Huatraco Singapore Pte Ltd v Hua Rong Engineering Pte Ltd: Breach of Contract in Equipment Rental Agreement
Huatraco Singapore Pte Ltd sued Hua Rong Engineering Pte Ltd in the High Court of Singapore, Suit No 1118 of 2017, for breach of contract. The case was heard before Choo Han Teck J on 4, 5, 6 February, 31 March 2020, with judgment reserved on 28 April 2020. Huatraco claimed that Hua Rong failed to return rented equipment or returned it in a damaged state, seeking $369,214.78 in replacement and repair costs. Hua Rong counterclaimed for the return of a deposit and outstanding labour costs. The court granted judgment for Huatraco in the amount of $358,214.78, after setting off the deposit.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Huatraco sued Hua Rong for breach of contract for failing to return rented equipment. The court found Hua Rong liable for $358,214.78.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Huatraco Singapore Pte Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | Lee Bik Wei, Chong Xue Er Cheryl, Alisa Toh Qian Wen, Toh Jia Jing Vivian |
| Hua Rong Engineering Pte Ltd | Defendant | Corporation | Judgment against Defendant | Lost | Lim Kim Hong, Nadiah Li Feng Binte Mahmood |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lee Bik Wei | Allen & Gledhill LLP |
| Chong Xue Er Cheryl | Allen & Gledhill LLP |
| Alisa Toh Qian Wen | Allen & Gledhill LLP |
| Toh Jia Jing Vivian | Allen & Gledhill LLP |
| Lim Kim Hong | Kim & Co |
| Nadiah Li Feng Binte Mahmood | Kim & Co |
4. Facts
- Huatraco and Hua Rong entered into a contract for the rental of equipment.
- Hua Rong was to rent equipment from Huatraco for five months at $55,000.
- Huatraco delivered equipment to Hua Rong between June and November 2016.
- Hua Rong returned equipment to Huatraco between February and June 2017.
- Huatraco claimed Hua Rong failed to return some equipment and returned others damaged.
- Huatraco sought $369,214.78 for replacement and repair costs.
- Hua Rong counterclaimed for the return of a deposit and outstanding labour costs.
5. Formal Citations
- Huatraco Singapore Pte Ltd v Hua Rong Engineering Pte Ltd, Suit No 1118 of 2017, [2020] SGHC 85
6. Timeline
| Date | Event |
|---|---|
| Contract signed | |
| Quotation dated | |
| Letter of contract for the hire of equipment | |
| Plaintiff's standard terms and conditions | |
| Parties entered into a written contract | |
| Defendant's rental of various equipment from the plaintiff's C60 Table Forms and Shoring System | |
| Defendant paid a deposit of $11,000 | |
| Plaintiff made 33 deliveries of various quantities of the Equipment to the defendant | |
| Defendant returned various quantities of the Equipment to the plaintiff | |
| Parties entered into an agreement under which the plaintiff hired labour from it | |
| Plaintiff was granted summary judgment for its Rental Claim | |
| Trial began | |
| Trial concluded | |
| Judgment reserved |
7. Legal Issues
- Breach of Contract
- Outcome: The court found the defendant liable for breach of contract for failing to return equipment or returning it in a damaged state.
- Category: Substantive
- Sub-Issues:
- Failure to return equipment
- Return of damaged equipment
8. Remedies Sought
- Monetary Damages
- Late payment interest
9. Cause of Actions
- Breach of Contract
- Conversion
10. Practice Areas
- Commercial Litigation
- Construction Law
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Civil Law Act (Cap 43, 1999 Rev Ed), s 12 | Singapore |
| Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Equipment
- Rental
- Delivery Order
- Equipment Receipt Notes
- Deposit
- Standard Terms and Conditions
- Liquidated Sum
15.2 Keywords
- breach of contract
- equipment rental
- construction
- singapore
- high court
16. Subjects
- Contract Dispute
- Equipment Rental
- Construction Dispute
17. Areas of Law
- Contract Law
- Construction Law