Year Sun v Gunvor: Setting Aside SIAC Award for Gasoil Contract Breach
In Year Sun Chemitanks Terminal Corp v Gunvor Singapore Pte Ltd, the General Division of the High Court of Singapore dismissed Year Sun's application to set aside a SIAC arbitration award. The case arose from a dispute over breaches of two sale and purchase agreements for gasoil. Gunvor counterclaimed for Year Sun's failure to take delivery of the cargo. The court found no breach of natural justice by the arbitrator and dismissed Year Sun's application with costs.
1. Case Overview
1.1 Court
General Division of the High Court of the Republic of Singapore1.2 Outcome
Application dismissed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court dismisses Year Sun's application to set aside an arbitration award, finding no breach of natural justice in gasoil contract dispute.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Year Sun Chemitanks Terminal Corp | Plaintiff | Corporation | Application dismissed | Lost | |
| Gunvor Singapore Pte Ltd | Defendant | Corporation | Judgment for Defendant | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| S Mohan | Judicial Commissioner | Yes |
4. Counsels
4. Facts
- Plaintiff and defendant entered into two contracts for the sale and purchase of gasoil.
- Plaintiff failed to take delivery of the gasoil under both contracts, except for one parcel.
- Defendant terminated the contracts due to the plaintiff's failure to take delivery.
- Defendant commenced arbitration proceedings against the plaintiff.
- Arbitrator found the plaintiff in breach of contract and awarded damages to the defendant.
- Plaintiff applied to set aside the arbitration award, alleging breach of natural justice.
5. Formal Citations
- Year Sun Chemitanks Terminal Corp v Gunvor Singapore Pte Ltd, Originating Summons No 51 of 2021, [2021] SGHC 229
6. Timeline
| Date | Event |
|---|---|
| Parties began an amicable working relationship. | |
| Parties ended an amicable working relationship. | |
| First Contract was executed. | |
| Second Contract was executed. | |
| 1,994.862 MT of gasoil was loaded at the port of Taichung onboard the motor tanker “OSLO”. | |
| Defendant sent two letters to the plaintiff purporting to terminate the Contracts. | |
| Plaintiff commenced two arbitrations against the defendant by filing a Notice of Arbitration with the SIAC. | |
| Both arbitrations were consolidated by the SIAC. | |
| The arbitral tribunal was constituted. | |
| The Tribunal issued the Award in favour of the defendant. | |
| Terrence Chiu Ying Terng’s 1st Affidavit was dated. | |
| OS 51 was heard. | |
| OS 51 was dismissed with costs. | |
| Grounds of decision were issued. |
7. Legal Issues
- Breach of Contract
- Outcome: The court upheld the arbitrator's finding that the plaintiff breached the contracts by failing to take delivery and failing to comply with the destination restriction clause.
- Category: Substantive
- Sub-Issues:
- Failure to take delivery of goods
- Failure to provide letter of credit
- Breach of destination restriction clause
- Setting Aside Arbitration Award
- Outcome: The court found no breach of natural justice and dismissed the application to set aside the award.
