B2C2 Ltd v Quoine Pte Ltd: Discovery, Confidentiality & Expert Witness in Algorithmic Trading Dispute
In B2C2 Ltd v Quoine Pte Ltd, the Singapore International Commercial Court addressed applications by the Plaintiff, B2C2 Ltd, for the appointment of a single court expert, and by the Defendant, Quoine Pte Ltd, for production of documents. The case concerns a breach of contract and breach of trust claim related to algorithmic trading on Quoine's cryptocurrency exchange platform. The court declined to appoint a single court expert and ordered limited discovery, balancing the need for a fair trial with the protection of the Plaintiff's confidential trading information. The court outlined a process for controlled disclosure of documents and expert reports.
1. Case Overview
1.1 Court
Singapore International Commercial Court1.2 Outcome
The court declined to order the appointment of a single court expert and ordered limited discovery in relation to categories 1-3 of the Defendant's Schedule.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
SICC addresses discovery of confidential algorithmic trading info in B2C2 v Quoine, balancing fair trial rights with trade secret protection. Court declines single expert, orders limited disclosure.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Quoine Pte Ltd | Defendant | Corporation | Application for production of documents granted in part | Partial | |
| B2C2 Ltd | Plaintiff | Corporation | Application for appointment of single court expert denied | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Simon Thorley | International Judge | Yes |
4. Counsels
4. Facts
- Plaintiff, B2C2 Ltd, is an electronic market maker.
- Defendant, Quoine Pte Ltd, operates a cryptocurrency exchange platform.
- A technical glitch occurred on the Defendant's platform.
- Plaintiff placed seven orders to sell ETH for BTC at approximately 250 times the previous market rate.
- The Defendant unilaterally reversed the trades the following day.
- The Plaintiff sued for breach of contract and breach of trust.
- The Defendant raised a defence of unilateral mistake.
5. Formal Citations
- B2C2 Ltd v Quoine Pte Ltd, Suit No 7 of 2017 (Summonses No 4 and 8 of 2018), [2018] SGHC(I) 04
6. Timeline
| Date | Event |
|---|---|
| Judgment handed down dismissing Plaintiff's application for summary judgment. | |
| Plaintiff placed 12,617 ETH/BTC orders, 7 of which are subject to litigation. | |
| Case Management Conference where Defendant indicated intention to issue summons for document production. | |
| Summonses heard by the court at a Case Management Conference. | |
| Judgment issued. |
7. Legal Issues
- Discovery of Confidential Information
- Outcome: The court ordered limited discovery, balancing the need for a fair trial with the protection of the Plaintiff's confidential trading information.
- Category: Procedural
- Sub-Issues:
- Balancing fair trial rights with protection of trade secrets
- Controlled disclosure regimes
- Appointment of Single Court Expert
- Outcome: The court declined to appoint a single court expert, finding it would not save time and costs in this case.
- Category: Procedural
- Sub-Issues:
- Impartiality of expert
- Access to underlying material
- Cost-effectiveness
- Unilateral Mistake
- Outcome: The court held that the Defendant's case on unilateral mistake was a cogent one and justified a more thorough investigation of the facts.
- Category: Substantive
- Sub-Issues:
- Knowledge of the non-mistaken party
- Computer error
- Abnormally high offer price
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Breach of Trust
10. Practice Areas
- Commercial Litigation
- Arbitration
- Discovery
- Expert Witness
- Algorithmic Trading
11. Industries
- Financial Services
- Technology
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Chwee Kin Keong and others v Digilandmall.com Pte Ltd | High Court | Yes | [2005] 1 SLR(R) 502 | Singapore | Cited for the principle that a non-mistaken party is probably aware of the error made by the mistaken party. |
| Chwee Kin Keong and others v Digilandmall.com Pte Ltd | High Court | Yes | [2004] 2 SLR(R) 594 | Singapore | Cited for the observation that mistakes will occur in the course of electronic transmissions due to human interphasing, machine error or a combination of such factors. |
| Warner-Lambert Co v Glaxo Laboratories Ltd | Court of Appeal | Yes | [1975] RPC 354 | England and Wales | Cited for the principle that the court has the task of deciding how justice can be achieved taking into account the rights and needs of the parties when dealing with confidential information. |
| Mobil Oil Australia Ltd v Guina Developments Pty Ltd | Court of Appeal | Yes | [1996] 2 VR 34 | Australia | Cited for the consideration that arises when the party obtaining discovery is a trade rival of the person whose secrets it is proposed should be revealed by discovery and inspection. |
| Diagcor Bioscience Incorporated Ltd v Chan Wai Hon Billy | High Court | Yes | [2015] HKCU 1853 | Hong Kong | Cited for the principles to be considered when dealing with questions of confidentiality in the course of legal proceedings. |
| Koger Inc v O’Donnell | High Court | Yes | [2009] IEHC 385 | Ireland | Cited for the review of relevant authorities regarding disclosure of source code to experts and lawyers but not to a representative of the plaintiffs. |
| Roussel Uclaf v Imperial Chemical Industries plc | Court of Appeal | Yes | [1990] RPC 45 | England and Wales | Cited for the principle that the object to be achieved is that the applicant should have as full degree of disclosure as will be consistent with adequate protection of the secret. |
| Dyson Ltd v Hoover Limited (No.3) | Court of Appeal | Yes | [2002] RPC 42 | England and Wales | Cited for the principle that the onus is on the party seeking to restrict disclosure to justify it and to show why, in all the circumstances, documents should not be shown to the litigant on the other side. |
| Sport Universal SA v ProZone Holdings Ltd | High Court of England and Wales | Yes | [2003] EWHC 204 (Ch) | England and Wales | Cited for the principle that restriction on disclosure of material to be seen only by the experts or legal advisors but not to a limited number of persons in the plaintiffs’ organisation is exceptional. |
| Abbey National Mortgages PLC v Key Surveyors Nationwide Ltd | Court of Appeal | Yes | [1996] 1 WLR 1534 | England and Wales | Cited to support the assertion that Courts should be more willing to order a single court expert where purely factual questions arise. |
| Dyson Ltd v Qualtex (UK) Ltd | Court of Appeal | Yes | [2006] EWCA Civ 166 | England and Wales | Cited to support the assertion that Courts should be more willing to order a single court expert where purely factual questions arise. |
| B2C2 Ltd v Quoine Pte Ltd | Singapore High Court (International) | Yes | [2017] SGHC(I) 11 | Singapore | Cited for the underlying facts of the case and the previous judgment dismissing the application for summary judgment. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 322, R 5, 2014 Rev Ed) | Singapore |
| Order 110 r 17 of the Rules of Court | Singapore |
| Order 40 of the Rules of Court | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Algorithmic Trading
- Cryptocurrency
- Bitcoin
- Ethereum
- Limit Order
- Technical Glitch
- Unilateral Mistake
- Confidential Information
- Discovery
- Court Expert
- Order Book
- Quoter Program
- Force-closed Customers
15.2 Keywords
- Discovery
- Confidentiality
- Expert Witness
- Algorithmic Trading
- Cryptocurrency
- Singapore International Commercial Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Civil Practice | 75 |
| Algorithmic Trading | 65 |
| Breach of Contract | 60 |
| Contract Law | 60 |
| Evidence | 50 |
| Mistake | 50 |
| Currency Exchange Platform | 45 |
| Estoppel | 40 |
| Computers and Software | 30 |
| Arbitration | 30 |
16. Subjects
- Civil Procedure
- Discovery
- Confidentiality
- Expert Evidence
- Algorithmic Trading
- Breach of Contract
- Breach of Trust