Liew Soon Fook Michael v Yi Kai Development: Striking Out Action for Misrepresentation & Breach of Contract over Floor Area Shortfall
Liew Soon Fook Michael and Wong Siew Ying Esther, the plaintiffs, sued Yi Kai Development Pte Ltd, the defendant, in the High Court of Singapore, alleging misrepresentation and breach of contract due to a shortfall in the floor area of a cluster house purchased from the defendant. The plaintiffs claimed that the defendant promised a roof garden, which was not provided. The defendant argued that the transaction was based on strata area, not floor area. The Assistant Registrar struck out the action, and Judicial Commissioner Hoo Sheau Peng dismissed the plaintiffs' appeal, finding the misrepresentation claim time-barred and the breach of contract claim unsustainable. The plaintiffs' appeal was dismissed with costs.
1. Case Overview
1.1 Court
High Court of Singapore1.2 Outcome
Appeal Dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Plaintiffs' claim against developer for misrepresentation and breach of contract due to floor area shortfall in a cluster house was struck out. The court found the misrepresentation claim time-barred and the breach of contract claim unsustainable.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Liew Soon Fook Michael | Plaintiff, Appellant | Individual | Appeal Dismissed | Lost | |
| Wong Siew Ying Esther @ Gui Mee Eng | Plaintiff, Appellant | Individual | Appeal Dismissed | Lost | |
| Yi Kai Development Pte Ltd | Defendant, Respondent | Corporation | Appeal Dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Hoo Sheau Peng | Judicial Commissioner | Yes |
4. Counsels
4. Facts
- Plaintiffs purchased a cluster house from the defendant, Yi Kai Development Pte Ltd.
- Plaintiffs claimed a shortfall in floor area due to the absence of a roof garden.
- Defendant contended the transaction was based on strata area, including the sloping roof structure.
- The brochure showed artist's impressions of cluster houses with sloping roof structures.
- The SPA stated an estimated strata floor area of 478 square meters.
- The final survey certified the strata area of the unit to be 472 square meters.
- The unit had a sloping roof structure instead of a roof garden.
5. Formal Citations
- Liew Soon Fook Michael and another v Yi Kai Development Pte Ltd, Suit No 219 of 2016(Registrar’s Appeal No 315 of 2016), [2017] SGHC 88
6. Timeline
| Date | Event |
|---|---|
| Option to purchase granted to Plaintiffs | |
| YKD's lawyers sent SPA and other documents to Plaintiffs' lawyers | |
| Plaintiffs exercised the Option and entered into the SPA | |
| Temporary occupation permit issued for the Unit | |
| SLA approved the final strata title survey plan | |
| SLA issued the subsidiary strata certificate of title | |
| Certificate of statutory completion issued | |
| Plaintiffs obtained a survey report of the Unit | |
| Plaintiffs commenced the action against YKD | |
| YKD filed the striking out application | |
| Appeal Dismissed |
7. Legal Issues
- Breach of Contract
- Outcome: The court held that there was no breach of contract because the transaction was based on strata area, not floor area, and there was no term in the SPA providing for a roof garden.
- Category: Substantive
- Negligent Misrepresentation
- Outcome: The court found the misrepresentation claim to be time-barred under the Limitation Act. The court also expressed doubts as to the sustainability of the claim even if it were not time-barred.
- Category: Substantive
- Striking Out
- Outcome: The court upheld the decision to strike out the action under Order 18 Rule 19(1)(b) of the Rules of Court for being frivolous or vexatious and under Order 18 Rule 19(1)(d) for being an abuse of the process of the Court.
- Category: Procedural
- Limitation Period
- Outcome: The court held that the limitation period for the misrepresentation claim had expired, as the cause of action accrued when the SPA was entered into, more than six years before the action was commenced.
- Category: Procedural
8. Remedies Sought
- Monetary Damages
- Interest
- Costs
9. Cause of Actions
- Negligent Misrepresentation
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Real Estate Litigation
11. Industries
- Construction
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| The Bunga Melati 5 | Court of Appeal | Yes | [2012] 4 SLR 546 | Singapore | Cited for the legal principles on striking out pleadings that are plainly and obviously unsustainable. |
| Lian Kok Hong v Ow Wah Foong | Unknown | Yes | [2008] 4 SLR(4) 165 | Singapore | Cited for the principle that in a tort claim requiring proof of damage, the cause of action accrues when the damage occurs. |
| Green v Eadie | Unknown | Yes | [2012] 2 WLR 510 | Unknown | Cited for the principle that in a negligent misrepresentation claim, damage occurs when the contract is entered into. |
| Fortune Realty Pte Ltd v Lim Sai Kang | High Court | No | [2002] SGHC 59 | Singapore | Cited regarding the application of the contra proferentem rule in interpreting ambiguous contract terms, but distinguished on the facts. |
| Zurich Insurance (Singapore) Pte Ltd v B-Gold Interior Design & Construction Pte Ltd | Court of Appeal | Yes | [2008] 3 SLR(R) 1029 | Singapore | Cited for the requirements for admissibility and use of extrinsic evidence to aid in the interpretation of a contract. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 322, R5, 2014 Rev Ed) | Singapore |
| Building Management and Strata Management Act (Cap 30C, 2004 Ed) | Singapore |
| Land Titles (Strata) Act (Cap 158, Rev Ed 2009) | Singapore |
| Limitation Act (Cap 163, 1996 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Strata Area
- Floor Area
- Cluster House
- Roof Garden
- Sloping Roof Structure
- Strata Title
- Striking Out
- Misrepresentation
- Breach of Contract
15.2 Keywords
- Strata area
- Floor area
- Cluster house
- Misrepresentation
- Breach of contract
- Striking out
- Singapore
- Real estate
- Property
- Roof garden
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Striking out | 90 |
| Breach of Contract | 80 |
| Misrepresentation | 75 |
| Civil Practice | 75 |
| Contract Law | 70 |
| Limitation | 60 |
| Strata Title | 60 |
| Property Law | 50 |
| Floor Area | 50 |
| Conveyancing | 40 |
| Conveyance | 40 |
16. Subjects
- Contract Law
- Real Estate Law
- Civil Procedure
- Strata Titles
- Misrepresentation