M Asset Pte Ltd v Inngroup Pte Ltd: Breach of Settlement Agreement & Damages for Loss of Tenancy
In the case of M Asset Pte Ltd v Inngroup Pte Ltd, the Court of Appeal of Singapore heard an appeal against the High Court's decision regarding a breach of a settlement agreement. Inngroup Pte Ltd alleged that M Asset Pte Ltd breached the agreement, while M Asset Pte Ltd counterclaimed. The Court of Appeal affirmed the trial judge's decision on liability and damages, finding M Asset Pte Ltd in breach. The court upheld the damages awarded to Inngroup Pte Ltd for loss of profits, but adjusted the costs order. The appeal was dismissed in part.
1. Case Overview
1.1 Court
Court of Appeal of the Republic of Singapore1.2 Outcome
Appeal dismissed in part. Decision on liability and damages affirmed; costs order varied.
1.3 Case Type
Civil
1.4 Judgment Type
Ex Tempore Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding breach of settlement agreement. Court affirmed decision on liability and damages, but adjusted costs. M Asset Pte Ltd v Inngroup Pte Ltd.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| M Asset Pte Ltd | Appellant | Corporation | Appeal dismissed in part | Partial | K Muralitherapany, Marcus Sim Jia Qing |
| Inngroup Pte Ltd | Respondent | Corporation | Judgment for Respondent | Won | Looi Ming Ming |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tay Yong Kwang | Justice of the Court of Appeal | Yes |
| Belinda Ang Saw Ean | Judge of the Appellate Division | No |
| Woo Bih Li | Judge of the Appellate Division | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| K Muralitherapany | Joseph Tan Jude Benny LLP |
| Marcus Sim Jia Qing | Joseph Tan Jude Benny LLP |
| Looi Ming Ming | Eldan Law LLP |
4. Facts
- Parties are owners of adjoining shophouses at 41 and 42 Hong Kong Street.
- A prior action in 2016 was settled via a Settlement Agreement.
- The Settlement Agreement included terms for renovation contributions, regulatory approvals, and a tenancy agreement.
- The Appellant provided draft tenancy agreements with inconsistent terms.
- The Appellant signed a tenancy agreement with Ink and Pixel Pte Ltd for the second storey.
- The Respondent abandoned its claim for specific performance due to the COVID-19 pandemic.
- The trial Judge found the Appellant's decision to sign with Ink and Pixel Pte Ltd was in bad faith.
5. Formal Citations
- M Asset Pte Ltd v Inngroup Pte Ltd, Civil Appeal No 167 of 2020, [2021] SGCA 54
- Inngroup Pte Ltd v M Asset Pte Ltd, , [2020] SGHC 197
6. Timeline
| Date | Event |
|---|---|
| Respondent commenced an action against the Appellant relating to the use of their properties. | |
| Settlement Agreement signed between the parties. | |
| Fourth and fifth storeys of the Appellant’s property would be handed over to the Respondent for the Renovation Works to commence. | |
| Nuve Holdings Ltd and the Respondent signed a hotel management agreement for the Respondent’s property. | |
| Respondent commenced Suit No 405 of 2019, seeking specific performance and other reliefs. | |
| Second storey of the Appellant’s property would be handed over to the Respondent. | |
| Appellant signed a new tenancy agreement with Ink and Pixel Pte Ltd. | |
| Nuve has been running a boutique hotel on the Respondent’s property. | |
| Third storey of the Appellant’s property would be handed over to the Respondent. | |
| Judgment delivered by the Court of Appeal. |
7. Legal Issues
- Breach of Settlement Agreement
- Outcome: The court held that the Appellant was in breach of the Settlement Agreement.
- Category: Substantive
- Sub-Issues:
- Inconsistent terms in draft tenancy agreements
- Refusal to abide by the terms of the Settlement Agreement
- Damages Assessment
- Outcome: The court affirmed the trial judge's approach to computing damages for loss of profits.
- Category: Substantive
- Sub-Issues:
- Loss of profits
- Mitigation of damages
- Costs
- Outcome: The court varied the costs order, reducing the amount awarded to the Respondent.
- Category: Procedural
- Related Cases:
- [2016] 4 SLR 1079
8. Remedies Sought
- Specific Performance
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Real Estate
- Hospitality
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Inngroup Pte Ltd v M Asset Pte Ltd | High Court | Yes | [2020] SGHC 197 | Singapore | Affirmed the trial judge's decision on liability and damages regarding the breach of the Settlement Agreement. |
| Lipkin International Ltd v Swiber Holdings Ltd and another | Court of Appeal | Yes | [2016] 4 SLR 1079 | Singapore | Cited regarding the principles for awarding costs, but distinguished on the facts and outcome. |
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
- Settlement Agreement
- Tenancy Agreement
- Renovation Works
- Loss of Profits
- Boutique Hotel
- Capsule Hotel
- Costs
- Handover
15.2 Keywords
- settlement agreement
- breach of contract
- tenancy agreement
- damages
- costs
- Singapore
- property
- shophouse
16. Subjects
- Contract Dispute
- Property Law
- Civil Litigation
17. Areas of Law
- Civil Procedure
- Contract Law
- Settlement Agreement
- Costs