Kioumji & Eslim v Rotary Engineering: Forum Non Conveniens & Choice of Law
Kioumji & Eslim Law Firm and Yahya Lutfi Khader sued Rotary Engineering Limited, Roger Chia Kim Piow, and Chia Kim Hung in the High Court of Singapore, alleging breach of contract and conspiracy. The defendants sought a stay of proceedings in favor of Saudi Arabia based on forum non conveniens. The court, presided over by Aedit Abdullah JC, dismissed the stay application, finding Singapore to be the more appropriate forum. The plaintiffs' claims included a breach of the Proxy Agreement, breach of the Joint Venture Agreement, and conspiracy to injure the plaintiffs.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Application to stay the proceedings on the ground of forum non conveniens dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court dismisses stay application in contract and conspiracy suit, finding Singapore a more appropriate forum despite Saudi law choice.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Rotary Engineering Limited | Defendant | Corporation | Application for stay dismissed | Lost | |
| Roger Chia Kim Piow | Defendant | Individual | Application for stay dismissed | Lost | |
| Chia Kim Hung | Defendant | Individual | Application for stay dismissed | Lost | |
| Kioumji & Eslim Law Firm | Plaintiff | Partnership | Application for stay dismissed | Won | |
| Yahya Lutfi Khader | Plaintiff | Individual | Application for stay dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Aedit Abdullah | Judicial Commissioner | Yes |
4. Counsels
4. Facts
- KEL was the legal advisor of Yahya, a US citizen residing in Lebanon.
- REL is a Singapore company with subsidiaries in Saudi Arabia.
- Roger and Tommy are Singapore citizens, with Tommy relocating to Saudi Arabia in 2014.
- PSCL and REL had an EPC contract with SATORP, a Saudi Arabian company.
- Yahya was introduced to Roger and Tommy to assist with the SATORP Claim.
- KEL and REL signed a Proxy Agreement for KEL to negotiate the SATORP Claim.
- The Proxy Agreement stated that it shall be governed by the laws of the Kingdom of Saudi Arabia.
- The parties disputed whether Yahya performed substantial work under the Proxy Agreement.
- The parties met to discuss a joint venture where Yahya would manage RACL.
- The plaintiffs alleged a conspiracy to injure them by breaching the Proxy Agreement and JVA.
5. Formal Citations
- Kioumji & Eslim Law Firm and another v Rotary Engineering Ltd and others, Suit No 298 of 2015 (Summons No 4802 of 2015), [2016] SGHC 218
6. Timeline
| Date | Event |
|---|---|
| PSCL and REL entered into an EPC contract with SATORP. | |
| Yahya was introduced to Roger and Tommy in Saudi Arabia. | |
| Proxy Agreement was back-dated to this date. | |
| REL and KEL signed a Proxy Agreement. | |
| Meeting between Yahya, Ibrahim, Tommy and Roger regarding a joint venture. | |
| Claim documents submitted to SATORP. | |
| Plaintiffs filed suit against the defendants. | |
| Defendants applied to stay the proceedings. | |
| Complaint filed by GCC was dismissed by Saudi Arabia’s Commercial Court. | |
| Judgment reserved. | |
| Judgment issued. |
7. Legal Issues
- Forum Non Conveniens
- Outcome: The court dismissed the defendant's application for a stay of proceedings, finding that Singapore was the more appropriate forum.
- Category: Procedural
- Related Cases:
- [1987] AC 460
- [2007] 1 SLR(R) 377
- [2008] 4 SLR(R) 543
- [2011] 1 SLR 391
- Choice of Law
- Outcome: The court determined that Singapore law governed the JVA and conspiracy claims, while Saudi Arabian law governed the Proxy Agreement.
- Category: Substantive
8. Remedies Sought
- Professional fees due under the Proxy Agreement
- Transfer of equity in RACL
- Damages for conspiracy
9. Cause of Actions
- Breach of Proxy Agreement
- Breach of Joint Venture Agreement
- Conspiracy
10. Practice Areas
- International Litigation
- Commercial Litigation
11. Industries
- Oil and Gas
- Petroleum
- Petrochemical
- Pharmaceutical
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Spiliada Maritime Corporation v Cansulex Ltd | House of Lords | Yes | [1987] AC 460 | England and Wales | Cited as the seminal case on the principles governing the grant of a stay of proceedings on the ground of forum non conveniens. |
| Rickshaw Investments Ltd and another v Nicolai Baron von Uexkull | Court of Appeal | Yes | [2007] 1 SLR(R) 377 | Singapore | Cited for the two-stage inquiry for determining whether a stay of proceedings ought to be granted. |
| CIMB Bank Bhd v Dresdner Kleinwort Ltd | Court of Appeal | Yes | [2008] 4 SLR(R) 543 | Singapore | Cited for the two-stage inquiry for determining whether a stay of proceedings ought to be granted and the natural forum having the most real and substantial connection. |
| JIO Minerals FZC and others v Mineral Enterprises Ltd | Court of Appeal | Yes | [2011] 1 SLR 391 | Singapore | Cited for factors the court considers in determining the natural forum and substantial justice in a foreign forum. |
| Peters Roger May v Pinder Lillian Gek Lian | High Court | Yes | [2006] 2 SLR(R) 381 | Singapore | Cited for the weight accorded to a particular factor varying in different cases. |
| John Reginald Stott Kirkham and others v Trane US Inc and others | Court of Appeal | Yes | [2009] 4 SLR(R) 428 | Singapore | Cited regarding the significance of third-party witnesses in determining the natural forum. |
| EFT Holdings, Inc and another v Marinteknik Shipbuilders (S) Pte Ltd and another | High Court | Yes | [2014] 1 SLR 860 | Singapore | Cited for factors to consider for the tort of conspiracy. |
| Deripaska v Cherney | English Court of Appeal | Yes | [2009] EWCA Civ 849 | England and Wales | Cited regarding the risk of an unfair trial in a foreign jurisdiction. |
13. Applicable Rules
| Rule Name |
|---|
| O 38 r 18(2) of the Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Forum non conveniens
- Proxy Agreement
- Joint Venture Agreement
- SATORP Claim
- EPC Contract
- Choice of law
- Conspiracy
15.2 Keywords
- forum non conveniens
- stay of proceedings
- conflict of laws
- contract
- conspiracy
- Singapore
- Saudi Arabia
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Conflict of Laws | 95 |
| Natural forum | 90 |
| Forum Non Conveniens | 85 |
| Conspiracy by Unlawful Means | 60 |
| Contract Law | 50 |
16. Subjects
- Conflict of Laws
- Contract Law
- Civil Procedure