Law Beng Chong Gary v The Wellness Group Pte Ltd: Contractual Terms & Termination Agreement
In Law Beng Chong Gary v The Wellness Group Pte Ltd, the High Court of Singapore, on 17 October 2017, dismissed the plaintiff's action. The court construed a termination agreement and determined that the 2007 Employment Letter had been terminated, and that the parties had been discharged and released from the obligations contained therein. The plaintiff's claim was based on the 2007 Employment Letter. The plaintiff has filed an appeal against the decision.
1. Case Overview
1.1 Court
High Court of Singapore1.2 Outcome
Plaintiff's action dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The court construed a termination agreement, determining that a prior employment letter was terminated, dismissing the plaintiff's action. The plaintiff's appeal was filed.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| The Wellness Group Pte Ltd | Defendant | Corporation | Judgment for Defendant | Won | |
| Law Beng Chong Gary | Plaintiff | Individual | Action Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Hoo Sheau Peng | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Chua Sui Tong | Rev Law LLC |
| Koh Swee Hua Eddie | S H Koh & Co |
4. Facts
- Plaintiff was the Chief Operating Officer of the defendant from 2007 to 2011.
- The 2007 Employment Letter included a stock option scheme for the plaintiff.
- Plaintiff's employment was transferred to TWG Tea in 2008, with the 2007 Employment Letter terms continuing to apply.
- In 2011, the plaintiff, defendant, and TWG Tea signed a Termination Agreement.
- The Termination Agreement included a profit-sharing scheme for the plaintiff at TWG Tea.
- TWG Tea later decided to replace the profit-sharing scheme with a new incentive scheme.
- Plaintiff claimed entitlement to shares under the stock option scheme in the 2007 Employment Letter.
5. Formal Citations
- Law Beng Chong Gary v The Wellness Group Pte Ltd, Suit No 221 of 2017(Summons No 2331 of 2017), [2017] SGHC 254
6. Timeline
| Date | Event |
|---|---|
| Employment letter between the parties signed | |
| Plaintiff became Chief Operating Officer of the defendant | |
| Plaintiff's employment transferred to TWG Tea | |
| Termination Agreement signed | |
| New letter of employment issued to plaintiff by TWG Tea | |
| First instalment of ex gratia payment made | |
| Final instalment of ex gratia payment made | |
| TWG Tea proposed new incentive scheme | |
| TWG Tea informed plaintiff of decision to lapse profit sharing scheme | |
| Hearing date | |
| Judgment date |
7. Legal Issues
- Construction of Contractual Terms
- Outcome: The court construed the termination agreement to mean that the 2007 Employment Letter was terminated and the parties were discharged from their obligations.
- Category: Substantive
- Sub-Issues:
- Interpretation of termination clauses
- Obligations under termination agreements
- Continuing obligations
- Related Cases:
- [2012] 1 SLR 447
8. Remedies Sought
- Shares in the defendant company
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Food and Beverage
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Ang Tin Yong v Ang Boon Chye and another | High Court | Yes | [2012] 1 SLR 447 | Singapore | Cited for the principles of contractual construction, including ascertaining the intentions of the parties, taking an objective approach, and considering the commercial purpose of the transaction. |
13. Applicable Rules
| Rule Name |
|---|
| O 14 r 12 of the Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 322, R5, 2014 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Termination Agreement
- 2007 Employment Letter
- Stock option scheme
- Profit sharing scheme
- Ex gratia payment
- Corporate Gross Turnover Sales
15.2 Keywords
- contract
- termination
- employment
- stock options
- profit sharing
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Contract Law | 90 |
| Termination | 70 |
| Employment Contracts | 60 |
| Employment Law | 60 |
| Business Litigation | 30 |
| Corporate Law | 20 |
16. Subjects
- Contractual Interpretation
- Employment Contract
- Termination of Contract