STL Machinery v Hai Leck Marine: Indemnity for Shipping Dispute over Crane Volume
In STL Machinery Pte Ltd v Hai Leck Marine Contractor Pte Ltd, the High Court of Singapore addressed a dispute arising from the shipment of cranes to Manila. STL Machinery, the owner of the cranes, contracted with Hai Leck Marine, a shipping company, for the shipment. A dispute arose over the measurement of the cranes, leading to the shipowners exercising a lien on the cargo. The consignee, Singapino Corporation, paid to release the cranes and claimed losses from STL Machinery, who then sought indemnity from Hai Leck Marine. The court varied the Assistant Registrar’s orders, ruling that while STL Machinery was entitled to indemnity and damages, the specific amounts recoverable would be subject to assessment.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed with variation; indemnity and damages recoverable are to be assessed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Shipping dispute over crane volume led to consignee payment for release. STL Machinery sought indemnity from Hai Leck Marine. Court varied order for assessment of damages.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| STL Machinery Pte Ltd | Plaintiff, Respondent | Corporation | Entitled to indemnity and damages, amount to be assessed | Partial | |
| Hai Leck Marine Contractor Pte Ltd | Defendant, Appellant | Corporation | Appeal dismissed with variation | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Kan Ting Chiu | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Leong Kah Wah | Joseph Tan Jude Benny |
| Tan Chau Yee | Tan Cheng Yew & Partners |
4. Facts
- STL Machinery contracted with Hai Leck Marine to ship cranes to Manila.
- A dispute arose over the measurement of the cranes.
- Hai Leck Marine declared the measurement of the cranes as 1400 cubic metres.
- The shipowners exercised a lien on the cargo due to a dispute over measurement.
- The consignee paid US$37,596.75 to secure the release of the cranes.
- STL Machinery sought indemnity from Hai Leck Marine for losses incurred.
5. Formal Citations
- STL Machinery Pte Ltd v Hai Leck Marine Contractor Pte Ltd, Suit 1592/1999, RA 600040/2000, [2000] SGHC 112
6. Timeline
| Date | Event |
|---|---|
| Contract entered between STL Machinery and Hai Leck Marine for shipment of cranes. | |
| STL Machinery prepared a packing list for their internal records. | |
| Cranes transported from STL Machinery’s yard to the port. | |
| Hai Leck Marine made their own measurement before loading. | |
| Cranes loaded on the vessel MV Royal Progress. | |
| Vessel arrived at Manila. | |
| Shipowners ceased discharging the cargo and exercised their lien. | |
| Letter from the plaintiffs to the defendants specifically referred to Singapino Corporation as the consignee. | |
| Judgment delivered. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that the defenses raised did not excuse the defendants from their obligation to deliver the cargo to the consignee.
- Category: Substantive
- Sub-Issues:
- Failure to deliver cargo
- Misrepresentation of cargo volume
- Indemnity
- Outcome: The court ruled that the plaintiffs are entitled to the indemnity they sought, but the amount recoverable must be proved.
- Category: Substantive
8. Remedies Sought
- Declaration of entitlement to indemnity
- Indemnity in the sum of $301,476.43
- Damages in the sum of $3,258.78
- Interest
- Costs
9. Cause of Actions
- Breach of Contract
- Indemnity
10. Practice Areas
- Commercial Litigation
- Shipping Disputes
11. Industries
- Shipping
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Crawler cranes
- Tower cranes
- Shipping
- Lumpsum freight
- Lien
- Consignee
- Misrepresentation
- Indemnity
15.2 Keywords
- shipping
- cranes
- indemnity
- contract
- marine
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Contract Law | 90 |
| Shipping Law | 80 |
| Misrepresentation | 70 |
| Bailment | 60 |
| Agency Law | 50 |
| Damages | 40 |
16. Subjects
- Contract Dispute
- Shipping Dispute
- Indemnity