DNKH Logistics Pte Ltd v Liberty Insurance Pte Ltd: Fire Insurance Policy Coverage Dispute

In DNKH Logistics Pte Ltd v Liberty Insurance Pte Ltd, DNKH Logistics sought a declaration and order regarding its fire insurance policy with Liberty Insurance in the High Court of Singapore on 9 July 2018. DNKH sought a declaration that the containers, goods and/or stocks belonging to DNKH’s customers and affected by the Fire are covered by the Fire Policy and an order that Liberty Insurance indemnify DNKH for all costs, expenses and damages incurred and/or to be incurred by DNKH in respect of the claims of DNKH’s customers arising out of the Fire. The court made no order on the application, finding that the real controversies required factual assessment and that a pure construction of the policy terms would be premature.

1. Case Overview

1.1 Court

High Court of Singapore

1.2 Outcome

No order made on the Application

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

DNKH Logistics sought a declaration on fire insurance policy coverage for customer goods. The court declined, citing the need for factual assessment.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
DNKH Logistics Pte LtdApplicantCorporationApplication DismissedLost
Liberty Insurance Pte LtdRespondentCorporationWonWon

3. Judges

Judge NameTitleDelivered Judgment
Belinda Ang Saw EanJudgeYes

4. Counsels

Counsel NameOrganization
N K RajarhStraits Law Practice LLC
Daryl CheongStraits Law Practice LLC
Michael EuUnited Legal Alliance LLC

4. Facts

  1. DNKH Logistics purchased a fire insurance policy from Liberty Insurance.
  2. The Fire Policy covered the period from 1 January 2015 to 31 December 2015.
  3. The Fire Policy included coverage for customers’ stock (other than stocks already insured by customers).
  4. A fire occurred at DNKH’s warehouse in August 2015, damaging customers’ goods.
  5. DNKH received claims from its customers for damages resulting from the fire.
  6. Liberty Insurance only agreed to indemnify DNKH in respect of one customer's claim.
  7. DNKH sought a declaration that the Fire Policy covered the containers, goods and/or stocks belonging to DNKH’s customers and affected by the Fire.

5. Formal Citations

  1. DNKH Logistics Pte Ltd v Liberty Insurance Pte Ltd, HC/Originating Summons No 1279 of 2017, [2018] SGHC 187

6. Timeline

DateEvent
Fire-Warehousing Risk Insurance Policy No SD1500369/FFW/R3/E0 issued
Fire Policy coverage period begins
Fire at the Warehouse
Fire Policy coverage period ends
Application filed
Court makes no order on the Application
Full grounds of decision provided

7. Legal Issues

  1. Interpretation of Insurance Policy
    • Outcome: The court found that the construction of the policy required consideration of facts and declined to make a declaration based purely on legal interpretation.
    • Category: Substantive
    • Sub-Issues:
      • Ambiguity of policy terms
      • Exclusion clauses
      • Coinsurance
    • Related Cases:
      • [2008] 3 SLR(R) 1029
  2. Declaratory Relief
    • Outcome: The court declined to grant declaratory relief, finding that the issues were fact-sensitive and the factual matrix had not yet crystallized.
    • Category: Procedural
    • Sub-Issues:
      • Real interest
      • Real controversy
      • Enforceable right
    • Related Cases:
      • [2006] 1 SLR(R) 112
      • [1996] 2 SLR(R) 80
      • [2012] 4 SLR 476
      • [2013] 4 SLR 1
      • [2009] EWHC 1097 (Admin)

8. Remedies Sought

  1. Declaratory Judgment
  2. Indemnification

9. Cause of Actions

  • Breach of Contract
  • Declaration of Rights

10. Practice Areas

  • Insurance Coverage
  • Commercial Litigation

11. Industries

  • Logistics
  • Insurance

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Zurich Insurance (Singapore) Pte Ltd v B-Gold Interior Design & Construction Pte LtdHigh CourtYes[2008] 3 SLR(R) 1029SingaporeCited for the proposition that the construction of a contract must be based on an holistic approach and must be informed by the surrounding circumstances or external context.
Karaha Bodas Co LLC v Pertamina Energy Trading Ltd and another appealCourt of AppealYes[2006] 1 SLR(R) 112SingaporeCited for the requirements that must be satisfied before the court grants declaratory relief.
Salijah bte Ab Latef v Mohd Irwan bin Abdullah TeoHigh CourtYes[1996] 2 SLR(R) 80SingaporeCited for the requirements that must be satisfied before the court grants declaratory relief.
Tan Eng Hong v Attorney-GeneralCourt of AppealYes[2012] 4 SLR 476SingaporeCited for the three basic propositions for declaratory relief.
Vellama d/o Marie Muthu v Attorney-GeneralCourt of AppealYes[2013] 4 SLR 1SingaporeCited for the three basic propositions for declaratory relief.
R (McKenzie) v Waltham Forest London Borough CouncilEnglish High CourtYes[2009] EWHC 1097 (Admin)England and WalesCited as a case where the declaration sought was fact-sensitive and there were no facts before the court.

13. Applicable Rules

Rule Name
Rules of Court
Order 15 rule 16 of the Rules of Court

14. Applicable Statutes

Statute NameJurisdiction
Supreme Court Judicature ActSingapore
s 18 of the Supreme Court Judicature ActSingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Fire Insurance Policy
  • Warehousing Risk
  • Coinsurance
  • Customer's Goods
  • Legal Liability
  • Indemnification
  • Declaration
  • Risk Number 2
  • Originating Summons

15.2 Keywords

  • fire insurance
  • insurance policy
  • warehousing
  • legal liability
  • declaration
  • Liberty Insurance
  • DNKH Logistics

17. Areas of Law

Area NameRelevance Score
Fire Insurance80
Insurance75
Declaratory relief70
Construction of Contract65
Contract Law60
Civil Procedure50
Judgments and Orders40

16. Subjects

  • Insurance
  • Contract Law
  • Civil Procedure
  • Declaratory Judgment