Haneda Construction v Huttons Asia: Fraudulent Misrepresentation in Property Sale
Haneda Construction & Machinery Pte Ltd sued Huttons Asia Pte Ltd and T Tanabakiyam in the High Court of Singapore, alleging fraudulent misrepresentation regarding the availability of ready sub-purchasers for warehouse units in Novelty Bizcentre. Haneda claimed that T Tanabakiyam misrepresented that sub-purchasers were lined up to purchase the units at a premium. The court, presided over by Steven Chong J, dismissed Haneda's claim, finding insufficient evidence to prove that the misrepresentations were made. The court ordered Haneda to pay costs to the defendants.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiff's claim is dismissed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Haneda Construction sued Huttons Asia for fraudulent misrepresentation regarding ready sub-purchasers for warehouse units. The court dismissed the claim, finding insufficient evidence of misrepresentation.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Huttons Asia Pte Ltd | Defendant | Corporation | Judgment for Defendant | Won | |
| Haneda Construction & Machinery Pte Ltd, formerly known as Royal Star Logistics & Transportation Pte Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | |
| T Tanabakiyam | Defendant | Individual | Judgment for Defendant | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Steven Chong | Judge | Yes |
4. Counsels
4. Facts
- The plaintiff purchased eight warehouse units in Novelty Bizcentre.
- The 2nd defendant allegedly represented that ready sub-purchasers were lined up for the units.
- The government announced new cooling measures after the plaintiff exercised the options to purchase.
- The plaintiff only managed to sub-sell one unit and complete the purchase of two units.
- The plaintiff forfeited the monies it paid for the balance five units to the developer.
- Punitha and the 2nd defendant were socially acquainted since 2005.
- Punitha and Gopal had purchased a number of properties through the 2nd defendant prior to the purchase of the eight warehouse units.
5. Formal Citations
- Haneda Construction & Machinery Pte Ltd v Huttons Asia Pte Ltd and another, Suit No 115 of 2014, [2015] SGHC 294
6. Timeline
| Date | Event |
|---|---|
| Plaintiff bought four units at Encorp Marina @ Puteri Harbour in Malaysia. | |
| Alleged initial misrepresentations by the 2nd defendant. | |
| Alleged further misrepresentations by the 2nd defendant. | |
| Alleged further agreement entered into. | |
| Plaintiff exercised the options to purchase all eight warehouse units. | |
| Meeting between Punitha, 2nd defendant, and Casey Lim. | |
| Punitha filed a police report against the 2nd defendant. | |
| Plaintiff filed the statement of claim. | |
| Plaintiff abandoned its contractual claim. | |
| Judgment reserved. |
7. Legal Issues
- Fraudulent Misrepresentation
- Outcome: The court found that the plaintiff failed to prove that the defendant made the alleged misrepresentations.
- Category: Substantive
- Sub-Issues:
- False representation of existing fact
- Inducement
- Reliance
- Damages
- Vicarious Liability
- Outcome: The court found insufficient evidence to show that the first defendant had exercised the requisite control over the second defendant such that an employer-employee relationship exists for the purposes of vicarious liability.
- Category: Substantive
- Sub-Issues:
- Employer-employee relationship
- Control exercised by employer
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Fraudulent Misrepresentation
10. Practice Areas
- Commercial Litigation
- Real Estate Litigation
11. Industries
- Construction
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Tan Chin Seng and others v Raffles Town Club Pte Ltd | High Court | Yes | [2003] 3 SLR(R) 307 | Singapore | Cited to distinguish between a representation of an existing fact and a promise of future conduct in the context of misrepresentation. |
| Sandz Solutions (Singapore) Pte Ltd and others v Strategic Worldwide Assets Ltd and others | High Court | Yes | [2014] 3 SLR 562 | Singapore | Cited regarding the importance of considering a witness's behavior and demeanor on the witness stand. |
| Tang Yoke Kheng (trading as Niklex Supply Co) v Lek Benedict and others | High Court | Yes | [2005] 3 SLR(R) 263 | Singapore | Cited regarding the rigorous forensic lens that should be applied to claims grounded in fraudulent misrepresentation. |
| Wee Chiaw Sek Anna v Ng Li-Ann Genevieve (sole executrix of the estate of Ng Hock Seng, deceased) and another | High Court | Yes | [2013] 3 SLR 801 | Singapore | Cited regarding the relatively high standard of proof imposed on the party alleging fraud. |
| Goldrich Venture Pte Ltd and another v Halcyon Offshore Pte Ltd | High Court | Yes | [2015] 3 SLR 990 | Singapore | Cited for the proper approach in assessing the veracity of a claim based on alleged oral representations. |
| Wishing Star Ltd v Jurong Town Corp | Court of Appeal | Yes | [2008] 2 SLR(R) 909 | Singapore | Cited for the general rule in awarding damages in tort, which is to put the victim into the position in which he would have been if the tort had not been committed. |
| Vita Health Laboratories Pte Ltd and others v Pang Seng Meng | High Court | Yes | [2004] 4 SLR(R) 162 | Singapore | Cited regarding a more generous approach to the quantification of damages for fraudulent misrepresentations, but distinguished as not extending to putting the plaintiff into the position it would have been in if the representations were true. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Misrepresentation Act (Cap 390, 1994 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Warehouse units
- Sub-purchasers
- Cooling measures
- Option fees
- Misrepresentation
- Vicarious liability
- Ready buyers
- Novelty Bizcentre
15.2 Keywords
- Fraudulent misrepresentation
- Property sale
- Warehouse units
- Sub-purchasers
- Singapore
- Real estate agent
- Huttons Asia
- Haneda Construction
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Fraud and Deceit | 90 |
| Misrepresentation | 90 |
| Contract Law | 60 |
| Breach of Contract | 50 |
| Commercial Litigation | 40 |
| Damages | 30 |
| Property Investment | 20 |
16. Subjects
- Real Estate
- Misrepresentation
- Commercial Law