Trans Eurokars v Koh Wee Meng: Taxation of Costs for Defective Rolls-Royce

Trans Eurokars Pte Ltd, the Applicant, applied to tax Bill of Costs No 247 of 2014 against Dr Koh Wee Meng, the Respondent, following the dismissal of the Respondent's claim in Suit 873 for an allegedly defective Rolls-Royce Phantom. The High Court, presided over by Justin Yeo AR, heard arguments regarding the reasonableness and proportionality of the claimed costs. The court taxed the bill, reducing the amounts claimed for Section 1 (costs) and Section 3 (disbursements), and fixed the Section 2 (costs of taxation) amount.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Bill of Costs taxed with reductions to Sections 1 and 3; Section 2 costs fixed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Taxation of costs application following dismissal of claim for defective Rolls-Royce. The court assessed the reasonableness and proportionality of claimed costs.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Trans Eurokars Pte LtdApplicantCorporationBill of Costs TaxedPartialQuek Kian Teck
Koh Wee MengRespondentIndividualCosts ReducedPartialSamantha Tan, Tan Rui Wen

3. Judges

Judge NameTitleDelivered Judgment
Justin YeoAssistant RegistrarYes

4. Counsels

Counsel NameOrganization
Quek Kian TeckWongPartnership LLP
Samantha TanDrew & Napier LLC
Tan Rui WenDrew & Napier LLC

4. Facts

  1. The Respondent sued the Applicant for an allegedly defective Rolls-Royce.
  2. The Judge dismissed the Respondent's claims in Suit 873.
  3. The Judge ordered costs of Suit 873 to be awarded to the Applicant and taxed on a standard basis.
  4. The Applicant filed a Bill of Costs claiming $608,807.28 for Section 1 costs.
  5. The Respondent disputed the Bill of Costs, arguing the claimed costs were excessive.
  6. The Applicant's legal team included four solicitors and counsel.
  7. There was no certificate for more than two counsel.

5. Formal Citations

  1. Trans Eurokars Pte Ltd v Koh Wee Meng, Bill of Costs No 247 of 2014, [2015] SGHCR 6
  2. Koh Wee Meng v Trans Eurokars Pte Ltd, , [2014] 3 SLR 663

6. Timeline

DateEvent
Suit 873 commenced
Hearing of Registrar’s Appeal No 6
Judgment dismissing Respondent’s claims
Clarification hearing
Applicant filed the Bill of Costs
Respondent filed a Notice of Dispute
Adjournment granted to Respondent
Substantive arguments heard
Further arguments heard
Judgment rendered

7. Legal Issues

  1. Taxation of Costs
    • Outcome: The court determined the appropriate amount of costs to be awarded, considering the complexity of the case, the time spent, and the principle of proportionality.
    • Category: Procedural
    • Sub-Issues:
      • Reasonableness of costs
      • Proportionality of costs
      • Application of the indemnity principle
      • Two counsel rule
    • Related Cases:
      • [2009] 4 SLR(R) 155
      • [2014] 1 SLR 245
      • [2011] 3 SLR 1052
  2. Two Counsel Rule
    • Outcome: The court adopted a 'notional' approach to the two counsel rule, allowing consideration of work done by the entire legal team, but limiting the total amount claimable to what would have been reasonably incurred by a notional two-man team.
    • Category: Procedural
    • Sub-Issues:
      • Interpretation of Order 59 Rule 19 of the Rules of Court
      • Whether costs of more than two solicitors can be considered in the absence of a certificate

8. Remedies Sought

  1. Taxation of Costs

9. Cause of Actions

  • No cause of actions

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Automotive

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Ng Eng Ghee and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and another appealCourt of AppealYes[2009] 4 SLR(R) 155SingaporeCited for the indemnity principle in civil litigation, where the unsuccessful party pays the successful party's reasonable litigation costs.
Then Khek Koon and another v Arjun Permanand Samtani and another and other suitsUnknownYes[2014] 1 SLR 245SingaporeCited for the indemnity principle and the court's discretion in awarding costs.
Lin Jian Wei and anor v Lim Eng Hock PeterCourt of AppealYes[2011] 3 SLR 1052SingaporeCited for the approach to be taken in taxation, assessing complexity, reasonableness, and proportionality of costs.
Koh Wee Meng v Trans Eurokars Pte LtdHigh CourtYes[2014] 3 SLR 663SingaporeThe primary case for which costs are being taxed; details the underlying dispute regarding the allegedly defective Rolls-Royce.
Basil Anthony Herman v Premier Security Co-Operative Ltd and othersUnknownYes[2012] 2 SLR 616SingaporeCited by the Respondent to argue that Section 1 costs should be in the range of $10,000 to $20,000 per trial day.
Colliers International (Singapore) Pte Ltd v Senkee Logistics Pte LtdUnknownYes[2007] 2 SLR(R) 230SingaporeCited regarding the conditions for granting a certificate for more than two solicitors.
Raffles Town Club Pte Ltd v Lim Eng Hock Peter and others (Tung Yu-Lien Margaret and others, third parties)UnknownYes[2011] 1 SLR 852SingaporeCited regarding the conditions for granting a certificate for more than two solicitors.
ST International Company Limited v General Nice Resources (Hong Kong) LtdDistrict CourtYesST International Company Limited v General Nice Resources (Hong Kong) Ltd DCCJ 4192 of 2007Hong KongCited by the Applicant to support the argument that it is reasonable for a senior solicitor to supervise a junior solicitor in litigation.
Ong Jane Rebecca v Lim Lie HoaUnknownYes[2008] 3 SLR(R) 189SingaporeCited for the principle that disbursements must be supported by documentary evidence.

13. Applicable Rules

Rule Name
Rules of Court (Cap 322, R 5, 2006 Rev Ed)

14. Applicable Statutes

Statute NameJurisdiction
Sale of Goods Act (Cap 393, 1999 Rev Ed)Singapore
Companies Act (Cap 50, 2006 Rev Ed)Singapore
Copyright Act (Cap 63, 2006 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Taxation of costs
  • Bill of costs
  • Indemnity principle
  • Standard basis
  • Proportionality
  • Reasonableness
  • Two counsel rule
  • Disbursements
  • Section 1 costs
  • Section 2 costs
  • Section 3 costs

15.2 Keywords

  • taxation
  • costs
  • Rolls-Royce
  • defective
  • litigation
  • Singapore
  • civil procedure

16. Subjects

  • Civil Procedure
  • Costs
  • Legal Fees

17. Areas of Law

  • Civil Procedure
  • Taxation of Costs