Timor Global v Equatorial Group: Breach of Contract for Coffee Beans
Timor Global, LDA (TG) sued Equatorial Group Pte Ltd (EG) in the High Court of Singapore on 4 August 2015, seeking US$1,270,369.59 for the balance price of coffee beans sold and delivered. TG claimed EG was liable for the payment. EG counterclaimed for short delivery of coffee beans and payment for jute and PP bags. The court found EG liable to TG for the balance contract price of the coffee beans. The court also found TG liable to EG for the contract price for the jute and PP bags and for lost profits due to the shortfall in coffee beans delivered.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Timor Global sued Equatorial Group for breach of contract over unpaid coffee beans. The court found Equatorial Group liable for the outstanding payment.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Timor Global, LDA | Plaintiff | Corporation | Judgment for Plaintiff | Won | Eugene Thuraisingam, Jerrie Tan Qiu Lin |
| Equatorial Group Pte Ltd | Defendant | Corporation | Partial Judgment for Defendant | Partial | Low Chai Chong, Liong Wei Kiat, Crystal Goh |
| Agri-Commodity Resources Pte Ltd | Defendant | Corporation | Claim Dismissed | Dismissed | Bernard Stanley Doray, Na'imah Binte Mohamed Amanullah |
| Tan Tjo Tek | Defendant | Individual | Claim Dismissed | Dismissed | Bernard Stanley Doray, Na'imah Binte Mohamed Amanullah |
| Tan Ling Ling, Natalie | Defendant | Individual | Claim Dismissed | Dismissed | Bernard Stanley Doray, Na'imah Binte Mohamed Amanullah |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Eugene Thuraisingam | Eugene Thuraisingam LLP |
| Jerrie Tan Qiu Lin | Eugene Thuraisingam LLP |
| Low Chai Chong | Rodyk & Davidson LLP |
| Liong Wei Kiat | Rodyk & Davidson LLP |
| Crystal Goh | Rodyk & Davidson LLP |
| Bernard Stanley Doray | Bernard & Rada Law Corporation |
| Na'imah Binte Mohamed Amanullah | Bernard & Rada Law Corporation |
4. Facts
- Timor Global (TG) and Equatorial Group (EG) entered into a sale and purchase agreement for 3,000 metric tons of coffee beans.
- EG was to advance US$600,000 to TG, offset by a discount of US$200/MT of coffee beans.
- Agri-Commodity Resources (ACRI) took delivery of the coffee shipments and sold them.
- EG stopped forwarding payments to TG in April 2013.
- TG claimed US$1,270,369.59 for the balance outstanding sum for the coffee beans.
- EG claimed ACRI intercepted the coffee bean shipments and denied any agency relationship with ACRI.
- ACRI was appointed as EG’s agent for the purpose of selling the coffee beans that TG had contracted to sell.
5. Formal Citations
- Timor Global, LDA v Equatorial Group Pte Ltd and others, Suit No 465 of 2013, [2015] SGHC 203
6. Timeline
| Date | Event |
|---|---|
| Sale and purchase agreement signed | |
| Coffee shipments began | |
| Final coffee shipment sent from Timor-Leste | |
| Letter of demand sent to Equatorial Group | |
| Another demand letter sent to Equatorial Group | |
| Equatorial Group requested an extension of time | |
| Timor Global considered an extension of time | |
| Partial payment made by Equatorial Group | |
| Partial payment made by Equatorial Group | |
| Further letter of demand sent to Equatorial Group | |
| Action commenced against Equatorial Group | |
| Judgment issued |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that Equatorial Group was liable for breach of contract for failing to pay for the delivered coffee beans.
- Category: Substantive
- Agency Relationship
- Outcome: The court found that ACRI was acting as EG’s agent in dealings with TG as well as with third party buyers.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
- Declaration of Liability
9. Cause of Actions
- Breach of Contract
- Conversion
- Conspiracy to Defraud
10. Practice Areas
- Commercial Litigation
11. Industries
- Commodities Trading
- Agriculture
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
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
- Coffee Beans
- Sale and Purchase Agreement
- Agency Relationship
- Breach of Contract
- Bills of Lading
- Metric Ton
- Advance Payment
15.2 Keywords
- coffee beans
- breach of contract
- agency
- Timor Global
- Equatorial Group
- ACRI
16. Subjects
- Contract Dispute
- Agency Law
- Sale of Goods
17. Areas of Law
- Contract Law
- Agency Law
- Commercial Law