Smart Property Management v Management Corp: Breach of Contract & Managing Agent Duties
Smart Property Management (Singapore) Pte Ltd (“Smart”), the appellant, appealed against the decision of the District Judge in District Court Suit No 2074 of 2019, where the Management Corporation Strata Title Plan No 4375 (“the MCST”), the respondent, sued Smart for breach of contract. The High Court dismissed the appeal in relation to the Landscape Works and Hoarding Works but allowed the appeal on the EM Locks. The court found that Smart had breached its duty to supervise Oakland in its landscaping services and had wrongly advised the MCST to install Hoarding Works. However, the court found that Smart's advice to install EM locks was not wrong.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Appeal dismissed in part and allowed in part.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Smart Property Management appealed a decision finding them liable for breach of contract. The appeal was dismissed in part and allowed in part.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Smart Property Management (Singapore) Pte Ltd | Appellant | Corporation | Appeal dismissed in part and allowed in part | Partial | Liew Teck Huat, Alex Yeo Sheng Chye, Denise Teo Ying Ying |
| The Management Corporation Strata Title Plan No 4375 | Respondent | Corporation | Appeal dismissed in part and allowed in part | Partial | Wah Hsien-Wen, Terence, Mok Zicong |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Audrey Lim | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Liew Teck Huat | Niru & Co LLC |
| Alex Yeo Sheng Chye | Niru & Co LLC |
| Denise Teo Ying Ying | Niru & Co LLC |
| Wah Hsien-Wen | Dentons Rodyk & Davidson LLP |
| Terence | Dentons Rodyk & Davidson LLP |
| Mok Zicong | Dentons Rodyk & Davidson LLP |
4. Facts
- Smart was the managing agent for the Development from January 2018.
- The MCST commenced a suit against Smart for breaching its contractual duties.
- Smart failed to supervise Oakland in its landscaping services.
- Smart wrongly advised the MCST to install Hoarding Works.
- Smart wrongly advised the MCST to install electro-magnetic door locks.
- The MCST terminated the Contract with Smart effective from 19 March 2019.
5. Formal Citations
- Smart Property Management (Singapore) Pte Ltd v Management Corporation Strata Title Plan No 4375, District Court Appeal No 52 of 2021, [2022] SGHC 219
6. Timeline
| Date | Event |
|---|---|
| Smart became the managing agent for the Development. | |
| Smart was formally appointed as the managing agent of the Development for one year. | |
| Resolution 9.5 was passed at the Second Annual General Meeting. | |
| Smart advised the MCST on hoarding up of units during the first Council Meeting of the second MC. | |
| EM Locks were installed. | |
| The MCST issued a termination notice to Smart. | |
| The Contract was terminated. | |
| The MCST commenced the Suit against Smart. | |
| Judgment reserved. | |
| Judgment delivered. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that Smart breached its duty to supervise Oakland in its landscaping services and had wrongly advised the MCST to install Hoarding Works. However, the court found that Smart's advice to install EM locks was not wrong.
- Category: Substantive
- Sub-Issues:
- Failure to supervise contractors
- Negligent advice
- Duties of Managing Agent
- Outcome: The court clarified the scope of a managing agent's duties, particularly regarding supervision of contractors and the provision of advice to the MCST.
- Category: Substantive
- Sub-Issues:
- Standard of conduct
- Supervision of contractors
- Provision of competent advice
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| The Management Corporation Strata Title Plan No 4375 v Smart Property Management (Singapore) Pte Ltd | Singapore District Court | Yes | [2022] SGDC 38 | Singapore | The District Judge's grounds of decision in the original suit are referenced and analyzed. |
| Yip Holdings Pte Ltd v Asia Link Marine Industries Pte Ltd | Court of Appeal | Yes | [2012] 1 SLR 131 | Singapore | Cited regarding the need to specifically plead mitigation in the Defence. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Building Maintenance and Strata Management Act (Cap 30C, 2008 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Managing Agent
- Management Corporation Strata Title
- Sinking Fund
- Hoarding Works
- Electro-Magnetic Locks
- Landscaping Contract
- Supervision of Contractors
- Resolution 9.5
15.2 Keywords
- managing agent
- breach of contract
- strata management
- hoarding works
- landscape works
- EM locks
16. Subjects
- Contract Dispute
- Property Management
- Strata Management
17. Areas of Law
- Contract Law
- Breach of Contract
- Land Law
- Strata Titles
- Building Maintenance and Strata Management Act