Sanum Investments v Government of Lao: Setting Aside & Enforcement of Arbitral Award
Sanum Investments Ltd and Lao Holdings NV sought to set aside an arbitral award in favour of the Government of the Lao People’s Democratic Republic, San Marco Capital Partners LLC, and Kelly Gass, and to resist enforcement of the award. The Singapore International Commercial Court dismissed both applications, finding no breach of natural justice or public policy violations. The court upheld the arbitral tribunal's decision on collateral estoppel and cost allocation.
1. Case Overview
1.1 Court
Singapore International Commercial Court1.2 Outcome
Originating Summons No 7 of 2022 and Summons No 5882 of 2021 dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court dismisses application to set aside an arbitral award, enforcing it in favor of the Government of Lao and others.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| The Government of the Lao People’s Democratic Republic | Defendant, Respondent | Government Agency | Applications Dismissed | Won | Lim Gerui, Tan Yuan Kheng, Tan Sih Si |
| San Marco Capital Partners LLC | Defendant, Respondent | Corporation | Applications Dismissed | Won | Lim Gerui, Tan Yuan Kheng, Tan Sih Si |
| Kelly Gass | Defendant, Respondent | Individual | Applications Dismissed | Won | Lim Gerui, Tan Yuan Kheng, Tan Sih Si |
| Sanum Investments Limited | Plaintiff, Applicant | Corporation | Applications Dismissed | Lost | Lin Weiqi Wendy, Chong Wan Yee Monica, Leau Jun Li |
| Lao Holdings NV | Plaintiff, Applicant | Corporation | Applications Dismissed | Lost | Lin Weiqi Wendy, Chong Wan Yee Monica, Leau Jun Li |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Philip Jeyaretnam | Judge of the High Court | Yes |
| Vivian Ramsey | International Judge | No |
| Douglas Jones | International Judge | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lin Weiqi Wendy | WongPartnership LLP |
| Chong Wan Yee Monica | WongPartnership LLP |
| Leau Jun Li | WongPartnership LLP |
| Lim Gerui | Drew & Napier LLC |
| Tan Yuan Kheng | Drew & Napier LLC |
| Tan Sih Si | Drew & Napier LLC |
4. Facts
- Investors commenced arbitration against GOL pursuant to bilateral investment treaties.
- A Settlement Deed was executed to resolve disputes, requiring the Investors to sell Gaming Assets.
- Investors failed to sell the Gaming Assets by the deadline.
- GOL entered into a contract with SM for the management, sale, and marketing of the Gaming Assets.
- Investors commenced a lawsuit against SM and Gass in the United States District Court for the District of Delaware.
- Investors commenced SIAC Arbitration 414 asserting claims for breach of fiduciary duty, breach of contract and conversion of property against SM and Gass.
- The Tribunal dismissed the Investors’ claims against SM and Gass for breach of fiduciary and contractual duties, and a portion of their conversion claims on the basis that they were barred by the defence of collateral estoppel under New York law.
5. Formal Citations
- Sanum Investments Ltd and another v Government of the Lao People’s Democratic Republic and others and another matter, Originating Summons No 6 of 2022 (Summons No 5882 of 2021) and Originating Summons No 7 of 2022, [2022] SGHC(I) 9
6. Timeline
| Date | Event |
|---|---|
| Investors commenced arbitration against GOL | |
| Settlement Deed executed | |
| GOL initiated Prior SIAC Arbitration against the Investors | |
| Contract between GOL and SM effective | |
| Investors failed to sell Gaming Assets | |
| GOL entered into a contract with SM | |
| GOL issued a decree transferring assets to Savan Lao | |
| Investors commenced lawsuit against SM and Gass in the United States District Court for the District of Delaware | |
| SM and Gass filed a motion to dismiss the Delaware Action | |
| SV Casino sold to Macau Legend | |
| Prior SIAC Award rendered | |
| Delaware District Court granted SM’s and Gass’ motion to dismiss | |
| BIT Arbitrations were revived | |
| Investors commenced SIAC Arbitration 414 | |
| GOL filed an application for joinder | |
| Court of Arbitration of the SIAC granted GOL's application for joinder | |
| Tribunal issued its decision concluding that it had jurisdiction over GOL | |
| Investors filed their Statement of Claim | |
| Prior SIAC Award was enforced as a judgment of the Singapore court | |
| GOL Parties filed an application for security for costs | |
| Investors filed their response to the application for security for costs | |
| Tribunal denied the application for security for costs | |
| GOL Parties filed their Statement of Defence | |
| Investors filed their Reply | |
| GOL Parties filed their Rejoinder | |
| Merits hearing of SIAC Arbitration 414 took place | |
| Three sets of costs submissions were filed | |
| GOL Parties submitted a collective reply submissions on costs, and so did the Investors | |
| Tribunal invited parties to update their costs figures | |
| Parties gave their replies to update their costs figures | |
| Tribunal closed the proceedings | |
| Tribunal issued the Award dismissing the Investors’ claims in their entirety | |
| GOL Parties filed HC/OS 834/2021 (which was later converted to OS 6) seeking leave to enforce the Award | |
| Ex parte order of court (ORC 4993) granted the GOL Parties leave to enforce the Award | |
| Investors filed HC/OS 1158/2021 (which was later converted to OS 7) to set aside the Award in its entirety or in part | |
| Investors filed SUM 5882 to set aside ORC 4993 | |
| Second reading of the Legal Profession (Amendment) Bill | |
| Court decided to dismiss orders for the anonymisation and redaction of parties’ identities | |
| Judgment reserved |
7. Legal Issues
- Setting Aside Arbitral Award
- Outcome: The court held that there was no breach of natural justice or violation of public policy.
