Prometheus Marine v. King: Challenge to Arbitrator & Setting Aside Award for Yacht Defects

Prometheus Marine Pte Ltd appealed against the decision to dismiss their application to set aside an arbitration award in favor of Ann Rita King regarding a yacht purchase agreement. The Court of Appeal dismissed the appeals, finding no grounds to set aside the award. The case involved claims of breach of contract and misrepresentation related to the yacht's specifications and condition.

1. Case Overview

1.1 Court

Court of Appeal of the Republic of Singapore

1.2 Outcome

Appeals Dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal to set aside arbitration award for yacht defects. Court dismissed appeal, citing no grounds to set aside the award.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Prometheus Marine Pte LtdAppellant, ApplicantCorporationAppeal DismissedLost
Ann Rita KingRespondentIndividualAppeal DismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Sundaresh MenonChief JusticeYes
Andrew Phang Boon LeongJustice of the Court of AppealNo
Steven ChongJustice of the Court of AppealNo

4. Counsels

Counsel NameOrganization
Arvind Daas NaaiduArvind Law LLC
Tan Kai Ning ClaireStraits Law Practice LLC
Murali RajaramStraits Law Practice LLC

4. Facts

  1. The Respondent contracted to purchase a yacht from the Appellant.
  2. The yacht was damaged while being loaded onto a barge.
  3. The Respondent claimed the Appellant breached express and implied terms of the contract.
  4. The Respondent sought a full refund of the purchase price and damages.
  5. The Arbitrator found the Appellant breached the Specifications Term and the New Vessel Term.
  6. The Judge dismissed the High Court Summonses seeking to set aside the Award.
  7. The Appellant appealed the Judge's decision.

5. Formal Citations

  1. Prometheus Marine Pte Ltd v King, Ann Rita and another appeal, Civil Appeal Nos 181 and 182 of 2016, [2017] SGCA 61

6. Timeline

DateEvent
Contract signed for purchase of yacht
Yacht damaged while being loaded onto barge
Yacht delivered to Respondent
Yacht taken to Phuket for further assessment and repairs
Siam Surveyors International surveyed the Yacht
Notice of Arbitration filed
Arbitration award issued
Civil Appeals 181 and 182 of 2016 filed
Court of Appeal Summons Nos 45 and 46 of 2017 filed
Hearing
Grounds of Decision delivered

7. Legal Issues

  1. Challenge against arbitrator
    • Outcome: The court found no apparent bias on the part of the arbitrator.
    • Category: Substantive
    • Sub-Issues:
      • Apparent bias
  2. Recourse against award
    • Outcome: The court found no grounds to set aside the arbitration award.
    • Category: Substantive
    • Sub-Issues:
      • Setting aside
  3. Breach of Contract
    • Outcome: The court upheld the arbitrator's finding that the Appellant breached the Specifications Term and the New Vessel Term of the contract.
    • Category: Substantive
    • Sub-Issues:
      • Breach of Specifications Term
      • Breach of New Vessel Term
  4. Duties of Legal Profession
    • Outcome: The court addressed the conduct of the Appellant's counsel and reiterated the duties of an advocate and solicitor to the court.
    • Category: Procedural
    • Sub-Issues:
      • Duty to the Court

