Tsudakoma Corp v Global Trade Well Pte Ltd: Stay of Proceedings and Exclusive Jurisdiction Clause

In Tsudakoma Corp v Global Trade Well Pte Ltd, the Singapore High Court allowed the appeal of Global Trade Well Pte Ltd ('GTW'), the defendant, and granted a stay of proceedings in Singapore. Tsudakoma Corp ('Tsudakoma'), the claimant, had commenced an action to recover an unpaid amount, arguing that a letter from GTW constituted a settlement agreement. GTW argued that an exclusive jurisdiction clause in a prior Memorandum of Understanding required the dispute to be resolved in Japan. Justice Choo Han Teck found that the exclusive jurisdiction clause applied and that Tsudakoma had not shown strong cause to refuse a stay.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Appeal Allowed

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Singapore High Court granted a stay of proceedings in favor of Global Trade Well, enforcing an exclusive jurisdiction clause in favor of Japan.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Tsudakoma CorpClaimant, RespondentCorporationAppeal DismissedLostLim Ying Sin Daniel
Global Trade Well Pte LtdDefendant, AppellantCorporationAppeal AllowedWonPrakaash s/o Paniar Silvam, Levin Lin Lok Yan, Esther Yong

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Lim Ying Sin DanielJoyce A. Tan & Partners LLC
Prakaash s/o Paniar SilvamOon & Bazul LLP
Levin Lin Lok YanOon & Bazul LLP
Esther YongOon & Bazul LLP

4. Facts

  1. Tsudakoma and GTW entered into a Memorandum of Understanding in 2017.
  2. The 2017 MOU was extended by the 2018 MOU.
  3. The 2018 MOU appointed GTW as a dealer for Tsudakoma's products.
  4. Clause (v) of the 2017 MOU contained an exclusive jurisdiction clause in favor of Japan.
  5. Sales were made by Tsudakoma to GTW, with Proforma Invoices issued for each sale.
  6. GTW issued Letters of Credit as payment, but all three LCs were void.
  7. GTW sent a letter to Tsudakoma in September 2021 regarding the pending payment.

5. Formal Citations

  1. Tsudakoma Corp v Global Trade Well Pte Ltd, Originating Claim No 135 of 2022(Registrar’s Appeal No 340 of 2022), [2023] SGHC 26

6. Timeline

DateEvent
Parties entered into a Memorandum of Understanding
Parties signed another Memorandum of Understanding
GTW sent a letter to Tsudakoma regarding pending payment
Tsudakoma commenced HC/OC 135/2022 to recover the unpaid amount
GTW commenced HC/SUM 3436/2022 for a stay of proceedings
Judgment reserved
Judgment issued

7. Legal Issues

  1. Stay of Proceedings
    • Outcome: The court granted a stay of proceedings in Singapore.
    • Category: Procedural
    • Related Cases:
      • [2018] 2 SLR 1271
  2. Exclusive Jurisdiction Clause
    • Outcome: The court found that the exclusive jurisdiction clause in favor of Japan was applicable.
    • Category: Substantive
    • Related Cases:
      • [2018] 2 SLR 1271

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Manufacturing
  • Commodity Trading

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Vinmar Overseas (Singapore) Pte Ltd v PTT International Trading Pte LtdCourt of AppealYes[2018] 2 SLR 1271SingaporeCited for the principles governing stay applications based on exclusive jurisdiction clauses and the burden of proof.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Exclusive Jurisdiction Clause
  • Memorandum of Understanding
  • Proforma Invoice
  • Letter of Credit
  • Stay of Proceedings
  • Settlement Agreement
  • Dealer
  • Dealership Agreement

15.2 Keywords

  • exclusive jurisdiction clause
  • stay of proceedings
  • memorandum of understanding
  • contract dispute
  • Singapore High Court

16. Subjects

  • Civil Procedure
  • Conflict of Laws
  • Contract Law
  • International Trade

17. Areas of Law

  • Civil Procedure
  • Conflict of Laws
  • Contract Law