Asia-American Investments Group Inc v UBS AG: Breach of Contract & Warranty of Authority

In Asia-American Investments Group Inc v UBS AG (Singapore Branch) and another, the High Court of Singapore dismissed all claims by Asia-American Investments Group Inc against UBS AG (Singapore Branch) and Amy Tee for breach of contract, breach of fiduciary duty, and negligence relating to unauthorized accumulator transactions. The court found that the accumulator transactions were authorized by the Plaintiff. Quentin Loh J delivered the judgment on 15 June 2017.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Judgment for Defendants

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Asia-American Investments Group Inc sued UBS AG for unauthorized accumulator transactions. The High Court dismissed all claims, finding the transactions were authorized.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
UBS AG, Singapore BranchDefendantCorporationJudgment for DefendantWon
Asia-American Investments Group Inc.PlaintiffCorporationClaim DismissedLost
Amy TeeDefendantIndividualJudgment for DefendantWon

3. Judges

Judge NameTitleDelivered Judgment
Quentin LohJudgeYes

4. Counsels

Counsel NameOrganization
Cavinder BullDrew & Napier LLC
Kong Man ErDrew & Napier LLC
Gerald TayDrew & Napier LLC
Darryl HoDrew & Napier LLC
Peter GabrielGabriel Law Corporation
Roxanne LowGabriel Law Corporation
Selwyn TanGabriel Law Corporation

4. Facts

  1. The Plaintiff had accounts with the Bank, including a Singapore Dollar Account and a discretionary management account.
  2. The Plaintiff signed an Account Agreement that contained an Account Mandate authorizing the Bank to act on oral and telephone instructions.
  3. The Plaintiff claimed that the Defendants entered into various accumulator transactions without authorization.
  4. The Plaintiff alleged that Amy represented she would only act on prior written approval, which the court rejected.
  5. The court found Lenny's evidence unreliable and self-serving.
  6. The court found Lucas's evidence unreliable.
  7. The court found that the 3ATs and the 2 November ATs were undertaken with the authorization of the Plaintiff.

5. Formal Citations

  1. Asia-American Investments Group Inc v UBS AG (Singapore Branch) and another, Suit No 315 of 2013, [2017] SGHC 113

6. Timeline

DateEvent
Plaintiff signed an Account Agreement containing an Account Mandate
Plaintiff opened the Account and the DAMA with the Bank after Amy moved to the Bank
Plaintiff executed the Request for Hold Mail Service
Accumulator in the shares of DBS Group Holdings Ltd was entered
Accumulator in the shares of DBS was entered
Accumulator in the shares of Bank of China Limited was entered
Accumulator in the shares of Keppel Corp Ltd was entered
Accumulator in the shares of Singapore Petroleum Corporation Ltd was entered
Plaintiff filed its writ of summons
Trial began
Oral judgment was delivered
Reasons for decision set out

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found no breach of contract as the transactions were authorized.
    • Category: Substantive
  2. Warranty of Authority
    • Outcome: The court found that the defendants had the authority to enter into the transactions.
    • Category: Substantive
  3. Time Bar
    • Outcome: The court found that the Plaintiff’s claims in relation to the 1 March DBS AT are time barred.
    • Category: Procedural

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Fraudulent Misrepresentation
  • Negligent Misrepresentation
  • Breach of Fiduciary Duty

10. Practice Areas

  • Commercial Litigation
  • Banking Litigation
  • Financial Litigation

11. Industries

  • Finance
  • Banking

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
First Asia Capital Investments Ltd v Société Générale Bank and Trust and anotherHigh CourtYes[2017] SGHC 78SingaporeCited as another case where Lucas and Lenny's BVI companies allegedly entered into accumulators.

13. Applicable Rules

Rule Name
Rules of Court (R5, Cap 322, 2014 Rev Ed) O 18 r 12(1)(a)
Rules of Court (R5, Cap 322, 2014 Rev Ed) O 40A r 3(2)(b)

14. Applicable Statutes

Statute NameJurisdiction
Limitation Act (Cap 163, 1996 Rev Ed) s 6(1)(a)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Accumulator Transactions
  • Account Mandate
  • Authorised Representative
  • Hold Mail Folder
  • Oral Instructions
  • Written Authorisation
  • Gearing
  • Leverage
  • Forward Price
  • Barrier Price
  • Observation Date

15.2 Keywords

  • contract
  • warranty
  • authority
  • accumulator
  • UBS
  • Asia-American Investments
  • Singapore
  • banking
  • investment

17. Areas of Law

Area NameRelevance Score
Contract Law75
Agency Law60
Banking and Finance50
Misrepresentation40
Investment Law40
Fiduciary Duties30
Financial Services30

16. Subjects

  • Contract Dispute
  • Banking Dispute
  • Financial Dispute
  • Investment Dispute