CIK v CIL: Contract Formation & Jurisdictional Objection in Construction Dispute

In CIK v CIL, the High Court of Singapore heard an originating summons regarding a dispute over the existence of a contract between CIK, the plaintiff, and CIL, the defendant, in relation to a construction project. The court, presided over by Justice Lee Seiu Kin, delivered its judgment on 11 December 2020, setting aside the Adjudication Determination on the ground that there was jurisdiction because a written contract existed. The court found that the defendant had accepted the plaintiff's offer via email on 17 October 2018, forming a valid contract.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Adjudication Determination set aside.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The court held that a written contract existed between CIK and CIL, setting aside the adjudication determination due to jurisdictional error.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
CIKPlaintiffCorporationAdjudication Determination set asideWon
CILDefendantCorporationAdjudication Determination set asideLost

3. Judges

Judge NameTitleDelivered Judgment
Lee Seiu KinJudgeYes

4. Counsels

Counsel NameOrganization
Nandakumar Ponniya ServaiWong & Leow LLC
Tan Yi Wei NicholasWong & Leow LLC
Daryl TangWong & Leow LLC
Lee ChuanWong & Leow LLC
Isaac Tito ShaneTito Isaac & Co LLP
Ning JieTito Isaac & Co LLP
Chong Yi MeiTito Isaac & Co LLP

4. Facts

  1. The plaintiff specializes in pneumatic food waste management systems.
  2. The defendant was the main contractor for the Fernvale CC Project.
  3. The defendant appointed the plaintiff as a specialist sub-contractor for the project's hawker center.
  4. The defendant sent a letter of appointment via email on 17 October 2018.
  5. The email confirmed the award of the contract to the plaintiff for $444,000.
  6. The email instructed the plaintiff to commence services immediately.
  7. The defendant argued the 17 October 2018 Email was a conditional offer, subject to the Architect’s approval.
  8. The plaintiff submitted two progress claims which were rejected by the defendant.
  9. The Architect directed the defendant to remove and replace the plaintiff as the specialist sub-contractor.
  10. The defendant terminated the sub-contract with the plaintiff.

5. Formal Citations

  1. CIK v CIL, Originating Summons No 796 of 2020, [2020] SGHC 274

6. Timeline

DateEvent
Letter of appointment sent by defendant to plaintiff via email.
Procurement negotiation meeting between parties.
Plaintiff submitted first progress claim.
Plaintiff submitted second progress claim.
Defendant sought to transmit revised letter of agreement to the plaintiff.
Defendant sent a letter stating they rejected the advance payment term.
Architect issued an instruction directing the defendant to remove and replace the plaintiff.
Defendant terminated the sub-contract with the plaintiff.
Hearing date.
Judgment date.

7. Legal Issues

  1. Contract Formation
    • Outcome: The court held that a written contract existed between the parties, formed by the defendant's acceptance of the plaintiff's offer via email.
    • Category: Substantive
    • Sub-Issues:
      • Acceptance of offer
      • Conditional offer
      • Waiver of condition
  2. Jurisdictional Objection
    • Outcome: The court found that the adjudicator had made an erroneous determination as to his jurisdiction, as a written contract existed between the parties.
    • Category: Procedural

8. Remedies Sought

  1. Setting aside of Adjudication Determination

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Construction Law
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Pneumatic food waste management system
  • Letter of appointment
  • Adjudication Determination
  • Architect's approval
  • Progress claim
  • Advance payment bond
  • Sub-contractor
  • Letter of Award

15.2 Keywords

  • contract
  • construction
  • adjudication
  • jurisdiction
  • Singapore

17. Areas of Law

Area NameRelevance Score
Formation of contract95
Building and Construction Contracts90
Construction Law85
Breach of Contract75
Contract Law70
Adjudication60
Estoppel50

16. Subjects

  • Contract Law
  • Construction Law
  • Civil Procedure