Thio Keng Thay v Sandy Island Pte Ltd: Damages for Breach of Sale and Purchase Agreement

In a civil suit before the General Division of the High Court of Singapore, Thio Keng Thay sought damages from Sandy Island Pte Ltd for breach of a sale and purchase agreement concerning a property purchase. The court, presided over by Lee Seiu Kin J, found in favor of Thio Keng Thay, awarding damages of $1,308,645.48. The judgment addressed issues of admitted and non-admitted defects, mitigation of damages, betterment, deterioration, neglect, architectural intent, and warranty claims.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Judgment for the Plaintiff in the sum of $1,308,645.48.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Judgment on damages owed to Thio Keng Thay by Sandy Island Pte Ltd for breach of a sale and purchase agreement regarding a property purchase.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Thio Keng ThayPlaintiffIndividualJudgment for PlaintiffWon
Sandy Island Pte LtdDefendantCorporationJudgment against DefendantLost

3. Judges

Judge NameTitleDelivered Judgment
Lee Seiu KinJudgeYes

4. Counsels

Counsel NameOrganization
Tan Sih SiDrew & Napier LLC
Daniel CaiDrew & Napier LLC
Joseph LeeLVM Law Chambers LLC
Qabir Singh SandhuLVM Law Chambers LLC

4. Facts

  1. Plaintiff purchased a property from the Defendant for $14.32 million.
  2. Plaintiff discovered numerous defects after taking possession of the property.
  3. Plaintiff engaged a building surveyor to inspect the property and prepare a list of defects.
  4. Defendant offered to repair many of the defects, but Plaintiff did not permit access.
  5. Plaintiff called a tender for rectification works, awarding the contract to JTA Construction Pte Ltd.
  6. Defendant denied liability for some defects, claiming they were not defects under the SPA.
  7. The lifts in the property were defective, and the Plaintiff did not permit the supplier to rectify them.

5. Formal Citations

  1. Thio Keng Thay v Sandy Island Pte Ltd, Suit No 1073 of 2016, [2022] SGHC 69

6. Timeline

DateEvent
Plaintiff took possession of the Property
Plaintiff called a tender based on specifications prepared by his building surveyor
JTA Contract work commenced
JTA Contract work completed
Suit No 1073 of 2016 filed
First tranche of the trial was heard over eight days in 2018
Trial adjourned while hearing on quantum was still ongoing
Decision on the issue of liability given in Thio Keng Thay v Sandy Island Pte Ltd [2019] SGHC 175
Court of Appeal dismissed the appeal in Sandy Island Pte Ltd v Thio Keng Thay [2020] SGCA 86
Trial scheduled to resume with the hearing of the remaining evidence pertaining to the quantum of damages
Written submissions filed
Counsel appeared for oral reply submissions after which judgment was reserved
Counsel submitted further written submissions on a specific issue
Judgment Reserved

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found the Defendant liable for breach of the sale and purchase agreement.
    • Category: Substantive
    • Sub-Issues:
      • Failure to rectify defects
      • Breach of defects liability clause
    • Related Cases:
      • [2019] SGHC 175
      • [2020] SGCA 86
  2. Mitigation of Damages
    • Outcome: The court found that the Plaintiff's refusal to allow the Defendant to rectify the defects was justified under the unique circumstances of the case, particularly regarding the lifts.
    • Category: Substantive
    • Sub-Issues:
      • Failure to allow rectification
      • Reasonableness of refusal
    • Related Cases:
      • Pearce and High Ltd v Baxter (1999) 66 Con LR 110
  3. Assessment of Damages
    • Outcome: The court assessed the damages based on the JTA Contract, making deductions for betterment, deterioration, and architectural intent where applicable.
    • Category: Substantive
    • Sub-Issues:
      • Betterment
      • Deterioration
      • Neglect
      • Architectural intent
      • Warranty

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Construction Law
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Thio Keng Thay v Sandy Island Pte LtdHigh CourtYes[2019] SGHC 175SingaporeCited as the First Judgment in this suit, where the court made its decision on the issue of liability.
Sandy Island Pte Ltd v Thio Keng ThayCourt of AppealYes[2020] SGCA 86SingaporeCited as the CA Judgment, where the Court of Appeal dismissed the Defendant's appeal against the First Judgment.
Pearce and High Ltd v BaxterEnglish Court of AppealYesPearce and High Ltd v Baxter (1999) 66 Con LR 110EnglandCited for the principle that where an owner breaches a defects liability clause, they cannot recover more than what it would have cost the contractor to rectify the defects.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Evidence Act (Cap 97, 1997 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Sale and Purchase Agreement
  • Defects Liability
  • Mitigation of Damages
  • Betterment
  • Deterioration
  • Architectural Intent
  • Warranty
  • Rectification Works
  • JTA Contract
  • Admitted Defects
  • Non-admitted Defects

15.2 Keywords

  • breach of contract
  • construction defects
  • damages
  • Singapore High Court
  • property dispute

17. Areas of Law

Area NameRelevance Score
Assessment of Damages90
Damages80
Construction Law75
Breach of Contract60
Contract Law50

16. Subjects

  • Construction Dispute
  • Contract Law
  • Damages Assessment