How Weng Fan v Sengkang Town Council: Costs Allocation in AHTC Negligence Case

The Court of Appeal of Singapore heard appeals regarding the liability of members and senior employees of Aljunied-Hougang Town Council (AHTC) to AHTC and Sengkang Town Council (STC). The court determined the allocation of costs, ordering STC and AHTC to pay costs to How Weng Fan, Sylvia Lim Swee Lian, Low Thia Khiang, Pritam Singh, Chua Zhi Hon, Kenneth Foo Seck Guan and FM Solutions & Services Pte Ltd, considering the degree of success of each party in the appeals.

1. Case Overview

1.1 Court

Court of Appeal of the Republic of Singapore

1.2 Outcome

Costs orders made against Sengkang Town Council and Aljunied-Hougang Town Council.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

The Court of Appeal determined the allocation of costs in a case involving negligence claims against AHTC members and employees.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Pritam SinghAppellantIndividualAppeal allowed in partPartial
How Weng FanAppellant, RespondentIndividualAppeal allowed in partPartial
How Weng Fan (Personal representative of the estate of Danny Loh Chong Meng, deceased, in his personal capacity and trading as FM Solutions & Integrated Services)Appellant, RespondentIndividualAppeal allowed in partPartial
FM Solutions & Services Pte LtdAppellantCorporationAppeal allowed in partPartial
Sengkang Town CouncilRespondent, AppellantStatutory BoardCosts order made againstLost
Sylvia Lim Swee LianAppellant, RespondentIndividualAppeal allowed in partPartial
Low Thia KhiangAppellant, RespondentIndividualAppeal allowed in partPartial
Chua Zhi HonAppellantIndividualAppeal allowed in partPartial
Kenneth Foo Seck GuanAppellantIndividualAppeal allowed in partPartial
Aljunied-Hougang Town CouncilRespondentStatutory BoardCosts order made againstLost

3. Judges

Judge NameTitleDelivered Judgment
Sundaresh MenonChief JusticeYes
Judith PrakashJustice of the Court of AppealNo
Tay Yong KwangJustice of the Court of AppealNo
Woo Bih LiJudge of the Appellate DivisionNo
Andrew Phang Boon LeongSenior JudgeNo

4. Counsels

4. Facts

  1. The appeals concerned the liability of AHTC members and senior employees to AHTC and STC.
  2. The Town Councillors and Employees were co-defendants in the Suits below.
  3. The Town Councillors were represented by Tan Rajah & Cheah, while the Employees and FMSS were represented by Netto & Magin LLC.
  4. AHTC and STC were represented by Shook Lin & Bok LLP and Tan Kok Quan Partnership, respectively.
  5. The court reversed many of the Judge’s factual findings and legal conclusions.
  6. The court held that the Town Councillors and the Employees were negligent in permitting the control failures in the System to exist.

5. Formal Citations

  1. How Weng Fan and others v Sengkang Town Council and other appeals, , [2023] SGCA 42
  2. How Weng Fan and others v Sengkang Town Council, Civil Appeal No 196 of 2019, Civil Appeal No 196 of 2019
  3. How Weng Fan and others v Aljunied-Hougang Town Council, Civil Appeal No 197 of 2019, Civil Appeal No 197 of 2019
  4. Sylvia Lim Swee Lian and others v Sengkang Town Council, Civil Appeal No 198 of 2019, Civil Appeal No 198 of 2019
  5. Sylvia Lim Swee Lian and others v Aljunied-Hougang Town Council, Civil Appeal No 199 of 2019, Civil Appeal No 199 of 2019
  6. Sengkang Town Council v Sylvia Lim Swee Lian and others, Civil Appeal No 200 of 2019, Civil Appeal No 200 of 2019
  7. Aljunied-Hougang Town Council and Pasir Ris-Punggol Town Council v Sylvia Lim Swee Lian and others, Suit Nos 668 and 716 of 2017, Suit Nos 668 and 716 of 2017

6. Timeline

DateEvent
Civil Appeals Nos 196, 197, 198, 199 and 200 of 2019 filed
Judgment reserved
Judgment delivered

7. Legal Issues

  1. Allocation of Costs
    • Outcome: The court determined the appropriate allocation of costs, considering the degree of success of each party in the appeals.
    • Category: Procedural
  2. Negligence
    • Outcome: The court found the Town Councillors and Employees negligent in permitting control failures.
    • Category: Substantive

