Lee Kim Song v Chan Chee Kien: Resulting & Constructive Trusts Dispute
In Lee Kim Song v Chan Chee Kien, the High Court of Singapore heard a case regarding a dispute over the beneficial ownership of several properties. Lee Kim Song, the plaintiff, claimed that funds from his business, Designline Contracts and Services, were used to purchase properties held by the defendants, Chan Chee Kien and Ng Siow Hong. Lee sought the return of funds or beneficial ownership based on resulting or constructive trusts. The court dismissed Lee's claim, finding that Designline was used by Chan to extract secret profits and that the properties were purchased for Chan's benefit, not for investment on behalf of Designline.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Plaintiff's claim is dismissed in its entirety.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
The High Court dismissed Lee Kim Song's claim for beneficial ownership of properties held by Chan Chee Kien, finding no resulting or constructive trust.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Lee Kim Song | Plaintiff | Individual | Claim Dismissed | Lost | Goh Kim Thong Andrew, Lim Xiao Ping |
| Chan Chee Kien | Defendant | Individual | Claim Dismissed | Won | Kelvin Lee Ming Hui, Ong Xin Ying Samantha, Tan Zhi Ying Kikki |
| Ng Siow Hong | Defendant | Individual | Claim Dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Valerie Thean | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Goh Kim Thong Andrew | Andrew Goh Chambers |
| Lim Xiao Ping | Andrew Goh Chambers |
| Kelvin Lee Ming Hui | WNLEX LLC |
| Ong Xin Ying Samantha | WNLEX LLC |
| Tan Zhi Ying Kikki | WNLEX LLC |
4. Facts
- Lee Kim Song is the sole proprietor of Designline Contracts and Services since January 2006.
- Chan Chee Kien is the husband of Lee Kim Song’s sister and was employed by Saint Gobain (S) Pte Ltd.
- Ng Siow Hong is Chan Chee Kien’s former wife.
- Funds from Designline were used to purchase several properties held by Chan Chee Kien and/or Ng Siow Hong.
- Lee Kim Song claimed the properties were held on resulting or constructive trust for his benefit, or were loans.
- Chan Chee Kien agreed the properties were held on trust for Lee Kim Song’s benefit.
- Ng Siow Hong denied the properties were held on trust and claimed Designline was a sham to exploit business opportunities.
5. Formal Citations
- Lee Kim Song v Chan Chee Kien and another, Suit No 54 of 2020, [2021] SGHC 6
6. Timeline
| Date | Event |
|---|---|
| Designline was first set up by Tan Chwee Boon. | |
| The St Michael’s Property was purchased. | |
| Lee Kim Song took over Designline's business. | |
| Lee Kim Song became a director in Firelution Asia Pte Ltd. | |
| The Delta Industrial Property was purchased. | |
| The Pavilion Property was purchased. | |
| The Tuas Industrial Property was purchased. | |
| Volkswagen Tiguan R-Line 2.0 TSI was registered in Mdm Ng’s name. | |
| Commencement of the present suit. | |
| Trial began. | |
| Trial. | |
| Mr Chan and Mr Lee’s Closing Submissions. | |
| Trial. | |
| Judgment was issued. | |
| Volkswagen was deregistered. |
7. Legal Issues
- Resulting Trust
- Outcome: The court found that the evidence did not establish a resulting trust in favor of Mr. Lee.
- Category: Substantive
- Related Cases:
- [2014] 3 SLR 1048
- [2008] 2 SLR(R) 108
- Constructive Trust
- Outcome: The court found no common intention constructive trust for Mr. Lee's benefit.
- Category: Substantive
- Related Cases:
- [2014] 3 SLR 1048
- Breach of Duty
- Outcome: The court found that Mr. Chan breached his duty to Saint Gobain by using Designline to extract secret profits.
- Category: Substantive
- Burden of Proof
- Outcome: The court found that Mr. Lee did not discharge his burden of proof.
- Category: Procedural
- Related Cases:
- [2007] 4 SLR(R) 855
- [2011] 2 SLR 63
8. Remedies Sought
- Return of Funds Loaned
- Beneficial Ownership of Properties
9. Cause of Actions
- Breach of Trust
- Claim for Return of Loans
10. Practice Areas
- Litigation
- Trusts Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Chan Yuen Lan v See Fong Mun | Court of Appeal | Yes | [2014] 3 SLR 1048 | Singapore | Articulated a structured framework for analysing beneficial interests in a property. |
| Lau Siew Kim v Yeo Guan Chye Terence and another | Court of Appeal | Yes | [2008] 2 SLR(R) 108 | Singapore | Distinguished between a presumption of resulting trust and the resulting trust itself. |
| Britestone Pte Ltd v Smith & Associates Far East, Ltd | Court of Appeal | Yes | [2007] 4 SLR(R) 855 | Singapore | Detailed the applicable law on the burden of proof. |
| Cooperatieve Centrale Raiffeisen-Boerenleenbank BA(trading as Rabobank International), Singapore Branch v Motorola Electronics Pte Ltd | Court of Appeal | Yes | [2011] 2 SLR 63 | Singapore | Addressed the placement of the legal burden of proof. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Resulting Trust
- Constructive Trust
- Sole Proprietorship
- Beneficial Ownership
- Sham
- Secret Profits
- Designline Contracts and Services
- Saint Gobain
- Investment Purposes
15.2 Keywords
- trusts
- constructive trust
- resulting trust
- property
- Designline
- Chan Chee Kien
- Lee Kim Song
16. Subjects
- Trusts
- Property Law
- Commercial Law
17. Areas of Law
- Trusts Law
- Constructive Trusts
- Resulting Trusts