How Weng Fan v Sengkang Town Council: Town Councils Act, Fiduciary Duty, Negligence, Public Officers

In How Weng Fan and others v Sengkang Town Council, the Court of Appeal of Singapore addressed whether public servants exercising statutory duties under the Town Councils Act are subject to private law duties, specifically fiduciary and equitable duties. The case involved claims by Sengkang Town Council (STC) and Aljunied-Hougang Town Council (AHTC) against former and current Town Council members and senior employees, alleging breaches of fiduciary, equitable, and tortious duties. The Court held that the Town Councillors and Employees did not owe fiduciary duties to AHTC, allowing the appeals in part. The Court found that the Town Councillors and Employees did owe a common law duty of care and skill to AHTC in carrying out their respective TCA and TCFR duties, subject to any applicable limits arising on the proper interpretation of s 52 of the TCA.

1. Case Overview

1.1 Court

Court of Appeal of the Republic of Singapore

1.2 Outcome

Appeals allowed in part. The Court found that the Town Councillors and Employees did not owe fiduciary duties to AHTC.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Singapore Court of Appeal case on Town Councils Act, fiduciary duty, negligence, and liability of public officers. Read the full judgment.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Pritam SinghAppellantIndividualAppeal Allowed in PartPartial
How Weng FanAppellant, RespondentIndividualAppeal Allowed in PartPartial
How Weng Fan (Personal representative of the estate of Danny Loh Chong Meng, deceased, in his personal capacity and trading as FM Solutions & Integrated Services)Appellant, RespondentIndividualAppeal Allowed in PartPartial
FM Solutions & Services Pte LtdAppellantCorporationAppeal Allowed in PartPartial
Sengkang Town CouncilRespondent, AppellantStatutory BoardAppeal DismissedLost
Sylvia Lim Swee LianAppellant, RespondentIndividualAppeal Allowed in PartPartial
Low Thia KhiangAppellant, RespondentIndividualAppeal Allowed in PartPartial
Chua Zhi HonAppellantIndividualAppeal Allowed in PartPartial
Kenneth Foo Seck GuanAppellantIndividualAppeal Allowed in PartPartial
Aljunied-Hougang Town CouncilPlaintiff, RespondentStatutory BoardAppeal Allowed in PartPartial

3. Judges

Judge NameTitleDelivered Judgment
Sundaresh MenonChief JusticeYes
Andrew Phang Boon LeongJustice of the Court of AppealNo
Judith PrakashJustice of the Court of AppealNo
Tay Yong KwangJustice of the Court of AppealNo
Woo Bih LiJudge of the Appellate DivisionNo

4. Counsels

Counsel NameOrganization
Chelva Retnam RajahTan Rajah & Cheah
Netto LeslieNetto & Magin LLC
Chin Li Yuen MarinaTan Kok Quan Partnership
Chan Ming Onn DavidShook Lin & Bok LLP

4. Facts

  1. AHTC alleged breaches of fiduciary and equitable duties by its members and employees.
  2. The alleged breaches related to the award of contracts and payments to FMSS and FMSI.
  3. The High Court found several Town Council members liable for breaches of fiduciary and equitable duties.
  4. The Court of Appeal considered whether public servants exercising statutory duties are subject to private law duties.
  5. The Court of Appeal considered the interpretation of a statutory immunity clause (s 52 of the TCA).

5. Formal Citations

  1. How Weng Fan and others v Sengkang Town Council and other appeals, , [2022] SGCA 72

6. Timeline

DateEvent
2011 General Elections held
Low Thia Khiang expresses concern about CPG's management
T T Tan suggests CPG will cease providing services
FM Solutions & Integrated Services incorporated
Aljunied-Hougang Town Council gazetted
CPG confirms it does not wish to serve as MA for AHTC
Loh makes presentation on MA and EMSU services
First Town Council Meeting held
Loh submits draft letter of intent for FMSS appointment
Lim expresses intention to sign letter of intent
Lim signs letter of intent on behalf of AHTC
Yaw signs letter of intent
Lim forwards draft report to Low and Yaw
Second Town Council Meeting held; FMSS appointed
AHTC releases media statement on FMSS appointment
AHTC and CPG enter deed of mutual release
How requests extension of CPG's EMSU contract
EM Services declines to extend EMSU contract
Third Town Council Meeting held; EMSU Committee appointed
Jeffrey Chua confirms CPG will not extend EMSU contract
Lim conveys CPG's decision to other elected members
EMSU Committee recommends awarding contract to FMSS
AHTC meeting decides to appoint a committee to vet tender documents
AHTC meeting notes the tender documents have been vetted
Tender notice for MA and EMSU services published
FMSS submits the sole bid for the second contracts for MA and EMSU services
AHTC meeting notes FMSS submitted sole bid
Lim asks FMSS to attend meeting to address pricing questions
Tenders Committee evaluates FMSS's tenders
Tenders Committee reconvenes to evaluate FMSS's MA tender
AHTC meeting discusses FMSS's tenders
Lim sends letter of acceptance for MA services
Lim sends letter of acceptance for EMSU services
AHTC invites tenders for architectural consultants
Property Officer gives performance assessment scores
Tenders Committee decides to appoint both tenderers
LST Architects and Design Metabolists enter agreements with AHTC
AHTC confirms Punggol East will be added to Red-Power contract
AHPETC submits audited financial statements to Parliament
Auditing firm submits auditor's report to Auditor-General
Auditor-General's Office issues AGO Report
MND commences OS 250 against AHPETC
Punggol East added to AHTC's contract with Red-Power
High Court dismisses OS 250
Judgment in AG v AHPETC is delivered
AHPETC appoints KPMG as independent accountant
KPMG releases Report on Improper Payments
Independent Panel appointed to act as AHTC's agent
Independent Panel commences Suit 668 in AHTC's name
PRPTC commences Suit 716
Trial begins
Trial ends
Judgment delivered
Decision in SUM 2050 delivered
Judgment reserved

