Razer (Asia-Pacific) Pte Ltd v Capgemini Singapore Pte Ltd: Indemnity Costs for Data Leak

Razer (Asia-Pacific) Pte Ltd sued Capgemini Singapore Pte Ltd in the General Division of the High Court of Singapore on 29 October 2020 for breach of contract and negligence, relating to a data leak. The High Court, with Lee Seiu Kin J presiding, found Capgemini liable and ordered them to pay Razer US$6,518,738.81 in damages. This decision concerns the assessment of costs to be awarded to Razer, with the court ultimately awarding costs to Razer on an indemnity basis.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Costs awarded to Razer on an indemnity basis.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Razer sues Capgemini for breach of contract and negligence, resulting in a data leak. The court awards Razer indemnity costs.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Razer (Asia-Pacific) Pte LtdPlaintiffCorporationCosts awarded on an indemnity basisWonWong Hin Pkin Wendell, Andrew Chua Ruiming
Capgemini Singapore Pte LtdDefendantCorporationCosts to be paid on an indemnity basisLostTan I Kwok Lionel, Tan Zhen Wei Victoria, Samuel Lim Tien Sern

3. Judges

Judge NameTitleDelivered Judgment
Lee Seiu KinJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Wong Hin Pkin WendellDrew & Napier LLC
Andrew Chua RuimingDrew & Napier LLC
Tan I Kwok LionelRajah & Tann Singapore LLP
Tan Zhen Wei VictoriaRajah & Tann Singapore LLP
Samuel Lim Tien SernRajah & Tann Singapore LLP

4. Facts

  1. Razer sued Capgemini for breach of contract and negligence.
  2. The suit arose from a misconfiguration of a server file, leading to a data leak.
  3. The data leak exposed non-public consumer data of Razer's customers.
  4. Razer claimed Capgemini breached express and implied terms of agreements.
  5. Razer sought indemnity costs based on clauses in the CSA and DPA.
  6. Razer also sought indemnity costs based on an offer to settle.

5. Formal Citations

  1. Razer (Asia-Pacific) Pte Ltd v Capgemini Singapore Pte Ltd, Suit No 1233 of 2020, [2023] SGHC 195

6. Timeline

DateEvent
Consulting services agreement signed
Data Processing Addendum signed
Capgemini acquired WSL and assumed obligations
Data Leak began
Data Leak ended
Data Leak received media coverage
Lawsuit filed
Offer to settle sent
Decision on liability given
Decision on costs delivered
Judgment issued

7. Legal Issues

  1. Entitlement to Indemnity Costs
    • Outcome: The court held that Razer had clearly and properly pleaded its entitlement to indemnity costs under the indemnity clauses in the CSA and DPA.
    • Category: Substantive
    • Sub-Issues:
      • Sufficiency of pleading contractual entitlement to indemnity costs
      • Applicability of indemnity clauses
  2. Offer to Settle
    • Outcome: The court held that Razer had a separate right to indemnity costs from 27 June 2022, as the outcome of the suit was less favorable than the terms of the offer to settle.
    • Category: Procedural
    • Sub-Issues:
      • Whether the outcome of the suit was less favorable than the terms of the offer to settle

8. Remedies Sought

  1. Indemnity Costs

9. Cause of Actions

  • Breach of Contract
  • Negligence

10. Practice Areas

  • Commercial Litigation
  • Data Breach Litigation

11. Industries

  • Information Technology
  • Gaming
  • Financial Technology

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Razer (Asia-Pacific) Pte Ltd v Capgemini Singapore Pte LtdHigh CourtYes[2022] SGHC 310SingaporeSets out the facts and findings of liability in the main suit.
Telemedia Pacific Group Ltd v Credit Agricole (Suisse) SA (Yeh Mao-Yuan, third party)High CourtYes[2015] 4 SLR 1019SingaporeCited for the principle that a contractual entitlement to indemnity costs must be clearly and properly pleaded.
NSL Oilchem Waste Management Pte Ltd v Prosper Marine Pte Ltd and other suitsHigh CourtYes[2020] SGHC 204SingaporeSummarizes the relevant principles where parties have made a contractual agreement on costs.
Tan Chin Yew Joseph v Saxo Capital Markets Pte LtdHigh CourtYes[2013] SGHC 274SingaporeCited for the general rule that costs are awarded on an indemnity basis only in exceptional circumstances.
Abani Trading Pte Ltd v BNP ParibasUnknownYes[2014] 3 SLR 909SingaporeCited regarding the court's statutory discretion to award costs.
Mansfield v RobinsonUnknownYes[1928] 2 KB 353England and WalesCited and adopted in United Overseas Bank Ltd v Sin Leong Ironbed & Furtniture Manufacturing Co (Pte) Ltd regarding contractual entitlement.
United Overseas Bank Ltd v Sin Leong Ironbed & Furtniture Manufacturing Co (Pte) LtdUnknownYes[1988] 1 SLR(R) 76SingaporeCited regarding contractual entitlement to costs.
Vestwin Trading Pte Ltd and another v Obegi Melissa and othersUnknownYes[2006] 3 SLR(R) 573SingaporeCited for the purpose of a pleading.
Tan Shwu Leng v Singapore Airlines Limited and anotherHigh CourtYes[2001] SGHC 51SingaporeCited for determining what is 'favourable' in an offer to settle.
CCM Industrial Pte Ltd v Uniquetech Pte LtdUnknownYes[2009] 2 SLR(R) 20SingaporeCited for determining what is 'favourable' in an offer to settle.
Singapore Airlines Ltd v Tan Shwu LengCourt of AppealYes[2001] 3 SLR(R) 439SingaporeCited for the sum offered in the offer to settle, comparing it with the judgment sum.

13. Applicable Rules

Rule Name
Order 22A rule 1 of the Rules of Court (2014 Rev Ed)
Order 22A rule 9 of the Rules of Court
O 59 r 27(3) of the ROC

14. Applicable Statutes

Statute NameJurisdiction
Rules of Court (2014 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Indemnity Costs
  • Data Leak
  • Offer to Settle
  • Consulting Services Agreement
  • Data Processing Addendum
  • Statement of Claim

15.2 Keywords

  • Indemnity Costs
  • Data Leak
  • Breach of Contract
  • Negligence
  • Offer to Settle
  • Singapore High Court

16. Subjects

  • Civil Procedure
  • Contract Law
  • Costs
  • Data Protection

17. Areas of Law

  • Civil Procedure
  • Contract Law
  • Information Technology Law