8. Remedies Sought

  1. Costs

9. Cause of Actions

  • Negligence

10. Practice Areas

  • Litigation

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
How Weng Fan and others v Sengkang Town Council and other appealsCourt of AppealYes[2023] 1 SLR 707SingaporeDealt with the substantive merits of the appeals concerning the liability of members and senior employees of Aljunied-Hougang Town Council.
How Weng Fan and others v Sengkang Town Council and other appealsCourt of AppealYes[2023] 2 SLR 235SingaporeClarified the orders to be made in respect of the Appeals in light of inadequacies in AHTC’s pleadings.
Sim Poh Ping v Winsta Holding Pte Ltd and another and other appealsCourt of AppealYes[2020] 1 SLR 1199SingaporeSet out the hybrid approach under which the Town Councillors and the Employees bore the legal burden of showing that the loss would have been sustained by the Town Councils even if the Town Councillors and the Employees had not breached their duties.
BCBC Singapore Pte Ltd and another v PT Bayan Resources TBK and anotherCourt of AppealYes[2023] SGCA(I) 8SingaporeCited for the principle that costs are discretionary.
Senda International Capital Ltd v Kiri Industries LtdCourt of AppealYes[2023] 1 SLR 96SingaporeCited for the indemnity principle.
Lim Siew Soo v Sembawang Engineers and Constructors Pte Ltd (in compulsory liquidation) (Metax Eco Solutions Pte Ltd, intervener)High CourtYes[2021] 4 SLR 556SingaporeCited for the indemnity principle.
Then Khek Koon and another v Arjun Permanand Samtani and another and other suitsHigh CourtYes[2014] 1 SLR 245SingaporeCited for the indemnity principle.
Harold v SmithCourt of ExchequerYes(1860) 5 H & N 381England and WalesCited for the indemnity principle.
Comfort Management Pte Ltd v OGSP Engineering Pte Ltd and anotherHigh CourtYes[2022] 5 SLR 525SingaporeCited for the principle that costs follow the event.
Roache v News Group Newspapers Limited and othersEngland and Wales Court of Appeal (Civil Division)Yes[1998] EMLR 161England and WalesCited for the principle of determining the successful party in litigation.
Afro-Asia Shipping Co (Pte) Ltd v Da Zhong Investment Pte Ltd and othersHigh CourtYes[2004] 3 SLR(R) 274SingaporeCited for the principle of awarding costs to a defendant who successfully defends against most of the plaintiff's claims.
Trans Eurokars Pte Ltd v Koh Wee MengHigh CourtYes[2015] SGHCR 6SingaporeCited for the two counsel rule.
New Civilbuild Pte Ltd v Guobena Sendirian Berhad and AnotherHigh CourtYes[2000] SGHC 47SingaporeCited for the principle that a Certificate of Three Counsel should only be granted exceptionally.
Ng Eng Ghee and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and another appealCourt of AppealYes[2009] 4 SLR(R) 155SingaporeCited for the factors to be considered when determining whether the use of more than two solicitors is reasonable.
Raffles Town Club Pte Ltd v Lim Eng Hock Peter and others (Tung Yu-Lien Margaret and others, third parties)High CourtYes[2011] 1 SLR 582SingaporeCited as an illustration of a case where a Certificate of Three Counsel was granted.
Colliers International (Singapore) Pte Ltd v Senkee Logistics Pte LtdHigh CourtYes[2007] 2 SLR(R) 230SingaporeCited as an illustration of a case where a Certificate of Three Counsel was rejected.
Wing Joo Loong Ginseng Hong (Singapore) Co Pte Ltd v Qinghai Xinyuan Foreign Trade Co Ltd and another and another appealCourt of AppealYes[2009] 2 SLR(R) 814SingaporeCited for the principle that parties advancing or supporting the same cause should ordinarily not be entitled to receive separate sets of costs.
Attorney-General v Aljunied-Hougang-Punggol East Town CouncilCourt of AppealYes[2016] 1 SLR 915SingaporeTouched upon briefly the distinction between public law duties and private law duties.

13. Applicable Rules

Rule Name
Order 59 Rule 19 of the Rules of Court
Order 59 Rule 2(2) of the Rules of Court
Order 59 Rule 3(2) of the Rules of Court

14. Applicable Statutes

Statute NameJurisdiction
Rules of Court (Cap 322, R 5, 2014 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Costs
  • Certificate of Three Counsel
  • Negligence
  • Control Failures
  • Town Council
  • Appeals
  • Disbursements
  • Indemnity Principle

15.2 Keywords

  • costs
  • negligence
  • town council
  • singapore
  • AHTC
  • Sengkang
  • Aljunied-Hougang

17. Areas of Law

16. Subjects

  • Civil Procedure
  • Costs
  • Local Government Law