8. Remedies Sought

  1. Full refund of purchase price
  2. Damages
  3. Cost of repairs

9. Cause of Actions

  • Breach of Contract
  • Misrepresentation

10. Practice Areas

  • Arbitration
  • Commercial Litigation

11. Industries

  • Marine Engineering
  • Yacht Brokerage

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Prometheus Marine Pte Ltd v Ann Rita KingHigh CourtYes[2017] SGHC 36SingaporeThe Judge's decision in the High Court was upheld on appeal.
Re Singh KalpanathHigh CourtYes[1992] 1 SLR(R) 595SingaporeCited for the principle that an open mind does not mean an empty mind.
Re Shankar Alan s/o Anant KulkarniHigh CourtYes[2007] 1 SLR(R) 85SingaporeCited regarding the active role judges may take in case management.
Au Wai Pang v Attorney-General and another matterCourt of AppealYes[2014] 3 SLR 357SingaporeCited to support the point that the Court of Appeal does not have original jurisdiction.
PT First Media TBK (formerly known as PT Broadband Multimedia TBK) v Astro Nusantara International BV and others and another appealCourt of AppealYes[2014] 1 SLR 372SingaporeDiscusses the delocalisation theory and the enforcement of arbitral awards set aside in the seat of arbitration.
Société PT Putrabali Adyamulia v Société Rena Holding et Société Mnugotia Est EpicesFrench Supreme CourtYes[2007] Rev Arb 507FranceCited as an example of French law supporting the delocalisation theory.
Wee Soon Kim Anthony v Law Society of SingaporeCourt of AppealYes[2002] 1 SLR(R) 954SingaporeCited regarding the duty of a solicitor to verify client instructions.
Associated Leisure Ltd (Phonographic Equipment Co Ltd) v Associate Newspapers LtdEnglish Court of AppealYes[1970] 2 QB 450England and WalesCited regarding the duty of counsel not to put a charge of fraud on the record without clear evidence.
Medcalf v Mardell and othersHouse of LordsYes[2003] 1 AC 120United KingdomCited regarding the duty of counsel not to put a charge of fraud on the record without clear evidence.
AKN and another v ALC and others and other appealsCourt of AppealYes[2015] 3 SLR 48SingaporeCited regarding the limited grounds for curial intervention in arbitral proceedings and the need to show actual prejudice.
CRW Joint Operation v PT Perusahaan Gas Negara (Persero) TBKCourt of AppealYes[2011] 4 SLR 305SingaporeCited regarding the distinction between an erroneous exercise of power and the purported exercise of a power not possessed by the arbitral tribunal.
Beijing Sinozonto Mining Investment Co Ltd v Goldenray Consortium (Singapore) Pte LtdHigh CourtYes[2013] SLR 814SingaporeCited for the definition of fraud in the context of arbitration proceedings.
Tang Liang Hong v Lee Kuan Yew and another and other appealsCourt of AppealYes[1997] 3 SLR(R) 576SingaporeCited regarding the test for making personal costs orders against solicitors.
Ho Kon Kim v Lim Gek Kim Betsy and others and another appealCourt of AppealYes[2001] 3 SLR(R) 220SingaporeCited regarding the test for making personal costs orders against solicitors.
Ridehalgh v Horsefield and anotherEnglish Court of AppealYes[1994] Ch 205England and WalesCited regarding the test for making personal costs orders against solicitors.
Tan King Hiang v United Engineers (Singapore) Pte LtdHigh CourtYes[2005] 3 SLR(R) 529SingaporeCited regarding when a solicitor can be held to have acted improperly or unreasonably.
Dean v ColvinUnited States Court of Appeals for the Seventh CircuitYes585 F.App’x 904 (7th Cir, 2014)United StatesCited for the principle that an open mind does not mean an empty mind.
R (on the application of Royal Brompton & Harefield NHS Foundation Trust) v Joint Committee of Primary Care Trusts and anotherHigh CourtYes[2011] All ER (D) 44 (Nov)England and WalesCited for the principle that an open mind does not mean an empty mind.

13. Applicable Rules

Rule Name
Rules of Court (Cap 322, R 5, 2014 Rev Ed)

14. Applicable Statutes

Statute NameJurisdiction
Arbitration Act (Cap 10, 2002 Rev Ed)Singapore
International Arbitration Act (Cap 143A, 2002 Rev Ed)Singapore
Sale of Goods Act (Cap 393, 1999 Rev Ed)Singapore
Unfair Contract Terms Act (Cap 396, 1994 Rev Ed)Singapore
Supreme Court of Judicature Act (Cap 322, 2007 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Arbitration Award
  • Yacht
  • Specifications Term
  • New Vessel Term
  • Breach of Contract
  • Apparent Bias
  • Lex Arbitri
  • International Arbitration
  • Repair Contract
  • CE Certification

15.2 Keywords

  • arbitration
  • yacht
  • breach of contract
  • maritime
  • singapore

17. Areas of Law

Area NameRelevance Score
Arbitration95
Recourse against award70
Challenge against arbitrator60
Legal Ethics and Professional Responsibility60
Duties of Legal Profession50
Professional Ethics50
Civil Procedure40
Commercial Disputes30
Contract Law30

16. Subjects

  • Arbitration
  • Contract Law
  • Commercial Law