Nambu PVD Pte Ltd v UBTS Pte Ltd: Negligence, Bailment, Contractual Exclusion Clauses & Fire Damage

In the case of Nambu PVD Pte Ltd v UBTS Pte Ltd, heard in the General Division of the High Court of Singapore on 2 February 2021, Nambu sued UBTS for negligence and breach of contract after a fire damaged Nambu's PVD machine while UBTS was transporting it. The court, presided over by Andre Maniam JC, found UBTS negligent and ruled in favor of Nambu, awarding $248,240.00 in damages, interest, and $160,000.00 in costs. The court rejected UBTS's attempts to rely on exclusion clauses. Nambu's claim was for breach of contract and negligence.

1. Case Overview

1.1 Court

General Division of the High Court of the Republic of Singapore

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Nambu sued UBTS for fire damage to a PVD machine during transport. The court found UBTS negligent and liable for breach of contract.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Nambu PVD Pte LtdPlaintiffCorporationJudgment for PlaintiffWon
UBTS Pte LtdDefendantCorporationPartial Judgment AgainstLost

3. Judges

Judge NameTitleDelivered Judgment
Andre ManiamJudicial CommissionerYes

4. Counsels

4. Facts

  1. Nambu contracted with UBTS to transport a PVD Machine.
  2. The PVD Machine was damaged by a fire during transport.
  3. The fire originated at the rear left tyre of UBTS' trailer.
  4. UBTS did not arrange for a police escort, which was statutorily required.
  5. UBTS issued a delivery order and invoice after the fire.
  6. Nambu claimed for replacement of the PVD Machine or, alternatively, repair costs.
  7. Nambu also claimed for loss of use of the PVD Machine and storage charges.

5. Formal Citations

  1. Nambu PVD Pte Ltd v UBTS Pte Ltd, Suit No 889 of 2019, [2021] SGHC 20

6. Timeline

DateEvent
Fire damaged the PVD Machine during transport
Nambu sent a WhatsApp message as notice of claim
UBTS billed Nambu for storage of the damaged PVD Machine
Nambu sent a quotation for repairs to the PVD Machine
UBTS informed Nambu to remove the PVD Machine by 2017-01-28
Nambu sent another quotation for the repairs
Rental agreement between Nambu and K-Inc ended
Nambu gave up the contract with Dongwoon
Another quotation from Dream Heavy was obtained
Quotation from FM Electro-Hydraulic for the repair of the PVD Machine
UBTS' loss adjusters rejected Nambu's claim
UBTS asked when Nambu was going to move the PVD Machine away
UBTS sent a final reminder
Nambu responded through its lawyers to say that the PVD Machine would be removed on 2018-04-14
Nambu took the damaged PVD Machine back
Writ date
Trial began
Judgment date

7. Legal Issues

  1. Negligence
    • Outcome: The court found that UBTS was negligent in failing to check the tyre pressure and failing to arrange for a police escort.
    • Category: Substantive
    • Sub-Issues:
      • Failure to check tyre pressure
      • Failure to arrange for police escort
  2. Breach of Contract
    • Outcome: The court found that UBTS breached the contract by failing to transport the PVD Machine safely.
    • Category: Substantive
    • Sub-Issues:
      • Failure to transport goods safely
  3. Incorporation of Contractual Terms
    • Outcome: The court held that neither the UBTS T&Cs nor the SLA T&Cs were incorporated into the subject contract.
    • Category: Substantive
    • Sub-Issues:
      • Reasonable notice of terms
      • Previous course of dealings
  4. Reasonableness of Exclusion Clauses
    • Outcome: The court found the limitation of liability clause in the SLA T&Cs to be reasonable, but the time bar for claims to be unreasonable.
    • Category: Substantive
    • Sub-Issues:
      • Limitation of liability
      • Time bar for claims
  5. Damages
    • Outcome: The court awarded damages for repair costs, loss of use, and storage charges, but limited the period for which loss of use and storage charges were allowed.
    • Category: Substantive
    • Sub-Issues:
      • Replacement cost vs repair cost
      • Loss of use
      • Storage charges

8. Remedies Sought

  1. Monetary Damages
  2. Replacement of the PVD Machine
  3. Repair Costs
  4. Loss of Use
  5. Storage Charges

9. Cause of Actions

  • Breach of Contract
  • Negligence
  • Bailment

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Transportation
  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Huationg Contractor Pte Ltd v Choon Lai Kuen (trading as Yishun Trading Towing Service)High CourtYes[2020] SGHC 129SingaporeCited for the principle that the onus is on the bailee to prove that it had taken reasonable care of the bailed goods.
Vinmar Overseas (Singapore) Pte Ltd v PTT International Trading Pte LtdSingapore Law ReportsYes[2018] 2 SLR 1271SingaporeCited for the test to determine whether terms are incorporated into a contract based on the assumption of reasonable persons.
Press Automation Technology Pte Ltd v Trans-Link Exhibition Forwarding Pte LtdSingapore Law ReportsYes[2003] 1 SLR(R) 712SingaporeCited regarding the reasonableness of limitation of liability clauses in standard trading conditions.
La Rosa v Nudrill Pty LtdSupreme Court of Western AustraliaYes[2013] WASCA 18AustraliaCited for the principle that documents can incorporate terms into a subsequent contract even if they were not part of an earlier contract.
China Pacific SA v Food Corporation of IndiaHouse of LordsYes[1982] AC 939United KingdomCited for the principle that a bailee is estopped from denying the title to the goods of their bailor.
Chia Kok Leong and another v Prosperland Pte LtdSingapore Law ReportsYes[2005] 2 SLR(R) 484SingaporeCited for the principle that a contracting party is entitled to claim substantial damages on the basis that he did not receive what he had bargained and paid for.
Harbutt’s “Plasticine” Ltd v Wayne Tank and Pump Co LtdQueen's BenchYes[1970] 1 QB 447United KingdomCited for the principle that a wrongdoer cannot diminish a claim for replacement costs by arguing that the plaintiff received new for old.
Re Caveat No CV/21366D lodged by Lim Saw Hak and anotherSingapore Law ReportsYes[1996] 1 SLR(R) 70SingaporeCited for the principle that UBTS was entitled to assert a common law lien.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Prefabricated Vertical Drain (PVD) Machine
  • Standard Terms and Conditions
  • Exclusion Clauses
  • Bailment
  • Negligence
  • Loss of Use
  • Storage Charges
  • Police Escort
  • Fire Damage

15.2 Keywords

  • negligence
  • bailment
  • contract
  • exclusion clauses
  • fire damage
  • PVD machine
  • transportation

17. Areas of Law

16. Subjects

  • Contract Law
  • Transportation Law
  • Bailment
  • Negligence