NTUC Foodfare v SIA Engineering: Offer to Settle & Cost Allocation
In NTUC Foodfare Co-operative Ltd v SIA Engineering Co Ltd and another, the Court of Appeal of Singapore addressed the issue of cost allocation following a partially successful appeal by NTUC Foodfare. The central issue was whether costs incurred by the plaintiff before an offer to settle (OTS) should be considered when determining if the judgment obtained was more favorable than the OTS. The court held that such costs should be considered and ultimately awarded costs to NTUC Foodfare, subject to discounts reflecting their partial success in the underlying claim.
1. Case Overview
1.1 Court
Court of Appeal of the Republic of Singapore1.2 Outcome
Appeal allowed in part; costs awarded to the appellant with discounts applied.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
The Court of Appeal addressed whether costs incurred before an offer to settle (OTS) should be considered when determining if a judgment is more favorable than the OTS.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| NTUC Foodfare Co-operative Ltd | Appellant | Corporation | Appeal allowed in part | Partial | |
| SIA Engineering Company Limited | Respondent | Corporation | Appeal partially unsuccessful | Partial | |
| Yap Tee Chuan | Respondent | Individual | Appeal partially unsuccessful | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Sundaresh Menon | Chief Justice | No |
| Steven Chong | Justice of Appeal | Yes |
| Quentin Loh | Judge | No |
4. Counsels
4. Facts
- NTUC Foodfare commenced a suit against SIA Engineering and Yap Tee Chuan.
- The respondents served an offer to settle for S$225,000, inclusive of costs.
- NTUC Foodfare did not accept the offer to settle.
- NTUC Foodfare made a Calderbank Offer for S$176,176.85 after the trial.
- The Court of Appeal found the respondents liable for S$176,176.85 plus interest.
- The offer to settle did not specify an expiry date.
- All affidavits of evidence-in-chief were filed before the offer to settle was served.
5. Formal Citations
- NTUC Foodfare Co-operative Ltd v SIA Engineering Co Ltd and another, Civil Appeal No 207 of 2017, [2018] SGCA 56
6. Timeline
| Date | Event |
|---|---|
| NTUC Foodfare commenced the suit. | |
| Respondents served an offer to settle on NTUC Foodfare. | |
| NTUC Foodfare made a Calderbank Offer to the respondents. | |
| Judgment delivered, holding the respondents liable to NTUC Foodfare. | |
| Judgment reserved. |
7. Legal Issues
- Applicability of Order 22A Rule 9(3) of the Rules of Court
- Outcome: The court held that the offer to settle was valid until the disposal of the appeal, but the judgment was more favorable to the plaintiff once costs were accounted for.
- Category: Procedural
- Sub-Issues:
- Validity of offer to settle
- Favourability of judgment compared to offer to settle
- Determination of Costs
- Outcome: The court awarded costs to the appellant but applied discounts due to their partial success in the underlying claim.
- Category: Procedural
- Sub-Issues:
- Indemnity costs
- Standard costs
- Discount on costs
8. Remedies Sought
- Monetary damages
9. Cause of Actions
- Unspecified claim by NTUC Foodfare
10. Practice Areas
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| NTUC Foodfare Co-operative Ltd v SIA Engineering Co Ltd and another | Court of Appeal | Yes | [2018] SGCA 41 | Singapore | Refers to the previous judgment in the same case regarding the substantive issues of the appeal. |
| Man B&W Diesel S E Asia Pte Ltd and another v PT Bumi International Tankers and another appeal | Court of Appeal | Yes | [2004] 3 SLR(R) 267 | Singapore | Cited for the principle that 'disposal of the claim' refers to the final disposal on appeal. |
| Ram Das V N P v SIA Engineering Co Ltd | Court of Appeal | Yes | [2015] 3 SLR 267 | Singapore | Cited for the principle that 'disposal of the claim' refers to the final disposal on appeal. |
| CCM Industrial Pte Ltd v Uniquetech Pte Ltd | High Court | Yes | [2009] 2 SLR(R) 20 | Singapore | Cited for the interpretation of 'favourable' in the context of offers to settle, emphasizing that all terms of the offer are critical. |
| LK Ang Construction Pte Ltd v Chubb Singapore Pte Ltd (judgment on costs) | High Court | Yes | [2004] 1 SLR(R) 134 | Singapore | Cited for the approach of accounting for the plaintiff's costs up to the date of service of the OTS when examining the favourability requirement. |
| Singapore Airlines Ltd v Tan Shwu Leng | Court of Appeal | Yes | [2001] 3 SLR(R) 439 | Singapore | Discussed in relation to the favourability requirement, but distinguished as the judgment sum already exceeded the settlement sum without accounting for costs. |
| Clarke Beryl Claire (personal representative of the estate of Eugene Francis Clarke, deceased) and others v SilkAir (Singapore) Pte Ltd | Court of Appeal | Yes | [2002] 1 SLR(R) 1136 | Singapore | Discussed in relation to the favourability requirement, but distinguished as the settlement sum significantly exceeded the potential judgment, even accounting for costs. |
| Koh Sin Chong Freddie v Chan Cheng Wah Bernard and others and another appeal | Court of Appeal | Yes | [2013] 4 SLR 629 | Singapore | Cited regarding the principle that costs should be proportionate to the substance or magnitude of the claim. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 322, R 5, 2014 Rev Ed) O 22A r 9(3) | Singapore |
| Rules of Court (Cap 322, R 5, 2014 Rev Ed) O 22A r 3(5) | Singapore |
| State Courts Act (Cap 321, 2007 Rev Ed) ss 39(1) and 39(4) | Singapore |
| Rules of Court O 59 r 27(5) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Offer to settle
- Costs
- Indemnity basis
- Standard basis
- Validity requirement
- Favourability requirement
- Calderbank Offer
- Disposal of the claim
15.2 Keywords
- offer to settle
- costs
- civil procedure
- Singapore
- appeal
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Offer to Settle | 90 |
| Costs | 80 |
| Civil Practice | 75 |
| Civil Procedure | 75 |
| Appeal | 60 |
16. Subjects
- Civil Procedure
- Costs
- Settlement