Jocelyn Rita v Tan Gark Chong: Breach of Trust, Rental Income, Property Value Diminution
In Jocelyn Rita d/o Lawrence Stanley v Tan Gark Chong, the High Court of Singapore addressed a breach of trust claim brought by Jocelyn Rita against Tan Gark Chong concerning two properties. Jocelyn alleged that Richard failed to rent out the properties and refused to execute an option to purchase for one of them, leading to financial losses. The court, presided over by Audrey Lim JC, found the declaration of trust valid, rejecting Richard's defenses of duress and illegality. The court allowed Jocelyn's claim for loss of rental income regarding the Wajek Property from August 2013 to August 2017, but dismissed her claims related to the Ampang Property, including loss of rental income and diminution in value. The costs of the trial were reserved for determination after the assessment of the loss of rental for the Wajek Property.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Judgment for Plaintiff in part; claim for loss of rental for the Wajek Property allowed, claim for loss of rental and diminution in value of the Ampang Property dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Jocelyn Rita sues Tan Gark Chong for breach of trust regarding two properties. The court found the trust valid, allowing claim for Wajek Property rental loss but dismissing claims for Ampang Property.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Jocelyn Rita d/o Lawrence Stanley | Plaintiff | Individual | Claim allowed in part | Partial | |
| Tan Gark Chong | Defendant | Individual | Claim dismissed in part | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Audrey Lim | Judicial Commissioner | Yes |
4. Counsels
4. Facts
- Jocelyn and Richard were married in 1965.
- The parties purchased the Ampang Property in their joint names in April or May 1990.
- Jocelyn transferred her interest in the Ampang Property to Richard in July 1998.
- The Wajek Property was purchased in Richard’s name in September 1999.
- The Declaration of Trust was executed on 17 April 2012.
- Richard moved out of the Wajek Property on 24 October 2012.
- Richard granted Jocelyn powers of attorney over the properties on 17 August 2017.
5. Formal Citations
- Jocelyn Rita d/o Lawrence Stanley v Tan Gark Chong, Suit No 872 of 2017, [2019] SGHC 125
6. Timeline
| Date | Event |
|---|---|
| Parties were married | |
| Parties purchased the Ampang Property | |
| Jocelyn transferred her interest in the Ampang Property to Richard | |
| Wajek Property was purchased in Richard’s name | |
| Jocelyn became a Singapore citizen | |
| Declaration of Trust executed | |
| Richard moved out of the Wajek Property | |
| Tenant moved out of the Ampang Property | |
| Jocelyn moved to the Ampang Property | |
| Wajek Property became vacant | |
| Richard filed for divorce (First Divorce Proceedings) but this was withdrawn | |
| Richard filed for divorce but this was also withdrawn | |
| Interim judgment granted in final divorce proceedings | |
| Powers of attorney executed for the Properties | |
| Judgment reserved | |
| Judgment delivered | |
| Wajek Property is tenanted out |
7. Legal Issues
- Breach of Trust
- Outcome: The court found that the defendant breached his duty as a trustee to rent out the Wajek Property.
- Category: Substantive
- Sub-Issues:
- Failure to rent out trust property
- Failure to execute option to purchase
- Related Cases:
- [2011] 243 CLR 253
- Duress
- Outcome: The court found that the Declaration of Trust was not vitiated by duress.
- Category: Substantive
- Related Cases:
- [2009] 2 SLR(R) 240
- [2011] 2 SLR 232
- Illegality under the Residential Property Act
- Outcome: The court found that the Declaration of Trust did not contravene the Residential Property Act and was valid.
