Aries Telecoms v ViewQwest: Conversion Claim & Disgorgement of Profits
Aries Telecoms (M) Bhd sued ViewQwest Pte Ltd in the High Court of Singapore for conversion of IT equipment. Aries sought an account of profits or disgorgement of profits, and alternatively, punitive, exemplary, or aggravated damages. The court, presided over by Justice Woo Bih Li, ruled against Aries on 7 February 2017, denying the claims for disgorgement of profits and punitive damages, limiting Aries' recovery to ordinary damages. ViewQwest had a contract with Fiberail Sdn Bhd and Aries. It was unclear from the documentation under each contract whether the equipment had been initially supplied to ViewQwest by Fiberail under Fiberail’s contract with ViewQwest or by Aries under its own contract with ViewQwest.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Aries was not entitled to claim an account of profits from ViewQwest nor an order for ViewQwest to disgorge its profits from the use of the equipment. Aries was also not entitled to punitive, exemplary or aggravated damages. Aries was entitled only to ordinary damages.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Aries Telecoms sued ViewQwest for conversion. The court denied Aries' claim for disgorgement of profits and punitive damages, limiting recovery to ordinary damages.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Aries Telecoms (M) Berhad (formerly known as V Telecoms Berhad) | Plaintiff | Corporation | Claim Denied | Lost | Troy Yeo |
| ViewQwest Pte Ltd | Defendant | Corporation | Judgment in favor of Defendant | Won | John Sze, Nicola Loh |
| Fiberail Sdn Bhd | Third Party | Corporation |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Troy Yeo | Chye Legal Practice |
| John Sze | Joseph Tan Jude Benny LLP |
| Nicola Loh | Joseph Tan Jude Benny LLP |
4. Facts
- Aries claimed ViewQwest refused to return IT equipment after a demand letter.
- ViewQwest claimed it received the equipment from Fiberail under a contract.
- Aries bought and paid for the equipment from the original supplier.
- ViewQwest eventually returned the equipment before trial, without prejudice.
- ViewQwest consented to interlocutory judgment for damages to be assessed.
- Aries sought an account of profits or disgorgement of profits.
- ViewQwest believed it was entitled to use the equipment under its contract with Fiberail.
5. Formal Citations
- Aries Telecoms (M) Bhd v ViewQwest Pte Ltd (Fiberail Sdn Bhd, third party), Suit No 860 of 2013, [2017] SGHC 124
6. Timeline
| Date | Event |
|---|---|
| Aries demanded the return of the equipment from ViewQwest. | |
| ViewQwest replied to say that it had received the equipment from Fiberail. | |
| Aries wrote to Fiberail. | |
| Fiberail replied to say that the equipment did not belong to it and Aries was to liaise directly with ViewQwest to reclaim the equipment. | |
| ViewQwest obtained a letter from Fiberail to say that the equipment was supplied to ViewQwest to establish an initial interconnection between Fiberail and ViewQwest. | |
| The equipment was finally returned to Aries. | |
| Trial commenced. | |
| Trial adjourned. | |
| Second tranche of trial commenced. | |
| ViewQwest consented to interlocutory judgment being entered against it for damages to be assessed. | |
| Interlocutory judgment granted in favour of Aries against ViewQwest. | |
| Affidavit of Troy Yeo Siew Chye dated. | |
| Plaintiff’s written submissions dated. | |
| Summons 5786 was heard. | |
| Court decided that Aries was not entitled to claim an account of profits from ViewQwest nor an order for ViewQwest to disgorge its profits from the use of the equipment. Court also decided that Aries was not entitled to punitive, exemplary or aggravated damages. | |
| Aries filed a notice of appeal to the Court of Appeal against the 7 February 2017 Order. | |
| Judgment Date |
7. Legal Issues
- Disgorgement of Profits
- Outcome: The court held that Aries was not entitled to disgorgement of profits from ViewQwest.
- Category: Substantive
- Related Cases:
- [1952] 2 QB 246
- [2013] 4 SLR 1317
- Punitive Damages
- Outcome: The court held that Aries was not entitled to punitive, exemplary or aggravated damages from ViewQwest.
- Category: Substantive
8. Remedies Sought
- Account of Profits
- Disgorgement of Profits
- Punitive Damages
- Exemplary Damages
- Aggravated Damages
9. Cause of Actions
- Conversion
10. Practice Areas
- Commercial Litigation
11. Industries
- Telecommunications
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Strand Electric and Engineering Co Ltd v Brisford Entertainments Ltd | Queen's Bench | Yes | [1952] 2 QB 246 | England and Wales | Discussed in relation to the user principle and the possibility of awarding damages for profits gained by a tortfeasor from the detention of property. |
| ACES System Development Pte Ltd v Yenty Lily (trading as Access International Services) | Court of Appeal | Yes | [2013] 4 SLR 1317 | Singapore | Discussed in relation to the user principle and the possibility of awarding damages for profits gained by a tortfeasor from the detention of property. |
| Aries Telecoms (M) Bhd v ViewQwest Pte Ltd (Fiberail Sdn Bhd, third party) | High Court | Yes | [2017] SGHC 83 | Singapore | Reference to a related judgment. |
| PH Hydraulics & Engineering Pte Ltd v Airtrust (Hong Kong) Ltd and another appeal | Court of Appeal | Yes | [2017] SGCA 26 | Singapore | Cited for the principle that punitive damages are also referred to as exemplary damages. |
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 |
15. Key Terms and Keywords
15.1 Key Terms
- Conversion
- Disgorgement of Profits
- Interlocutory Judgment
- Letter of Demand
- IT Equipment
15.2 Keywords
- Conversion
- Disgorgement of Profits
- Punitive Damages
- Singapore
- Contract
- Aries Telecoms
- ViewQwest
16. Subjects
- Contract Law
- Tort Law
- Remedies
- Damages
17. Areas of Law
- Contract Law
- Tort Law
- Conversion