Parakou Shipping v Liu Cheng Chan: Costs Allocation After Breach of Fiduciary Duty Claims

In a suit brought by Parakou Shipping Pte Ltd (In Liquidation) against Liu Cheng Chan, Chik Sau Kam, Liu Por, Yang Jianguo, Parakou Investment Holdings Pte Ltd, and Parakou Shipmanagement Pte Ltd, the High Court of Singapore addressed the allocation of costs following a judgment where the plaintiff did not succeed in all claims. The court determined the percentage of costs each defendant was liable for, considering the success of the claims against each. The court also addressed costs arising from interlocutory applications, including a Mareva injunction. The court ordered varying percentages of the plaintiff's costs to be paid by the defendants, and addressed costs related to interlocutory applications.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Costs orders made against the defendants, with varying percentages of liability assigned based on the success of claims against each defendant.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Costs allocation after Parakou Shipping's claims against defendants for breaches of fiduciary duty and asset stripping. Court determines cost liabilities.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
PARAKOU INVESTMENT HOLDINGS PTE LTDDefendantCorporationLostLost
PARAKOU SHIPMANAGEMENT PTE LTDDefendantCorporationLostLost
PARAKOU SHIPPING PTE LTD (IN LIQUIDATION)PlaintiffCorporationPartial SuccessPartial
LIU PORDefendantIndividualLostLost
YANG JIANGUODefendantIndividualLostLost
CHIK SAU KAMDefendantIndividualLostLost
LIU CHENG CHANDefendantIndividualLostLost

3. Judges

Judge NameTitleDelivered Judgment
Chua Lee MingJudgeYes

4. Counsels

Counsel NameOrganization
Joan TeeSim Chong LLC
Yap Hao JinSim Chong LLC
Yu KexinAllen & Gledhill LLP
Kenneth Lim Tao ChungAllen & Gledhill LLP
Chua XinyingAllen & Gledhill LLP
Yeo Kok Quan NigelAllen & Gledhill LLP
Siraj OmarPremier Law LLC
Premalatha SilwarajuPremier Law LLC
Lee Sien Liang JosephLVM Law Chambers LLC
Lok Vi MingLVM Law Chambers LLC
Chan Junhao, JustinLVM Law Chambers LLC

4. Facts

  1. The plaintiff claimed the defendants orchestrated transactions to strip its assets.
  2. The plaintiff brought claims based on breaches of fiduciary duties and statutory duties.
  3. The plaintiff brought claims based on breaches of trust.
  4. The plaintiff brought claims based on liability to account as constructive trustees.
  5. The plaintiff brought claims based on lifting of the corporate veil.
  6. The plaintiff brought claims based on undervalued transactions.
  7. The plaintiff did not succeed in all of its claims against each of the defendants.

5. Formal Citations

  1. Parakou Shipping Pte Ltd (in liquidation) v Liu Cheng Chan and others, Suit No 434 of 2014 (Summons No 1040 of 2017), [2017] SGHC 91

6. Timeline

DateEvent
Suit filed in Suit No 434 of 2014
Mareva injunction granted against the defendants.
Stay of Mareva Order granted.
Mareva Order set aside.
Judgment delivered in Parakou Shipping Pte Ltd (In Liquidation) v Liu Cheng Chan and others [2017] SGHC 15.
Hearing on the question of costs.
Clarification regarding disbursements made.
Grounds of decision issued.

7. Legal Issues

  1. Allocation of Costs
    • Outcome: The court determined the percentage of costs each defendant was liable for, considering the success of the claims against each.
    • Category: Procedural
  2. Entitlement to Indemnity Costs
    • Outcome: The court did not award costs on an indemnity basis.
    • Category: Procedural
  3. Costs for Multiple Solicitors
    • Outcome: The court dismissed the plaintiff's application for a certificate for costs for three solicitors.
    • Category: Procedural

8. Remedies Sought

  1. Costs
  2. Mareva Injunction

9. Cause of Actions

  • Breach of Fiduciary Duty
  • Breach of Statutory Duty
  • Breach of Trust
  • Liability to Account as Constructive Trustee
  • Undervalued Transactions

10. Practice Areas

  • Commercial Litigation
  • Insolvency Litigation

11. Industries

  • Shipping

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Parakou Shipping Pte Ltd (In Liquidation) v Liu Cheng Chan and othersHigh CourtYes[2017] SGHC 15SingaporeRefers to the main judgment where the facts, issues, findings, and decisions are set out.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Rules of Court (Cap 322, R 5, 2014 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Costs
  • Disbursements
  • Party and Party Costs
  • Indemnity Costs
  • Mareva Injunction
  • Interlocutory Applications
  • Certificate for Costs
  • Liquidation
  • Fiduciary Duties

15.2 Keywords

  • costs
  • disbursements
  • fiduciary duty
  • liquidation
  • Mareva injunction
  • Singapore High Court

17. Areas of Law

Area NameRelevance Score
Costs95
Civil Practice75
Winding Up60
Insolvency Law60
Fiduciary Duties40
Company Law40
Contract Law10
Commercial Disputes10
Injunctions10
Arbitration10
Misrepresentation10
Fraud and Deceit10
Trust Law10

16. Subjects

  • Civil Procedure
  • Costs
  • Corporate Law
  • Insolvency Law