Luckin Coffee Inc v Interactive Digital Finance Ltd: Jurisdiction & Service Out of Singapore
Luckin Coffee Inc. applied for permission to appeal against a High Court decision dismissing its application to set aside the leave granted to Interactive Digital Finance Limited and Tiah Thee Kian to serve an originating claim on Luckin in the Cayman Islands. The claim arose from losses sustained on investments made through accounts with Credit Suisse AG in Singapore, including derivatives and direct purchases of Luckin shares. The Claimants allege deceit and negligence based on representations made by Credit Suisse AG and Luckin. The Appellate Division of the High Court dismissed Luckin's application, finding no grounds for appeal.
1. Case Overview
1.1 Court
Appellate Division of the High Court1.2 Outcome
Luckin's application for permission to appeal is dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court considers jurisdiction over Luckin Coffee in a deceit and negligence claim. The court dismissed Luckin's application to set aside service.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Luckin Coffee Inc | Applicant | Corporation | Application for permission to appeal dismissed | Lost | |
| Interactive Digital Finance Limited | Respondent | Corporation | Application for permission to appeal dismissed | Won | |
| Tiah Thee Kian | Respondent | Individual | Application for permission to appeal dismissed | Won | |
| Credit Suisse AG | Respondent | Corporation | Application for permission to appeal dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judge of the Appellate Division | Yes |
| Debbie Ong Siew Ling | Judge of the Appellate Division | No |
4. Counsels
4. Facts
- Interactive Digital Finance Limited (IDFL) is incorporated in the British Virgin Islands and beneficially owned by Mr. Tiah Thee Kian.
- Credit Suisse AG has a branch in Singapore (CS Singapore).
- Luckin Coffee Inc. is incorporated in the Cayman Islands with shares listed on NASDAQ in the USA.
- The Claimants are claiming for losses sustained on investments made through the Claimants’ accounts in CS Singapore.
- The investments include derivatives based on Luckin’s shares and direct purchases of shares issued by Luckin.
- The Claimants allege deceit and negligence because of representations made by CS Singapore and Luckin.
- The Claimants obtained leave to serve the originating claim on Luckin in the Cayman Islands.
5. Formal Citations
- Luckin Coffee Inc v Interactive Digital Finance Ltd and others, Originating Application No 59 of 2023, [2024] SGHC(A) 7
6. Timeline
| Date | Event |
|---|---|
| Originating Claim No 225 of 2023 filed in Singapore | |
| Claimants obtained leave to serve originating claim on Luckin in the Cayman Islands | |
| Luckin filed HC/SUM 1973/2023 to set aside leave granted to Claimants | |
| Credit Suisse AG filed a contribution notice against Luckin | |
| The Deputy Registrar heard the application | |
| The Deputy Registrar dismissed SUM 1973 | |
| The Judge heard the appeal | |
| Hearing Date | |
| Judgment Date |
7. Legal Issues
- Jurisdiction over foreign issuer of shares
- Outcome: The court found that the Judge had applied established principles concerning the service out of jurisdiction to the specific facts of the case.
- Category: Jurisdictional
- Sub-Issues:
- Sufficient nexus to Singapore
- Forum conveniens
- Service out of jurisdiction
- Outcome: The court dismissed Luckin's application to set aside the leave granted to the Claimants to serve the originating claim on Luckin in the Cayman Islands.
- Category: Procedural
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Deceit
- Negligence
10. Practice Areas
- Commercial Litigation
11. Industries
- Finance
- Food and Beverage
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lee Kuan Yew v Tang Liang Hong and another | High Court | Yes | [1997] 2 SLR(R) 862 | Singapore | Cited for the grounds upon which permission to appeal may be granted. |
| Lin Jianwei v Tung Yu-Lien Margaret and another | Court of Appeal | Yes | [2021] 2 SLR 683 | Singapore | Cited for the principle that matters of application of established principles do not raise a question of general principle. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court 2021 |
| Order 8 Rule 1(1) of the Rules of Court 2021 |
| Order 8 Rule 1(2) of the Rules of Court 2021 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Supreme Court of Judicature Act 1969 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Service out of jurisdiction
- Forum conveniens
- Sufficient nexus
- LK Representations
- CS Representations
- Schakel Representations
- Derivative Products
- Luckin Investments
- Joint tortfeasors
15.2 Keywords
- Jurisdiction
- Service out of jurisdiction
- Singapore
- Luckin Coffee
- Interactive Digital Finance
- Credit Suisse
- Deceit
- Negligence
- Appeal
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Civil Procedure | 90 |
| Jurisdiction | 85 |
| Appeals | 80 |
| Service out of jurisdiction | 75 |
| Misrepresentation | 70 |
| Negligence | 60 |
| Arbitration | 30 |
| Contract Law | 25 |
16. Subjects
- Civil Procedure
- Jurisdiction
- Appeals
- Service out of jurisdiction