Tan Gim Seng v Sea-Shore Transportation: Implied Terms & Limitation in Contractual Rental Dispute

In a suit before the High Court of Singapore, Tan Gim Seng, trading as G.S. Forklift Services (GSFS), sued Sea-Shore Transportation Pte Ltd for $416,796.20 for work done. Sea-Shore Transportation counterclaimed for $685,200 in rental arrears and other charges. The court, presided over by Chua Lee Ming J, gave judgment for GSFS on its claim for $17,632.50 and for Sea-Shore Transportation on its counterclaim for $69,784. Each party was ordered to bear its own costs. The court found an implied agreement for GSFS to pay rental and utilities, but limited the recovery due to the Limitation Act.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff on claim and Defendant on counterclaim.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

GSFS sued Sea-Shore for work done. Sea-Shore counterclaimed for rental arrears. The court found implied agreement for rental and utilities, but limited recovery.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Sea-Shore Transportation Pte LtdDefendant, Plaintiff in CounterclaimCorporationJudgment for Defendant on CounterclaimPartial
Tan Gim Seng t/a G.S. Forklift ServicesPlaintiff, Defendant in CounterclaimIndividualJudgment for PlaintiffWon

3. Judges

Judge NameTitleDelivered Judgment
Chua Lee MingJudgeYes

4. Counsels

4. Facts

  1. Tan Gim Seng, trading as G.S. Forklift Services (GSFS), sued Sea-Shore Transportation for work done.
  2. Sea-Shore Transportation counterclaimed for rental and utilities charges.
  3. GSFS occupied space at Sea-Shore Transportation's premises from 2006 to 2016.
  4. There was no express agreement on the amount of rent or utilities to be paid.
  5. Sea-Shore Transportation claimed GSFS occupied 2,500 sq ft, but lacked substantiating evidence.
  6. GSFS admitted to occupying one 40-foot container until 2012, then added more containers.
  7. The court found an implied agreement for GSFS to pay rent and utilities for additional space used.

5. Formal Citations

  1. Tan Gim Seng (trading as G S Forklift Services) v Sea-Shore Transportation Pte Ltd, Suit No 10 of 2017, [2018] SGHC 154

6. Timeline

DateEvent
Tan Gim Seng started work at Eastman Lift Truck Pte Ltd.
Tan Gim Seng started his own business under GSFS.
GSFS started servicing Sea-Shore Transportation's forklifts.
GSFS moved its business to Sea-Shore Transportation's premises.
GSFS occupied one container at Sea-Shore Transportation's premises.
GSFS added three more containers at Sea-Shore Transportation's premises.
End date for statement of accounts for work done by GSFS.
GSFS sent Sea-Shore Transportation a statement of accounts for $418,296.20.
Sea-Shore Transportation replied to GSFS regarding the statement of accounts.
End date for GSFS occupying Sea-Shore Transportation's premises.
Sea-Shore Transportation sent GSFS a statement of accounts for $625,200.
Sea-Shore Transportation's statement of accounts.
GSFS queried Sea-Shore Transportation's invoice.
Sea-Shore Transportation stated that all tenants in the premises had to be accounted for.
Sea-Shore Transportation demanded payment of $11,956.30 from GSFS.
GSFS commenced action against Sea-Shore Transportation for $416,796.20.
Assistant Registrar entered judgment for GSFS in the sum of $399,163.70.
Trial began.
Trial.
Judgment given for the plaintiff on his claim, and for the defendant on its counterclaim.
Judgment Date

7. Legal Issues

  1. Implied Terms
    • Outcome: The court found an implied agreement that the plaintiff was to pay rental for the use of the additional space and reimburse the defendant for his use of the utilities.
    • Category: Substantive
    • Sub-Issues:
      • Reasonable rent
      • Utilities charges
  2. Limitation of Actions
    • Outcome: The court held that the defendant's claim for rental accrued before 6 January 2011 was time-barred.
    • Category: Procedural

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Unjust Enrichment

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Transportation
  • Warehousing

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Wee Chiaw Sek Anna v Ng Li-Ann Genevieve (sole executrix of the estate of Ng Hock Seng, deceased) and anotherN/AYes[2013] 3 SLR 801SingaporeCited for the principle that there is no freestanding claim in unjust enrichment on the abstract basis that the retention of the benefit is “unjust” – there must be a particular recognised unjust factor or event which gives rise to a claim.
AAHG, LLC v Hong Hin Kay AlbertN/AYes[2017] 3 SLR 636SingaporeCited for the view that lack of consent should be recognised as an unjust factor.
Eng Chiet Shoong and others v Cheong Soh Chin and others and another appealN/AYes[2016] 4 SLR 728SingaporeCited for the proposition that a quantum meruit claim exists as part of the law of unjust enrichment and that recovery of compensation for work done where there is no express contract may be made on a quantum meruit basis.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Limitation Act (Cap 163, 1996 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Implied Terms
  • Rental Arrears
  • Utilities Charges
  • Limitation Act
  • Quantum Meruit
  • Unjust Enrichment

15.2 Keywords

  • contract
  • rental
  • utilities
  • limitation
  • singapore
  • transportation
  • forklift

17. Areas of Law

16. Subjects

  • Contract Law
  • Commercial Litigation
  • Property Law