- Category: Procedural
- Sub-Issues:
- Breach of natural justice
- Public policy violation
- Enforcement of Arbitral Award
- Outcome: The court held that the grounds to resist enforcement were not established.
- Category: Procedural
- Sub-Issues:
- Inability to present case
- Conflict with public policy
- Arbitral procedure not in accordance with agreement
- Decision beyond scope of submission
- Collateral Estoppel
- Outcome: The tribunal's application of collateral estoppel under New York law was upheld.
- Category: Substantive
8. Remedies Sought
- Setting Aside of Arbitral Award
- Resistance to Enforcement of Arbitral Award
9. Cause of Actions
- Breach of Fiduciary Duty
- Breach of Contract
- Conversion of Property
10. Practice Areas
- Arbitration
- Commercial Litigation
11. Industries
- Gaming
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Government of the Lao People’s Democratic Republic v Sanum Investments Ltd | Singapore courts | Yes | [2015] 2 SLR 322 | Singapore | Cited as part of the long-running dispute history between the parties. |
| Sanum Investments Ltd v Government of the Lao People’s Democratic Republic | Singapore courts | Yes | [2016] 5 SLR 536 | Singapore | Cited as part of the long-running dispute history between the parties. |
| Sanum Investments Ltd v ST Group Co, Ltd and others | Singapore courts | Yes | [2020] 3 SLR 225 | Singapore | Cited as part of the long-running dispute history between the parties. |
| ST Group Co Ltd and others v Sanum Investments Ltd and another appeal | Singapore courts | Yes | [2020] 1 SLR 1 | Singapore | Cited as part of the long-running dispute history between the parties. |
| Lao Holdings NV v Government of the Lao People’s Democratic Republic and another matter | High Court | Yes | [2021] 5 SLR 228 | Singapore | Cited as part of the long-running dispute history between the parties. |
| BTN and another v BTP and another | Court of Appeal | Yes | [2021] 1 SLR 276 | Singapore | Cited regarding the limited scope of curial intervention in arbitral proceedings and the public policy ground for setting aside an award. |
| Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte Ltd | Court of Appeal | Yes | [2007] 3 SLR(R) 86 | Singapore | Cited for the requirements to challenge an award based on a breach of natural justice. |
| China Machine New Energy Corp v Jaguar Energy Guatemala LLC and another | Singapore | Yes | [2020] 1 SLR 695 | Singapore | Cited for the contextual inquiry of whether the proceedings were conducted in a manner which was fair. |
| AKN and another v ALC and others and other appeals | Singapore | Yes | [2015] 3 SLR 488 | Singapore | Cited for the principle that courts must resist the temptation to engage with what is substantially an attack on the merits of an award, but which may be disguised or presented as a challenge to process failures. |
| BLC and others v BLB and another | Singapore | Yes | [2014] 4 SLR 79 | Singapore | Cited for the principle that courts must resist the temptation to engage with what is substantially an attack on the merits of an award, but which may be disguised or presented as a challenge to process failures. |
| AJU v AJT | Singapore | Yes | [2011] 4 SLR 739 | Singapore | Cited for the general principle on the limited extent of curial intervention. |
| Beijing Sinozonto Mining Investment Co Ltd v Goldenray Consortium (Singapore) Pte Ltd | Singapore | Yes | [2014] 1 SLR 814 | Singapore | Cited for the general principle on the limited extent of curial intervention. |
| PT Asuransi Jasa Indonesia (Persero) v Dexia Bank SA | Singapore | Yes | [2007] 1 SLR(R) 597 | Singapore | Cited for the narrow scope of the public policy ground for setting aside an arbitral award. |
13. Applicable Rules
| Rule Name |
|---|
| UNCITRAL Model Law on International Commercial Arbitration |
| SIAC Rules of the Singapore International Arbitration Centre (6th edition, 1 August 2016) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| International Arbitration Act (Cap 143A, 2002 Rev Ed) | Singapore |
| Legal Profession Act 1966 (2020 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitral Award
- Collateral Estoppel
- Settlement Deed
- Gaming Assets
- SIAC Arbitration
- Natural Justice
- Public Policy
- GOL Costs Order
- GOL Fee Arrangement
- Estopped Claims
15.2 Keywords
- arbitration
- enforcement
- setting aside
- collateral estoppel
- natural justice
- public policy
- international arbitration
16. Subjects
- Arbitration
- Enforcement of Arbitral Awards
- Setting Aside of Arbitral Awards
17. Areas of Law
- Arbitration Law
- International Arbitration
- Civil Procedure