Greenway Environmental v Cramoil: Negligence, Breach of Duty, and Fire Explosion Liability

Greenway Environmental Waste Management Pte. Ltd. sued Cramoil Singapore Pte Ltd in the General Division of the High Court of Singapore, claiming damages for a fire and explosion at Greenway's premises caused by improperly disposed lithium batteries. Greenway claimed Cramoil breached an implied contract term and was negligent in disposing of hazardous waste. The court, presided over by S Mohan JC, found Cramoil liable for negligence, determining they breached their duty of care by allowing hazardous waste to be mixed with general waste, leading to the incident. The court awarded Greenway S$579,641.50 plus interest.

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

Waste management firm sues toxic waste collector for negligence after a fire and explosion. The court found the defendant liable.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Greenway Environmental Waste Management Pte. Ltd.PlaintiffCorporationJudgment for PlaintiffWonS Selvam s/o Satanam, Amraesh Arun Balachandran
Cramoil Singapore Pte LtdDefendantCorporationJudgment for PlaintiffLostWang Ying Shuang, Osman Khan

3. Judges

Judge NameTitleDelivered Judgment
S MohanJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
S Selvam s/o SatanamRamdas & Wong
Amraesh Arun BalachandranRamdas & Wong
Wang Ying ShuangRajah & Tann Singapore LLP
Osman KhanRajah & Tann Singapore LLP

4. Facts

  1. A fire broke out at Greenway's premises, followed by a large explosion.
  2. Investigations revealed the presence of a significant quantity of unfinished lithium batteries as the likely cause.
  3. The lithium batteries were found in the waste segregation section of Greenway's premises.
  4. Greenway is licensed as a General Waste Collector, not a Toxic Industrial Waste collector.
  5. Cramoil is a licensed Toxic Industrial Waste collector and outsourced its general waste disposal to Greenway.
  6. Greenway and Cramoil had an oral agreement for Greenway to collect and dispose of general waste from Cramoil.
  7. Cramoil requested Greenway to collect a skip bin, stating it contained general waste with some bulky items.
  8. The skip bin collected from Cramoil contained numerous light-colored packages containing unfinished lithium batteries.
  9. The SCDF concluded the fire was fueled by the cylindrical objects containing lithium.
  10. The cost and expense incurred amounted in total to S$579,641.50.

5. Formal Citations

  1. Greenway Environmental Waste Management Pte. Ltd. v Cramoil Singapore Pte Ltd, Suit No 803 of 2019, [2021] SGHC 203

6. Timeline

DateEvent
Oral agreement established between Greenway and Cramoil for waste collection services.
Cramoil implemented waste sorting procedure.
PowerSeraya requested quotation for waste management services.
Cramoil sent proposed prices to Greenway for toxic waste management services.
Greenway submitted quotation to PowerSeraya.
PowerSeraya Agreement commenced.
PowerSeraya requested Cramoil to collect lab toxic wastes.
Greenway delivered Skip Bin A10 to Cramoil's premises.
Cramoil requested Greenway to collect skip bin.
Greenway collected Skip Bin A10 from Cramoil's premises.
Fire broke out at Greenway's premises.
Large explosion occurred at Greenway's premises.
Greenway called SCDF.
SCDF arrived at Greenway's premises.
SCDF brought fire under control.
Damping down operations continued.
Cramoil invoiced Greenway for disposal of solid waste.
Greenway received Cramoil's tax invoice.
Cramoil collected lithium batteries from Greenway.
Greenway sent letter of demand to Cramoil.
Perumai Saravanan left Cramoil's employment.
SCDF Fire Investigation Report dated 25 November 2019.
Cramoil filed Defence (Amendment No. 1).
Suit No 803 of 2019 filed.
Cramoil filed Defence (Amendment No. 2).
Tan Jin Thong’s Expert Witness Report dated.
Lim Chin Chin’s Fire Investigation Report dated.
Tan Jin Thong’s Expert Witness Response Report dated.
Trial began.
Judgment reserved.
Judgment delivered.

7. Legal Issues

  1. Breach of Duty of Care
    • Outcome: The court held that the defendant breached its duty of care to the plaintiff by allowing hazardous waste to be mixed with general waste.
    • Category: Substantive
  2. Causation
    • Outcome: The court held that the defendant's breach of duty was the proximate cause of the fires and explosion at the Plaintiff’s Premises.
    • Category: Substantive
  3. Contributory Negligence
    • Outcome: The court held that the plaintiff was not contributorily negligent for the damage it suffered.
    • Category: Substantive
  4. Implied Term of Contract
    • Outcome: The court held that the plaintiff failed to demonstrate the existence of a “true gap” in the Agreement. As such, the term contended for by the plaintiff cannot be implied in fact.
    • Category: Substantive

8. Remedies Sought

  1. Damages for the Claim Amount
  2. Pre-judgment interest
  3. Costs

9. Cause of Actions

  • Negligence
  • Breach of Contract

10. Practice Areas

  • General Waste Collection
  • Toxic Industrial Waste Collection
  • Fire Litigation
  • Explosion Litigation

