Lim Giok Boon v Lim Geok Cheng: Sisters' Dispute over Business Ownership, Joint Account, and Loans
In a civil suit before the High Court of Singapore, Lim Giok Boon and Hiew Yee Choong (Plaintiffs) sued Lim Geok Cheng (Defendant) over disputes involving the ownership of hair salons (Candace and Canary), funds from a joint bank account, a property investment (Edelweiss Property), and gambling loans. The defendant counterclaimed for breach of fiduciary duty. The court, presided over by Justice Vinodh Coomaraswamy, partially allowed the plaintiffs' claim, finding that the defendant held $100,000 from the joint account on constructive trust for the first plaintiff and was liable for $150,000 in gambling loans. The court dismissed the plaintiffs' claim for a beneficial interest in the Edelweiss Property and dismissed the defendant's counterclaim.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff in part; Counterclaim Dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Sisters' dispute over ownership of hair salons, a joint bank account, property investment, and gambling loans. The court partially allowed the claim and dismissed the counterclaim.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Lim Giok Boon | Plaintiff | Individual | Claim Allowed in Part | Partial | Derek Kang Yu Hsien, Charmaine Kong, Francis Wu |
| Hiew Yee Choong | Plaintiff | Individual | Claim Allowed in Part | Partial | Derek Kang Yu Hsien, Charmaine Kong, Francis Wu |
| Lim Geok Cheng | Defendant | Individual | Counterclaim Dismissed, Claim Dismissed in Part | Dismissed, Dismissed | Lim Ker Sheon, Cai Enhuai Amos |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Vinodh Coomaraswamy | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Derek Kang Yu Hsien | Rodyk & Davidson LLP |
| Charmaine Kong | Rodyk & Davidson LLP |
| Francis Wu | Rodyk & Davidson LLP |
| Lim Ker Sheon | Characterist LLC |
| Cai Enhuai Amos | Characterist LLC |
4. Facts
- Una and Lena are sisters who came from Malaysia to Singapore to work.
- Ah Choong is Una's husband and the second plaintiff.
- The plaintiffs claimed that they advanced money to Lena over the years, which she was obliged to repay.
- Lena claimed that the sums she received were either salary or a share of profits from the businesses.
- The plaintiffs claimed a beneficial interest in the Edelweiss Property, registered in Lena's name.
- Ah Choong sought to recover $150,000 from Lena for gambling loans.
- Lena counterclaimed against Una for breach of fiduciary duty, claiming Una held 85% of profits on trust for her.
5. Formal Citations
- Lim Giok Boon and another v Lim Geok Cheng, Suit No 369 of 2012, [2015] SGHC 208
6. Timeline
| Date | Event |
|---|---|
| Ah Choong came to Singapore to find work as a tailor. | |
| Una came to Singapore to find work in a factory and met Ah Choong. | |
| Una and Ah Choong registered their marriage and applied for a HDB flat. | |
| Lena began working in Japan. | |
| Candace Unisex Beauty & Hair Salon was initially registered in Una’s name. | |
| Lena started living and working in Singapore. | |
| Ah Choong became the second registered owner of Candace. | |
| Una withdrew from Candace, leaving Ah Choong as the sole registered owner. | |
| Candace opened a second salon at Loyang Point. | |
| Candace’s salon at Bedok North closed. | |
| Canary Beauty Centre was set up and registered in Una’s name. | |
| Una opened the Joint Account with an initial deposit of $202,000. | |
| Una withdrew $101,738 from the Joint Account. | |
| Lena and Frank's relationship began. | |
| Una deposited $100,000 into the Joint Account. | |
| Lena withdrew $203,040.46 from the Joint Account and closed the account. | |
| Lena moved into a flat in Edelweiss Park. | |
| Candace and Canary Beauty Pte Ltd (C&C) was incorporated. | |
| Lena agreed to sell her shareholding in C&C to the plaintiffs and step down as a director. | |
| Lena opened her own hair salon, Lena L Aoyama Tokyo, at Loyang Point. | |
| Plaintiffs commenced action against Lena. | |
| Decision Date |
7. Legal Issues
- Constructive Trust
- Outcome: The court declared that the defendant was a constructive trustee for the plaintiff in respect of $100,000 out of the UOB Money.
- Category: Substantive
- Sub-Issues:
- Breach of trust
- Beneficial ownership
- Related Cases:
- [2008] 2 SLR(R) 108
- Breach of Fiduciary Duty
- Outcome: The court dismissed the defendant's counterclaim for breach of fiduciary duty.
- Category: Substantive
- Debt Recovery
- Outcome: The court allowed the plaintiffs’ claim to recover $150,000 in respect of the Gambling Loans extended but dismissed the plaintiffs’ claim to recover the Share Acquisition Loans.
- Category: Substantive
- Sub-Issues:
- Loan agreement
- Repayment terms
- Beneficial Interest in Property
- Outcome: The court dismissed the plaintiffs’ claim that they have a beneficial interest in the Edelweiss Property.
- Category: Substantive
- Sub-Issues:
- Resulting trust
- Direct contribution to purchase price
- Related Cases:
- [2008] 2 SLR(R) 108
8. Remedies Sought
- Monetary Damages
- Declaration of Trust
- Account of Profits
- Sale of Property
9. Cause of Actions
- Breach of Contract
- Constructive Trust
- Breach of Fiduciary Duty
- Debt
10. Practice Areas
- Commercial Litigation
- Trusts
- Debt Recovery
11. Industries
- Beauty
- Gambling
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lau Siew Kim v Yeo Guan Chye Terence and another | Court of Appeal | Yes | [2008] 2 SLR(R) 108 | Singapore | Cited for the proposition that the payment of mortgage installments or other financial contributions subsequent to the initial acquisition of the property can give rise to a resulting trust if there is an agreement between the parties at the time of acquiring the property that one party would make those contributions with a view towards retaining a beneficial interest in the property. |
| Sheagar s/o T M Veloo v Belfield International (Hong Kong) Ltd | Court of Appeal | Yes | [2014] 3 SLR 524 | Singapore | Cited for the general rule in an adversarial system that the parties and the court are bound by the pleadings. |
| Cheong Ghim Fah and another v Murugian s/o Rangasamy | High Court | Yes | [2004] 1 SLR(R) 628 | Singapore | Cited for the principles distilled in Wisniewski v Central Manchester Health Authority regarding adverse inferences from the absence or silence of a witness. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Limitation Act (Cap 163, 1996 Rev Ed) s 22(1)(b) | Singapore |
| Evidence Act (Cap 97, 1997 Rev Ed) s 116 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Hair salon
- Joint account
- Constructive trust
- Share acquisition loans
- Gambling loans
- Beneficial interest
- Edelweiss Property
- Bidding exercise
- Goodwill red packet
- Remittance memoranda
15.2 Keywords
- Trust
- Loan
- Property
- Debt
- Family Dispute
- Hair Salon
16. Subjects
- Trusts
- Contract Law
- Banking Law
- Debt Recovery
- Property Law
17. Areas of Law
- Trust Law
- Contract Law
- Civil Procedure
- Family Law