O’Laughlin Industries v Tan Thiam Hock: Conspiracy, Breach of Trust, and Misuse of Company Goods

O’Laughlin Industries Company Limited and O’Laughlin Corporation Limited sued Tan Thiam Hock, Tan Poh Suan Jacqueline, Desiree Ann Derek David, Pegasus Chemical Pte Ltd, Koh Chiao-Jian Felicia, Tan Huat Chye, and Tan Thiam Teng in the High Court of Singapore, alleging conspiracy and breach of trust. The suit arose from Tan Thiam Hock's misuse of his position to misappropriate goods. The court found Tan Thiam Hock and Pegasus Chemical Pte Ltd liable for damages, while dismissing the claims against the other defendants. The claim was for breach of contractual, fiduciary and/or implied duties.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Judgment for Plaintiffs against First Defendant and Pegasus Chemical Pte Ltd; claims against other defendants rejected.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

O’Laughlin Industries sued Tan Thiam Hock and others for conspiracy and breach of trust involving misuse of company goods. The court found Tan Thiam Hock and Pegasus Chemical liable.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
O’Laughlin Industries Company LimitedPlaintiffCorporationJudgment for PlaintiffWon
O’Laughlin Corporation LimitedPlaintiffCorporationJudgment for PlaintiffWon
Tan Thiam HockDefendantIndividualJudgment against DefendantLost
Tan Poh Suan JacquelineDefendantIndividualClaim DismissedDismissed
Desiree Ann Derek DavidDefendantIndividualClaim DismissedDismissed
Pegasus Chemical Pte LtdDefendantCorporationJudgment against DefendantLost
Koh Chiao-Jian FeliciaDefendantIndividualClaim DiscontinuedDismissed
Tan Huat ChyeDefendantIndividualClaim DismissedDismissed
Tan Thiam TengDefendantIndividualClaim DismissedDismissed

3. Judges

Judge NameTitleDelivered Judgment
Lee Seiu KinJudgeYes

4. Counsels

Counsel NameOrganization
Nicholas NarayananNicholas & Tan Partnership LLP
K Nair Chandra MohanTan Rajah & Cheah LLP
Oliver QuekOliver Quek & Associates
Tan Si RuiOliver Quek & Associates

4. Facts

  1. The First Defendant, an employee of the Plaintiffs, misused his position to misappropriate goods.
  2. The First Defendant incorporated Globchem and Pegasus to receive goods from the Plaintiffs for further sale to third parties.
  3. The First Defendant sold the Plaintiffs’ goods to Mr. Sheth through Globchem and Pegasus.
  4. The First Defendant misrepresented the quality of goods to customers.
  5. The First Defendant forged signatures on company documents.
  6. The First Defendant directed the switching of genuine products with water or salt.

5. Formal Citations

  1. O’Laughlin Industries Co Ltd and another v Tan Thiam Hock and others, Suit No 1174 of 2016, [2021] SGHC 35
  2. O’Laughlin Industries Co Ltd and another v Tan Thiam hock and others, , [2020] SGHCR 6

6. Timeline

DateEvent
Agreement between First Plaintiff and First Defendant signed
Globchem Logistics Private Limited incorporated
First shipment to Globchem completed
First Defendant tasked to send an email to Globchem giving advance notice of the shipment of all goods from Singapore to Rotterdam
MFO received an email from Jonathan Foo purportedly sent on behalf of Pegasus
Pegasus Chemical Pte Ltd incorporated
Globchem’s registered address changed to Jacqueline’s residential address
Globchem filed an application for it to be struck off the register of companies
First Defendant wrote to Jonathan Foo regarding overdue payments
Second Plaintiff served a letter of demand on Pegasus
Desiree replied to the First Defendant as the owner and director of Pegasus Chemical
Pegasus paid US$50,000
First Defendant verbally confessed to MFO
First Defendant sent an email to MFO expressing remorse
Pegasus paid US$21,000
First Defendant voluntarily met the plaintiffs’ lawyer, Mr Nicholas Narayanan
Plaintiffs commenced the present action
Plaintiffs terminated the First Defendant’s employment
Interim judgment entered against the First Defendant and Pegasus
Court ordered the notice of discontinuance to be filed, subject to an injunction against Felicia

7. Legal Issues

  1. Conspiracy
    • Outcome: The court found that the First Defendant and Pegasus Chemical Pte Ltd engaged in a conspiracy to defraud the plaintiffs.
    • Category: Substantive
  2. Breach of Fiduciary Duty
    • Outcome: The court found that the First Defendant breached his fiduciary duties to the plaintiffs.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages
  2. Declaration of Constructive Trust

9. Cause of Actions

  • Breach of Contract
  • Breach of Fiduciary Duty
  • Conspiracy
  • Dishonest Assistance

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Chemicals
  • Fragrances
  • Flavors
  • Food
  • Beverages
  • Cosmetics

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
O’Laughlin Industries Co Ltd and another v Tan Thiam hock and othersHigh CourtYes[2020] SGHCR 6SingaporeCited regarding the plaintiffs' allegations against Felicia and the interim judgment against the First Defendant and Pegasus.

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

  • Globchem
  • Pegasus
  • Kovyral
  • Tonalid
  • Luxepack
  • Fiduciary Duty
  • Constructive Trust
  • Jonathan Foo
  • Karl Rapp
  • Misappropriation
  • Nominee Director

15.2 Keywords

  • Conspiracy
  • Breach of Trust
  • Misappropriation
  • Fiduciary Duty
  • Chemicals
  • Singapore
  • O’Laughlin
  • Tan Thiam Hock

17. Areas of Law

Area NameRelevance Score
Fraud and Deceit95
Conspiracy by Unlawful Means90
Abuse of Trust85
Misappropriation75
Fiduciary Duties70
Breach of Duty65
Contract Law60
Company Law50
Estoppel30

16. Subjects

  • Tort Law
  • Company Law
  • Contract Law
  • Fiduciary Duty