Thio Keng Thay v Sandy Island Pte Ltd: Construction Defects, Breach of Contract, Defamation
In Thio Keng Thay v Sandy Island Pte Ltd, the Singapore High Court addressed a claim by Thio Keng Thay against Sandy Island Pte Ltd, the developer, for construction defects in a luxury bungalow. The court found Sandy Island Pte Ltd liable for breach of contract due to the defects. However, it also found Thio Keng Thay in breach of the defects liability clause for impeding rectification works. The court awarded nominal damages of $1,000 to Sandy Island Pte Ltd on its defamation counterclaim. The quantum of damages for the defects will be determined in a second trial tranche.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Judgment for Plaintiff on breach of contract; Nominal damages awarded to Defendant on defamation counterclaim.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case involving construction defects in a luxury bungalow, breach of contract, and a defamation counterclaim. Nominal damages awarded for defamation.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Thio Keng Thay | Plaintiff, Defendant | Individual | Breach of contract claim allowed in part, Defamation counterclaim lost | Partial, Lost | Cavinder Bull SC, Daniel Cai, Kelly Lua |
| Sandy Island Pte Ltd | Defendant, Plaintiff | Corporation | Breach of contract claim lost in part, Defamation counterclaim allowed | Partial, Won | Lok Vi Ming SC, Joseph Lee, Tang Jin Sheng, Qabir Singh Sandhu, Chiam Yunxin |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Cavinder Bull SC | Drew & Napier LLC |
| Daniel Cai | Drew & Napier LLC |
| Kelly Lua | Drew & Napier LLC |
| Lok Vi Ming SC | LVM Law Chambers LLC |
| Joseph Lee | LVM Law Chambers LLC |
| Tang Jin Sheng | LVM Law Chambers LLC |
| Qabir Singh Sandhu | LVM Law Chambers LLC |
| Chiam Yunxin | LVM Law Chambers LLC |
4. Facts
- The plaintiff purchased a bungalow from the defendant, a property developer, for $14.32 million.
- The property suffered from numerous defects, including water seepage, rain ingress, and an irregularly designed staircase.
- The plaintiff sent multiple defects lists to the defendant between April 2012 and February 2013.
- The defendant provided method statements for rectification works, which the plaintiff rejected.
- The plaintiff engaged JTA Construction to perform rectification works after a second tender exercise.
- The lifts in the property did not comply with the applicable regulations at the time of construction.
- The plaintiff made statements to The Straits Times alleging serious flaws in the property and questioning the defendant's ability to rectify them.
5. Formal Citations
- Thio Keng Thay v Sandy Island Pte Ltd, Suit No 1073 of 2016, [2019] SGHC 175
6. Timeline
| Date | Event |
|---|---|
| Sale and purchase agreement signed | |
| Temporary occupation permit issued by Building and Construction Authority | |
| Notice of vacant possession received by plaintiff | |
| Plaintiff took possession of the property | |
| Plaintiff sent defendant a list of defects | |
| Certificate of Statutory Completion obtained | |
| Parties carried out a joint inspection of the property | |
| Defendant provided a method statement for the rectification works | |
| Defendant sent a schedule for rectification works | |
| Defendant provided another method statement | |
| Defendant offered the plaintiff $130,000 in settlement | |
| Plaintiff sent a supplementary defects list | |
| Plaintiff informed the defendant he was past having the defendant perform the rectification works | |
| Plaintiff provided another supplementary defects list | |
| Tender exercise for the rectification works was carried out by the plaintiff | |
| Plaintiff rejected the defendant’s offer of $130,000 | |
| Plaintiff repeated he was past having the defendant perform the rectification works | |
| Plaintiff sent the defendant the tender report | |
| Defendant wrote that it would not reimburse the plaintiff should he engage Skybolt | |
| Plaintiff's lawyers informed the defendant of the results of the second tender exercise | |
| Defendant's lawyers replied stating agreement in principle to architect supervision | |
| Building and Construction Authority wrote to the plaintiff regarding the lifts | |
| Plaintiff engaged JTA Construction | |
| Rectification work for the general defects was carried out | |
| Defendant informed the plaintiff that Gylet was ready to undertake the modification works | |
| Rectification work for the general defects was completed | |
| Plaintiff commenced suit against the defendant | |
| Trial began | |
| Parties filed written submissions | |
| Judgment reserved |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that the defendant breached the sale and purchase agreement by delivering a property with defects.
- Category: Substantive
- Sub-Issues:
- Defective workmanship
- Failure to comply with building regulations
- Defects Liability Clause
- Outcome: The court found that the plaintiff breached the defects liability clause by denying access to the defendant for rectification works, but this did not supplant the common law right to damages.
- Category: Substantive
- Sub-Issues:
- Denial of access for rectification
- Reasonableness of conditions imposed
- Defamation
- Outcome: The court found that the plaintiff defamed the defendant but awarded only nominal damages due to the defendant's limited business activity.
- Category: Substantive
- Sub-Issues:
- Justification
- Fair comment
- Malice
8. Remedies Sought
- Monetary Damages
- Costs of rectification
- Loss of use of property
9. Cause of Actions
- Breach of Contract
- Defamation
10. Practice Areas
- Construction Defect Litigation
- Commercial Litigation
11. Industries
- Construction
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Yap Boon Keng Sonny v Pacific Prince International Pte Ltd and another | High Court | Yes | [2008] 1 SLR(R) 285 | Singapore | Cited regarding the obligation to allow rectification of defects. |
| Management Corporation Strata Title Plan No 1993 v Liang Huat Aluminium | Court of Appeal | Yes | [2001] 2 SLR(R) 91 | Singapore | Cited for the principle that a defects liability clause does not supplant the common law right to claim damages. |
| Pearce and High Ltd v Baxter | English Court of Appeal | Yes | [1999] CLC 749 | England and Wales | Cited for the principle that a defects liability clause does not extinguish a plaintiff’s right to recover damages under common law unless there is express language to the contrary. |
| William Tomkinson & Sons Ltd v Parochial Church Council of St Michael | N/A | Yes | [1990] CLJ 319 | N/A | Cited with approval in Pearce and High Ltd v Baxter regarding the interpretation of defects liability clauses. |
| Gilbert-Ash (Northern) Limited v Modern Engineering (Bristol) Limited | N/A | Yes | [1974] AC 689 | N/A | Cited for the principle that a common law right cannot be abrogated unless by express wording. |
| Qingdao Bohai Construction Group Co, Ltd and others v Goh Teck Beng and another | N/A | Yes | [2016] 4 SLR 977 | N/A | Cited regarding damages recoverable in defamation for a commercial corporate entity. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Housing Developers Rules (Cap 130, R1, 2008 Rev Ed) | Singapore |
| Workplace Safety and Health (General Provisions) Regulations (Cap 354A, Rg 1, 2007 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Defects liability period
- Method statement
- Rectification works
- Temporary occupation permit
- Certificate of Statutory Completion
- Home passenger lift
- Car lift
- Qualified Professional
- Load test certificate
- Enhancement works
- General defects
- Lift defects
15.2 Keywords
- construction defects
- breach of contract
- defamation
- luxury bungalow
- Singapore High Court
- defects liability clause
- rectification works
- building regulations
16. Subjects
- Construction Dispute
- Contract Law
- Defamation
- Building and Construction Law
17. Areas of Law
- Building and Construction Law
- Contract Law
- Defamation