Lim Seong Ong v Panshore Engineering: Breach of Contract & Damages Assessment

Lim Seong Ong and Lim Thiam Chai, the plaintiffs, sued Panshore Engineering Pte Ltd, the defendant, in the General Division of the High Court of Singapore. The case concerned a breach of contract claim related to an agreement where Lim Seong Ong was to provide a loan to Asia Link Marine Industries Pte Ltd. The court, presided over by Andre Maniam J, assessed the damages and ultimately awarded only nominal damages of $10 to Panshore Engineering, finding that Panshore failed to prove any loss that was caused by Roland’s breach, and is not too remote.

1. Case Overview

1.1 Court

General Division of the High Court of the Republic of Singapore

1.2 Outcome

Nominal damages awarded to Panshore Engineering Pte Ltd.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Breach of contract claim where Panshore Engineering sued Lim Seong Ong for failing to provide loan. Court assessed damages and awarded nominal damages to Panshore.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Lim Seong OngPlaintiffIndividualNominal damages awarded againstLost
Lim Thiam ChaiPlaintiffIndividualNominal damages awarded againstLost
Panshore Engineering Pte LtdDefendantCorporationNominal Damages AwardedPartial

3. Judges

Judge NameTitleDelivered Judgment
Andre ManiamJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Low Peter CuthbertPeter Low Chambers LLC
Low Ying Ning ElainePeter Low Chambers LLC
Nelson CheePeter Low Chambers LLC

4. Facts

  1. Panshore and Asia Link Marine Industries Pte Ltd entered into a joint venture.
  2. Panshore, Roland, and Kenny entered into a shareholders’ agreement on 7 September 2011.
  3. Panshore was to lend Asia Link $1,000,000, and Roland and Kenny were to lend $400,000.
  4. Roland breached the agreement by not lending Asia Link $400,000.
  5. Asia Link was wound up on 1 March 2013 due to unpaid GST and income tax.
  6. Panshore claimed damages for the $700,000 lent, expenses paid, and assets left behind.
  7. The court found that Roland’s breach did not cause Asia Link to be wound up.

5. Formal Citations

  1. Lim Seong Ong and anothervPanshore Engineering Pte Ltd, Suit No 520 of 2014, [2024] SGHC 135

6. Timeline

DateEvent
Joint venture between Panshore and Asia Link Marine Industries Pte Ltd commenced.
Shareholders’ agreement signed between Panshore, Roland, and Kenny.
Panshore began paying expenses on behalf of Asia Link.
Asia Link Marine Industries Pte Ltd was wound up.
Panshore left the Premises.
Hearing commenced.
Hearing.
Closing submissions dated.
Judgment reserved.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that Roland breached the contract by not providing the loan.
    • Category: Substantive
  2. Assessment of Damages
    • Outcome: The court awarded nominal damages, finding that Panshore failed to prove causation and that the claimed losses were too remote.
    • Category: Substantive
  3. Causation
    • Outcome: The court found that Panshore failed to prove that Roland's breach caused Asia Link to be wound up.
    • Category: Substantive
  4. Remoteness of Damages
    • Outcome: The court found that Panshore's claimed losses were too remote to be recovered from Roland.
    • Category: Substantive
  5. Burden of Proof
    • Outcome: The court held that the burden of proof rested on Panshore to prove that Roland's breach caused its loss.
    • Category: Procedural

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Marine
  • Engineering

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Out of the Box Pte Ltd v Wanin Industries Pte LtdSingapore Court of AppealYes[2013] SGCA 15SingaporeCited regarding causation and remoteness of damages.
Sim Poh Ping v Winsta Holding Pte Ltd and another and other appealsSingapore Court of AppealYes[2020] SGCA 35SingaporeCited regarding the burden of proof in cases of breach of fiduciary duty.
Lim Seong Ong and anothervPanshore Engineering Pte LtdHigh Court of SingaporeYes[2023] SGHC 257SingaporeCited for the liability judgment where the court granted Panshore interlocutory judgment on the claim for damages to be assessed.

13. Applicable Rules

Rule Name
O 59 r 18A of the Rules of Court 2014

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Joint Venture
  • Shareholders’ Agreement
  • Trade Debts
  • Winding Up
  • Causation
  • Remoteness
  • Nominal Damages

15.2 Keywords

  • Contract
  • Breach
  • Damages
  • Loan
  • Shareholder
  • Joint Venture
  • Winding Up

17. Areas of Law

Area NameRelevance Score
Breach of Contract90
Damages Assessment80
Commercial Disputes60
Joint Venture40
Civil Procedure30

16. Subjects

  • Contract Law
  • Breach of Contract
  • Damages
  • Civil Procedure