Ten-League v Precise Development: Direct Payment Arrangement & Construction Subcontracts Dispute
In a suit before the General Division of the High Court of Singapore, Ten-League Engineering & Technology Pte Ltd and Ten-League Corporations Pte Ltd (collectively, "Ten-League") sued Precise Development Pte Ltd ("Precise") and Choo Lye Weng for breach of an alleged direct payment arrangement, quantum meruit, and unlawful means conspiracy related to a construction project for the Housing & Development Board. Ten-League claimed Precise failed to make direct payments for equipment rentals initially owed by G-Con Foundation Pte Ltd ("G-Con"), a subcontractor. The court, presided over by Valerie Thean J, dismissed Ten-League's claims, finding no enforceable direct payment agreement existed between the parties.
1. Case Overview
1.1 Court
General Division of the High Court of the Republic of Singapore1.2 Outcome
Plaintiffs’ claim dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court dismisses Ten-League's claim against Precise Development for breach of contract and unlawful means conspiracy in a construction project dispute.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Ten-League Engineering & Technology Pte Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | |
| Ten-League Corporations Pte Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | |
| Precise Development Pte Ltd | Defendant | Corporation | Judgment for Defendant | Won | |
| Choo Lye Weng | Defendant | Individual | Judgment for Defendant | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Valerie Thean | Judge | Yes |
4. Counsels
4. Facts
- Precise engaged G-Con as its piling subcontractor for a Housing & Development Board project.
- G-Con rented machinery and equipment from Ten-League to carry out its piling works.
- G-Con fell into arrears in its payment obligations to Ten-League.
- A meeting was held between representatives of Precise, Ten-League, and Mr. Choo to discuss G-Con’s arrears.
- Ten-League proposed that Precise make direct payment of monies due to G-Con to it instead.
- Precise did not agree to enter into a contractual relationship with Ten-League.
- Precise issued a letter stating that any direct payment arrangement would be purely to assist G-Con’s cash flow and without any obligation to do so.
- G-Con sent a letter to Precise authorizing direct payment to Ten-League.
- Precise paid G-Con instead of Ten-League.
- Ten-League shut down the Equipment.
5. Formal Citations
- Ten-League Engineering & Technology Pte Ltd and another v Precise Development Pte Ltd and another, Suit No 792 of 2020, [2022] SGHC 317
6. Timeline
| Date | Event |
|---|---|
| TLET rented machinery and equipment to G-Con. | |
| G-Con fell into arrears in payment obligations to Ten-League. | |
| Meeting between representatives of Precise, Ten-League, and Mr. Choo to discuss G-Con’s arrears. | |
| Ten-League sent a letter to Precise and G-Con regarding G-Con's outstanding debt. | |
| G-Con sent a letter to Precise authorizing direct payment to Ten-League. | |
| Ms. Poon met with Mr. Choo to discuss the 31 Jan G-Con Letter. | |
| Precise issued a letter to G-Con regarding direct payments to Ten-League. | |
| Ten-League responded to Precise's letter via email. | |
| Meeting between Precise, Ten-League, and Mr. Choo to discuss direct payment arrangement. | |
| G-Con sent a letter to Precise authorizing direct payment to Ten-League. | |
| Precise issued Payment Certificate No. 13 to G-Con. | |
| Precise issued a cheque to G-Con. | |
| Ten-League shut down the Equipment. | |
| Mr. Choo instructed Precise to issue the cheque to G-Con. | |
| G-Con issued a cheque to Ten-League for $100,000. | |
| Ten-League started demobilizing the Equipment. | |
| TLET commenced proceedings against G-Con. | |
| Mr. Lim sent an email to Ms. Poon and Mr. Choo regarding the 6 Feb Meeting. | |
| Ms. Poon responded to Mr. Lim's email. | |
| TLET obtained judgment in default of appearance in Suit 226. | |
| Precise issued Payment Certificate No. 14 to G-Con. | |
| TLET obtained a provisional garnishee order against Precise. | |
| Precise issued Payment Certificate No. 15 to G-Con. | |
| Precise issued Payment Certificate No. 16 to G-Con. | |
| The assistant registrar dismissed TLET’s application to make the PGO absolute and discharged the PGO. | |
| TLET filed a notice of appeal against the AR’s decision. | |
| TLET withdrew its notice of appeal. | |
| Ten-League commenced this suit against Precise and Mr. Choo. | |
| Precise issued Payment Certificate No. 17 to G-Con. | |
| Trial began. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that no enforceable direct payment agreement existed, therefore there was no breach.
