Management Corporation v Mer Vue: Limitation in Building Defect Claims

The Management Corporation Strata Title Plan No 3322 (MCST) appealed against the High Court's decision to disallow the amendment of its pleadings to add 113 subsidiary proprietors to its action against Mer Vue Developments Pte Ltd for building defects in the condominium's common property. The Court of Appeal, comprising Chao Hick Tin JA, Andrew Phang Boon Leong JA, and Steven Chong J, dismissed the appeal, holding that allowing the amendment would circumvent the limitation period for the contractual claim. The court emphasized that the addition of new subsidiary proprietors constituted the joinder of new parties, which was impermissible after the limitation period had expired.

1. Case Overview

1.1 Court

Court of Appeal of the Republic of Singapore

1.2 Outcome

Appeal Dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal on amending pleadings to add subsidiary proprietors in a building defect claim after the limitation period expired. Appeal dismissed.

1.7 Decision Date

2. Parties and Outcomes

3. Judges

Judge NameTitleDelivered Judgment
Chao Hick TinJudge of AppealYes
Andrew Phang Boon LeongJudge of AppealNo
Steven ChongJudgeNo

4. Counsels

4. Facts

  1. The MCST brought an action against the developer for building defects in the condominium's common property.
  2. The MCST initially represented 30 subsidiary proprietors in the contractual cause of action.
  3. The MCST sought to amend its pleadings to add 113 other subsidiary proprietors after the limitation period had expired.
  4. The terms of the SPAs between the developer and the subsidiary proprietors were largely identical.
  5. The High Court disallowed the proposed amendment.
  6. The condominium was completed in 2008 and has 546 residential units.

5. Formal Citations

  1. Management Corporation Strata Title Plan No 3322 v Mer Vue Developments Pte Ltd, Civil Appeal No 203 of 2015, [2016] SGCA 38

6. Timeline

DateEvent
Condominium completed
Lawsuit filed
Further and better particulars filed
Summons filed to amend particulars
Hearing of appeal
Judgment issued

7. Legal Issues

  1. Amendment of Pleadings
    • Outcome: The court held that the proposed amendment to add 113 subsidiary proprietors was not permissible because it would circumvent the limitation period.
    • Category: Procedural
    • Sub-Issues:
      • Joinder of new parties
      • Circumvention of limitation period
  2. Limitation of Actions
    • Outcome: The court held that the limitation period for the contractual claim had expired, and allowing the amendment would prejudice the developer's right to raise the limitation defence.
    • Category: Substantive
    • Sub-Issues:
      • Contractual claims
      • Accrued right of limitation

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Construction Law

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Management Corporation Strata Title Plan No 2297 v Seasons Park LtdHigh CourtYes[2005] 2 SLR(R) 613SingaporeCited for the principle that damages awarded to the management corporation abate corresponding to the ratio of share value of units represented.
Lim Eng Hock Peter v Lin Jian Wei and another and another appealHigh CourtYes[2010] 4 SLR 331SingaporeCited for analysis regarding joinder of parties.
Chiam Heng Hsien (on his own behalf and as partner of Mitre Hotel Proprietors) v Chiam Heng Chow (executor of the estate of Chiam Toh Say, deceased) and othersCourt of AppealYes[2015] 4 SLR 180SingaporeCited for analysis regarding joinder of parties.
Abdul Gaffer bin Fathil v Chua Kwang YongHigh CourtYes[1994] 3 SLR(R) 1056SingaporeCited for the principle that the rule on joinder of parties is subject to limitation and should not override the limitation period.
RSP Architects Planners & Engineers v Ocean Front Pte Ltd and another appealHigh CourtYes[1995] 3 SLR(R) 653SingaporeCited for the purpose of Section 116 of the Land Titles (Strata) Act (Cap 158, 1988 Rev Ed) which is to enable the management corporation to bring an action on behalf of all or some of the subsidiary proprietors.
Markt & Co, Limited v Knight Steamship Company, LimitedEnglish Court of AppealYes[1910] 2 KB 1021England and WalesCited for the principle that in representative actions, the class of persons represented must be defined with sufficient clarity.
Koh Chong Chiah and others v Treasure Resort Pte LtdHigh CourtYes[2013] 4 SLR 1204SingaporeCited as an example where the representative plaintiff properly listed the represented persons in the statement of claim.
Lim Yong Swan v Lim Jee Tee and anotherCourt of AppealYes[1992] 3 SLR(R) 940SingaporeCited for the principle that O 20 r 5(1) was not to be interpreted so widely as to deprive a litigant of an accrued right of limitation.
The “Virginia Rhea”Court of AppealYes[1983-1984] SLR(R) 639SingaporeCited for the principle that an amendment to the in rem writ was impermissible because the cause of action under bill of lading was time-barred.
Multistar Holdings Ltd v Geocon Piling & Engineering Pte LtdCourt of AppealYes[2016] 2 SLR 1SingaporeCited for the principle that a different legislative regime was in place to deal with amendment applications which involved the defence of limitation.
Weldon v NealQueen's Bench DivisionYes(1887) 19 QBD 394England and WalesCited for the principle that O 20 r 5(1) was not to be interpreted so widely as to deprive a litigant of an accrued right of limitation.
MCST Plan No 1938 v Goodview Properties Pte LtdHigh CourtYes[2000] 3 SLR(R) 250SingaporeCited for the principle that the management corporation, pursuant to s 116 of the Land Titles (Strata) Act, could only sue on behalf of those subsidiary proprietors who had direct sale and purchase contracts with the developer.
Management Corporation Strata Title Plan No 3322 v Mer Vue Developments Pte Ltd and others (King Wan Construction Pte Ltd and others, third parties)High CourtYes[2016] SGHC 28SingaporeThe grounds of the Judge’s decision have been reported as Management Corporation Strata Title Plan No 3322 v Mer Vue Developments Pte Ltd and others (King Wan Construction Pte Ltd and others, third parties) [2016] SGHC 28 (“the GD”).

13. Applicable Rules

Rule Name
Rules of Court (Cap 322, R 5, 2014 Rev Ed) O 15 r 6
Rules of Court (Cap 322, R 5, 2014 Rev Ed) O 20 r 5
Rules of Court (Cap 322, R 5, 2014 Rev Ed) O 20 rr 5(2)–(5)
Rules of Court O 15 r 8
Rules of Court O 15 r 12
Rules of Court O 57 r 9A(5)

14. Applicable Statutes

Statute NameJurisdiction
Building Maintenance and Strata Management Act (Cap 30C, 2008 Rev Ed) s 85Singapore
Land Titles (Strata) Act (Cap 158, 1999 Rev Ed) s 116Singapore
Land Titles (Strata) Act (Cap 158, 1988 Rev Ed) s 116Singapore
Building Maintenance and Strata Management Act s 24Singapore
Land Titles (Strata) Act (Cap 158, 2009 Rev Ed) s 10ASingapore
Limitation Act (Cap 163, 1996 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Management Corporation
  • Subsidiary Proprietors
  • Building Defects
  • Limitation Period
  • Amendment of Pleadings
  • Joinder of Parties
  • Strata Title
  • Common Property
  • Sale and Purchase Agreement
  • Accrued Right of Limitation

15.2 Keywords

  • building defects
  • limitation
  • amendment
  • pleadings
  • strata title
  • management corporation
  • subsidiary proprietors

17. Areas of Law

16. Subjects

  • Civil Procedure
  • Contract Law
  • Construction Law
  • Limitation of Actions