Marco Polo Shipping v Fairmacs Shipping: Conversion Claim for Undelivered River Sand
The Singapore Court of Appeal heard an appeal by Marco Polo Shipping Company Pte Ltd (“the Appellant”) against the decision of the High Court in favor of Fairmacs Shipping & Transport Services Pte Ltd (“the Respondent”) regarding a claim for damages due to the non-delivery of a shipment of river sand. The Respondent sued both the Appellant and Harikutai Engineering Pte Ltd for conversion and breach of contract, respectively. The Assistant Registrar initially assessed damages at US$62,950, but the High Court increased this to US$141,226. The Court of Appeal allowed the appeal, finding that the Respondent failed to prove the existence of a relevant market for the river sand at Port Blair and restored the Assistant Registrar's original award.
1. Case Overview
1.1 Court
Court of Appeal1.2 Outcome
Appeal Allowed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The Court of Appeal allowed Marco Polo Shipping's appeal, finding Fairmacs Shipping failed to prove a relevant market for converted river sand.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| MARCO POLO SHIPPING COMPANY PTE LTD | Appellant, Defendant | Corporation | Appeal Allowed | Won | |
| FAIRMACS SHIPPING & TRANSPORT SERVICES PRIVATE LIMITED | Respondent | Corporation | Appeal Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Andrew Phang Boon Leong | Justice of the Court of Appeal | Yes |
| Steven Chong | Judge | No |
4. Counsels
4. Facts
- The Respondent agreed to purchase river sand from Marine Alliance Group.
- The Appellant owned the vessels used to transport the river sand.
- The second shipment of 4,300MT of river sand never reached Port Blair.
- The Appellant sold the cargo, including the river sand, to mitigate losses due to Harikutai's default on charterhire payments.
- The Respondent sought US$201,455 in damages, based on the alleged market price of the river sand at Port Blair.
- The Assistant Registrar assessed damages at US$62,950, based on the cost the Respondent incurred for the river sand.
- The Judge allowed the Respondent’s appeal and assessed the damages at US$141,226.
5. Formal Citations
- Marco Polo Shipping Company Pte Ltd v Fairmacs Shipping & Transport Services Pte Ltd, Civil Appeal No 129 of 2014, [2015] SGCA 44
6. Timeline
| Date | Event |
|---|---|
| Contract of sale for river sand signed between Respondent and Marine Alliance Group. | |
| Second shipment of river sand expected to reach Port Blair. | |
| Respondent contacted Appellant regarding delayed shipment. | |
| Respondent's solicitors demanded information on the location of the vessels and delivery of the second shipment. | |
| Respondent filed Writ of Summons. | |
| Appellant applied for security for costs. | |
| Appellant clarified that MP Shipping Pte Ltd possibly sold the cargo. | |
| Respondent applied for summary judgment against Harikutai and the Appellant. | |
| Interlocutory judgment granted against Appellant and Harikutai with damages to be assessed. | |
| Appellant's appeal dismissed by the Judge. | |
| Registrar’s Appeal No 290 of 2013. | |
| Parties appeared before the Court of Appeal. | |
| Court of Appeal allowed the appeal and restored the AR’s award. |
7. Legal Issues
- Conversion
- Outcome: The court found that the Respondent failed to prove the existence of a relevant market for the converted goods.
- Category: Substantive
- Assessment of Damages
- Outcome: The court held that the market value should be the first port of call in assessing damages, but the market value in question must pertain to a relevant market. In the absence of a relevant market, the cost of replacement should be used.
- Category: Substantive
- Mitigation of Damages
- Outcome: The court dismissed the Appellant's argument that the Respondent should have mitigated its loss, as it was not pleaded as a defense and lacked factual basis.
- Category: Substantive
8. Remedies Sought
- Delivery up of the cargo
- Monetary Damages
9. Cause of Actions
- Conversion
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Shipping Litigation
11. Industries
- Shipping
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Fairmacs Shipping & Transport Services Pte Ltd v Harikutai Engineering Pte Ltd and another | High Court | Yes | [2015] 1 SLR 904 | Singapore | The judgment being appealed from, where the High Court assessed damages differently than the Assistant Registrar. |
| Furness v Adrium Industries Pty Ltd | Supreme Court of Victoria Appeal Division | Yes | [1996] 1 VR 668 | Australia | Cited regarding the assessment of damages for a middleman, suggesting damages should be the cost of replacing stock at the date of conversion. |
| Chartered Electronics Industries Pte Ltd v Comtech IT Pte Ltd | Court of Appeal | Yes | [1998] 2 SLR(R) 1010 | Singapore | Cited for the principle that the object of an award of damages is to compensate the plaintiff for the damage suffered and that damages are typically equated with the value of the goods. |
| The “Pioneer Glory” | Court of Appeal | Yes | [2002] 1 SLR(R) 232 | Singapore | Cited for the principle that there is no universal rule for the assessment of damages. |
| The “Jag Shakti” | Privy Council | Yes | [1985-1986] SLR(R) 448 | Singapore | Cited for the principle that where goods are converted in transit, damages are assessed at the date of expected delivery. |
| M&J Marine Engineering Services Co Ltd v Shipshore Ltd | English High Court | Yes | [2009] EWHC 2031 (Comm) | England and Wales | Cited for the definition of a market, requiring a reasonably available supply of goods and a reasonably available source of demand. |
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
- River sand
- Market value
- Conversion
- Cost of replacement
- Relevant market
- Mitigation of damages
- Charterhire
- Shipment
- Metric tonnes
- Port Blair
15.2 Keywords
- river sand
- shipping
- conversion
- damages
- market value
- port blair
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Damages | 80 |
| Shipping Law | 75 |
| Conversion | 65 |
| Carriage of Goods | 60 |
| Contract Law | 60 |
| Breach of Contract | 50 |
| Torts | 40 |
| Evidence | 30 |
16. Subjects
- Shipping Dispute
- Commercial Dispute
- Damages Assessment
- Conversion