Dways International v Lim Seow Hui: Damages for Conversion & Defamation
In Dways International Pte Ltd v Lim Seow Hui Ratna Irene and others, the General Division of the High Court of Singapore addressed appeals related to the assessment of damages for misappropriation and defamation. Dways sued the Lims for misappropriating nutritional products and Irene for defamation. The court, presided over by Audrey Lim J, reduced the damages awarded for misappropriation, determining that the relevant measure was the replacement cost of the goods, and also reduced the damages for defamation, considering the limited extent of publication. The court allowed interest on both claims from specific dates.
1. Case Overview
1.1 Court
General Division of the High Court of the Republic of Singapore1.2 Outcome
Appeal allowed in part.
1.3 Case Type
Tort
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court assesses damages for misappropriation of goods and defamation, focusing on the relevant market for conversion damages and the extent of publication in defamation.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Dways International Pte Ltd (formerly known as D’way International Pte Ltd and as Longevite Pte Ltd) | Plaintiff, Respondent | Corporation | Damages awarded for misappropriation reduced, Damages awarded for defamation reduced | Partial, Partial | Patrick Fernandez, Mohamed Arshad bin Mohamed Tahir |
| Lim Seow Hui Ratna Irene | Defendant, Appellant | Individual | Damages for misappropriation reduced, Damages for defamation reduced | Partial, Partial | Chong Siew Nyuk Josephine |
| Lim Kim Hwa | Defendant, Appellant | Individual | Damages for misappropriation reduced | Partial | Chong Siew Nyuk Josephine |
| Tang Lee Cheng | Defendant | Individual | No participation in AD proceedings | Neutral | |
| Chua Hong Chor | Defendant | Individual | No participation in AD proceedings | Neutral |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Audrey Lim | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Patrick Fernandez | Fernandez LLC |
| Mohamed Arshad bin Mohamed Tahir | Fernandez LLC |
| Chong Siew Nyuk Josephine | Josephine Chong LLC |
4. Facts
- Dways sells nutritional products via direct-selling.
- The Lims misappropriated Dways' products.
- Irene defamed Dways by sending publications to three persons.
- Dways continued to have ample stocks even after the misappropriations.
- Dways could easily have replenished its stocks before they were depleted.
- Irene impersonated "Lisa Chew" in making the publications.
- Irene did not apologise and retract her defamatory statements.
5. Formal Citations
- Dways International Pte Ltd (formerly known as D’way International Pte Ltd and as Longevite Pte Ltd)vLim Seow Hui Ratna Irene and others, Suit No 447 of 2020 (Registrar’s Appeals Nos 248 and 259 of 2023), [2024] SGHC 124
6. Timeline
| Date | Event |
|---|---|
| Dways incorporated. | |
| Dways received first batch of products. | |
| Lims entitled to HL Span and Purity products. | |
| Misappropriation of products by Lims. | |
| Dways conducted inspection of stocks. | |
| Irene made defamatory publications. | |
| Dways' stocks depleted. | |
| Stocks sold out. | |
| Stocks sold out. | |
| Stocks sold out. | |
| Stocks sold out. | |
| Stocks sold out. | |
| Stocks sold out. | |
| Stocks sold out. | |
| Stocks sold out. | |
| Assistant Registrar's decision on damages. | |
| Judgment reserved. | |
| Judgment issued. |
7. Legal Issues
- Measure of damages for conversion
- Outcome: The court held that the measure of damages for the misappropriated products is the replacement cost, not the wholesale price.
- Category: Substantive
- Sub-Issues:
- Relevant market for determining damages
- Replacement cost versus wholesale price
- Damages for defamation
- Outcome: The court reduced the damages for defamation, considering the limited extent of publication but also the defendant's malice and conduct.