- Category: Substantive
- Quantum Meruit
- Outcome: The court rejected the quantum meruit claim.
- Category: Substantive
- Unlawful Means Conspiracy
- Outcome: The court dismissed the unlawful means conspiracy claim.
- Category: Substantive
- Abuse of Process
- Outcome: The court found that Ten-League was not barred from bringing the claims in this suit.
- Category: Procedural
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Quantum Meruit
- Unlawful Means Conspiracy
10. Practice Areas
- Construction Law
- Commercial Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Said v Butt | N/A | Yes | [1920] 2 KB 497 | N/A | Cited regarding personal liability of directors for company's contractual breaches. |
| PT Sandipala Arthaputra v STMicroelectronics Asia Pacific Pte Ltd | Court of Appeal | Yes | [2018] 1 SLR 818 | Singapore | Cited for the exception to the rule in Said v Butt regarding breach of director's duties. |
| BWG v BWF | Court of Appeal | Yes | [2020] 1 SLR 1296 | Singapore | Cited for the principles of approbation and reprobation. |
| Henderson v Henderson | N/A | Yes | (1843) 3 Hare 100 | N/A | Cited for the extended doctrine of res judicata. |
| Goh Nellie v Goh Lian Teck and others | N/A | Yes | [2007] 1 SLR(R) 453 | Singapore | Cited for the application of the extended doctrine of res judicata. |
| The Royal Bank of Scotland NV (formerly known as ABN Amro Bank NV) and others v TT International Ltd | N/A | Yes | [2015] 5 SLR 1104 | Singapore | Cited for the doctrine of res judicata. |
| Lipkin International Ltd v Swiber Holdings Ltd and another | N/A | Yes | [2015] 5 SLR 962 | Singapore | Cited regarding the doctrine of approbation and reprobation. |
| Cooperatieve Centrale Raiffeisen-Boerenleenbank BA v Motorola Electronics Pte Ltd | Court of Appeal | Yes | [2011] 2 SLR 63 | Singapore | Cited for principles applicable to multi-party agreements. |
| KLW Holdings Ltd v Straitsworld Advisory Ltd and another | N/A | Yes | [2017] 5 SLR 184 | Singapore | Cited for the principle that consideration need not benefit each party in a tripartite agreement. |
| Gay Choon Ing v Loh Sze Ti Terence Peter and another appeal | N/A | Yes | [2009] 2 SLR(R) 332 | Singapore | Cited for the requirements of offer, acceptance, consideration, and intention to create legal relations in contract formation. |
| ARS v ART and another | High Court | Yes | [2015] SGHC 78 | Singapore | Cited for the principles for determining whether an oral agreement was reached. |
| Overseas Union Insurance Ltd v Turegum Insurance Co | N/A | Yes | [2001] 2 SLR(R) 285 | Singapore | Cited for the requirements of acceptance in contract law. |
| Manas Kumar Ghosh v MSI Ship Management Pte Ltd and others | N/A | Yes | [2021] 4 SLR 935 | Singapore | Cited regarding abuse of process and res judicata. |
| Singapore Swimming Club v Koh Sin Chong Freddie | N/A | Yes | [2016] 3 SLR 845 | Singapore | Cited for the elements of an unjust enrichment claim. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Contracts (Rights of Third Parties) Act (Cap 53B, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Direct Payment Arrangement
- Subcontract
- Rental Agreement
- Arrears
- Payment Certificate
- Back Charges
- Garnishee Order
- Unjust Enrichment
15.2 Keywords
- construction
- direct payment
- subcontract
- breach of contract
- unlawful means conspiracy
- quantum meruit
17. Areas of Law
16. Subjects
- Construction Dispute
- Contract Law
- Civil Procedure