Sim Chay Koon v NTUC Income: Stay of Action for Arbitration under Arbitration Act
In a representative action, Sim Chay Koon and others (the Plaintiffs) sued NTUC Income Insurance Co-operative Ltd (NTUC Income) for breach of an implied term of mutual trust and confidence and economic duress related to the termination of their Contracts of Employment and the entry into new financial consultant agreements. NTUC Income applied for a stay of the action in favour of arbitration, relying on the arbitration clause in the financial consultant agreements. The High Court dismissed the Plaintiffs' appeal, ordering a stay of proceedings in favour of arbitration, finding that the claims were at least arguably within the scope of the arbitration agreement.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Representative action by Sim Chay Koon against NTUC Income. The court dismissed the appeal to stay the action in favour of arbitration.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Sim Chay Koon | Appellant, Plaintiff | Individual | Appeal Dismissed | Lost | Peter Cuthbert Low, Raj Mannar |
| NTUC Income Insurance Co-operative Ltd | Respondent, Defendant | Corporation | Application granted | Won | Hri Kumar Nair, Shivani Retnam |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Peter Cuthbert Low | Peter Low LLC |
| Raj Mannar | Peter Low LLC |
| Hri Kumar Nair | Drew & Napier LLC |
| Shivani Retnam | Drew & Napier LLC |
4. Facts
- NTUC Income appointed the Plaintiffs as agents under letters of appointment.
- The terms in these contracts were incorporated into a collective agreement.
- NTUC Income terminated the Contracts of Employment and appointed the Plaintiffs as financial consultants under new financial consultant agreements.
- The Plaintiffs alleged that the termination of the Contracts of Employment and the entry into the FC Contracts were done by NTUC Income in breach of an implied term of mutual trust and confidence and economic duress.
- The FC Contracts contain an arbitration clause.
- NTUC Income argued that the execution of the FC Contracts had settled or compromised all of the Plaintiffs’ claims.
5. Formal Citations
- Sim Chay Koon and others v NTUC Income Insurance Co-operative Ltd, Suit No 199 of 2014 (Registrar's Appeal No 181 of 2014), [2015] SGHC 43
6. Timeline
| Date | Event |
|---|---|
| Contracts of Employment terminated and financial consultant agreements entered into. | |
| Plaintiffs filed action. | |
| NTUC Income applied to stay the action in favour of arbitration. | |
| Appeal dismissed. |
7. Legal Issues
- Stay of Proceedings for Arbitration
- Outcome: The court held that the proceedings should be stayed in favour of arbitration.
- Category: Procedural
- Economic Duress
- Outcome: The court did not make a determination on the merits of the economic duress claim, as the matter was referred to arbitration.
- Category: Substantive
8. Remedies Sought
- Unspecified benefits under the Contracts of Employment
9. Cause of Actions
- Breach of Contract
- Breach of Implied Term of Mutual Trust and Confidence
- Economic Duress
10. Practice Areas
- Commercial Litigation
- Arbitration
11. Industries
- Insurance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Tjong Very Sumito and others v Antig Investments Pte Ltd | Court of Appeal | Yes | [2009] 4 SLR(R) 732 | Singapore | Cited for the principle that if it is at least arguable that the matter in dispute is the subject of the arbitration agreement, then a stay of proceedings should be ordered. |
| Silica Investors Limited v Tomolugen Holdings Limited and others | High Court | Yes | [2014] SGHC 101 | Singapore | Cited for the principle that to determine if a matter falls within the scope of an arbitration clause, the Court must consider whether the factual allegations underlying the claim are within the scope of the arbitration clause, regardless of the legal label assigned to the claim. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Arbitration Act (Cap 10, 2002 Rev Ed) | Singapore |
| Arbitration Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration
- Stay of Proceedings
- Contracts of Employment
- Financial Consultant Agreements
- Economic Duress
- Arbitration Agreement
- Doctrine of Separability
15.2 Keywords
- arbitration
- stay of proceedings
- economic duress
- insurance agents
- financial consultants
16. Subjects
- Arbitration
- Contract Law
- Employment Law
17. Areas of Law
- Arbitration Law
- Contract Law
- Civil Procedure