Sato Kogyo v Socomec: Negligence Claim for Fire Damage Due to Defective UPS System

Sato Kogyo (S) Pte Ltd and Singapore Telecommunications Limited (SingTel) brought a claim in the High Court of Singapore on 11 April 2012 against Socomec SA for damages resulting from two fires at SingTel's Kim Chuan Telecommunications Complex. SKS was the main contractor for upgrading works, and Socomec SA manufactured the UPS system installed. The plaintiffs alleged the fires were caused by a malfunctioning UPS unit manufactured by Socomec SA. The court dismissed the claim, finding that the plaintiffs failed to prove the fires were caused by a defect in the UPS unit. The court also found contributory negligence on the part of the plaintiffs.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiffs' claim dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Sato Kogyo and SingTel sued Socomec for fire damage caused by a defective UPS. The court dismissed the claim, finding insufficient evidence of causation.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
SINGAPORE TELECOMMUNICATIONS LIMITEDPlaintiffCorporationClaim DismissedLost
Sato Kogyo (S) Pte LtdPlaintiffCorporationClaim DismissedLost
Socomec SADefendantCorporationJudgment for DefendantWon

3. Judges

Judge NameTitleDelivered Judgment
Judith PrakashJudgeYes

4. Counsels

4. Facts

  1. SingTel leased the Kim Chuan Telecommunications Complex for data storage.
  2. SKS was contracted by SingTel to upgrade the Complex.
  3. Socomec SA manufactured UPS units for the Complex.
  4. A fire occurred at the Complex, causing damage.
  5. The FM200 fire suppression system was not armed at the time of the fire.
  6. Tokio Marine paid out $8,157,686.26 to SKS and $450,879.04 to SingTel.
  7. The plaintiffs claimed the fire was caused by a defective UPS unit manufactured by the defendant.

5. Formal Citations

  1. Sato Kogyo (S) Pte Ltd and another v Socomec SA, Suit No 422 of 2009, [2012] SGHC 76

6. Timeline

DateEvent
SingTel employed SKS as main contractor for upgrading works.
SingTel appointed Socomec Asia as subcontractor.
Subcontract between SingTel and Socomec Asia was novated, SKS replacing SingTel as purchaser.
First fire broke out at Kim Chuan Telecommunications Complex.
Second fire broke out at Kim Chuan Telecommunications Complex.
Meeting held between plaintiffs, Socomec Asia, and defendant's representative.
Action started by Tokio Marine in the names of SingTel and SKS.
Judgment reserved.

7. Legal Issues

  1. Duty of Care
    • Outcome: The court found that the defendant owed a duty of care to both SingTel and SKS.
    • Category: Substantive
    • Related Cases:
      • [2007] 4 SLR(R) 100
      • [1932] AC 562
      • [1936] AC 85
  2. Breach of Duty of Care
    • Outcome: The court found that the defendant breached its duty of care by not conducting the full range of tests required on the UPS unit.
    • Category: Substantive
    • Related Cases:
      • [1957] 1 WLR 582
      • [2007] 4 SLR(R) 460
  3. Causation
    • Outcome: The court found that the plaintiffs failed to prove that the fires were caused by a defect in the UPS unit.
    • Category: Substantive
    • Related Cases:
      • [1985] 1 WLR 948
      • [2011] 2 SLR 63
  4. Novus Actus Interveniens
    • Outcome: The court held that the actions of the SCDF did not constitute a novus actus interveniens.
    • Category: Substantive
  5. Estoppel by Convention
    • Outcome: The court held that estoppel by convention did not apply in this case.
    • Category: Substantive
  6. Contributory Negligence
    • Outcome: The court found that the plaintiffs were contributorily negligent in not arming the FM200 system.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Negligence

