Enholco Pte Ltd v Schonk: Breach of Fiduciary Duty and Conflict of Interest in Oil & Gas Industry

In Enholco Pte Ltd v Schonk Antonius Martinus Mattheus and International Oil and Gas Consultants Pte Ltd, the High Court of Singapore ruled in favor of the plaintiff, Enholco Pte Ltd, against the defendants, Schonk Antonius Martinus Mattheus and International Oil and Gas Consultants Pte Ltd. The case involved claims of breach of fiduciary duty and conflict of interest. The court found that Mattheus, while employed by Enholco, acted surreptitiously and diverted business to his own company, International Oil and Gas Consultants Pte Ltd. The court allowed Enholco's claim, ordering damages to be assessed later, and dismissed Mattheus' counterclaim for wrongful termination.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court found Schonk in breach of fiduciary duties for diverting business from Enholco while employed, leading to judgment for Enholco and dismissal of Schonk's counterclaim.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Schonk Antonius Martinus MattheusDefendantIndividualCounterclaim DismissedLost
International Oil and Gas Consultants Pte LtdDefendantCorporationClaim DismissedLost
Enholco Pte LtdPlaintiffCorporationClaim AllowedWon

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJYes

4. Counsels

Counsel NameOrganization
See Chern YangPremier Law LLC
Karuppiah Chandra SekaranLau Chandra & Rita LLP
Lau Teik SoonLau Chandra & Rita LLP

4. Facts

  1. Mattheus was employed by Enholco from 1989 to 2012.
  2. Mattheus incorporated International Oil and Gas Consultants Pte Ltd while still employed by Enholco.
  3. Enholco discovered Mattheus' company in August 2012.
  4. Enholco terminated Mattheus' employment on August 24, 2012.
  5. Mattheus allegedly diverted business from Enholco to his own company.
  6. Mattheus claimed an oral agreement existed regarding 'Unit 2' of Enholco's business.
  7. Mattheus deleted data from Enholco's computers.

5. Formal Citations

  1. Enholco Pte Ltd v Schonk, Antonius Martinus Mattheus and Another, Suit No 212 of 2013, [2015] SGHC 20

6. Timeline

DateEvent
Enholco Pte Ltd incorporated
Mattheus employed by Enholco Pte Ltd
Mattheus claims oral contract regarding Unit 2
International Oil and Gas Consultants Pte Ltd incorporated
Enholco discovers Mattheus incorporated second defendant company
Mattheus sacked from Enholco Pte Ltd
Suit No 212 of 2013 filed
Defence amended to allege Unit 2 Agreement
Judgment reserved
Appeals allowed in part by the Court of Appeal

7. Legal Issues

  1. Breach of Fiduciary Duty
    • Outcome: The court found that Mattheus breached his fiduciary duties to Enholco.
    • Category: Substantive
    • Sub-Issues:
      • Diversion of business opportunities
      • Misuse of company resources
  2. Wrongful Termination
    • Outcome: The court dismissed Mattheus' counterclaim for wrongful termination.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages
  2. Loss of Profit

9. Cause of Actions

  • Breach of Fiduciary Duty
  • Wrongful Termination

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Oil and Gas

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

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

  • Fiduciary Duty
  • Conflict of Interest
  • Unit 2
  • Diversion of Business
  • Wrongful Termination

15.2 Keywords

  • Breach of Fiduciary Duty
  • Conflict of Interest
  • Oil and Gas
  • Employment Law
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Fiduciary Duties90
Breach of Duty80
Conflict of Interest75
Commercial Disputes70
Wrongful Termination65
Termination60
Contract Law50
Company Law40

16. Subjects

  • Employment
  • Fiduciary Duty
  • Commercial Dispute