YCT Import & Export Pte Ltd v FG Food Industries Pte Ltd: Negligence Claim for Water Damage to Chinese Herbs
In YCT Import & Export Pte Ltd v FG Food Industries Pte Ltd, the High Court of Singapore addressed a negligence claim by YCT against FG following water damage to YCT's stored Chinese herbs due to a waste water pipe leak from FG's premises. YCT sought damages for the value of the damaged goods, disposal costs, damaged condenser units, and staff overtime. The court determined that the appropriate measure of damages was the replacement cost of the damaged goods and awarded YCT $633,288 for the damaged goods, $679.84 for disposal costs, $14,000 for the damaged condenser units, and $4,760.50 for staff overtime costs.
1. Case Overview
1.1 Court
General Division of the 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
YCT sues FG for negligence after a water pipe leak damaged YCT's Chinese herbs. The court assessed damages based on replacement cost.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| YCT Import & Export Pte Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | |
| FG Food Industries Pte Ltd | Defendant | Corporation | Judgment against Defendant | Lost | |
| Forearth (Singapore) Pte Ltd | Defendant | Corporation | Neutral | Neutral | |
| Powerjet Pte Ltd | Defendant | Corporation | Neutral | Neutral |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Philip Jeyaretnam | Judicial Commissioner | Yes |
4. Counsels
4. Facts
- YCT distributes Chinese herbs and FG manufactures cooked food preparations.
- FG's waste water pipe ran along the ceiling void above YCT's premises.
- On 9 July 2015, FG engaged a contractor to clear a choke in the waste water pipe.
- On 10 July 2015, the waste water pipe broke and waste water was discharged into YCT’s premises.
- The electricity supply had been cut off, shutting off the air conditioning for the cold room.
- YCT informed their insurers, Great Eastern General Insurance Limited.
- Great Eastern paid out $631,497.31 to YCT after deduction of a policy excess of $200.
5. Formal Citations
- YCT Import & Export Pte Ltd v FG Food Industries Pte Ltd and others, Suit No 63 of 2017, [2021] SGHC 190
6. Timeline
| Date | Event |
|---|---|
| FG engaged a contractor to clear a choke in the waste water pipe. | |
| Waste water pipe broke and waste water was discharged into YCT’s premises. | |
| YCT informed their insurers, now known as Great Eastern General Insurance Limited. | |
| Statement of Claim (Amendment No 1) dated. | |
| Interlocutory judgment against the first defendant was entered for damages to be assessed with interest and costs reserved. | |
| Plaintiff’s Opening Statement dated. | |
| Trial began. | |
| Trial. | |
| First defendant’s closing submissions dated. | |
| Plaintiff’s reply submissions dated. | |
| First defendant’s reply submissions dated. | |
| Trial concluded. | |
| Judgment reserved. |
7. Legal Issues
- Negligence
- Outcome: The court found the defendant negligent due to the waste water pipe leak.
- Category: Substantive
- Damages Assessment
- Outcome: The court held that the correct measure of damages was the replacement cost of the damaged goods.
- Category: Substantive
- Related Cases:
- [2015] 5 SLR 541
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Negligence
10. Practice Areas
- Commercial Litigation
11. Industries
- Food Manufacturing
- Import/Export
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Marco Polo Shipping Co Pte Ltd v Fairmacs Shipping & Transport Services Pte Ltd | Court of Appeal | Yes | [2015] 5 SLR 541 | Singapore | Cited for the principle of determining the relevant market for assessing damages for converted goods, which is similar to damages for negligently destroyed goods. |
| Furness v Adrium Industries Pty Ltd | Supreme Court of Victoria | Yes | [1996] 1 VR 668 | Victoria | Cited with approval from Marco Polo for the principle that a wholesaler's loss is ordinarily assessed by reference to the cost of replacement at the date of conversion. |
| Sonicare International Ltd v East Anglia Freight Terminal Ltd and Others and Neptune Orient Lines Ltd (Third Party) | N/A | No | [1997] 2 Lloyd's Rep 48 | England | Cited to illustrate that the correct measure of damages is the market value for replacement goods, and that awarding damages based on the selling price would be overcompensating if sales were not lost. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Sale of Food Act (Cap 283, 2002 Rev Ed) s 2D(1)(e) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Chinese herbs
- Waste water pipe
- Replacement cost
- Cordyceps
- Codonopsis
- Loss adjuster
- Cold room
15.2 Keywords
- negligence
- water damage
- chinese herbs
- damages
- replacement cost
- singapore
- high court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Damages | 90 |
| Torts | 80 |
| Negligence | 80 |
| Personal Injury | 20 |
| Breach of Contract | 20 |
| Contract Law | 20 |
| Commercial Law | 15 |
16. Subjects
- Tort Law
- Negligence
- Damages
- Commercial Dispute