Appelqvist v Eon Reality: Breach of Employment Contract & Unpaid Commission
In a suit before the General Division of the High Court of Singapore, Pontus Paal Appelqvist, a former Vice President of Sales for Asia-Pacific at Eon Reality Pte Ltd, claimed unpaid salary and outstanding sales commissions following his termination. Eon Reality Pte Ltd, and Eon Reality Inc. as plaintiffs-in-counterclaim, disputed the claims and filed a counterclaim for breach of contract and duty of care. The court, presided over by Choo Han Teck J, allowed Appelqvist's claim in part, awarding him S$95,000 for salary in lieu of notice and S$670,698.55 for outstanding commissions, while dismissing the counterclaim.
1. Case Overview
1.1 Court
General Division of the High Court of the republic of singapore1.2 Outcome
Claim allowed in part; Counterclaim dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Pontus Appelqvist sues Eon Reality for breach of employment contract, claiming unpaid salary and commissions. The court allows the claim in part, awarding salary and some commissions.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Pontus Paal Appelqvist | Plaintiff, Defendant-in-Counterclaim | Individual | Claim allowed in part | Partial | |
| Eon Reality Pte Ltd | Defendant, Plaintiffs-in-Counterclaim | Corporation | Counterclaim dismissed | Dismissed | |
| Eon Reality Inc | Plaintiffs-in-Counterclaim | Corporation | Counterclaim dismissed | Dismissed |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Byron Nicholas Xavier | Xavier & Associates LLC |
| Tian Keyun | Yuen Law LLC |
| Cai Enhuai Amos | Yuen Law LLC |
4. Facts
- The plaintiff was employed as Vice President of Sales for Asia-Pacific at the defendant company.
- The plaintiff's employment was terminated on 3 March 2021 with one month's salary in lieu of notice.
- The plaintiff's remuneration consisted of a fixed salary and a commission based on EON Net Sales.
- The plaintiff claimed unpaid salary in lieu of notice and outstanding sales commissions.
- The defendant disputed liability for some projects, claiming they were 'washout' or non-performing.
- The defendant introduced a 'project washout' clause in the September 2020 Sales Policy and Procedures.
- The plaintiff signed the last amendment to the Employment Contract on 1 February 2020.
5. Formal Citations
- Appelqvist, Pontus Paal v Eon Reality Pte Ltd, Suit No 469 of 2021, [2022] SGHC 296
6. Timeline
| Date | Event |
|---|---|
| Contract offer dated | |
| 1st Addendum made to contract | |
| Last addendum made to contract | |
| Plaintiff informed that three projects were deemed 'washout' | |
| Plaintiff made aware of 2020 Sales Policy and Procedures | |
| Plaintiff's employment terminated | |
| 2020 Sales Policy and Procedures backdated to | |
| 2020 Sales Policy and Procedures backdated to | |
| Judgment reserved | |
| Trial began | |
| Judgment issued |
7. Legal Issues
- Breach of Employment Contract
- Outcome: The court found that the defendant breached the employment contract by failing to provide the plaintiff with the correct notice period.
- Category: Substantive
- Sub-Issues:
- Failure to provide adequate notice period
- Unilateral variation of contract terms
- Entitlement to Sales Commissions
- Outcome: The court found that the plaintiff was entitled to commissions on some projects but not others, based on the net sales and the terms of the employment contract and sales policy.
- Category: Substantive
- Sub-Issues:
- Interpretation of sales policy and procedures
- Calculation of net sales
- Validity of 'project washout' clause
- Breach of Duty of Care
- Outcome: The court found that the plaintiff did not owe a duty to perform customer due diligence.
- Category: Substantive
- Sub-Issues:
- Failure to perform due diligence
- Scope of employment duties
8. Remedies Sought
- Unpaid Salary
- Outstanding Sales Commissions
9. Cause of Actions
- Breach of Contract
- Breach of Duty of Care
10. Practice Areas
- Commercial Litigation
- Employment Disputes
11. Industries
- Technology
- Education
- Government
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Press Automation Technology Pte Ltd v Trans-Link Exhibition Forwarding Pte Ltd | High Court | Yes | [2003] 1 SLR(R) 712 | Singapore | Cited for the principle that onerous and unusual conditions can be incorporated into a signed contract with an explicit incorporating clause, even if the signing party was not specifically drawn to them. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Employment Act (Cap 91, 2009 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Employment Contract
- Sales Commission Report
- Sales Policy and Procedures
- EON Net Sales
- Interactive Digital Centre
- Project washout
- Costs of Goods Sold
- Commission Percentage
- Commission Advances
- Commission Split
15.2 Keywords
- employment contract
- sales commission
- virtual reality
- augmented reality
- termination
- notice period
- washout projects
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Breach of Contract | 90 |
| Contract Law | 90 |
| Employment Law | 85 |
| Breach of duty to perform due diligence | 60 |
| Negligence | 60 |
| Commercial Disputes | 50 |
| Damages Assessment | 40 |
| Estoppel | 20 |
| Company Law | 20 |
16. Subjects
- Employment Law
- Contract Law
- Commercial Litigation