Eastern Resource Management Services Ltd v Chiu Teng Construction Co Pte Ltd: Breach of Contract, Consideration, Duress, Illegality
Eastern Resource Management Services Ltd (ERMS) sued Chiu Teng Construction Co Pte Ltd (Chiu Teng) in the High Court of Singapore for breach of contract, seeking 50% of certain fees collected by Chiu Teng from June 2012 to August 2014. The case involved a joint venture agreement (2008 JVA) and subsequent agreements (June 2011 Agreement and July 2012 Agreement) regarding the operation of an overseas test centre (OTC) in Bangladesh. ERMS claimed that Chiu Teng breached the 2008 JVA by not paying ERMS its share of direct testing fees. Chiu Teng argued that the subsequent agreements superseded the 2008 JVA. The court dismissed ERMS’s claim, finding the June 2011 Agreement enforceable and that the July 2012 Agreement settled all claims.
1. Case Overview
1.1 Court
High Court of Singapore1.2 Outcome
Claim Dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Eastern Resource Management Services Ltd sued Chiu Teng Construction Co Pte Ltd for breach of contract. The court dismissed ERMS's claim, finding the June 2011 Agreement enforceable.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Chiu Teng Construction Co Pte Ltd | Defendant | Corporation | Judgment for Defendant | Won | |
| Eastern Resource Management Services Ltd | Plaintiff | Corporation | Claim Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lee Mei Yong Debbie | ECYT Law LLC |
| Wong Qiao Ling Sharon | ECYT Law LLC |
| Andrew John Hanam | Andrew LLC |
4. Facts
- ERMS sued Chiu Teng for breach of contract, seeking 50% of fees collected from June 2012 to August 2014.
- The dispute arose from a joint venture agreement (2008 JVA) and subsequent agreements regarding an overseas test centre (OTC) in Bangladesh.
- ERMS claimed Chiu Teng breached the 2008 JVA by not paying ERMS its share of direct testing fees.
- Chiu Teng argued that the June 2011 Agreement and July 2012 Agreement superseded the 2008 JVA.
- The June 2011 Agreement altered the revenue sharing arrangement between ERMS and Chiu Teng.
- The July 2012 Agreement was for settling accounts between BFEW, ERMS, and Chiu Teng.
- The court found the June 2011 Agreement enforceable and that the July 2012 Agreement settled all claims.
5. Formal Citations
- Eastern Resource Management Services Ltd v Chiu Teng Construction Co Pte Ltd, Suit No 855 of 2014, [2019] SGHC 19
6. Timeline
| Date | Event |
|---|---|
| ERMS, Chiu Teng, and BFEW entered into a joint venture agreement for setting up the OTC. | |
| ERMS, Chiu Teng, and BFEW agreed on quota allocation for trade tests. | |
| ERMS and Chiu Teng entered into the June 2011 Agreement. | |
| ERMS and Chiu Teng entered into the July 2012 Agreement. | |
| OTC conducted trade tests for direct testing workers until August 2014. | |
| Suit No 855 of 2014 commenced by ERMS against Chiu Teng. | |
| S 855/2014 was first decided by Edmund Leow JC. | |
| ERMS appealed in Civil Appeal No 34 of 2016. | |
| Court of Appeal allowed the appeal and remitted the claim for re-trial. | |
| Winding up order made against CTBF. | |
| Re-trial heard over three days. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that Chiu Teng did not breach the contract.
- Category: Substantive
- Sufficiency of Consideration
- Outcome: The court found that Chiu Teng provided sufficient consideration for the June 2011 Agreement.
- Category: Substantive
- Economic Duress
- Outcome: The court found that the June 2011 Agreement was not procured by economic duress.
- Category: Substantive
- Statutory Illegality
- Outcome: The court found that the 2008 JVA was not tainted with statutory illegality.
- Category: Substantive
8. Remedies Sought
- Payment of 50% of certain fees collected by Chiu Teng
- Interest
- Damages to be assessed
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Dimpex Gems (Singapore) Pte Ltd v Yusoof Diamonds Pte Ltd | High Court | Yes | [1987] SLR(R) 349 | Singapore | Cited regarding knowledge and participation in illegal acts for contract unenforceability. |
| Ochroid Trading Ltd and another v Chua Siok Lui (trading as VIE Import & Export) and another | Court of Appeal | Yes | [2018] 1 SLR 363 | Singapore | Cited regarding established heads of common law public policy. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Employment of Foreign Manpower Act (Cap 91A, 2009 Rev Ed) (“EFMA”) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Overseas Test Centre
- Direct Testing Fees
- Joint Venture Agreement
- Quota
- Dividend Payments
- Settlement of Accounts
15.2 Keywords
- Contract
- Breach
- Consideration
- Duress
- Illegality
- Singapore
- High Court
- Construction
- Overseas Test Centre
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Contract Law | 90 |
| Breach of Contract | 90 |
| Duress | 60 |
| Sufficiency of consideration | 60 |
| Economic Duress | 60 |
| Statutory illegality | 50 |
| Illegality and public policy | 50 |
16. Subjects
- Contract Law
- Commercial Dispute