Yim Lok Foong Elsie v Asia First Star Capital: Fraudulent Misrepresentation, Conspiracy, and Contract Breach

In the case of Yim Lok Foong Elsie versus Asia First Star Capital Pte Ltd and Hua Yih Isabel, heard in the General Division of the High Court of Singapore on 27-28 April 2021 and 23 June 2021, the plaintiff, Yim, brought claims against the defendants for breach of contract, fraudulent misrepresentation, and unlawful means conspiracy, related to a $300,000 investment. The court found Asia First Star Capital liable for breach of contract, fraudulent misrepresentation, and unlawful means conspiracy, and Hua liable for fraudulent misrepresentation and unlawful means conspiracy, holding them jointly and severally liable for damages of $390,000.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Yim Lok Foong Elsie sued Asia First Star Capital and Hua for fraudulent misrepresentation, conspiracy, and contract breach. The court found both defendants liable.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Yim Lok Foong ElsiePlaintiffIndividualJudgment for PlaintiffWon
Asia First Star Capital Pte LtdDefendantCorporationJudgment for PlaintiffLost
Hua Yih IsabelDefendantIndividualJudgment for PlaintiffLost

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudgeYes

4. Counsels

Counsel NameOrganization
Joseph IgnatiusIgnatius J & Associates
Suja Susan Thomas d/o B ThomasIgnatius J & Associates
Chidambaram SelvarajColumn Law Chambers LLC

4. Facts

  1. Yim invested $300,000 in Sovereign Sands based on Hua's representations.
  2. Hua represented that Sovereign Sands was buying a coal mine in Kalimantan.
  3. Hua claimed she and her aunt had also invested in Sovereign Sands.
  4. Yim received Loan Agreements promising repayment of $390,000 by 31 December 2008.
  5. Yim did not receive the promised repayment.
  6. Hua initially denied making any representations about Sovereign Sands.
  7. Yim had no direct contact with Sovereign Sands or Isaac Koo.

5. Formal Citations

    6. Timeline

    DateEvent
    Yim consulted Hua about investing in Global Ariel Limited.
    Yim signed an Investment Agreement with Hua regarding Global Ariel.
    Yim signed an Investment Agreement with Hua regarding Global Ariel.
    Hua allegedly paid Yim $154,000 from Global Ariel investment.
    Sovereign Sands Pte Ltd incorporated.
    Yim gave Hua two cheques totaling $300,000 for investment in Sovereign Sands.
    Loan Agreements executed by Isaac Koo on behalf of Sovereign Sands.
    Payment under the Loan Agreements was due.
    Sovereign Sands changed its name to Asia First Star Capital Pte Ltd.
    Isaac Koo applied to deregister Asia First Star Capital.
    Asia First Star Capital was struck off.
    Hua acknowledged the debt in a WhatsApp message.
    Yim enlisted the aid of Hua’s brother.
    Yim sought legal advice.
    Isaac Koo was declared bankrupt.
    High Court ordered reinstatement of Asia First Star Capital.
    Asia First Star Capital restored to the register.
    Yim commenced action against Asia First Star Capital and Hua.
    Trial began.
    Trial continued.
    Trial continued.
    Judgment reserved.

    7. Legal Issues

    1. Fraudulent Misrepresentation
      • Outcome: The court found Hua liable for fraudulent misrepresentation.
      • Category: Substantive
    2. Breach of Contract
      • Outcome: The court found Asia First Star Capital liable for breach of contract.
      • Category: Substantive
    3. Unlawful Means Conspiracy
      • Outcome: The court found both Hua and Asia First Star Capital liable for unlawful means conspiracy.
      • Category: Substantive
    4. Limitation of Actions
      • Outcome: The court held that the claim was not time-barred due to the defendant's failure to plead limitation, a court order regarding the striking off period, acknowledgment of debt, and concealment of the right of action.
      • Category: Procedural

    8. Remedies Sought

    1. Damages for Breach of Contract
    2. Damages for Fraudulent Misrepresentation
    3. Restitution

    9. Cause of Actions

    • Breach of Contract
    • Fraudulent Misrepresentation
    • Unlawful Means Conspiracy

    10. Practice Areas

    • Commercial Litigation

    11. Industries

    • No industries specified

    12. Cited Cases

    Case NameCourtAffirmedCitationJurisdictionSignificance
    Crest Capital Asia Pte Ltd and others v OUE Lippo Healthcare Ltd (formerly known as International Healthway Corp Ltd) and another and other appealsCourt of AppealYes[2021] 1 SLR 1337SingaporeCited for the principle of joint and several liability for damages.
    Anuva Technologies Pte Ltd v Advanced Sierra Electrotech Pte Ltd and another suitHigh CourtYes[2020] 4 SLR 569SingaporeCited regarding the requirements for acknowledgment of debt under the Limitation Act.

    13. Applicable Rules

    Rule Name
    Rules of Court (Cap 322, R 5, 2014 Rev Ed)

    14. Applicable Statutes

    Statute NameJurisdiction
    Limitation Act (Cap 163, 1996 Rev Ed)Singapore

    15. Key Terms and Keywords

    15.1 Key Terms

    • Loan Agreement
    • Investment
    • Fraudulent Misrepresentation
    • Unlawful Means Conspiracy
    • Limitation Act
    • Sovereign Sands
    • Asia First Star Capital
    • WhatsApp messages

    15.2 Keywords

    • contract
    • fraud
    • misrepresentation
    • conspiracy
    • investment
    • loan
    • singapore

    17. Areas of Law

    Area NameRelevance Score
    Fraud and Deceit95
    Misrepresentation90
    Conspiracy by Unlawful Means90
    Contract Law85
    Limitation75
    Estoppel50
    Chancery and Equity40

    16. Subjects

    • Contract Law
    • Fraud
    • Conspiracy
    • Investment Law
    • Civil Litigation