UTOC Engineering v ASK Singapore: Assessment of Damages for Defective Refractory Works
In UTOC Engineering Pte Ltd v ASK Singapore Pte Ltd, the High Court of Singapore addressed the assessment of damages following a finding of liability against ASK Singapore for defective refractory works. UTOC Engineering, contracted by Shell Eastern Petroleum Pte Ltd, engaged ASK Singapore as a specialist contractor. After failures were found in ten furnaces, Shell claimed against UTOC, who then settled with Shell. The court, presided over by Lee Seiu Kin J, assessed damages at $5,024,732.85, considering the settlement agreement and various cost claims.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff; damages assessed at $5,024,732.85.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Assessment of damages for defective refractory works. The court assessed damages at $5,024,732.85 after a settlement agreement with Shell.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| UTOC Engineering Pte Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | |
| ASK Singapore Pte Ltd | Defendant | Corporation | Damages assessed against Defendant | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge | Yes |
4. Counsels
4. Facts
- Plaintiff was engaged by Shell to carry out works for ten furnaces.
- Plaintiff engaged the defendant as a specialist contractor for refractory works.
- Failures were found in all ten furnaces after the works were completed.
- Shell claimed against the plaintiff for costs and expenses.
- Plaintiff reached a settlement agreement with Shell in December 2011.
- The trial was bifurcated with the trial on liability heard in January 2016.
- The defendant’s appeal against this finding was dismissed by the Court of Appeal on 1 December 2016.
5. Formal Citations
- UTOC Engineering Pte Ltd v ASK Singapore Pte Ltd, Suit No 449 of 2013 (Assessment of Damages No 8 of 2017), [2017] SGHC 259
6. Timeline
| Date | Event |
|---|---|
| Plaintiff engaged the defendant as a specialist contractor. | |
| Refractory works were completed. | |
| Furnaces were fired and failures were found. | |
| Plaintiff reached a settlement agreement with Shell. | |
| Rectification works on all ten furnaces were completed. | |
| Suit No 449 of 2013 filed. | |
| Trial on liability heard. | |
| Judgment on liability given in favor of the plaintiff. | |
| Defendant’s appeal against the finding was dismissed by the Court of Appeal. | |
| Trial in AD 8 was heard. | |
| Damages assessed at $5,024,732.85 and judgment given. | |
| Reasons for the judgment given. |
7. Legal Issues
- Assessment of Damages
- Outcome: The court assessed damages at $5,024,732.85.
- Category: Substantive
- Related Cases:
- [2007] 4 SLR(R) 855
- [2015] 5 SLR 1071
- Scope of Settlement Agreement
- Outcome: The court determined the scope of the settlement agreement and whether certain claims fell within it.
- Category: Substantive
- Related Cases:
- [2007] 4 SLR(R) 855
- [2015] 5 SLR 1071
- Manpower Costs
- Outcome: The court allowed the plaintiff's claim for manpower costs.
- Category: Substantive
- Related Cases:
- [2007] EWCA Civ 3
- [2016] 2 SLR 737
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Construction Disputes
11. Industries
- Petrochemical
- Chemical
- Pharmaceutical
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Britestone Pte Ltd v Smith & Associates Far East, Ltd | Court of Appeal | Yes | [2007] 4 SLR(R) 855 | Singapore | Cited for the principle that a reasonable settlement agreement accurately reflects the loss that the plaintiff can claim against the defendant. |
| Anwar Patrick Adrian and another v Ng Chong & Hue LLC and another | Court of Appeal | Yes | [2015] 5 SLR 1071 | Singapore | Cited to affirm the Britestone principle that a reasonable settlement agreement can be used as evidence of actual loss suffered. |
| General Feeds Inc Panama v Slobodna Plovidba Yugoslavia | N/A | Yes | [1999] 1 Lloyd’s Rep 688 | England | Cited for the proposition that the relevant facts are those that the plaintiff could have been expected to rely on at the time it entered into the Settlement Agreement. |
| Siemens Building Technologies FE Ltd v Supershield Ltd | N/A | Yes | [2009] EWHC 927 | England | Cited for the proposition that the relevant facts are those that the plaintiff could have been expected to rely on at the time it entered into the Settlement Agreement. |
| Aerospace Publishing Ltd & anor v Thames Water Utilities Ltd | English Court of Appeal | Yes | [2007] EWCA Civ 3 | England | Cited for the proposition that manpower costs can only be claimed if evidence is produced to properly establish the diversion of staff time and that the diversion caused significant disruption to its business. |
| Astro Nusantara International BV and others v PT Ayunda Prima Mitra and others and another matter | High Court | Yes | [2016] 2 SLR 737 | Singapore | Applied Aerospace Publishing Ltd & anor v Thames Water Utilities Ltd [2007] EWCA Civ 3 regarding the requirements for claiming manpower costs. |
| P & O Developments Ltd v Guy’s and St Thomas’ National Health Service Trust | N/A | Yes | (1998) 62 Con LR 38 | N/A | Cited for the observation that a settlement of a third party claim made with a person not a party to the action may still be relevant and admissible as there is a policy of the court in encouraging settlements. |
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
- Refractory Works
- Settlement Agreement
- Rectification Works
- Furnaces
- Damages Assessment
15.2 Keywords
- refractory
- damages
- construction
- settlement
- furnaces
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Damages | 85 |
| Measure of Damages | 85 |
| Contract Law | 40 |
| Performance of Contract | 20 |
| Summary Judgement | 20 |
| Contracts | 20 |
| Commercial Law | 15 |
16. Subjects
- Construction Dispute
- Contract Law
- Damages