- Category: Substantive
- Sub-Issues:
- Extent of publication
- Malice
- Conduct of defendant
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Conversion
- Defamation
10. Practice Areas
- Commercial Litigation
11. Industries
- Nutritional Products
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Dways International Pte Ltd (formerly known as D’way International Pte Ltd and as Longevite Pte Ltd) v Lim Seow Hui Ratna Irene and others | High Court | Yes | [2022] SGHC 158 | Singapore | Sets out the facts of the suit and the findings at the liability stage, which the current judgment refers to. |
| Chartered Electronics Industries Pte Ltd v Comtech IT Pte Ltd | Court of Appeal | Yes | [1998] 2 SLR(R) 1010 | Singapore | Cited for the principle that the measure of damages in conversion is the value of the goods, together with any consequential damage. |
| Marco Polo Shipping Co Pte Ltd v Fairmacs Shipping & Transport Services Pte Ltd | Court of Appeal | Yes | [2015] 5 SLR 541 | Singapore | Cited for the principles on determining the value of converted goods, including the relevance of market value and the burden to establish a relevant market. |
| J & E Hall, Ltd v Barclay | English Court of Appeal | Yes | [1937] 3 All ER 620 | England and Wales | Cited for the principle that a person whose rights have been interfered with is generally entitled to no more than what they would have to pay to buy a similar article in the market. |
| YCT Import & Export Pte Ltd v FG Food Industries Pte Ltd and others | High Court | Yes | [2021] SGHC 190 | Singapore | Cited for the principle that where the plaintiff is a stockist, the relevant market is the market in which they buy their stock, and the measure of damages is the replacement cost. |
| Furness v Adrium Industries Pty Ltd | Supreme Court of Victoria Appeal Division | Yes | [1996] 1 VR 668 | Australia | Cited for the principle that the loss of a wholesaler is ordinarily assessed on the basis of the amount paid for the goods (replacement cost) and not the price at which they might have been sold. |
| Sonicare International Ltd v East Anglia Freight Terminal Ltd and Others and Neptune Orient Lines Ltd (Third Party) | England and Wales | Yes | [1997] 2 Lloyd’s Rep 48 | England and Wales | Cited for the principle that the plaintiff must show that he has in fact suffered a loss of sales, otherwise the award would effectively compensate the plaintiff for lost sales which were not in fact lost and confer upon him an uncovenanted windfall. |
| Arul Chandran v Chew Chin Aik Victor | Court of Appeal | Yes | [2001] 1 SLR(R) 86 | Singapore | Cited for the principle that general damages in defamation serve to console the plaintiff, repair harm to reputation, and vindicate reputation. |
| Lim Eng Hock Peter v Lin Jian Wei and another and another appeal | Court of Appeal | Yes | [2010] 4 SLR 357 | Singapore | Cited for the relevant factors in determining the quantum of general damages in defamation. |
| Koh Sin Chong Freddie v Chan Cheng Wah Bernard and others and another appeal | Court of Appeal | Yes | [2013] 4 SLR 629 | Singapore | Cited for the relevant factors in determining the quantum of general damages in defamation. |
| Basil Anthony Herman v Premier Security Co-operative Ltd and others | High Court | Yes | [2010] 3 SLR 110 | Singapore | Cited for the principle that a company may recover damages for injury to its reputation but not for injury to its feelings. |
| Golden Season Pte Ltd and others v Kairos Singapore Holdings Pte Ltd and another | High Court | Yes | [2015] 2 SLR 751 | Singapore | Cited for the principle that a company is unlikely to be entitled to a really substantial award of damages absent proof of consequential damage such as loss of business. |
| Tat Seng Machine Movers Pte Ltd v Orix Leasing Singapore Ltd | Court of Appeal | Yes | [2009] 4 SLR(R) 1101 | Singapore | Cited for the principle that an appellate court is in as good a position as the trial court to draw inferences of fact. |
| Sandz Solutions (Singapore) Pte Ltd and others v Strategic Worldwide Assets Ltd and others | Court of Appeal | Yes | [2014] 3 SLR 562 | Singapore | Cited for the principle that an appellate court is in as good a position as the trial court to draw inferences of fact. |
| Lee Hsien Loong v Singapore Democratic Party and others and another suit | High Court | Yes | [2009] 1 SLR(R) 642 | Singapore | Cited for the principle that the court may look at past awards for comparison or guidance in determining the quantum of damages. |
| ATU and others v ATY | High Court | Yes | [2015] 4 SLR 1159 | Singapore | Distinguished from the present case due to the grave nature of the allegations and the higher extent of publication. |
| Grains and Industrial Products Trading Pte Ltd v Bank of India and another | Court of Appeal | Yes | [2016] 3 SLR 1308 | Singapore | Cited for the principle that pre-judgment interest is awarded to compensate a successful claimant for the time value of money. |
| Jeyaretnam Joshua Benjamin v Lee Kuan Yew | Court of Appeal | Yes | [1992] 1 SLR(R) 791 | Singapore | Cited for the principle that the circumstances occurring after the judgment and until the AD proceedings, whether they be aggravating or mitigating, should be taken into account. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Civil Law Act 1909 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Misappropriation
- Defamation
- Conversion
- Damages
- Wholesale price
- Cost price
- Replacement cost
- Publication
- Malice
15.2 Keywords
- Conversion
- Defamation
- Damages
- Misappropriation
- Singapore
- Tort
16. Subjects
- Tort Law
- Damages Assessment
- Commercial Law
17. Areas of Law
- Tort
- Conversion
- Defamation
- Damages