CNA v CNB: Costs Award in SICC Arbitration - Allocation of Pre- and Post-Transfer Costs
In CNA v CNB, the Singapore International Commercial Court (SICC) issued a judgment on August 2, 2023, regarding the allocation of costs following a substantive judgment in favor of the Defendants (CNB and CNC). The court addressed disputes over pre- and post-transfer costs, the reasonableness of fees, and disbursements, ultimately ordering the Plaintiffs (CNA, CND, and CNE) to pay specific amounts for counsel fees and expert costs.
1. Case Overview
1.1 Court
SINGAPORE INTERNATIONAL COMMERCIAL COURT1.2 Outcome
Costs awarded to the Defendants, with specific allocations for pre-transfer and post-transfer fees and disbursements.
1.3 Case Type
Arbitration
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
The SICC addresses the allocation of costs in an arbitration case, focusing on pre- and post-transfer costs and the reasonableness of expert fees.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| CNA | Plaintiff | Corporation | Costs to be paid to Defendants | Lost | Cavinder Bull SC, Tan Yuan Kheng, Lea Woon Yee, Tan Jui Yang, Benedict, Kenneth Sean Teo Hao Jin, Junwoo Kim, Han Gil Lee |
| CNB | Defendant | Corporation | Costs awarded | Won | Chan Hock Keng, Chen Chi, Tang Xi-Rui, Charlotte, Prof Kwon Young Joon, Lee Eun Ngyung |
| CNC | Defendant | Corporation | Costs awarded | Won | Chan Hock Keng, Chen Chi, Tang Xi-Rui, Charlotte, Prof Kwon Young Joon, Lee Eun Ngyung |
| CND | Plaintiff | Corporation | Costs to be paid to Defendants | Lost | Toby Landau KC, Rachel Low Tze-Lynn, Zhuo Jiaxiang, Alston Yeong, Sunyoung Kim, Yoo Lim Oh, Ing Loong Yang, Chi Ho Kwan |
| CNE | Plaintiff | Corporation | Costs to be paid to Defendants | Lost | Toby Landau KC, Rachel Low Tze-Lynn, Zhuo Jiaxiang, Alston Yeong, Sunyoung Kim, Yoo Lim Oh, Ing Loong Yang, Chi Ho Kwan |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Philip Jeyaretnam | Judge of the High Court | No |
| Simon Thorley | International Judge | Yes |
| Yuko Miyazaki | International Judge | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Cavinder Bull SC | Drew & Napier LLC |
| Tan Yuan Kheng | Drew & Napier LLC |
| Lea Woon Yee | Drew & Napier LLC |
| Tan Jui Yang | Drew & Napier LLC |
| Benedict | Drew & Napier LLC |
| Kenneth Sean Teo Hao Jin | Drew & Napier LLC |
| Junwoo Kim | Bae, Kim & Lee LLC |
| Han Gil Lee | Bae, Kim & Lee LLC |
| Toby Landau KC | Duxton Hill Chambers |
| Rachel Low Tze-Lynn | Rachel Low LLC |
| Zhuo Jiaxiang | Providence Law LLC |
| Alston Yeong | Providence Law LLC |
| Sunyoung Kim | Lee & Ko |
| Yoo Lim Oh | Lee & Ko |
| Ing Loong Yang | Akin Gump Strauss Hauer & Feld LLP |
| Chi Ho Kwan | Akin Gump Strauss Hauer & Feld LLP |
| Chan Hock Keng | WongPartnership LLP |
| Chen Chi | WongPartnership LLP |
| Tang Xi-Rui, Charlotte | WongPartnership LLP |
| Prof Kwon Young Joon | Seoul National University |
| Lee Eun Ngyung | KL Partners |
4. Facts
- The Court found in favor of the Defendants in the substantive issues.
- The parties sought to agree on an appropriate order as to costs.
- The summonses were transferred to the Singapore International Commercial Court on 4 January 2022.
- The Plaintiffs should pay the Defendants’ costs and disbursements in equal proportions.
- The costs incurred post-transfer should be assessed on the basis set out in O 110 r 46 ROC 2014.
- The Plaintiffs relied on the Defendants’ Case Management Costs Plan (CMP) dated 7 March 2022.
- The Defendants asserted that there was an error in the costs stated as having been incurred prior to 7 March 2022.
5. Formal Citations
- CNA v CNB and another and other matters, Originating Summons No 2 of 2022, [2023] SGHC(I) 12
- CNA v CNB and another and other matters, Originating Summons No 3 of 2022, [2023] SGHC(I) 12
- CNA v CNB and another and other matters, Originating Summons No 4 of 2022, [2023] SGHC(I) 12
- CNA v CNB and another and other matters, Originating Summons No 5 of 2022, [2023] SGHC(I) 12
6. Timeline
| Date | Event |
|---|---|
| Summonses transferred to the Singapore International Commercial Court | |
| Defendants' Case Management Costs Plan dated | |
| Judgment reserved | |
| Judgment delivered |
7. Legal Issues
- Allocation of Costs
- Outcome: The court determined the appropriate allocation of pre- and post-transfer costs and assessed the reasonableness of the costs incurred.
- Category: Procedural
- Sub-Issues:
- Division of costs pre- and post-transfer
- Reasonableness of costs incurred
- Related Cases:
- [2023] SGHC(I) 6
- [2018] SGHC 86
- [2023] 1 SLR 96
- [2022] SGHC(I) 6
- [2022] 1 SLR 88
- [2022] 3 SLR 174
8. Remedies Sought
- Costs
- Disbursements
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Arbitration
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| CNA v CNB and another and other matters | Singapore International Commercial Court | Yes | [2023] SGHC(I) 6 | Singapore | Refers to the substantive issues raised in the originating summonses. |
| BLG and another v BLI and others | High Court | Yes | [2018] SGHC 86 | Singapore | Cited for the principle that costs estimates restrain litigants from claiming excessive costs. |
| Senda International Capital Ltd v Kiri Industries Ltd | Singapore High Court | Yes | [2023] 1 SLR 96 | Singapore | Cited for the burden of proof regarding the reasonableness of costs under Rule 46. |
| Lao Holding NV v Government of Lao PDR | Singapore International Commercial Court | Yes | [2022] SGHC(I) 6 | Singapore | Cited for the approach to assessing post-transfer costs pursuant to Rule 46. |
| CBX v CBZ | Singapore High Court | Yes | [2022] 1 SLR 88 | Singapore | Cited for the approach to assessing post-transfer costs pursuant to Rule 46. |
| Kiri Industries Ltd v Senda International Capital Ltd and another | Singapore High Court | Yes | [2022] 3 SLR 174 | Singapore | Cited regarding deductions for unreasonable conduct in pursuing an argument. |
13. Applicable Rules
| Rule Name |
|---|
| O 59 r 7 of the Rules of Court (Cap 322, 2014 Rev Ed) |
| O 110 r 46 ROC 2014 |
| Order 21, Rule 2(2) of the Rules of Court 2021 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 322, 2014 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Costs
- Disbursements
- Pre-transfer costs
- Post-transfer costs
- Case Management Costs Plan
- Appendix G
- Rule 46
- Reasonableness
- Costs Schedule
15.2 Keywords
- arbitration
- costs
- Singapore International Commercial Court
- pre-transfer costs
- post-transfer costs
- expert fees
- disbursements
16. Subjects
- Arbitration
- Costs Assessment
17. Areas of Law
- Arbitration Law
- Civil Procedure
- Costs