Asplenium Land v CKR Contract Services: SOPA, Prohibited Repeat Claims & Post-Termination Claims

In Asplenium Land Pte Ltd v CKR Contract Services Pte Ltd, the High Court of Singapore addressed an originating summons filed by Asplenium Land Pte Ltd against CKR Contract Services Pte Ltd concerning the validity of Payment Claim No. 22 under the Building and Construction Industry Security of Payment Act (SOPA). The court, presided over by Judicial Commissioner Foo Chee Hock, ruled in favor of Asplenium Land, declaring Payment Claim No. 22 invalid due to the inclusion of prohibited repeat claims and post-termination claims, thus determining that the adjudicator lacked jurisdiction. The court ordered CKR Contract Services to withdraw Adjudication Application No. SOP/AA 423 of 2015.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Building and Construction Law

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court held that repeat claims adjudicated on their merits and post-termination claims are invalid under the SOPA.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
CKR Contract Services Pte LtdDefendantCorporationApplication DismissedLost
Asplenium Land Pte LtdPlaintiffCorporationJudgment for PlaintiffWon

3. Judges

Judge NameTitleDelivered Judgment
Foo Chee HockJudicial CommissionerYes

4. Counsels

4. Facts

  1. Asplenium Land and CKR Contract Services entered into a contract for a residential condominium development.
  2. Asplenium Land terminated the contract on 24 October 2014.
  3. CKR Contract Services served Payment Claim No 21 on Asplenium Land on 22 December 2014.
  4. The adjudicator delivered his determination on 26 March 2015.
  5. CKR Contract Services served Payment Claim No 22 on Asplenium Land on 7 October 2015, which included claims for work done before and after the termination.
  6. Asplenium Land argued that the claims in PC 22 were prohibited repeat claims and post-termination claims.
  7. The adjudicator in AA 423 decided to hold the proceedings in abeyance pending the Court’s decision.

5. Formal Citations

  1. ASPLENIUM LAND PTE LTD v CKR CONTRACT SERVICES PTE LTD, HC/Originating Summons No 1100 of 2015, [2016] SGHC 85

6. Timeline

DateEvent
Contract based on amended Singapore Institute of Architects Articles and Conditions of Building Contract (9th ed, Reprint, August 2011) was entered into
Contract terminated by Plaintiff
Defendant commenced arbitration proceedings by way of a Request for Arbitration
Defendant served Payment Claim No 21 on Plaintiff
Payment Claim No 21 proceeded for adjudication in SOP/AA 27 of 2015
Adjudicator delivered determination on Payment Claim No 21
Plaintiff lodged SOP/ARA03 of 2015 for a review of the adjudicator’s determination
Defendant served Payment Claim No 22 on Plaintiff
Plaintiff provided Payment Response No 22
Defendant lodged SOP/AA 423 of 2015
William Nursalim’s affidavit was dated
Plaintiff filed originating summons
Hearing date
Hearing date
Hearing date
Plaintiff’s Written Submissions were dated
Defendant’s Written Submissions were dated
Hearing date
Hearing date
Judgment date

7. Legal Issues

  1. Prohibited Repeat Claims under SOPA
    • Outcome: The court held that claims previously adjudicated on their merits are prohibited repeat claims under SOPA.
    • Category: Substantive
    • Sub-Issues:
      • Adjudication on the merits
      • Insufficiency of evidence
  2. Post-Termination Claims under SOPA
    • Outcome: The court held that post-termination claims do not fall within SOPA's adjudication scheme for payment claims.
    • Category: Substantive
  3. Jurisdiction of Adjudicator
    • Outcome: The court held that the adjudicator lacked jurisdiction to adjudicate on invalid payment claims.
    • Category: Jurisdictional
    • Sub-Issues:
      • Invalid payment claim

8. Remedies Sought

  1. Withdrawal of Adjudication Application
  2. Declaration that Payment Claim is Invalid
  3. Permanent Restraint from Prosecuting Adjudication
  4. Costs

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Construction Litigation
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Lee Wee Lick Terence (alias Li Weili Terence) v Chua Say Eng (formerly trading as Weng Fatt Construction Engineering) and another appealCourt of AppealYes[2013] 1 SLR 401SingaporeCited for the principle that claims adjudicated on their merits are excluded from subsequent payment claims.
Dualcorp Pty Ltd v Remo Constructions Pty LtdNew South Wales Court of AppealYes[2009] NSWCA 69AustraliaCited as a case regarding amounts in previous claims which have been adjudicated upon on their merits.
Doolan v Rubikcon (Qld) Pty LtdQueensland Court of AppealYes[2008] 2 Qd R 117AustraliaCited as a case regarding amounts in previous claims which have been adjudicated upon on their merits.
Doo Ree Engineering & Trading Pte Ltd v Taisei CorporationHigh CourtYes[2009] SGHC 218SingaporeCited as a case where the court disagreed that section 10(1) of the Act prohibits all repeat claims.
Admin Construction Pte Ltd v Vivaldi (S) Pte LtdHigh CourtYes[2013] 3 SLR 609SingaporeCited for the analysis of repeat claims and the circumstances under which they are prohibited under SOPA.
AE & E Australia Pty Ltd v Stowe Australia Pty LtdQueensland Supreme CourtYes[2010] QSC 135AustraliaCited for the principle that a dismissal of a claim for insufficiency or want of evidence must be an adjudication on the merits.
JFC Builders Pte Ltd v LionCity Construction Co Pte LtdHigh CourtYes[2013] 1 SLR 1157SingaporeCited as a case where the court decided that a repeat claim was invalid, but which the present court respectfully differed from.
Lau Fook Hoong Adam v GTH Engineering & Construction Pte LtdHigh CourtYes[2015] 5 SLR 516SingaporeCited by the Defendant, but distinguished by the court due to the adjudication proceeding before the jurisdictional issue was determined.
McConnell Dowell Constructors (Aust) Pty Ltd v Heavy Plant Leasing Pty LtdQueensland Supreme CourtYes[2013] QSC 269AustraliaCited for the reasoning that tools and equipment withheld at the site after the termination of the contract were not supplied “under a contract” pursuant to s 5 of SOPA.
Coordinated Construction Co Pty Ltd v JM Hargreaves (NSW) Pty Ltd & OrsNew South Wales Court of AppealYes[2005] NSWCA 228AustraliaCited for the principle that the label attached to the relief was not conclusive.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Building and Construction Industry Security of Payment Act (Cap. 30B)Singapore
Section 10(1) of SOPASingapore
Section 17(5) of SOPASingapore
Section 5 of SOPASingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Security of Payment Act
  • SOPA
  • Payment Claim
  • Adjudication
  • Prohibited Repeat Claims
  • Post-Termination Claims
  • Jurisdiction
  • Construction Contract
  • Progress Payment
  • Adjudication Application

15.2 Keywords

  • SOPA
  • Security of Payment
  • Construction Law
  • Adjudication
  • Payment Claim
  • Repeat Claims
  • Post-Termination Claims

17. Areas of Law

16. Subjects

  • Construction Dispute
  • Adjudication
  • Contract Law