Republic Airconditioning v Shinsung Eng: Summary Judgment for Labour Charges Dispute

Republic Airconditioning (S) Pte Ltd ("the plaintiff") sued Shinsung Eng Co Ltd (Singapore Branch) ("the defendant") in the High Court of Singapore for $323,500.31, due under a contract for the supply of labour. The defendant appealed against the Assistant Registrar's decision to grant summary judgment to the plaintiff. Lai Siu Chiu J dismissed the appeal, finding the defendant's defenses and counterclaims to be without merit. The court upheld the summary judgment in favor of the plaintiff for the outstanding labour charges.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal Dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Summary judgment granted to Republic Airconditioning against Shinsung Eng for unpaid labour charges. The court dismissed Shinsung Eng's appeal.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Republic Airconditioning (S) Pte LtdPlaintiff, RespondentCorporationJudgment for PlaintiffWon
Shinsung Eng Co Ltd (Singapore Branch)Defendant, AppellantCorporationAppeal DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Lai Siu ChiuJudgeYes

4. Counsels

4. Facts

  1. The plaintiff and defendant entered into a contract for the supply of labour.
  2. The plaintiff issued invoices to the defendant for labour charges.
  3. The defendant failed to pay some of the invoices.
  4. The plaintiff removed its workers from the construction site due to non-payment.
  5. The defendant sent an Audit Confirmation acknowledging the debt.
  6. The defendant claimed the contract included ACMV works, which were defective.
  7. The defendant alleged the plaintiff used "phantom" workers.

5. Formal Citations

  1. Republic Airconditioning (S) Pte Ltd v Shinsung Eng Co Ltd (Singapore Branch), Suit No 351 of 2011 (Registrar's Appeal No 397of 2011), [2012] SGHC 46

6. Timeline

DateEvent
Defendant secured project with Rolls Royce Pte Ltd.
Plaintiff and defendant entered into a contract for the supply of labour.
Plaintiff removed workers from construction site.
Plaintiff stopped work.
Defendant made payment of $70,000 to the plaintiff.
Defendant made payment of $90,000 to the plaintiff.
Defendant sent an Audit Confirmation to the plaintiff.
Plaintiff commenced action against the defendant.
Plaintiff was granted summary judgment by the Assistant Registrar.
Appeal dismissed.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the defendant breached the contract by failing to pay the invoices.
    • Category: Substantive
    • Sub-Issues:
      • Non-payment of invoices
      • Wrongful repudiation
  2. Summary Judgment
    • Outcome: The court upheld the granting of summary judgment in favor of the plaintiff.
    • Category: Procedural
  3. Illegality of Contract
    • Outcome: The court found that the contract was not tainted with illegality.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Construction Law

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Associated Development Pte Ltd v Loong Sie Kiong GeraldHigh CourtYes[2009] 4 SLR(R) 389SingaporeCited for the principle that a plaintiff must show a prima facie case for judgment to obtain summary judgment.
Goh Chok Tong v Chee Soon JuanCourt of AppealYes[2003] 3 SLR(R) 32SingaporeCited for the principle that leave to defend will not be granted based upon mere assertions by defendants.
Eng Yong v LetchumananPrivy CouncilYes[1979] MLJ 212MalaysiaCited for the principle that a judge is not bound to accept uncritically every statement on an affidavit.
Hua Khian Ceramics Tiles Supplies v Torie ConstructionHigh CourtYes[1991] 2 SLR(R) 901SingaporeCited for the principle of a more robust approach in summary proceedings.
Sandar Aung v Parkway Hospitals Singapore Pte LtdCourt of AppealYes[2007] 2 SLR(R) 891SingaporeCited regarding the role of factual context in contractual interpretation.
Gobind Lalwani v Basco Enterprises Pte LtdHigh CourtYes[1998] 3 SLR(R) 1019SingaporeCited for the principle that an audit confirmation constitutes strong prima facie evidence of a debt.
Capital Realty Pte Ltd v Chip Thye Enterprises (Pte) LtdCourt of AppealYes[2000] 3 SLR(R) 419SingaporeCited for the principle that an audit confirmation constitutes strong prima facie evidence of a debt.
Re Bentimi Pte Ltd; In the matter of Part X of the Companies Act, Chapter 50 (1994 Revised Edition) v In the Matter of Bentimi Pte LtdHigh CourtNo[2003] SGHC 92SingaporeCited to distinguish the principle that an audit confirmation constitutes strong prima facie evidence of a debt based on the specific facts of the case.
Jia Min Building Construction Pte Ltd v Ann Lee Pte LtdHigh CourtNo[2004] 3 SLR(R) 288SingaporeCited regarding the right to suspend works in construction contracts.
Lim Leong Huat v Chip Hup Hup Kee Construction Pte LtdHigh CourtNo[2008] 2 SLR(R) 786SingaporeCited regarding unpleaded defenses in summary judgment applications.
United States Trading Co Pte Ltd v Ting Boon AunHigh CourtNo[2008] 2 SLR(R) 981SingaporeCited regarding unpleaded defenses in summary judgment applications.
HSBC Institutional Trust (Singapore) v Elchemi Assets Pte Ltd and anotherHigh CourtNo[2010] SGHC 67SingaporeCited regarding unpleaded defenses in summary judgment applications.
Lin Securities (Pte) v Noone & Co Sdn BhdHigh CourtYes[1989] 1 MLJ 321MalaysiaCited regarding unpleaded defenses in summary judgment applications.
Poh Soon Kiat v Desert Palace IncCourt of AppealYes[2010] 1 SLR 1129SingaporeCited regarding unpleaded defenses in summary judgment applications.
Rankine Bernadette Adeline v Chenet Finance LtdHigh CourtNo[2011] 3 SLR 756SingaporeCited regarding unpleaded defenses in summary judgment applications.
PMA Credit Opportunities Fund and others v Tantono Tiny (representative of the estate of Lim Susanto, deceased)High CourtNo[2011] 3 SLR 1021SingaporeCited regarding unpleaded defenses in summary judgment applications.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Rules of Court (Cap 332, R5, 2006 Rev Ed)Singapore
Employment Agencies Act (Cap 92, 1985 Rev Ed)Singapore
Employment of Foreign Manpower Act (Cap 91A, 2009 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Labour charges
  • Audit Confirmation
  • Summary judgment
  • Phantom workers
  • ACMV works
  • Repudiation
  • Set-off
  • Work permits

15.2 Keywords

  • contract
  • construction
  • summary judgment
  • labour
  • singapore

17. Areas of Law

16. Subjects

  • Contract Dispute
  • Construction Dispute
  • Summary Judgment