Ng Chin Siau v How Kim Chuan: Appeal Against Arbitration Award on Partnership Valuation

In Ng Chin Siau and Others v How Kim Chuan, the High Court of Singapore heard an application by How Kim Chuan for leave to appeal to the Court of Appeal against the High Court's decision to allow the plaintiffs' appeal against an arbitrator's award. The dispute concerned the valuation of Mr. How's share in a dental partnership following his retirement. The High Court dismissed Mr. How's application, finding no question of law of general importance or special reason to warrant an appeal.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Application dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal concerning the valuation of a retiring partner's share in a dental clinic. The court addressed the arbitrator's application of a valuation clause.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Ng Chin SiauPlaintiffIndividualAppeal AllowedWon
Yap Kin WaiPlaintiffIndividualAppeal AllowedWon
Chong Kai ChuanPlaintiffIndividualAppeal AllowedWon
Chong Ling SharonPlaintiffIndividualAppeal AllowedWon
Ng Jet WeiPlaintiffIndividualAppeal AllowedWon
Wong Dai ChongPlaintiffIndividualAppeal AllowedWon
Loh Meow SongPlaintiffIndividualAppeal AllowedWon
Kuan Chee KeongPlaintiffIndividualAppeal AllowedWon
Oh Chin HongPlaintiffIndividualAppeal AllowedWon
Ng Cheng HuatPlaintiffIndividualAppeal AllowedWon
Francis LeePlaintiffIndividualAppeal AllowedWon
Ang Hwee Quan SusanPlaintiffIndividualAppeal AllowedWon
Seah Yang HowePlaintiffIndividualAppeal AllowedWon
Leong Hon ChiewPlaintiffIndividualAppeal AllowedWon
How Kim ChuanDefendantIndividualApplication dismissedLost
Tan Soo KiatPlaintiffIndividualAppeal AllowedWon

3. Judges

Judge NameTitleDelivered Judgment
Judith PrakashJudgeYes

4. Counsels

Counsel NameOrganization
N SreenivasanStraits Law Practice LLC
Collin ChooStraits Law Practice LLC
Lok Vi MingRodyk & Davidson
Mark SeahRodyk & Davidson
Kirindeep SinghRodyk & Davidson

4. Facts

  1. Mr. How retired from dental partnerships on 11 May 2002.
  2. Disputes arose regarding the amount payable to Mr. How upon his retirement.
  3. The parties agreed to refer the disputes to arbitration.
  4. Mr. How claimed a larger amount was due to him than what was paid.
  5. The arbitrator issued a written award on 15 March 2006.
  6. The partners filed an originating summons seeking leave to appeal the award.
  7. The High Court allowed the partners' appeal in part.

5. Formal Citations

  1. Ng Chin Siau and Others v How Kim Chuan, OS 749/2006, SUM 4825/2006, [2007] SGHC 31

6. Timeline

DateEvent
How Kim Chuan issued a notice of retirement from the partnerships.
How Kim Chuan issued a notice of arbitration.
Lim Joo Toon appointed as the sole arbitrator.
Arbitration was heard.
Arbitrator issued written award.
Partners filed originating summons seeking leave to appeal.
High Court heard application for leave to appeal.
High Court delivered decision allowing the plaintiffs’ appeal.
How Kim Chuan filed summons seeking leave to appeal to the Court of Appeal.
Judgment reserved.

7. Legal Issues

  1. Recourse against arbitration award
    • Outcome: The court held that there was no question of law of general importance or special reason to warrant an appeal.
    • Category: Substantive
    • Sub-Issues:
      • Applicability of valuation method in partnership agreement
      • Admissibility and reliance on valuation report
      • Determination of share value based on expert reports
  2. Leave to appeal against High Court decision
    • Outcome: The court dismissed the application for leave to appeal, finding that the proposed questions of law did not meet the requirements of general importance or special reason.
    • Category: Procedural
    • Sub-Issues:
      • Question of law of general importance
      • Existence of special reasons

8. Remedies Sought

  1. Leave to appeal to the Court of Appeal

9. Cause of Actions

  • Breach of Partnership Agreement

10. Practice Areas

  • Arbitration
  • Commercial Litigation

11. Industries

  • Healthcare

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Anthony s/o Savarimiuthu v Soh Chuan TinHigh CourtYes[1989] SLR 607SingaporeCited for the definition of a “question of law… of general importance”.
Northern Elevator Manufacturing Sdn Bhd v United Engineers (Singapore) Pte LtdCourt of AppealYes[2004] 2 SLR 494SingaporeCited for the observation that a question of law is a finding of law that the parties dispute and that requires the guidance of the court to resolve.
Abdul Rahman bin Shariff v Abdul Salim bin SyedHigh CourtYes[1999] 4 SLR 716SingaporeCited for the conditions to be satisfied under the Supreme Court of Judicature Act before an application for leave can succeed.
Multi-Pak Singapore Pte Ltd v Intraco LtdCourt of AppealYes[1992] 2 SLR 793SingaporeCited for the proposition that a court was not allowed to make a finding or give a decision based on facts that have not been pleaded.
Yap Chwee Kim v American Home Assurance CoCourt of AppealYes[2001] 2 SLR 421SingaporeCited for the proposition that a court was not allowed to make a finding or give a decision based on facts that have not been pleaded.
Evergreat Construction Co Pte Ltd v Presscrete Engineering Pte LtdCourt of AppealYes[2006] 1 SLR 634SingaporeCited for the legal dictum that it is inappropriate for a court to substitute its own view on the merits when the parties have already agreed to rely on the expertise of an expert for a final and irrevocable determination.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Arbitration Act (Cap 10, 2002 Rev Ed)Singapore
Supreme Court of Judicature Act (Cap. 322, 1999 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Arbitration
  • Arbitration award
  • Partnership
  • Valuation
  • Goodwill
  • Expert report
  • Leave to appeal
  • Question of law
  • General importance
  • Special reason

15.2 Keywords

  • arbitration
  • partnership
  • valuation
  • appeal
  • Singapore

17. Areas of Law

Area NameRelevance Score
Partnership Law80
Arbitration75
Recourse against award65
Contract Law60
Commercial Disputes50
Valuation of Shares45
Shareholder Disputes35
Company Law30

16. Subjects

  • Arbitration
  • Partnerships
  • Valuation of Assets
  • Civil Procedure