Solomon Alliance Management v Pang Chee Kuan: Breach of Contract & Defamation

In Solomon Alliance Management Pte Ltd v Pang Chee Kuan, heard in the High Court of Singapore on January 26, 2018, with judgment issued on June 18, 2018, Solomon Alliance Management sued Pang Chee Kuan for breach of contract, alleging that Pang diverted sales to other entities. Pang counterclaimed for defamation. The court allowed Solomon Alliance Management's breach of contract claim and dismissed Pang Chee Kuan's counterclaim for defamation.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore High Court case involving Solomon Alliance Management's breach of contract claim against Pang Chee Kuan and Pang's defamation counterclaim. The court allowed the breach of contract claim and dismissed the defamation counterclaim.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Solomon Alliance Management Pte Ltd (formerly known as Solomon Asset Management Pte Ltd)Plaintiff, Defendant in CounterclaimCorporationClaim AllowedWon
Pang Chee KuanDefendant, Plaintiff in CounterclaimIndividualCounterclaim DismissedLost
Chong Chin Fook (Zhang Zhenfu)Defendant in CounterclaimIndividualCounterclaim DismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Aedit AbdullahJudgeYes

4. Counsels

4. Facts

  1. The Defendant was engaged as an independent contractor and Vice President by the Plaintiff.
  2. The Defendant was to market products promoted and sold by the Plaintiff.
  3. The Plaintiff claimed the Defendant diverted sales to other entities.
  4. The Defendant denied the Plaintiff’s claim and advanced a counterclaim for defamation.
  5. The Plaintiff engaged a private investigation company to investigate the Defendant.
  6. The Defendant promoted the Dolphin Product on behalf of entities other than the Plaintiff.
  7. The Plaintiff suspended the Defendant.

5. Formal Citations

  1. Solomon Alliance Management Pte Ltd v Pang Chee Kuan, Suit No 215 of 2015, [2018] SGHC 139
  2. Chong Chin Fook v Solomon Alliance Management Pte Ltd and others and another matter, , [2017] 1 SLR 348

6. Timeline

DateEvent
Contract signed
Sale of Villages Product ceased
Defendant sent email to directors of Plaintiff
Defendant suspended
Plaintiff commenced suit against Defendant
Plaintiff sent letter to recipients
Trial began
Trial continued
Hearing date
Judgment issued

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the Defendant breached the contract.
    • Category: Substantive
  2. Defamation
    • Outcome: The court found that the letter was not defamatory.
    • Category: Substantive
  3. Contractual Interpretation
    • Outcome: The court interpreted the contract to cover products beyond those listed in Schedule A.
    • Category: Substantive
  4. Frustration of Contract
    • Outcome: The court found that the contract was not frustrated.
    • Category: Substantive
  5. Restraint of Trade
    • Outcome: The court found that the restraint of trade clauses were enforceable.
    • Category: Substantive
  6. Admissibility of Evidence
    • Outcome: The court found that the video evidence, transcripts, and reports were admissible.
    • Category: Procedural

