Biofuel Industries v V8 Environmental: Biomass Supply Agreement Termination Dispute
Biofuel Industries Pte Ltd, a waste disposal service provider, sued V8 Environmental Pte Ltd, a waste management service provider, in the High Court of Singapore, regarding the termination of a Biomass Supply Agreement (BSA). Biofuel claimed V8 wrongfully terminated the BSA and sought payment for unpaid invoices and damages for breach of contract. Justice Woo Bih Li found that V8's termination of the BSA was wrongful and awarded Biofuel damages for the unpaid invoices and shortfall in deliveries.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Biofuel Industries sues V8 Environmental for wrongful termination of a Biomass Supply Agreement. The court finds V8's termination wrongful and awards damages to Biofuel.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Biofuel Industries Pte Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | G Radakrishnan, Ramachandran Shiever Subramanium |
| V8 Environmental Pte Ltd | Defendant | Corporation | Judgment against Defendant | Lost | Kok Chee Yeong Jared, Jared Ravin Dass |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| G Radakrishnan | Grays LLC |
| Ramachandran Shiever Subramanium | Grays LLC |
| Kok Chee Yeong Jared | Rajah & Tann Singapore LLP |
| Jared Ravin Dass | Rajah & Tann Singapore LLP |
4. Facts
- Biofuel and V8 entered into a Biomass Supply Agreement (BSA) where V8 appointed Biofuel as its exclusive Recycling Plant Facilitator.
- V8 undertook to supply a minimum of 2,000 metric tons of biomass per month to Biofuel.
- V8 purported to terminate the BSA, alleging Biofuel had repudiated the agreement.
- Biofuel claimed V8's termination was wrongful and sought payment for unpaid invoices and damages for breach of contract.
- V8 alleged Biofuel attempted to increase prices, rejected deliveries, and imposed a 100mm requirement for wood chips.
- The court found that the 100mm requirement was not an applicable term of the BSA.
- The court found that V8 was not entitled to terminate the BSA on 10 April 2015.
5. Formal Citations
- Biofuel Industries Pte Ltd v V8 Environmental Pte Ltd, HC/Suit No 468 of 2015, [2017] SGHC 184
6. Timeline
| Date | Event |
|---|---|
| Derrick Yu of V8 signed the Biomass Supply Agreement | |
| Biomass Supply Agreement commenced | |
| V8 sent a letter to Biofuel purporting to terminate the Biomass Supply Agreement | |
| Deliveries of waste wood continued until this date | |
| V8's initial pleading | |
| Trial began | |
| Trial continued | |
| Trial continued | |
| Trial continued | |
| Trial continued | |
| Judgment reserved | |
| Judgment issued |
7. Legal Issues
- Wrongful Termination of Contract
- Outcome: The court held that V8's termination of the BSA was wrongful.
- Category: Substantive
- Repudiation of Contract
- Outcome: The court found that Biofuel's conduct did not amount to a repudiation of the BSA.
- Category: Substantive
8. Remedies Sought
- Payment of specific invoices
- Damages for breach of contract
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Waste Disposal
- Waste Management
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| San International Pte Ltd v Keppel Engineering Pte Ltd | Court of Appeal | Yes | [1998] 3 SLR(R) 458 | Singapore | Cited for the law on repudiatory breach or renunciation of contract. |
| Alliance Concrete Singapore Pte Ltd v Sato Kogyo (S) Pte Ltd | Court of Appeal | Yes | [2014] 3 SLR 857 | Singapore | Cited with approval for the principles regarding repudiation of contract. |
| Ng Chee Weng v Lim Jit Ming Bryan and another and another appeal | N/A | Yes | [2015] 3 SLR 92 | Singapore | Cited with approval for the principles regarding repudiation of contract. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Biomass Supply Agreement
- Biomass
- Waste wood
- Wood chips
- Repudiation
- Termination
- 100mm requirement
- Recycling Plant Facilitator
15.2 Keywords
- Biomass
- Waste disposal
- Contract termination
- Repudiation
- Singapore High Court
16. Subjects
- Contract Law
- Waste Management
- Biomass Supply
17. Areas of Law
- Contract Law
- Termination
- Repudiation of contract