- Category: Substantive
8. Remedies Sought
- Loss of rental income for the Properties
- Damages for diminution in value of the Ampang Property
9. Cause of Actions
- Breach of Trust
10. Practice Areas
- Trusts
- Real Estate
- Commercial Litigation
11. Industries
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Tam Tak Chuen v Khairul bin Abdul Rahman and others | Singapore Court of Appeal | Yes | [2009] 2 SLR(R) 240 | Singapore | Cited for the principles regarding duress, specifically the requirements to show compulsion of will and illegitimate pressure. |
| E C Investment Holding Pte Ltd v Ridout Residence Pte Ltd and another (Orion Oil Ltd and another, interveners) | Singapore High Court | Yes | [2011] 2 SLR 232 | Singapore | Cited for the principles regarding duress, specifically the requirements to show compulsion of will and illegitimate pressure. |
| BOK v BOL and another | Singapore High Court | Yes | [2017] SGHC 316 | Singapore | Cited and distinguished regarding the application for hearing in camera. |
| Pao On v Lau Yiu Lon | Privy Council | Yes | [1980] AC 614 | England | Cited regarding the relevance of a party's conduct following the entry into an agreement allegedly vitiated by duress. |
| Third World Development Ltd v Atang Latief | Singapore Court of Appeal | Yes | [1990] 1 SLR(R) 96 | Singapore | Cited regarding the relevance of a party's conduct following the entry into an agreement allegedly vitiated by duress. |
| BOM v BOK and another appeal | Singapore Court of Appeal | Yes | [2019] 1 SLR 349 | Singapore | Cited regarding the doctrine of duress and unconscionability, but found to be misplaced in the context of the case. |
| Koh Lau Keow and others v Attorney-General | Singapore High Court | Yes | [2014] 2 SLR 1165 | Singapore | Cited for the principles of construing a trust deed, including considering the text, relevant context, and objective evidence of the settlor's intent. |
| Fong Wai Lyn Carolyn v Kao Chai-Chau Linda and others | Singapore Court of Appeal | Yes | [2017] 4 SLR 1018 | Singapore | Cited for the principle that a recital in a deed can only assist in the construction of the substantive terms of the deed and cannot override or control the operation of the substantive terms where such terms are clear and unambiguous. |
| Ex parte Dawes; In re Moon | Queen's Bench Division | Yes | (1886) 17 QBD 275 | England | Cited for the rules applicable to the construction of an instrument, specifically regarding the relationship between recitals and the operative part. |
| Tan Yok Koon v Tan Choo Suan and another and other appeals | Singapore Court of Appeal | Yes | [2017] 1 SLR 654 | Singapore | Cited for the principle that while the parties were in a fiduciary relationship, the facts and context must be examined to evaluate whether it is possible for the fiduciary duties alleged to arise. |
| Byrnes v Kendle | High Court of Australia | Yes | (2011) 243 CLR 253 | Australia | Cited for the principle that a trustee of an express trust who holds land on trust for an absolute beneficiary is under a duty to let the property and generate income from it. |
| Brudenell-Bruce v Moore | High Court of Justice | Yes | [2014] EWHC 3679 (Ch) | England and Wales | Cited Byrnes v Kendle for the proposition that trustees may be obliged to seek to generate income from land comprised in the trust, in the context of exercising the power of investment. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Residential Property Act (Cap 274, 2009 Rev Ed) | Singapore |
| Supreme Court of Judicature Act (Cap 322, 2007 Rev Ed) | Singapore |
| Stamp Duties Act (Cap 312, 2006 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Declaration of Trust
- Trustee
- Beneficiary
- Ampang Property
- Wajek Property
- Duress
- Illegality
- Residential Property Act
15.2 Keywords
- trust
- property
- rental income
- duress
- illegality
- Singapore
- High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Trust Law | 90 |
| Duress | 60 |
| Illegality | 50 |
| Contract Law | 40 |
| Residential Property Act | 40 |
| Express trustee’s duty | 30 |
| Property Law | 30 |
| Undue Influence | 30 |
| Interpretation of trust deeds | 30 |
| Civil Procedure | 20 |
| Breach of Contract | 20 |
| Mistake | 20 |
| Adverse Possession | 10 |
16. Subjects
- Trusts
- Property
- Family Law