Toh Fong Peng v Excelsior Capital Finance: Breach of Contract in Network Marketing Scheme
Toh Fong Peng and others sued Excelsior Capital Finance Ltd and others in the High Court of Singapore, alleging breach of contract related to a network marketing scheme. The plaintiffs claimed the defendants were the owners and operators of the Malaysian business running the scheme. The court found the defendants liable for breach of contract, granting interlocutory judgment in favor of the plaintiffs, with damages to be assessed. The court also entered judgment in favor of the 4th plaintiff against the defendants for the sum of US$5,000, with interest to run at the rate of 5.33% from 30 December 2013 until payment.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Interlocutory judgment in favor of the plaintiffs against the defendants, with damages to be assessed.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Plaintiffs sued Excelsior Capital Finance for breach of contract related to a network marketing scheme. The court found the defendants liable for breach of contract.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Fan Ren Ray | Defendant | Individual | Interlocutory judgment in favor of the plaintiffs | Lost | |
| Fan Ruicheng | Defendant | Individual | Interlocutory judgment in favor of the plaintiffs | Lost | |
| Chua Teng Da | Defendant | Individual | Interlocutory judgment in favor of the plaintiffs | Lost | |
| Chia Chee Tian Joe | Defendant | Individual | Interlocutory judgment in favor of the plaintiffs | Lost | |
| Toh Fong Peng | Plaintiff | Individual | Interlocutory judgment in favor of the plaintiffs | Partial | |
| Andy Bong Kit Siong | Plaintiff | Individual | Interlocutory judgment in favor of the plaintiffs | Partial | |
| Kristie Pui Keh Leh | Plaintiff | Individual | Interlocutory judgment in favor of the plaintiffs | Partial | |
| Wong Diong Chai | Plaintiff | Individual | Judgment in favor of the 4th plaintiff against the defendants for the sum of US$5,000 | Won | |
| Chin Kah Thing | Plaintiff | Individual | Interlocutory judgment in favor of the plaintiffs | Partial | |
| Ho Kum Fatt | Plaintiff | Individual | Interlocutory judgment in favor of the plaintiffs | Partial | |
| Liu Chang Hai | Plaintiff | Individual | Interlocutory judgment in favor of the plaintiffs | Partial | |
| Excelsior Capital Finance Limited | Defendant | Corporation | Interlocutory judgment in favor of the plaintiffs | Lost | |
| Fock Mun Hong | Defendant | Individual | Claim discontinued | Dismissed | |
| IOC Group Limited | Defendant | Corporation | Writ of Summons and Statement of Claim were not served | Neutral |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Kannan Ramesh | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Robert Raj Joseph | Gravitas Law LLC |
| Muthu Kumaran s/o Muthu Santhana Krishnan | Kumaran Law |
4. Facts
- The plaintiffs were participants in a network marketing scheme operated by a Malaysian business.
- The plaintiffs alleged that the defendants breached contracts by failing to provide access to a web shop and failing to provide insurance coverage.
- The defendants argued that the 1st plaintiff was the owner and operator of the Malaysian business, not them.
- The court found that the defendants were the owners and operators of the Malaysian business and the scheme.
- The court found that the defendants breached the term of the contracts that each of the plaintiffs would be granted access to the Web Shop.
- The court found that the defendants breached the insurance obligation.
- The 4th plaintiff gave evidence of a specific sum of US$5,000 which he redeemed for cash on 30 December 2013, and for which he never received payment.
5. Formal Citations
- Toh Fong Peng and others v Excelsior Capital Finance Ltd and others, Suit No 1348 of 2014, [2020] SGHC 51
6. Timeline
| Date | Event |
|---|---|
| Payment of US$5,000 redeemed for cash by the 4th plaintiff was due | |
| Access to the Web Shop was terminated | |
| Police report filed in Malaysia by the 1st plaintiff | |
| Counsel for the defendants stated that the 3rd defendant would not be relying on any evidence led by the other defendants | |
| Trial commenced | |
| Oral closing arguments | |
| Judgment reserved |
7. Legal Issues
- Breach of Contract
- Outcome: The court found the defendants liable for breach of contract.
- Category: Substantive
- Sub-Issues:
- Failure to provide access to web shop
- Failure to effect redemption of credits for cash
- Failure to provide insurance coverage
- Ownership of Malaysian Business
- Outcome: The court found that the defendants are the owners and operators of the Malaysian business and the scheme.
- Category: Substantive
8. Remedies Sought
- Declaration that the defendants are the owners and operators of the Malaysian business
- Account of all the plaintiffs’ transactions on the Malaysian business’s Web Shop(s) and payment to them of the amount due on the Account
- Damages to be assessed
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lim Eng Hock Peter v Lin Jian Wei and another | Singapore Court of Appeal | Yes | [2009] 2 SLR(R) 1004 | Singapore | Cited for the test of whether the plaintiffs’ evidence at face value establishes a case in law, or whether the evidence led by the plaintiffs is so unsatisfactory or unreliable that their burden of proof has not been discharged. |
| Relfo Ltd (in liquidation) v Bhimji Velji Jadva Varsani | Singapore Court of Appeal | Yes | [2008] 4 SLR(R) 657 | Singapore | Cited for the test of whether the plaintiffs’ evidence at face value establishes a case in law, or whether the evidence led by the plaintiffs is so unsatisfactory or unreliable that their burden of proof has not been discharged. |
| Ho Yew Kong v Sakae Holdings Ltd and other appeals and other matters | Singapore Court of Appeal | Yes | [2018] 2 SLR 333 | Singapore | Cited in arguing that the 3rd defendant is entitled to rely on the evidence adduced by the other defendants who did not make submissions of no case to answer. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Multi-Level Marketing and Pyramid Selling (Prohibition) Act (Cap 190, 2000 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Network marketing scheme
- Web shop
- E-Wallet
- Silver packages
- Insurance obligation
- Malaysian business
- Singapore business
- ECF platform
- IOC platform
15.2 Keywords
- contract
- breach
- network marketing
- scheme
- web shop
- insurance
- Excelsior Capital Finance
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Breach of Contract | 90 |
| Contract Law | 85 |
| Network Marketing Scheme | 70 |
| Web Shop | 60 |
| Financial Products | 50 |
| Company Law | 30 |
| Misrepresentation | 20 |
| Estoppel | 10 |
16. Subjects
- Contract Law
- Network Marketing
- Breach of Contract