Teras Offshore v Teras Cargo: Offshore Case & Summary Judgment in SICC for Contract Dispute
In a dispute between Teras Offshore Pte Ltd and Teras Cargo Transport (America) LLC, the Singapore International Commercial Court addressed two applications. The first was to determine if the action qualified as an 'offshore case,' and the second was Teras Cargo's application for summary judgment on a counterclaim related to freight tax. The court determined the case to be an offshore case and dismissed the summary judgment application, granting Teras Offshore unconditional leave to defend.
1. Case Overview
1.1 Court
Singapore International Commercial Court1.2 Outcome
The court determined that the action was an 'offshore case' and dismissed the Defendant's application for summary judgment, granting the Plaintiff unconditional leave to defend.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court addresses offshore case status and summary judgment in a contract dispute between Teras Offshore and Teras Cargo.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Teras Offshore Pte Ltd | Plaintiff | Corporation | Unconditional leave to defend granted | Won | |
| Teras Cargo Transport (America) LLC | Defendant | Corporation | Application for summary judgment dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Henry Bernard Eder | International Judge | Yes |
4. Counsels
4. Facts
- Defendant entered into contracts with Bechtel for services and equipment for liquefied natural gas projects in Australia.
- Defendant subcontracted the work to Plaintiff on back-to-back terms.
- Plaintiff's claims total approximately US$29 million; Defendant's counterclaims total approximately US$14 million.
- Defendant sought summary judgment on a counterclaim for reimbursement of freight tax.
- Plaintiff argued there was a common understanding that Defendant would bear the freight tax.
- The services in question were performed in relation to liquefied natural gas projects in or off Queensland, Australia.
5. Formal Citations
- Teras Offshore Pte Ltd v Teras Cargo Transport (America) LLC, Suit No 1 of 2016 (HC/Summons No 1542 of 2016 and SIC/Summons No 3 of 2016), [2016] SGHC(I) 02
6. Timeline
| Date | Event |
|---|---|
| Close of pleadings | |
| Proceedings transferred to the Singapore International Commercial Court | |
| Defendant's application for summary judgement made | |
| Application issued for a decision that the action is an offshore case | |
| Hearing of applications | |
| Judgment issued |
7. Legal Issues
- Offshore Case Determination
- Outcome: The court determined that the action had no substantial connection with Singapore and was therefore an 'offshore case'.
- Category: Procedural
- Summary Judgment
- Outcome: The court dismissed the Defendant's application for summary judgment, finding that the resolution of the freight tax claim necessarily involves ruling on factual issues which cannot be resolved at this stage.
- Category: Procedural
8. Remedies Sought
- Monetary Damages
- Reimbursement of freight tax
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Oil and Gas
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 322, R 5, 2014 Rev Ed) | Singapore |
| O 110 r 36 of the Rules of Court | Singapore |
| O 110 r 1(1) of the Rules of Court | Singapore |
| O 110 r 1(2)(f) of the Rules of Court | Singapore |
| O 3 r 4 of the Rules of Court | Singapore |
| O 14 r 1 of the Rules of Court | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Offshore case
- Summary judgment
- Back-to-back terms
- Freight tax
- Sub-Contracts
- Main Contracts
15.2 Keywords
- Singapore International Commercial Court
- Offshore case
- Summary judgment
- Contract dispute
- Rules of Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Offshore case | 80 |
| Civil Procedure | 75 |
| Civil Practice | 75 |
| International Commercial Law | 60 |
| Summary Judgement | 60 |
| Commercial Disputes | 50 |
| Admiralty and Maritime Law | 40 |
| Contract Law | 40 |
| Commercial Law | 40 |
| Shipping Law | 40 |
16. Subjects
- Civil Procedure
- Contract Law
- International Commercial Law