11. Industries

  • Waste Management

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Sembcorp Marine Ltd v PPL Holdings Pte Ltd and another and another appealCourt of AppealNo[2013] 4 SLR 193SingaporeCited for the requirements necessary for implying a term in fact.
Foo Jong Peng and others v Phua Kiah Mai and anotherCourt of AppealYes[2012] 4 SLR 1267SingaporeCited to confirm that the officious bystander test remains applicable in Singapore.
Chua Choon Cheng and others v Allgreen Properties Ltd and another appealCourt of AppealYes[2009] 3 SLR 724SingaporeCited for the principles of implying a term in law.
Spandeck Engineering (S) Pte Ltd v Defence Science & Technology AgencyCourt of AppealYes[2007] 4 SLR(R) 100SingaporeCited for the two-stage test to determine whether a defendant owes a claimant a duty of care.
Management Corporation Strata Title Plan No 2668 v Rott George HugoUnknownYes[2013] 3 SLR 787SingaporeCited for the factors relevant to the standard of care.
The “Sunrise Crane”Court of AppealYes[2004] 4 SLR(R) 715SingaporeCited for the standard of care in cases involving dangerous materials.
Blyth v The Company of Proprietors of The Birmingham WaterworksCourt of ExchequerYes11 Exch 781EnglandCited for the definition of negligence.
Sunny Metal & Engineering Pte Ltd v Ng Khim Ming EricCourt of AppealYes[2007] 3 SLR(R) 782SingaporeCited for the tests of causation in fact and in law.
Armstrong, Carol Ann (executrix of the estate of Peter Traynor, deceased, and on behalf of the dependents of Peter Traynor, deceased) v Quest Laboratories Pte Ltd and another and other appealsCourt of AppealYes[2020] 1 SLR 133SingaporeCited for the focus of the but for test.
Palsgraf v The Long Island Railroad CompanyNew York Court of AppealsYes248 NY 339 (1928)United StatesCited for the principle that the law arbitrarily declines to trace a series of events beyond a certain point.
PlanAssure PAC v Gaelic Inns Pte LtdCourt of AppealYes[2007] 4 SLR(R) 543SingaporeCited for the principle that contributory negligence can operate to break the causal chain.
Poh Soon Kiat v Desert Palace IncUnknownYes[2010] 1 SLR 1131SingaporeCited for the rule of prudence governing the treatment of expert evidence.
Sakthivel Punithavathi v PPUnknownYes[2007] 2 SLR(R) 983SingaporeCited for the principle that the same rules apply to the evaluation of expert testimony as they would to other categories of witness testimony.
The “H156”UnknownYes[1999] 2 SLR(R) 419SingaporeCited for the principle that it is for the court, not the expert, to make findings and determine the issues before it.
Stapley v Gypsum MinesHouse of LordsNo[1953] AC 663EnglandCited for the principle that one cause may be treated as the real, substantial, direct or effective cause, and the other dismissed as at best a cause sine qua non.
Chuang Uming (Pte) Ltd v Setron Ltd and another appealCourt of AppealYes[1999] 3 SLR(R) 771SingaporeCited for the principle that liability may be apportioned equally between parties where both are equally to blame.
Froom v ButcherQueen's BenchYes[1976] QB 286EnglandCited for the distinction between negligence and contributory negligence.
Parno v SC Marine Pte LtdCourt of AppealYes[1999] 3 SLR(R) 377SingaporeCited for the principle that a court must deal broadly with the problem of apportionment and have regard to the blameworthiness of each party.
Asnah bte Ab Rahman v Li JianlinCourt of AppealYes[2016] 2 SLR 944SingaporeCited for the definition of contributory negligence.
Rohini d/o Balasubramaniam v HSR International Realtors Pte LtdCourt of AppealYes[2018] 2 SLR 479SingaporeCited for the key considerations guiding the court’s discretion in apportioning liability between the claimant and tortfeasor.
Thorben Langvad Linneberg v Leong Mei KuenCourt of AppealYes[2013] 1 SLR 207SingaporeCited for the principle of the “agony of the moment”.
Soon Soon v Goh Yong KwangUnknownNo[1992] 1 SLR(R) 535SingaporeCited for the principle that the “agony of the moment” cannot be utilised to help extricate a claimant who is responsible for placing himself in a position where he had to agonise what to do.
Sato Kogyo (S) Pte Ltd and another v Socomec SAHigh CourtNo[2012] 2 SLR 1057SingaporeCited for the principle that the failure to install a suitable fire safety system to mitigate the foreseeable risks of fire associated with a party’s business can amount to contributory negligence.
Union Camp Chemicals Ltd v CRL TCL Ltd and anotherEnglish CourtNo[2001] All ER (D) 95EnglandCited for the principle that the failure to obtain or commission method statements and risk assessments relevant to the commissioning and working of the gas control valve component of the burner management system can amount to contributory negligence.
Grains and Industrial Products Trading Pte Ltd v Bank of India and anotherCourt of AppealYes[2016] 3 SLR 1308SingaporeCited for the principles on whether pre-judgment interest ought to be awarded under s 12 of the CLA.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Civil Law ActSingapore
Environmental Protection and Management (Hazardous Substances) RegulationsSingapore
Environmental Public Health (Toxic Industrial Waste) RegulationsSingapore
Environmental Public Health (General Waste Collection) RegulationsSingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Lithium Batteries
  • General Waste
  • Toxic Industrial Waste
  • Skip Bin
  • Sorting Yard
  • Waste Segregation
  • Duty of Care
  • Causation
  • Contributory Negligence
  • Implied Term
  • Emergency Response Plan
  • Waste Sorting Procedure

15.2 Keywords

  • negligence
  • breach of duty
  • fire
  • explosion
  • lithium batteries
  • waste management
  • toxic waste
  • general waste

16. Subjects

  • Waste Management
  • Environmental Law
  • Tort Law
  • Contract Law
  • Fire Safety

17. Areas of Law

  • Tort
  • Negligence
  • Contract Law
  • Breach of Contract