Roll SG Pte Ltd v Cong Ty Co Phan Van Tai Lien Hiep Huy Hoang: Breach of Crane Rental Agreement & Damages

In Roll SG Pte Ltd v Cong Ty Co Phan Van Tai Lien Hiep Huy Hoang, heard in the Singapore International Commercial Court on 12 January, 24 February, and 25 April 2023, Roll SG sued HTL for breach of contract relating to the rental of a crane. Roll SG claimed damages for the cost of repairing the crane, unpaid invoices, and late payment interest. The court found in favor of Roll SG, holding HTL liable for breach of contract and awarding damages for repair costs, unpaid invoices, late payment interest, and legal costs.

1. Case Overview

1.1 Court

SINGAPORE INTERNATIONAL COMMERCIAL COURT

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Roll SG sued HTL for breach of contract over a damaged crane. The court found HTL liable for repair costs, unpaid invoices, and interest.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Roll SG Pte LtdPlaintiffCorporationJudgment for PlaintiffWon
Cong Ty Co Phan Van Tai Lien Hiep Huy HoangDefendantCorporationJudgment against DefendantLost

3. Judges

Judge NameTitleDelivered Judgment
Anselmo ReyesInternational JudgeYes

4. Counsels

Counsel NameOrganization
Samuel WittbergerDrew & Napier LLC
Lee Soong Yan, KevinDrew & Napier LLC
Eunice Lau Guan TingDrew & Napier LLC

4. Facts

  1. Roll and HTL entered into a contract for Roll to lease a CC6800 crawler crane to HTL.
  2. The Crane was to be used for HTL’s construction and installation works at the Tra Vinh Wind Farm Offshore Project in Vietnam.
  3. On 2 November 2020, the Crane was severely damaged while being transported by HTL.
  4. HTL was responsible for returning the Crane to Roll undamaged and for all costs associated with the repair of the Crane.
  5. HTL failed to repair the Crane and return it in good condition to Roll.
  6. HTL failed to pay outstanding invoices for the rental and demobilisation of the Crane.
  7. The Contract stipulated that disputes were to be referred exclusively to the Singapore Court.

5. Formal Citations

  1. Roll SG Pte Ltd v Cong Ty Co Phan Van Tai Lien Hiep Huy Hoang, Suit No 9 of 2021, [2023] SGHC(I) 5

6. Timeline

DateEvent
HTL enquired about renting a crane from Roll.
Roll and HTL entered into the 1st Rental Agreement.
Rental period commenced.
Roll delivered the Crane to HTL at Cai Mep Port in Vietnam.
The Crane was severely damaged while being towed to the Tra Vinh Wind Farm.
Crawford & Company was engaged to investigate the incident.
PVI Insurance rejected HTL’s claim for insurance.
HTL sent a letter to Roll.
Roll’s solicitors sent a letter in response to HTL’s 29 March 2021 Letter.
Ms Mai emailed Mr Tan regarding redelivery of the crane.
The Crane was loaded onto a barge and shipped out of Vietnam.
Invoice No. 20210035 was issued by Roll for the demobilisation of the Crane.
The Crane was fully repaired and returned to PVA.
Roll filed its Writ of Summons and Statement of Claim.
The Crane arrived at PVA’s premises in Vlaardingen, The Netherlands.
Roll effected substituted service of the SIC 9 cause papers on HTL.
HTL’s Vietnam lawyers sent a letter to Roll rejecting the SICC’s jurisdiction.
Drew & Napier LLC informed the court that Roll would be filing an application requesting for all matters relating to its claim in SIC 9 to be dealt with on the merits.
HTL, through its Vietnam lawyers (GVL) sent a further letter to Roll in which it reiterated its rejection of the SICC’s jurisdiction
Roll filed its application in SIC/SUM 23/2022 (“SUM 23”), for an order that SIC 9 proceed to trial for the purposes of obtaining a judgment on the merits of the action disposing of all the issues in the case, including an assessment of damages (if any).
This court heard SUM 23 and directed that SIC 9 proceed to trial.
Hearing for the Suit took place.
Judgment reserved.

7. Legal Issues

  1. Jurisdiction of the Singapore International Commercial Court
    • Outcome: The court determined that the SICC has jurisdiction pursuant to s 18A of the SCJA, as well as pursuant to s 18D of the SCJA read with O 110 r 7(1) of the ROC 2014.
    • Category: Jurisdictional
  2. Breach of Contract
    • Outcome: The court found that HTL breached the terms of the Contract by failing to repair the damage to the Crane and return the same in good condition to Roll, and by failing to pay for outstanding invoices for the rental and demobilisation of the Crane.
    • Category: Substantive
  3. Damages for Breach of Contract
    • Outcome: The court awarded damages to Roll for the repair of the Crane, the return costs of the Crane, unpaid rental of the Crane, and late payment interest.
    • Category: Substantive
  4. Enforceability of Late Payment Interest Clause
    • Outcome: The court held that the late payment interest clause was a genuine pre-estimate of the likely loss to be incurred by the breach and should not be struck down as a penalty or treated as unenforceable.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages
  2. Late Payment Interest
  3. Legal Costs

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • International Commercial Law

11. Industries

  • Construction
  • Energy

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Dunlop Pneumatic Tyre Co, Ltd v New Garage and Motor Co, LtdN/AYes[1915] AC 79N/ACited for the principle that a late payment interest clause will not be deemed unenforceable or a penalty if it is a genuine pre-estimate of the likely loss to be incurred as the result of a breach.

13. Applicable Rules

Rule Name
Rules of Court (2014 Rev Ed)

14. Applicable Statutes

Statute NameJurisdiction
Supreme Court of Judicature Act 1969 (Cap 322)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Crane
  • Rental Agreement
  • Breach of Contract
  • Damages
  • Jurisdiction
  • Late Payment Interest
  • Demobilisation
  • Singapore International Commercial Court
  • Standard Terms and Conditions
  • Special Terms and Conditions

15.2 Keywords

  • crane rental
  • breach of contract
  • damages
  • SICC
  • Singapore International Commercial Court
  • construction
  • wind farm
  • HTL
  • Roll SG

17. Areas of Law

Area NameRelevance Score
Contract Law95
Breach of Contract90
Rental Agreement85
Damages80
Jurisdiction70
Singapore International Commercial Court65
Commercial Law60
Civil Procedure50
Arbitration10

16. Subjects

  • Contract Law
  • Construction Law
  • International Commercial Law
  • Civil Litigation