Huationg Contractor Pte Ltd v Choon Lai Kuen: Breach of Contract and Exclusion Clauses in Towing Services
In Huationg Contractor Pte Ltd v Choon Lai Kuen (trading as Yishun Trading Towing Service), the High Court of Singapore heard a case regarding a breach of contract. Huationg Contractor sued Yishun Trading Towing Service after a concrete pump truck, while being towed by Yishun Trading, caught fire. Huationg alleged breaches of a bailment contract, while Yishun Trading denied the breaches and sought to rely on limitation and exemption clauses. The court, presided over by Lee Seiu Kin J, found in favor of Yishun Trading, holding that they were not negligent and that the liability clauses were not successfully incorporated into the contract. The claim was dismissed.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Judgment for Defendant
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Huationg Contractor sued Yishun Trading for breach of contract after a towed truck caught fire. The court found no negligence by Yishun Trading and that liability clauses were not incorporated.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Huationg Contractor Pte Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | |
| Choon Lai Kuen t/a Yishun Trading Towing Service | Defendant | Individual | Judgment for Defendant | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge | Yes |
4. Counsels
4. Facts
- Huationg engaged Yishun Towing to tow a concrete pump truck.
- The truck caught fire during towing.
- The fire was likely caused by a slow air leak in the parking brake's pressure chamber.
- The contract between the parties was not written.
- Limitation and exemption clauses were printed on the reverse side of Yishun Towing’s work orders.
- The work orders were operational documents used to track job assignments and compute driver salaries.
- The limitation and exemption clauses were not discussed during the formation of the contract.
5. Formal Citations
- Huationg Contractor Pte Ltd v Choon Lai Kuen (trading as Yishun Trading Towing Service), Suit No 730 of 2018, [2020] SGHC 129
6. Timeline
| Date | Event |
|---|---|
| Truck caught fire while being towed | |
| Suit filed | |
| Trial began | |
| Trial continues | |
| Trial continues | |
| Trial continues | |
| Trial continues | |
| Judgment issued |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that the defendant was not negligent and therefore did not breach the contract.
- Category: Substantive
- Incorporation of Exclusion Clauses
- Outcome: The court held that the liability clauses had not been successfully incorporated into the services agreement.
- Category: Substantive
- Negligence
- Outcome: The court found that the defendant was not negligent in discharging its duties under the services agreement.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Breach of Bailment
10. Practice Areas
- Commercial Litigation
11. Industries
- Transportation
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Sun Technosystems Pte Ltd v Federal Express Services (M) Sdn Bhd | High Court | Yes | [2007] 1 SLR(R) 411 | Singapore | Cited for the principle that the onus is on the bailee to prove they took reasonable care of the goods. |
| Chua Chye Leong Alan v Grand Palace De-luxe Nite Club Pte Ltd | High Court | Yes | [1993] 2 SLR(R) 420 | Singapore | Cited for the principle regarding the reasonableness of bringing exclusion clauses to the attention of the plaintiff. |
| R1 International Pte Ltd v Lonstroff AG | Court of Appeal | Yes | [2015] 1 SLR 521 | Singapore | Distinguished from the present case regarding the incorporation of terms in a contract through supplementary documents. |
| Vinmar Overseas (Singapore) Pte Ltd v PTT International Trading Pte Ltd | Court of Appeal | Yes | [2018] 2 SLR 1271 | Singapore | Distinguished from the present case regarding the incorporation of terms through a course of dealing. |
| Hely-Hutchinson v Brayhead Ltd and another | English Court of Appeal | Yes | [1968] 1 QB 549 | England | Distinguished from the present case regarding the implied authority of employees to contract on behalf of a company. |
| Harling v Eddy | Court of Appeal | Yes | [1951] 2 KB 739 | England | Cited for the principle that a party cannot escape liability by simply putting up a printed notice with exempting conditions; they must show it is a contractual document accepted by the affected party. |
| Kua Lee Ngoh v Jagindar Singh | High Court | Yes | [1987] SLR(R) 119 | Singapore | Cited for the principle that simple displays of contractual terms are insufficient to incorporate them into a contract without sufficient notice. |
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
- Bailment
- Exclusion Clause
- Limitation Clause
- Towing Services
- Work Order
- Pressure Leak Theory
- Accident Theory
- Riding Theory
- Incorporation
- Course of Dealing
15.2 Keywords
- breach of contract
- exclusion clause
- towing service
- negligence
- singapore
- high court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Contract Law | 80 |
| Breach of Contract | 75 |
| Bailment | 60 |
| Evidence | 40 |
| Estoppel | 30 |
| Agency Law | 20 |
16. Subjects
- Contract Law
- Bailment
- Exclusion Clauses
- Transportation Law