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Defamation

10. Practice Areas

  • Commercial Litigation

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Chong Chin Fook v Solomon Alliance Management Pte Ltd and others and another matterCourt of AppealYes[2017] 1 SLR 348SingaporeCited regarding Desmond Chong's control of the suit on behalf of the Plaintiff.
Y.E.S. F&B Group Pte Ltd v Soup Restaurant Singapore Pte Ltd (formerly known as Soup Restaurant (Causeway Point) Pte Ltd)Court of AppealYes[2015] 5 SLR 1187SingaporeCited for the principle that contractual interpretation requires assessment of both text and context.
Ngee Ann Development Pte Ltd v Takashimaya Singapore LtdCourt of AppealYes[2017] 2 SLR 627SingaporeCited for the principle that the starting point of contractual interpretation is the text of the agreement.
Browne v DunnN/AYes(1893) 6 R 67N/ACited regarding the rule that arguments not presented during cross-examination cannot be considered.
PT Prima International Development v Kempinski Hotels SA and other appealsCourt of AppealYes[2012] 4 SLR 98SingaporeCited for the principle that pleadings should outline a party's case to inform the court and opponent.
SIC College of Business and Technology Pte Ltd v Yeo Poh Siah and othersCourt of AppealYes[2016] 2 SLR 118SingaporeCited for the principle that courts should not adopt an overly formalistic approach to pleadings.
Xia Zhengyan v Geng ChangqingN/AYes[2015] 3 SLR 732SingaporeCited for the proposition that strict construction should not be applied where a contract is drafted by a layperson.
Hewlett-Packard Singapore (Sales) Pte Ltd v Chin Shu Hwa CorinnaCourt of AppealYes[2016] 2 SLR 1083SingaporeCited regarding the use of subsequent conduct in contractual interpretation.
Centre for Laser and Aesthetic Medicine Pte Ltd v GPK Clinic (Orchard) Pte Ltd and others and another appealCourt of AppealYes[2018] 1 SLR 180SingaporeCited regarding the relevance of subsequent conduct in contractual interpretation.
Zurich Insurance (Singapore) Pte Ltd v B-Gold Interior Design & Construction Pte LtdN/AYes[2008] 3 SLR(R) 1029SingaporeCited regarding the requirements for considering subsequent conduct in contract interpretation.
Sembcorp Marine Ltd v PPL Holdings Pte Ltd and another and another appealCourt of AppealYes[2013] 4 SLR 193SingaporeCited regarding the requirements for considering subsequent conduct in contract interpretation.
Gay Choon Ing v Loh Sze Ti Terence Peter and another appealN/AYes[2009] 2 SLR(R) 332SingaporeCited regarding the use of subsequent conduct in contractual interpretation.
Alliance Concrete Singapore Pte Ltd v Sato Kogyo (S) Pte LtdN/AYes[2014] 3 SLR 857SingaporeCited regarding the requirements for frustration of contract.
Edwinton Commercial Corporation, v Tsavliris Russ (Worldwide Salvage & Towage) Ltd (The Sea Angel)English Court of AppealYes[2007] 2 Lloyd’s Rep 517England and WalesCited regarding the multi-factorial approach to frustration of contract.
Man Financial (S) Pte Ltd (formerly known as E D & F Man International (S) Pte Ltd) v Wong Bark Chuan DavidN/AYes[2008] 1 SLR(R) 663SingaporeCited regarding the requirements for upholding a restraint of trade clause.
National Aerated Water Co Pte Ltd v Monarch Co, IncN/AYes[2000] 1 SLR(R) 74SingaporeCited regarding the balancing of freedom to contract and freedom to trade in restraint of trade clauses.
Jet Holding Ltd and others v Cooper Cameron (Singapore) Pte Ltd and another and other appealsN/AYes[2006] 3 SLR(R) 769SingaporeCited regarding the admissibility of video evidence.
Soon Peck Wah v Woon Che ChyeN/AYes[1997] 3 SLR(R) 430SingaporeCited regarding the rationale for the hearsay principle.
Gabriel Peter & Partners (suing as a firm) v Wee Chong Jin and othersN/AYes[1997] 3 SLR(R) 649SingaporeCited regarding the requirements for defamation.
Loh Siew Hock and others v Lang Chin NgauN/AYes[2014] 4 SLR 1117SingaporeCited regarding the requirements for defamation.
Golden Season Pte Ltd and others v Kairos Singapore Holdings Pte Ltd and anotherN/AYes[2015] 2 SLR 751SingaporeCited regarding the requirements for defamation.
Microsoft Corp and others v SM Summit Holdings Ltd and another and other appealsN/AYes[1999] 3 SLR(R) 465SingaporeCited regarding the objective test for assessing the meaning of defamatory words.

13. Applicable Rules

Rule Name
Rules of Court (Cap 322, R 5, 2014 Rev Ed)

14. Applicable Statutes

Statute NameJurisdiction
Companies Act (Cap 50, 2006 Rev Ed)Singapore
Evidence Act (Cap 97, 1997 Rev Ed)Singapore
Securities and Futures Act (Cap 289, 2006 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Independent Contractor
  • Vice President
  • Non-Compete Clause
  • Diversion of Sales
  • Restraint of Trade
  • Dolphin Product
  • Villages Product
  • Private Investigation
  • Defamatory Statement

15.2 Keywords

  • Contract
  • Breach
  • Defamation
  • Singapore
  • High Court
  • Commercial
  • Litigation

17. Areas of Law

16. Subjects

  • Contract Law
  • Defamation
  • Civil Litigation