10. Practice Areas

  • Commercial Litigation
  • Construction Litigation

11. Industries

  • Telecommunications
  • Construction
  • Manufacturing

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Spandeck Engineering (S) Pte Ltd v Defence Science & Technology AgencyCourt of AppealYes[2007] 4 SLR(R) 100SingaporeCited for the two-stage test of proximity and policy considerations to determine the existence of a duty of care in negligence claims.
M’alister (Or Donoghue) (Pauper) v StevensonN/AYes[1932] AC 562United KingdomCited for the principle that a manufacturer owes a duty of care to the ultimate user of their product.
Grant v Australian Knitting Mills, LimitedPrivy CouncilYes[1936] AC 85N/ACited for the principle that a manufacturer owes a duty of care to the ultimate user of their product.
Man B&W Diesel S E Asia Pte Ltd and another v PT Bumi InternationalCourt of AppealYes[2004] 2 SLR(R) 300SingaporeCited to argue against the existence of a duty of care, but distinguished by the court as relating to economic loss rather than physical damage.
The “Sunrise Crane”Court of AppealYes[2004] 4 SLR(R) 715SingaporeCited to distinguish between claims for pure economic loss and claims for direct physical damage to property.
Henderson v Merrett Syndicates LtdN/AYes[1994] 3 WLR 761N/ACited regarding contractual exemption clauses and the duty of care.
Leigh & Sullivan v Aliakmon Shipping (“The Aliakmon”)N/AYes[1986] AC 785N/ACited for the proposition that a claimant must have either the legal ownership of or a possessory title to the property concerned at the time when the loss or damage occurred.
Nacap Ltd v Moffat Plant LtdN/AYes[1987] SLT 221N/ACited to illustrate the meaning of 'possessory title' and argue that SKS did not have sufficient possessory title to the damaged property.
Jet Holding Ltd v Cooper Cameron (Singapore) Pte LtdN/AYes[2005] 4 SLR(R) 417SingaporeCited for the principle that possession on the part of a bailee would give a complete title and entitled the bailee to damages for loss or injury to the property itself.
The WinkfieldN/AYes[1902] P 42N/ACited for the principle that possession is good against a wrongdoer and that the latter cannot set up the jus tertii unless he claims under it.
Bolam v Friern Hospital Management CommitteeN/AYes[1957] 1 WLR 582N/ACited for the Bolam test, which determines the standard of care in negligence cases involving professionals.
JSI Shipping (S) Pte Ltd v TeofoongwonglcloongCourt of AppealYes[2007] 4 SLR(R) 460SingaporeCited for the 'Bolitho addendum' to the Bolam test, requiring expert evidence to have a logical basis.
Bolitho v City and Hackney Health AuthorityN/AYes[1997] 4 All ER 771N/ACited for the principle that expert evidence must have a logical basis in determining the standard of care.
Rhesa Shipping Co SA v Edmunds (The Popi M)N/AYes[1985] 1 WLR 948N/ACited for the principle that the trial judge may accept the explanation of either the plaintiffs or of the defendant regarding causation.
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA (trading as Rabobank International), Singapore Branch v Motorola Electronics Pte LtdN/AYes[2011] 2 SLR 63SingaporeCited for the principle that the trial judge may accept the explanation of either the plaintiffs or of the defendant regarding causation.
RSP Architects Planners & Engineers v Ocean Front Pte LtdN/AYes[1995] 3 SLR(R) 653SingaporeCited as an example of economic loss caused by a defective product.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • UPS System
  • Fire
  • Negligence
  • Duty of Care
  • Causation
  • Contributory Negligence
  • FM200 System
  • IGBT
  • Battery Room
  • Automatic Test
  • Factory Acceptance Test

15.2 Keywords

  • fire
  • negligence
  • UPS
  • Sato Kogyo
  • Socomec
  • SingTel
  • Kim Chuan Telecommunications Complex

17. Areas of Law

16. Subjects

  • Tort
  • Negligence
  • Construction
  • Fire Damage
  • Electrical Engineering