Fourth Party) | High Court | Yes | [1966] 1 WLR 911 | England and Wales | Cited regarding the real issue being between the plaintiff and third party. |
| SAL Industrial Leasing Ltd v Teck Koon (Motor) Trading (a firm) | Court of Appeal | Yes | [1998] 1 SLR(R) 501 | Singapore | Cited regarding the plaintiff suing the wrong party. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Supreme Court of Judicature Act | Singapore |
| Rules of Court | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Indemnity Costs
- Third-Party Proceedings
- Contractual Indemnity
- Actual Authority
- Costs Agreement
- Inevitable Costs
- Manifest Injustice
15.2 Keywords
- costs
- indemnity
- third party
- contract
- banking
- Singapore
16. Subjects
- Costs
- Contract Law
- Banking Law
- Civil Procedure
17. Areas of Law
- Civil Procedure
- Contract Law
- Banking Law
- Costs