Maybank Kim Eng Securities v Lim Keng Yong: Stay of Court Proceedings & Arbitration
In Maybank Kim Eng Securities Pte Ltd v Lim Keng Yong and another, the Singapore High Court addressed the issue of staying court proceedings in favor of arbitration. Maybank Kim Eng Securities Pte Ltd ("Maybank") commenced an action against Lim Keng Yong and Lye Hoi Fong for outstanding trading losses. The claim against Lim Keng Yong was under contracts for difference, while the claim against Lye Hoi Fong was under a Trading Representative’s Indemnity. The court dismissed the appeal.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Appeal dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case regarding a stay of court proceedings in favor of arbitration. The court dismissed the appeal.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Maybank Kim Eng Securities Pte Ltd | Appellant | Corporation | Appeal dismissed | Lost | |
| Lim Keng Yong | Respondent | Individual | Stay of proceedings ordered | Won | |
| Lye Hoi Fong | Respondent | Individual | Stay of proceedings ordered | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Steven Chong | Judge | Yes |
4. Counsels
4. Facts
- Maybank sued Lim Keng Yong for trading losses under contracts for difference.
- Maybank also sued Lye Hoi Fong under a Trading Representative’s Indemnity.
- Lim Keng Yong's claim was subject to arbitration, while Lye Hoi Fong's was subject to the court's jurisdiction.
- The Assistant Registrar ordered a stay of proceedings against both respondents.
- Maybank abandoned the appeal against Lim Keng Yong but continued the appeal against Lye Hoi Fong.
- The court found a significant overlap in the factual and legal issues between the claims.
5. Formal Citations
- Maybank Kim Eng Securities Pte Ltd v Lim Keng Yong and another, Suit No 979 of 2015(Registrar’s Appeal No 62 of 2016), [2016] SGHC 68
6. Timeline
| Date | Event |
|---|---|
| First respondent entered into CFD transactions with the appellant. | |
| Appellant closed out the CFD transactions. | |
| First respondent made a payment of $157,189.88 to the appellant. | |
| Suit filed in 2015 | |
| Order of Court 1467 of 2016 dated 2 February 2016 in Summons No. 5107 of 2015. | |
| Hearing date | |
| Judgment reserved |
7. Legal Issues
- Stay of Court Proceedings
- Outcome: The court dismissed the appeal against the stay of proceedings.
- Category: Procedural
- Sub-Issues:
- Multiplicity of proceedings
- Case management
- Enforceability of Indemnity Agreement
- Outcome: The court found that the indemnity agreement was not independent of the claim against the first respondent.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Indemnity
10. Practice Areas
- Arbitration
- Commercial Litigation
11. Industries
- Financial Services
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Tomolugen Holdings Ltd and another v Silica Investors Ltd and other appeals | Court of Appeal | Yes | [2016] 1 SLR 373 | Singapore | Cited for the court's case management powers to stay proceedings pending the outcome of arbitration. |
| The Eleftheria | N/A | Yes | [1970] P 94 | N/A | Cited regarding the burden on the party who wishes to proceed in court to show sufficient reason why the matter should not be referred to arbitration. |
| NCC International AB v Alliance Concrete Singapore Pte Ltd | N/A | Yes | [2008] 2 SLR (R) 565 | Singapore | Cited for Singapore’s strong policy in favour of arbitration. |
| Tjong Very Sumito and others v Antig Investments Pte Ltd | N/A | Yes | [2009] 4 SLR(R) 732 | Singapore | Cited for Singapore’s strong policy in favour of arbitration. |
| American Home Assurance Co v Hong Lam Marine Pte Ltd | N/A | Yes | [1999] 2 SLR(R) 992 | Singapore | Cited for the principle that an indemnity agreement creates a primary liability. |
| China Taiping Insurance (Singapore) Pte Ltd (formerly known as China Insurance Co (Singapore) Pte Ltd) v Teoh Cheng Leong | N/A | Yes | [2012] 2 SLR 1 | Singapore | Cited for the principle that an indemnity agreement creates a primary liability. |
| Pacific Recreation Pte Ltd v S Y Technology Inc and another appeal | Court of Appeal | Yes | [2008] 2 SLR(R) 491 | Singapore | Cited regarding the independence of an indemnity contract from the underlying transaction. |
| S Y Technology Inc v Pacific Recreation Pte Ltd | High Court | Yes | [2007] 2 SLR(R) 756 | Singapore | Cited regarding the independence of an indemnity contract from the underlying transaction. |
| Lanna Resources Public Co Ltd v Tan Beng Phiau Dick and another | N/A | Yes | [2011] 1 SLR 543 | Singapore | Cited regarding the court's inherent jurisdiction to stay proceedings. |
| Etri Fans Ltd v NMB (UK) Ltd | English Court of Appeal | Yes | [1987] 1 WLR 1110 | England | Cited regarding the court's inherent jurisdiction to grant a stay. |
| Danone Asia Pacific Holdings Pte Ltd and others v Fonterra Co-Operative Group Limited | N/A | Yes | [2014] NZHC 1681 | New Zealand | Cited for factors in favor of a stay. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Arbitration Act (Cap 10, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Contracts for Difference
- Trading Representative’s Indemnity
- Stay of Proceedings
- Arbitration
- Case Management
- Multiplicity of Proceedings
- Authorisation Issue
15.2 Keywords
- arbitration
- stay of proceedings
- contracts for difference
- indemnity
- singapore
- high court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Arbitration | 90 |
| Civil Procedure | 60 |
| Contract Law | 50 |
| Breach of Contract | 30 |
| Summary Judgement | 30 |
| Commercial Law | 20 |
16. Subjects
- Arbitration
- Contract Law
- Civil Procedure