Bumi Jaya v Brave Worth: Setting Aside Default Judgment in Wreck Removal Contract Dispute
In Bumi Jaya Salvage & Engineering Sdn Bhd v Brave Worth Shipping Co., Limited, the General Division of the High Court of Singapore heard an application by Brave Worth to set aside a default judgment obtained by Bumi Jaya for services rendered under a wreck removal contract. The court substantially set aside the default judgment, except for a claim of US$275,000 and contractual interest, finding that Brave Worth had established a prima facie defense regarding the remaining claims.
1. Case Overview
1.1 Court
General Division of the High Court of the Republic of Singapore1.2 Outcome
Default Judgment substantially set aside, save for a claim for US$275,000 and contractual interest on this sum.
1.3 Case Type
Admiralty
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court sets aside default judgment in a wreck removal contract dispute between Bumi Jaya and Brave Worth, except for US$275,000.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Bumi Jaya Salvage & Engineering Sdn Bhd | Claimant | Corporation | Partial Judgment, Partial Judgment | Partial, Partial | Tan Hui Tsing, Abiramee Ghandhidass |
| Brave Worth Shipping Co., Limited | Defendant | Corporation | Application Allowed in Part | Partial | Ong Sie Hou Raymond |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Navin Anand | Assistant Registrar | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Tan Hui Tsing | DennisMathiew |
| Abiramee Ghandhidass | DennisMathiew |
| Ong Sie Hou Raymond | CTLC Law Corporation |
4. Facts
- The claimant commenced OC 258 against the defendant for services rendered under a wreck removal contract.
- The defendant failed to file a notice of intention to contest, and default judgment was entered in the claimant’s favour.
- The defendant sought to set aside the default judgment.
- The parties entered into a wreck removal contract dated 15 November 2022.
- The parties entered into a second wreck removal contract on 13 January 2023.
- The defendant did not pay the Advance Payment by noon time on 16 January 2023.
- The claimant ceased discharge operations in cargo hold 1 on 12 February 2023.
- The claimant stopped discharging from cargo holds 3 and 5 on 14 February 2023.
5. Formal Citations
- Bumi Jaya Salvage & Engineering Sdn Bhd v Brave Worth Shipping Co Ltd, Originating Claim No 258 of 2023 (Summons No 3046 of 2023), [2023] SGHCR 21
6. Timeline
| Date | Event |
|---|---|
| Vessel caught fire and grounded off Butterworth wharf number 2 at Penang Port | |
| Parties entered into a wreck removal contract | |
| Parties entered into a second wreck removal contract | |
| Claimant started discharging Cargo from cargo hold 2 | |
| Claimant started discharging Cargo from cargo holds 3 and 5 | |
| Claimant completed discharge in cargo hold 2 | |
| Defendant made a partial payment of US$100,000 | |
| Claimant started on cargo hold 1 | |
| Claimant ceased discharge operations in cargo hold 1 | |
| Claimant stopped discharging from cargo holds 3 and 5 | |
| Defendant made a partial payment of US$450,000 | |
| Claimant commenced OC 258 against the defendant | |
| Originating claim served on the defendant | |
| Default Judgment obtained by the claimant | |
| Claimant's solicitors sent a copy of the Default Judgment to the defendant | |
| Defendant sought permission from the court to file an application to set aside the Default Judgment | |
| Defendant’s setting aside application in SUM 3046 was filed | |
| Judgment reserved | |
| Judgment date | |
| Defendant to file its notice of intention to contest or not contest |
7. Legal Issues
- Setting Aside Default Judgment
- Outcome: The court substantially set aside the default judgment, except for a claim of US$275,000 and contractual interest.
- Category: Procedural
- Related Cases:
- [2023] SGHC 294
- [2023] SGHCR 8
- [2008] 4 SLR(R) 907
- [2021] 2 SLR 816
- [2023] 4 SLR 867
- Breach of Contract
- Outcome: The court found that the defendant had a prima facie defence to the claims for the 2nd Stage Instalment, the Variation Orders, the Tug’s standby charges and the Indemnity.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
- Indemnity
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Admiralty Litigation
- Shipping Litigation
- Civil Litigation
- Wreck Removal Contracts
11. Industries
- Shipping
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Spamhaus Technology Ltd v Reputation Administration Service Pte Ltd | High Court | Yes | [2023] SGHC 294 | Singapore | Cited for the legal principles governing the setting aside of judgments entered in default of appearance under the revoked Rules of Court. |
| Management Corporation Strata Title Plan No 4572 v Kingsford Development Pte Ltd and others | High Court | Yes | [2023] SGHCR 8 | Singapore | Cited for the legal principles governing the setting aside of judgments entered in default of appearance under the ROC 2021. |
| Mercurine Pte Ltd v Canberra Development Pte Ltd | Court of Appeal | Yes | [2008] 4 SLR(R) 907 | Singapore | Cited for the threshold requirement of establishing a prima facie defence. |
| U Myo Nyunt (alias Michael Nyunt) v First Property Holdings Pte Ltd | High Court | Yes | [2021] 2 SLR 816 | Singapore | Cited for the threshold requirement of establishing a prima facie defence and the court's discretion. |
| Powercom Yuraku Pte Ltd v Sunpower Semiconductor Ltd and others | High Court | Yes | [2023] 4 SLR 867 | Singapore | Cited for the principle that the court can allow the default judgment to stand only for that part and set aside the rest of the judgment. |
| Arovin Ltd and another v Hadiran Sridjaja | Singapore International Commercial Court | Yes | [2018] SGHC(I) 9 | Singapore | Cited for the requirements of pleading an agreement. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court 2021 | Singapore |
| Malaysian Merchant Shipping Ordinance 1952 | Malaysia |
15. Key Terms and Keywords
15.1 Key Terms
- Wreck Removal Contract
- Default Judgment
- Prima Facie Defence
- BIMCO Wreckstage 2010
- Advance Payment
- Lump Sum
- Schedule Waste Contractor
- Variation Orders
- Standby Charges
15.2 Keywords
- wreck removal
- default judgment
- admiralty
- shipping
- contract
16. Subjects
- Admiralty
- Shipping
- Civil Procedure
- Contract Law
17. Areas of Law
- Admiralty Law
- Shipping Law
- Civil Procedure
- Contract Law
- Wreck Removal