Yew San Construction v Ley Choon: Subcontract Dispute over Earthworks and Liquidated Damages
In a suit before the High Court of Singapore, Yew San Construction Pte Ltd, the Plaintiff, claimed the balance sum outstanding under a subcontract agreement with Ley Choon Constructions and Engineering Pte Ltd, the Defendant, for earthworks related to the Seletar Airport expansion. Ley Choon counterclaimed for costs incurred in completing Yew San's unfinished works, an indemnity for liquidated damages imposed by the Changi Airport Group, and other expenses. The court allowed Yew San's claim for the balance of the contract price but also allowed Ley Choon's counterclaims in part, resulting in a net amount owing from Yew San to Ley Choon.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Defendant on Counterclaim.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case between Yew San and Ley Choon concerning a subcontract for earthworks and claims for incomplete work and liquidated damages.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Ley Choon Constructions and Engineering Pte Ltd | Defendant | Corporation | Counterclaim Allowed in Part | Partial | |
| Yew San Construction Pte Ltd | Plaintiff | Corporation | Claim Allowed | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Quentin Loh | Judge | Yes |
4. Counsels
4. Facts
- Ley Choon secured a contract from Changi Airport Group for construction of an aircraft parking apron.
- Ley Choon subcontracted various earthworks to Yew San for $2,280,000.00.
- Disputes arose between the parties regarding the scope of works and completion of the subcontract.
- Yew San claimed $1,321,000.00 outstanding under the subcontract agreement.
- Ley Choon counterclaimed for costs incurred in completing Yew San's unfinished works and an indemnity for liquidated damages.
- Most of the excavated material from the on-site cut areas was unsuitable and had to be disposed of.
- Ley Choon mobilized its own resources to transport some of the unsuitable material off-site for disposal.
5. Formal Citations
- Yew San Construction Pte Ltd v Ley Choon Constructions and Engineering Pte Ltd, Suit No 316 of 2015, [2019] SGHC 285
6. Timeline
| Date | Event |
|---|---|
| Main Contract secured by Ley Choon from Changi Airport Group. | |
| Subcontract agreement signed between Ley Choon and Yew San. | |
| Estimated start date for Phase 1B. | |
| Estimated start date for Phase 2A. | |
| Estimated finish date for Phase 1B. | |
| Estimated finish date for Phase 2A. | |
| Changi Airport Group wrote to Ley Choon regarding slow progress of unsuitable material removal at Phase 1B. | |
| Ley Choon expressed disappointment at Yew San’s slow progress in removing unsuitable material. | |
| Ley Choon put Yew San on notice that it would mobilize resources to accelerate earthworks progress. | |
| Estimated start date for Phase 3. | |
| Estimated start date for Phase 4. | |
| Work commenced on Phase 3. | |
| Changi Airport Group informed Ley Choon that truck movements had decreased significantly. | |
| Changi Airport Group informed Ley Choon that the situation had not improved. | |
| Estimated finish date for Phase 3. | |
| Ley Choon began to mobilize its own resources to transport unsuitable material off-site. | |
| Estimated finish date for Phase 4. | |
| Site meeting convened between Ley Choon and Yew San to assess progress of works at Phases 3 and 4. | |
| Yew San responded to Ley Choon’s comment in the minutes of the 12 September 2011 meeting. | |
| Yew San stated that the last truckload of earth was excavated and removed. | |
| Yew San clarified that they left the site sometime in the beginning of April 2012. | |
| Yew San issued Progress Claim No 9 to Ley Choon, termed “final”. | |
| Yew San issued Progress Claim No 12. | |
| Ley Choon responded with a payment response. | |
| Changi Airport Group informed Ley Choon of the quantum of liquidated damages due. | |
| Trial began. | |
| Trial concluded. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that Yew San breached the subcontract agreement by failing to complete certain earthworks and failing to stockpile topsoil.
- Category: Substantive
- Sub-Issues:
- Failure to complete subcontract works
- Failure to stockpile topsoil
- Interpretation of Contract
- Outcome: The court interpreted the subcontract agreement to determine the scope of Yew San's obligations, including whether it was responsible for compaction works and supplying sub-grade material.
- Category: Substantive
- Sub-Issues:
- Scope of works
- Obligation to perform compaction works
- Obligation to supply sub-grade material
- Entitlement to Indemnity
- Outcome: The court determined the extent to which Yew San was liable to indemnify Ley Choon for liquidated damages imposed by the Changi Airport Group due to delays.
- Category: Substantive
- Sub-Issues:
- Liability for liquidated damages
- Attribution of delay
- Estoppel
- Outcome: The court found that Ley Choon was not estopped from claiming that Yew San was obligated to perform compaction works.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
- Indemnity
9. Cause of Actions
- Breach of Contract
- Indemnity
10. Practice Areas
- Construction Law
- Commercial Litigation
11. Industries
- Construction
- Aviation
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Zurich Insurance (Singapore) Pte Ltd v B-Gold Interior Design & Construction Pte Ltd | Court of Appeal | Yes | [2008] 3 SLR(R) 1029 | Singapore | Cited regarding the use of subsequent conduct in the interpretation of contracts. |
| Sembcorp Marine Ltd v PPL Holdings Pte Ltd and another and another appeal | Court of Appeal | Yes | [2013] 4 SLR 193 | Singapore | Cited regarding the use of subsequent conduct in the interpretation of contracts and the requirement of specific pleading. |
| Ngee Ann Development Pte Ltd v Takashimaya Singapore Ltd | Court of Appeal | Yes | [2017] 2 SLR 627 | Singapore | Cited regarding the use of subsequent conduct to determine the parties’ agreement on the meaning of a term of a lease. |
| HIH Casualty and General Insurance Ltd v Axa Corporate Solutions | N/A | Yes | [2003] Lloyd’s Rep IR 1 | N/A | Cited regarding the elements of promissory estoppel. |
| Aero-Gate Pte Ltd v Engen Marine Engineering Pte Ltd | N/A | Yes | [2013] 4 SLR 409 | N/A | Cited regarding the elements of promissory estoppel. |
| Khoo Bee Keong v Ang Chun Hong and another | High Court | Yes | [2005] SGHC 128 | Singapore | Cited regarding the reliability of facts on which an expert relies. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Earthworks
- Subcontract
- Liquidated Damages
- Compaction
- Formation Level
- Sub-grade
- Cut Works
- Fill Works
- Suitable Material
- Unsuitable Material
15.2 Keywords
- earthworks
- subcontract
- liquidated damages
- construction
- Singapore
- Changi Airport Group
- Seletar Airport
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Construction Law | 90 |
| Subcontracts | 80 |
| Claims by subcontractor | 75 |
| Scope of Works | 70 |
| Breach of Contract | 70 |
| Liquidated Damages | 65 |
| Contract Law | 60 |
| Damages | 50 |
| Arbitration | 30 |
16. Subjects
- Construction Dispute
- Contract Law
- Subcontracts
- Civil Engineering