Keppel DC Singapore 1 Ltd v DXC Technology Services: Contractual Term Dispute over Data Centre Services
Keppel DC Singapore 1 Ltd ("Keppel") sued DXC Technology Services Singapore Pte Ltd ("DXC") in the General Division of the High Court of the Republic of Singapore, alleging breach of contract. The dispute centered on whether DXC could unilaterally amend the scope of data center services provided by Keppel under their Standard Services Agreement. Hri Kumar Nair J determined that DXC was not permitted to unilaterally revise the services to be provided by Keppel, and DXC's refusal to pay for Modules C and D amounted to a breach of the SSA. The court ruled in favor of Keppel.
1. Case Overview
1.1 Court
General Division of the High Court of the Republic of Singapore1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Keppel sued DXC for breach of contract. The court determined DXC could not unilaterally amend the service scope under their agreement.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Keppel DC Singapore 1 Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | Thio Shen Yi, Thara Rubini Gopalan, Goh Enchi Jeanne, Ang Kai Le |
| DXC Technology Services Singapore Pte Ltd | Defendant | Corporation | Claim Dismissed | Lost | Siraj Omar, Joelle Tan, Choo Yu Jin Jonathan, Lee Wei Han Shaun, Adly Rizal bin Said, Lieu Kah Yen |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Hri Kumar Nair | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Thio Shen Yi | TSMP Law Corporation |
| Thara Rubini Gopalan | TSMP Law Corporation |
| Goh Enchi Jeanne | TSMP Law Corporation |
| Ang Kai Le | TSMP Law Corporation |
| Siraj Omar | Drew & Napier LLC |
| Joelle Tan | Drew & Napier LLC |
| Choo Yu Jin Jonathan | Bird & Bird ATMD LLP |
| Lee Wei Han Shaun | Bird & Bird ATMD LLP |
| Adly Rizal bin Said | Bird & Bird ATMD LLP |
| Lieu Kah Yen | Bird & Bird ATMD LLP |
4. Facts
- Keppel operates a data centre facility.
- Keppel and DXC entered into a Standard Services Agreement in 2010.
- The SSA stipulated Keppel was to provide data centre space to DXC for five years with an option for renewal.
- The SSA included a Statement of Work specifying 20,300 sq ft of space across four modules.
- DXC issued yearly Purchase Orders for all four modules until May 2021.
- In May 2021, DXC issued a Purchase Order for only two modules and a Change Order to return the other two.
- Keppel argued the 2021 Purchase Order breached the SSA, requiring payment for all four modules.
5. Formal Citations
- Keppel DC Singapore 1 Ltd v DXC Technology Services Singapore Pte Ltd, Suit No 222 of 2022, [2024] SGHC 7
6. Timeline
| Date | Event |
|---|---|
| Keppel and DXC entered into a Standard Services Agreement | |
| DXC issued the first Purchase Order | |
| The SSA was renewed for five years | |
| The SSA was renewed for five years | |
| DXC issued a Purchase Order for only Modules A and B | |
| DXC issued a Change Order reflecting its intention to return Modules C and D to Keppel | |
| DXC issued a Purchase Order for only Modules A and B | |
| DXC issued a Purchase Order for only Modules A and B | |
| Case conference held | |
| Judgment reserved | |
| Judgment issued | |
| Trial set down for 12 days |
7. Legal Issues
- Breach of Contract
- Outcome: The court held that DXC breached the contract by unilaterally reducing the scope of services and refusing to pay for the original agreed-upon services.
- Category: Substantive
- Sub-Issues:
- Unilateral amendment of contract terms
- Failure to pay for services rendered
- Contractual Interpretation
- Outcome: The court interpreted the contract in favor of Keppel, finding that the Change Order and Purchase Order mechanisms did not allow DXC to unilaterally reduce the scope of services.
- Category: Substantive
- Sub-Issues:
- Interpretation of Change Order clause
- Interpretation of Purchase Order clause
- Fixed-term contract obligations
- Related Cases:
- [2008] 3 SLR(R) 1029
8. Remedies Sought
- Monetary Damages
- Damages to be assessed
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Technology
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| The “Chem Orchid” and other appeals and another matter | N/A | Yes | [2016] 2 SLR 50 | Singapore | Cited for the principle that factual disputes are not suitable for summary determination. |
| Manas Kumar Ghosh v MSI Ship Management Pte Ltd and others | N/A | Yes | [2021] 4 SLR 935 | Singapore | Cited for the principle that the overriding consideration is whether summary determination on the facts of the case would fulfil the underlying purpose of O 14 r 12, which is to save time and costs for the parties. |
| Zurich Insurance (Singapore) Pte Ltd v B-Gold Interior Design & Construction Pte Ltd | N/A | Yes | [2008] 3 SLR(R) 1029 | Singapore | Cited for the principles of contractual interpretation. |
| Thorn v London Corp | N/A | Yes | (1876) 1 App Cas 120 | N/A | Cited in relation to building and construction contracts, in which a contractor is generally obliged to carry out variations requested by the employer. |
13. Applicable Rules
| Rule Name |
|---|
| O 14 r 12(1) of the Rules of Court (Cap 322, 2014 Rev Ed) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Standard Services Agreement
- Data Centre
- Statement of Work
- Modules
- Monthly Recurring Charge
- Purchase Order
- Change Order
- Minimum Charge
- Fixed-term contract
15.2 Keywords
- contract
- data centre
- services
- agreement
- breach
- purchase order
- change order
16. Subjects
- Contract Law
- Commercial Dispute
- Data Centre Services
17. Areas of Law
- Contract Law
- Contractual Interpretation
- Data Centre Services