Wang Xiaopu v Goh Seng Heng: Costs Against Bankrupt Litigants and Sponsors in Contempt of Court
In Wang Xiaopu v Goh Seng Heng, the High Court of Singapore addressed the issue of cost allocation in a committal proceeding against Dr. Goh, an undischarged bankrupt, with Dr. Michelle Goh acting as his litigation sponsor. Mdm Wang sought indemnity costs against both Dr. Goh and Dr. Michelle Goh. The court ordered indemnity costs against Dr. Goh, citing his dishonest conduct, but declined to order costs against Dr. Michelle Goh, emphasizing the importance of access to legal representation in committal proceedings. The court ordered costs on an indemnity basis against Dr Goh fixed at S$40,000 plus disbursements of S$5,595.92.
1. Case Overview
1.1 Court
General Division of the High Court of the Republic of Singapore1.2 Outcome
Costs on an indemnity basis ordered against the first defendant, Dr. Goh, but costs not ordered against the second defendant, Dr. Michelle Goh.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court considered whether costs against a bankrupt litigant should be borne by their sponsor in a contempt of court case, ultimately ordering indemnity costs against the bankrupt only.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Wang Xiaopu | Plaintiff | Individual | Partial Win | Partial | |
| Goh Seng Heng | Defendant | Individual | Lost | Lost | |
| Goh Ming Li Michelle | Defendant | Individual | Won | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Grace Morgan | Drew & Napier LLC |
| Ng Lip Chih | Foo & Quek LLC |
| Rezvana Fairouse | NLC Law Asia LLC |
4. Facts
- Mdm Wang is a director and shareholder of Guangdong Marubi Biotechnology Co. Ltd.
- The defendants, Dr. Goh and Dr. Michelle Goh, are medical doctors.
- Dr. Goh was declared a bankrupt on 19 March 2020.
- The original dispute arose from agreements for Mdm Wang to purchase shares in AMP.
- Dr. Goh failed to pay the sum ordered by the court.
- Dr. Michelle Goh gave an undertaking to fund Dr. Goh’s legal fees.
- Dr. Goh was found to be in contempt of court and sentenced to seven days’ imprisonment.
5. Formal Citations
- Wang Xiaopu v Goh Seng Heng and another, Suit No 686 of 2015, [2022] SGHC 272
6. Timeline
| Date | Event |
|---|---|
| AMP incorporated by Dr Goh. | |
| Main action Suit 686 filed. | |
| Woo Bih Li J ordered Dr Goh to repay sales proceeds in Wang Xiaopu 2019. | |
| Dr Goh declared a bankrupt. | |
| Mdm Wang applied for an order of committal against Mr Goh in HC/SUM 5041/2020. | |
| Lee Seiu Kin J found Dr Goh to be in contempt of court in Wang Xiaopu 2021. | |
| Dr Goh’s appeal against the sentence in CA/CA 66/2021 was dismissed. | |
| Parties heard on costs. | |
| Judgment issued. |
7. Legal Issues
- Costs against non-parties
- Outcome: The court declined to order costs against the second defendant, Dr. Michelle Goh, as the circumstances of the present case did not justify making that order.
- Category: Procedural
- Related Cases:
- [2010] 3 SLR 542
- Indemnity costs
- Outcome: The court ordered costs on an indemnity basis against the first defendant, Dr. Goh, due to his dishonest conduct.
- Category: Procedural
- Related Cases:
- [2016] 5 SLR 103
8. Remedies Sought
- Order of committal
- Costs
9. Cause of Actions
- Misrepresentation
- Breach of Contract
10. Practice Areas
- Litigation
- Civil Procedure
- Insolvency Law
11. Industries
- Healthcare
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Wang Xiaopu v Goh Seng Heng and another | High Court | Yes | [2019] SGHC 284 | Singapore | Cited for the original dispute and the order for Dr. Goh to repay sales proceeds. |
| DB Trustees (Hong Kong) Ltd v Consult Asia Pte Ltd and another appeal | Singapore Court of Appeal | Yes | [2010] 3 SLR 542 | Singapore | Cited for the principle that the court has the discretion to award costs against a non-party if it is just to do so. |
| Wang Xiaopu v Goh Seng Heng and another | High Court | Yes | [2021] SGHC 282 | Singapore | Cited for finding Dr. Goh in contempt of court for intentionally withholding information and lying on affidavit. |
| Goh Seng Heng v Wang Xiaopu | Singapore Court of Appeal | Yes | [2022] SGCA 48 | Singapore | Cited for the dismissal of Dr. Goh's appeal against the sentence and the order for him to pay costs. |
| Goh Heng Seng v Wang Xiaopu | Singapore Court of Appeal | Yes | [2020] SGCA 66 | Singapore | Cited for recognizing that a sponsor who assists a bankrupt to pursue his appeal could be a potential non-party against whom costs can be ordered in the event that the appeal fails. |
| Locabail (UK) Ltd v Bayfield Properties Ltd and others | High Court of Justice, Chancery Division | Yes | [2000] 2 Costs LR 169 | England | Cited for the principle that third-party sponsors of impecunious litigants may be liable for costs in certain circumstances. |
| Hamilton v Al Fayed (No 2) | England and Wales Court of Appeal (Civil Division) | Yes | [2002] EWCA Civ 665 | England | Cited for the principle that pure funding of litigation ought generally to be regarded as being in the public interest. |
| Airtrust (Hong Kong) Ltd v PH Hydraulics & Engineering Pte Ltd | High Court | Yes | [2016] 5 SLR 103 | Singapore | Cited for the principle that a party’s dishonest, abusive or improper conduct in the course of proceedings would be one of the categories of conduct which may provide good reason for an order of indemnity costs to be made. |
13. Applicable Rules
| Rule Name |
|---|
| Order 59 r 2(2) of the Rules of Court (Cap 322, 2014 Rev Ed) |
| Order 59 r 5(b) of the Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 322, 2014 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Costs
- Indemnity basis
- Bankrupt
- Litigation sponsor
- Contempt of court
- Committal proceedings
- Undertaking
- Official Assignee
15.2 Keywords
- costs
- bankruptcy
- litigation
- sponsor
- contempt
- court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Costs | 90 |
| Civil Litigation | 75 |
| Judgments and Orders | 70 |
| Bankruptcy | 60 |
| Insolvency Law | 60 |
16. Subjects
- Civil Procedure
- Costs
- Bankruptcy
- Contempt of Court