7. Legal Issues

  1. Fiduciary Duty
    • Outcome: The Court held that the Town Councillors and Employees did not owe fiduciary duties to AHTC.
    • Category: Substantive
    • Sub-Issues:
      • Breach of duty of loyalty
      • Conflict of interest
      • Failure to act in best interests
  2. Negligence
    • Outcome: The Court held that the Town Councillors and Employees did owe a common law duty of care and skill to AHTC in carrying out their respective TCA and TCFR duties, subject to any applicable limits arising on the proper interpretation of s 52 of the TCA.
    • Category: Substantive
    • Sub-Issues:
      • Duty of care
      • Breach of duty
      • Causation
  3. Statutory Interpretation
    • Outcome: The Court interpreted s 52 of the TCA as applying to claims brought by the Town Council against its members, employees, and officers.
    • Category: Procedural
    • Sub-Issues:
      • Construction of statute
      • Purpose of legislation

8. Remedies Sought

  1. Monetary Damages
  2. Equitable Compensation
  3. Rescission of Contract

9. Cause of Actions

  • Breach of Fiduciary Duty
  • Negligence
  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Public Law

11. Industries

  • Government Administration

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Town Councils Act (Cap 329A, 2000 Rev Ed)Singapore
s 21(2) of the Town Councils ActSingapore
s 52 of the Town Councils ActSingapore
Town Councils Financial Rules (Cap 329A, R 1, 1998 Rev Ed)Singapore
Audit Act (Cap 17, 1999 Rev Ed)Singapore
s 4(4) of the Audit ActSingapore
Town Councils (Amendment) Act 2017 (Act 17 of 2017)Singapore
s 35(c) of the Town Councils ActSingapore
Land Titles (Strata) Act (Cap 158, 2009 Rev Ed)Singapore
Companies Act 1967 (2020 Rev Ed)Singapore
s 157(1) of the Companies ActSingapore
s 391 of the Companies Act (Cap 50, 2006 Rev Ed)Singapore
Trustees Act (Cap 337, 2005 Rev Ed)Singapore
s 60 of the Trustees ActSingapore
Interpretation Act 1965 (2020 Rev Ed)Singapore
s 9A(2) of the Interpretation Act 1965 (2020 Rev Ed)Singapore
s 9A(4) of the Interpretation Act 1965 (2020 Rev Ed)Singapore
Evidence Act (Cap 97, 1997 Rev Ed)Singapore
Evidence Act 1893 (2020 Rev Ed)Singapore
ss 103 and 105 of the Evidence ActSingapore
Penal Code 1871 (2020 Rev Ed)Singapore
s 405 of the Penal Code 1871 (2020 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Fiduciary Duty
  • Town Councils Act
  • Negligence
  • Public Servant
  • Statutory Immunity
  • Breach of Duty
  • Conflict of Interest
  • Good Faith
  • Tender
  • Managing Agent
  • Essential Maintenance Service Unit
  • Control Failures

15.2 Keywords

  • Town Councils Act
  • Fiduciary Duty
  • Negligence
  • Public Servant
  • Statutory Immunity
  • Breach of Duty
  • Conflict of Interest
  • Good Faith
  • Tender
  • Managing Agent
  • Essential Maintenance Service Unit
  • Control Failures

17. Areas of Law

Area NameRelevance Score
Fiduciary Duties95
Equitable Duties80
Negligence70
Trust Law60
Statutory Interpretation60
Recipient liability50
Torts50
Administrative Law30
Corporate Law25
Civil Procedure20

16. Subjects

  • Local Government Law
  • Public Law
  • Private Law
  • Statutory Interpretation
  • Tort Law
  • Equity
  • Fiduciary Duty
  • Negligence