- Category: Procedural
- Sub-Issues:
- Breach of natural justice
- Failure to consider arguments
- Exclusion of expert evidence
8. Remedies Sought
- Setting aside of arbitration award
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Arbitration
- Commercial Litigation
- Commodities Trading
11. Industries
- Commodities Trading
- Shipping
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte Ltd | Court of Appeal | Yes | [2007] 3 SLR(R) 86 | Singapore | Cited for the four requirements to be satisfied when alleging breach of natural justice. |
| AKN and another v ALC and others and other appeals | Court of Appeal | Yes | [2015] 3 SLR 488 | Singapore | Cited for the principle that the audi alteram partem rule includes an arbitrator bringing his or her mind to bear on an important aspect of the dispute. |
| BRS v BRQ and another and another appeal | Court of Appeal | Yes | [2021] 1 SLR 390 | Singapore | Cited for the principle that an inference that an arbitrator had failed to consider an important pleaded issue must be shown to be clear and virtually inescapable. |
| TMM Division Maritima SA de CV v Pacific Richfield Marine Pte Ltd | High Court | Yes | [2013] 4 SLR 972 | Singapore | Cited for the proposition that no party to an arbitration had a right to expect the arbitral tribunal to accept its arguments. |
| CDI v CDJ | High Court | Yes | [2020] 5 SLR 484 | Singapore | Cited for the principles that an arbitral award is to be read generously and in a reasonable and commercial way. |
| Dampskibsselskabet “Norden” A/S v Andre & Cie SA | High Court of Justice | Yes | [2003] EWHC 84 Comm | England and Wales | Cited for the principle that where a contract is discharged by reason of one party's breach, and there exists an available market, the innocent party's loss will ordinarily be measured by the extent to which his financial position would be worse under the substitute contract than under the original contract. |
| China Machine New Energy Corp v Jaguar Energy Guatemala LLC and another | Court of Appeal | Yes | [2020] 1 SLR 695 | Singapore | Cited for the principle that parties cannot run to the courts to cry foul when they have failed to properly make a point or raise an argument before the tribunal. |
| Triulzi Cesare SRL v Xinyi Group (Glass) Co Ltd | Court of Appeal | Yes | [2015] 1 SLR 114 | Singapore | Cited for the principle that parties cannot run to the courts to cry foul when they have failed to properly make a point or raise an argument before the tribunal. |
| BLC and others v BLB and another | Court of Appeal | Yes | [2014] 4 SLR 79 | Singapore | Cited for the principle that parties cannot run to the courts to cry foul when they have failed to properly make a point or raise an argument before the tribunal. |
| CBS v CBP | Court of Appeal | Yes | [2021] SGCA 4 | Singapore | Cited for the proposition that the broad procedural powers of an arbitral tribunal are subject to the fundamental rules of natural justice. |
| ADG and another v ADI another matter | Court of Appeal | Yes | [2014] 3 SLR 481 | Singapore | Cited for the principle that Article 18 of the Model Law provides that each party shall have a reasonable opportunity to present its case. |
| CAI v CAJ | High Court | Yes | [2021] SGHC 21 | Singapore | Cited for the principle that if an aggrieved party equivocates or keeps silent on the manner in which the arbitral proceedings are conducted only to raise objections subsequently in a setting aside application, such conduct would be viewed unfavourably by the court. |
| Eagil Trust Co Ltd v Pigott-Brown | Unknown | Yes | [1985] 3 All ER 119 | England and Wales | Cited for the principle that the contents of the arbitral award taken as a whole inform the parties of the bases on which the arbitral tribunal reached its decision on the material or essential issues |
| Checkpoint Ltd v Strathclyde Pension Fund | England and Wales Court of Appeal | Yes | [2003] EWCA Civ 84 | England and Wales | Cited for the principle that there is plainly no requirement for the arbitral tribunal to touch on “each and every point in dispute” in its grounds of decision |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Sale of Goods Act (Cap 393, 1999 Rev Ed) | Singapore |
| International Arbitration Act (Cap 143A, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Gasoil
- Sale and purchase agreement
- SIAC arbitration
- Breach of contract
- Destination restriction clause
- Natural justice
- Setting aside
- Mitigation of losses
- Available market
- Letter of credit
15.2 Keywords
- Arbitration
- Contract
- Gasoil
- Singapore
- Breach
- Award
- Setting Aside
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Recourse against award | 90 |
| Arbitration | 90 |
| Setting aside | 90 |
| Contract Law | 60 |
| Breach of Contract | 50 |
| Evidence | 40 |
| International Commercial Arbitration | 30 |
| Formation of contract | 30 |
| Civil Procedure | 20 |
| Judgments and Orders | 20 |
16. Subjects
- Arbitration
- Contract Law
- International Trade