Zhong Lingyun v Yuan Fang: Breach of Settlement Agreement Dispute
In the case of Zhong Lingyun v Yuan Fang, heard in the General Division of the High Court of Singapore on 22 February 2022, with judgment reserved on 12 April 2022, the plaintiff, Zhong Lingyun, sued the defendant, Yuan Fang, for breach of a Settlement Agreement. The court, presided over by Choo Han Teck J, found the Settlement Agreement valid and binding, ruling that the defendant had breached the agreement by failing to pay the plaintiff $350,000.00. The court ordered the defendant to pay the plaintiff $350,000.00, with interest to be calculated based on the statutory default rate, from the date of this judgment until the date of full payment. The defendant's counterclaim was dismissed.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Plaintiff sued Defendant for failing to pay $350,000 under a Settlement Agreement. The court found the Settlement Agreement valid and ruled in favor of the Plaintiff.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Zhong Lingyun | Plaintiff | Individual | Judgment for Plaintiff | Won | |
| Yuan Fang | Defendant | Individual | Claim Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge of the High Court | Yes |
4. Counsels
4. Facts
- Plaintiff and defendant entered into a Cooperation Agreement regarding shareholding in Fu Xin Construction Pte Ltd.
- Plaintiff transferred 70% of the shares in the Company to the defendant.
- Parties entered into a Settlement Agreement where defendant agreed to pay $350,000.00 to the plaintiff.
- Plaintiff transferred the remaining 30% shares of the Company to the defendant.
- Defendant failed to make payment to the plaintiff by the agreed-upon date.
- Plaintiff commenced proceedings against the defendant for the sum of $350,000.00.
5. Formal Citations
- Zhong Lingyun v Yuan Fang, Suit No 311 of 2021, [2022] SGHC 82
6. Timeline
| Date | Event |
|---|---|
| Defendant employed by Fu Xin Construction Pte Ltd as a manager. | |
| Plaintiff handed over management of the Company to the defendant. | |
| Plaintiff drafted a memorandum to transfer 70% shareholding to the defendant. | |
| Parties entered into a Cooperation Agreement. | |
| Plaintiff's daughter transferred 70% of the shares in the Company to the defendant. | |
| Defendant terminated Zhong Rong’s employment pass. | |
| Parties entered into a Settlement Agreement. | |
| Plaintiff’s daughter transferred the remaining 30% shares of the Company to the defendant. | |
| Defendant failed to make payment to the plaintiff. | |
| Plaintiff's solicitor sent a letter of demand to the defendant. | |
| Defendant sent an email seeking to extend the payment deadline. | |
| Plaintiff's solicitors sent the Extension Letter. | |
| Defendant failed to make payment. | |
| Another letter of demand was sent to the defendant. | |
| Plaintiff commenced proceedings against the defendant. | |
| Hearing date. | |
| Hearing date. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Contract
- Outcome: The court held that the defendant breached the Settlement Agreement by failing to pay the plaintiff the settlement sum of $350,000.00.
- Category: Substantive
- Validity of Settlement Agreement
- Outcome: The court found that the Settlement Agreement was valid and binding between the parties.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Settlement Agreement
- Cooperation Agreement
- Shareholding
- Breach of Contract
- Payment Deadline
15.2 Keywords
- Breach of Contract
- Settlement Agreement
- Singapore High Court
- Construction Company
- Share Transfer
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Breach of Contract | 95 |
| Contract Law | 80 |
| Settlement Agreement | 70 |
| Estoppel | 30 |
| Shareholding | 30 |
| Company Law | 20 |
16. Subjects
- Contract Dispute