Baker v BCS: Contempt of Court for Anti-Suit Injunction Breach & Director Disqualification

In the Singapore International Commercial Court, Michael Baker, as executor of Chantal Burnison's estate, brought a contempt of court action against BCS Business Consulting Services Pte Ltd, Marcus Weber, and Hartono Sianto for breaching an anti-suit injunction related to a prior judgment concerning Ethocyn rights. The court found BCS and Weber in contempt for disobeying the anti-suit injunction, imposing fines of $80,000 and $100,000 respectively. The application for a director disqualification order against Weber was dismissed, and the contempt application against Sianto was also dismissed.

1. Case Overview

1.1 Court

Singapore International Commercial Court

1.2 Outcome

Judgment against BCS Business Consulting Services Pte Ltd and Marcus Weber for contempt of court. Application for director disqualification order against Marcus Weber dismissed. Contempt application against Hartono Sianto dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Singapore court finds BCS and Weber in contempt for breaching an anti-suit injunction. Application for director disqualification against Weber was dismissed.

1.7 Decision Date

2. Parties and Outcomes

3. Judges

Judge NameTitleDelivered Judgment
Andre ManiamJudge of the High CourtYes
Dominique HascherInternational JudgeNo
Christopher Scott SontchiInternational JudgeNo

4. Counsels

4. Facts

  1. Dr. Chantal Burnison co-invented Ethocyn, supplied to cosmetic manufacturers like Nu Skin.
  2. A dispute arose over the rights to Ethocyn, with Baker claiming Weber held the rights in trust for Chantal's estate.
  3. Baker sued BCS, Weber, and Renslade (HK) in Singapore, obtaining a judgment in his favor.
  4. BCS sued Baker and BCS Pharma in California, alleging interference with its contract with Nu Skin.
  5. The SICC granted an anti-suit injunction restraining BCS from prosecuting the Californian proceedings.
  6. BCS continued to prosecute claims in California that were subject to the anti-suit injunction.
  7. Weber, as owner and controller of BCS, instructed US lawyers to continue the Californian proceedings.
  8. Sianto resigned as director of BCS after disagreeing with Weber's decision to continue the Californian proceedings.

5. Formal Citations

  1. Baker, Michael A (executor of the estate of Chantal Burnison, deceased) v BCS Business Consulting Services Pte Ltd and others, Suit No 3 of 2018 (Summonses Nos 9 and 22 of 2023), [2024] SGHC(I) 2

6. Timeline

DateEvent
Baker sued BCS, Weber and Renslade (HK) in Singapore
BCS sued Baker and BCS Pharma in California
SICC gave judgment for Baker in Suit 3
Californian Proceedings stayed
Appeal against Suit 3 Judgment dismissed
Stay on the Californian Proceedings lifted
Baker applied for an anti-suit injunction
SICC granted the anti-suit injunction against the Defendants
Appeal against the anti-suit injunction dismissed
BCS filed a motion for leave to file the Fourth Amended Complaint
Baker’s Statement of Committal filed
Sianto resigned as a director of BCS
BCS filed an application in the Californian court for an anti-suit injunction
BCS filed an ex parte application in the Californian court for a temporary restraining order
TRO application dismissed
US ASI application was dismissed
Hearing on contempt application
Hearing on contempt application
Judgment delivered

7. Legal Issues

  1. Contempt of court for breach of anti-suit injunction
    • Outcome: BCS and Weber found in contempt of court for intentionally disobeying the anti-suit injunction.
    • Category: Substantive
    • Sub-Issues:
      • Intentional disobedience of court order
      • Failure to take all reasonable steps to prevent contempt
  2. Director disqualification
    • Outcome: Application for director disqualification order against Weber dismissed.
    • Category: Substantive

8. Remedies Sought

  1. Order of committal
  2. Fine
  3. Director disqualification order

9. Cause of Actions

  • Contempt of Court

10. Practice Areas

  • Commercial Litigation
  • International Litigation

11. Industries

  • Cosmetics

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Baker, Michael A (executor of the estate of Chantal Burnison, deceased) v BCS Business Consulting Services Pte Ltd and othersSingapore International Commercial CourtYes[2020] 4 SLR 85SingaporeThis is the Suit 3 Judgment, the original case establishing the trust and the basis for the anti-suit injunction. The current judgment concerns the consequences of disobeying orders made in this case.
Baker, Michael A (executor of the estate of Chantal Burnison, deceased) v BCS Business Consulting Services Pte Ltd and othersCourt of AppealYes[2022] 3 SLR 103SingaporeThis is the ASI Judgment, which the Court of Appeal referred to and agreed with the comprehensive judgment of the court below. The current judgment concerns the consequences of disobeying orders made in this case.
BCS Business Consulting Services Pte Ltd and others v Baker, Michael A (executor of the estate of Chantal Burnison, deceased)Court of AppealYes[2023] 1 SLR 1SingaporeThis is the ASI Appeal, where the Court of Appeal dismissed the appeal against the anti-suit injunction. The current judgment concerns the consequences of disobeying orders made in this case.
Mok Kah Hong v Zheng Zhuan YaoCourt of AppealYes[2016] 3 SLR 1SingaporeCited for the proposition that the statement of committal serves a crucial role in enabling the respondent to know the case that has been put forth against him.
Tay Kar Oon v TahirCourt of AppealYes[2017] 2 SLR 342SingaporeCited for the principle that the court has the power to order committal on its own motion.
STX Corp v Jason Surjana TanuwidjajaHigh CourtYes[2014] 2 SLR 1261SingaporeCited for considering a contemnor’s lack of requisite deference in respect of the court orders binding him.
Wang Xiaopu v Goh Seng Heng and anotherHigh CourtYes[2021] SGHC 282SingaporeCited for considering the contemnor’s conduct in the contempt proceedings.
PT Sandipala Arthaputra v STMicroelectronics Asia Pacific Pte Ltd and othersHigh CourtYes[2018] 4 SLR 828SingaporeCited for looking at events occurring after the breaches of the relevant court orders, for the purposes of assessing whether the contemnors had taken steps to mitigate and/or purge their contempt.
Aero-Gate Pte Ltd v Engen Marine Engineering Pte Ltd and another appealCourt of AppealYes[2020] 2 SLR 822SingaporeCited for recognizing that facts not set out in the statement of committal can be considered as part of the background facts for the charges that are made out when it comes to considering the appropriate sentence for those charges.
WestBridge Ventures II Investment Holdings v Anupam MittalHigh CourtYes[2022] SGHC 270SingaporeCited as a case where the court considered a fine to be the appropriate punishment for the breach of an anti-suit injunction.
Sembcorp Marine Ltd v Aurol Authony SabastianHigh CourtYes[2013] 1 SLR 245SingaporeCited for framing the issue of whether a fine is adequate to punish and deter contemptuous behaviour.
Mobile Telecommunications Co KSC v HRH Prince Hussam Bin Abdulaziz Au SaudHigh Court of JusticeYes[2018] EWHC 3749 (Comm)England and WalesCited as an English decision where a 12-month term of imprisonment was imposed for breach of an ASI.
Dell Emerging Markets (EMEA) Ltd and others v Systems Equipment Telecommunications Services SAL and othersHigh Court of JusticeYes[2020] EWHC 1384 (Comm)England and WalesCited as an English decision where the court stated that contemptuous breaches of anti-suit injunctions are to be treated for sentencing purposes as analogous to breaches of freezing injunctions.
Technigroup Far East Pte Ltd and another v Jaswinderpal Singh s/o Bachint Singh and othersHigh CourtYes[2018] 3 SLR 1391SingaporeCited for the principle that deliberate and substantial breaches of the disclosure provisions of a freezing order tend to be treated as a serious matter.
OCM Opportunities Fund II, LP and others v Burhan Uray (alias Wong Ming Kiong) and othersHigh CourtYes[2005] 3 SLR(R) 60SingaporeCited for imposing imprisonment terms for breaches of a freezing order in relation to disclosure of assets and accounting for expenditure.
BTS Tankers Pte Ltd v Energy & Commodity Pte Ltd and othersHigh CourtYes[2021] SGHC 58SingaporeCited for imposing imprisonment terms on the two contemnors for breach of disclosure obligations under freezing orders.
Tan Beow Hiong v Tan Boon AikHigh CourtYes[2010] 4 SLR 870SingaporeCited for the principle that contempt by intentional disobedience of a court order is regarded as civil contempt.
Li Shengwu v Attorney-GeneralHigh CourtYes[2019] 1 SLR 1081SingaporeCited for recognizing that civil procedure and processes have always been used to establish jurisdiction over any contemnor, whether the contempt complained of was civil contempt or criminal contempt.
Tan Liang Joo John v Attorney-GeneralHigh CourtYes[2020] 5 SLR 1314SingaporeCited for finding that criminal contempt would fall within the concept of “offence” under Art 45(1)(e) of the Constitution of the Republic of Singapore, but expressly left open the position regarding civil contempt because of its potentially different nature.
Maruti Shipping Pte Ltd v Tay Sien Djim and othersHigh CourtYes[2014] SGHC 227SingaporeCited for the proposition that despite its quasi-criminal nature, a civil contempt does not amount to a criminal offence.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Companies Act 1967Singapore
Administration of Justice (Protection) Act 2016Singapore
Criminal Procedure Code 2010Singapore
Securities and Futures Act 2001Singapore
Insolvency, Restructuring and Dissolution Act 2018Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Anti-suit injunction
  • Contempt of court
  • Director disqualification
  • Ethocyn Rights
  • Trust Assets
  • Californian Proceedings
  • Injuncted Claims
  • Statement of Committal

15.2 Keywords

  • Contempt
  • Anti-suit injunction
  • Director disqualification
  • Ethocyn
  • Singapore International Commercial Court

17. Areas of Law

16. Subjects

  • Contempt of Court
  • Civil Procedure
  • Companies Law
  • Injunctions