Fisher v. Sunho Construction: Setting Aside Arbitral Award for Breach of Natural Justice and Public Policy

In the High Court of Singapore, Stephen J Fisher, the plaintiff, applied to set aside an arbitral award in favor of Sunho Construction Pte Ltd, the defendant, for breach of natural justice and public policy. The dispute arose from a construction contract for the plaintiff's property. The arbitrator had ordered the plaintiff to pay the defendant $278,064.40. Justice Kannan Ramesh dismissed the application, finding no breach of natural justice or public policy.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Application dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Stephen Fisher's application to set aside an arbitral award in favor of Sunho Construction was dismissed, as no breach of natural justice or public policy was found.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Fisher, Stephen JPlaintiffIndividualApplication DismissedLost
Sunho Construction Pte LtdDefendantCorporationApplication DismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Kannan RameshJudgeYes

4. Counsels

Counsel NameOrganization
S MagintharanEssex LLC
Liew Boon Kwee JamesEssex LLC
Vineetha GunasekaranEssex LLC
Tan YixunEssex LLC
Ashwin Singh RiarSalem Ibrahim LLC

4. Facts

  1. Fisher engaged Sunho Construction to build a house for $1,980,000.
  2. The scheduled completion date was 1 December 2007, but the project was delayed.
  3. The Architect issued a delay certificate on 2 June 2008.
  4. Sunho submitted extension of time claims for 287 days.
  5. The Architect allowed 60 days of extension of time on 11 May 2009.
  6. The Temporary Occupation Permit was obtained on 27 February 2009.
  7. The Architect finalized the accounts on 17 May 2013, certifying $71,047.01 due to Sunho.

5. Formal Citations

  1. Fisher, Stephen J v Sunho Construction Pte Ltd, Originating Summons No 388 of 2017, [2018] SGHC 76

6. Timeline

DateEvent
Contract signed between Fisher and Sunho Construction.
Scheduled completion date of the project.
Project not completed by April 2008.
Architect issued a delay certificate.
Sunho submitted extension of time claims.
Mr. Chow returned to the project.
Temporary Occupation Permit obtained.
Completion certificate issued by the Architect.
Architect allowed extension of time claims in part.
Architect finalized the accounts and issued the final certificate.
Sunho Construction commenced arbitral proceedings against Fisher.
Arbitrator appointed by the President of the Singapore Institute of Architects.
Arbitrator issued the Award.
Arbitration conducted over several tranches in 2016.
Plaintiff applied by Originating Summons No 278 of 2017 for leave to appeal to the court on questions of law arising out of an arbitral award.
Plaintiff applied by OS No 388 of 2017 for the Award to be set aside for breach of natural justice and on the basis that it was contrary to public policy.
Decision in OS 388 given.

7. Legal Issues

  1. Breach of Natural Justice
    • Outcome: The court held that there was no breach of natural justice.
    • Category: Procedural
    • Sub-Issues:
      • Failure to consider material issues
      • Deprivation of right to be heard
      • Failure to exclude allegedly fraudulent evidence
  2. Public Policy
    • Outcome: The court held that the award was not contrary to public policy.
    • Category: Substantive

8. Remedies Sought

  1. Setting aside of arbitral award

9. Cause of Actions

  • Breach of Contract
  • Breach of Duty of Care

10. Practice Areas

  • Arbitration
  • Construction Disputes
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte LtdCourt of AppealYes[2007] 3 SLR(R) 86SingaporeCited for the principle that the same approach towards natural justice ought to be adopted for both international and domestic arbitrations in Singapore.
John Holland Pty Ltd v Toyo Engineering Corp (Japan)High CourtYes[2001] 1 SLR(R) 443SingaporeCited for the principle that a party seeking to set aside an arbitral award for breach of the rules of natural justice must first identify the rule of natural justice that was allegedly breached.
AKN and another v ALC and others and other appealsCourt of AppealYes[2015] 3 SLR 488SingaporeCited for the principle that the inference that an arbitrator failed to consider an issue may only be drawn if it was clear and virtually inescapable.
TMM Division Maritima SA de CV v Pacific Richfield Marine Pte LtdHigh CourtYes[2013] 4 SLR 972SingaporeCited for the principle that natural justice only protects the right to be heard and does not guarantee that the tribunal will fully comprehend or accept the submissions made.
Front Row Investment Holdings (Singapore) Pte Ltd v Daimler South East Asia Pte LtdHigh CourtYes[2010] SGHC 80SingaporeCited as an instance in which an award was set aside because of the arbitrator’s failure to consider an issue.
Permasteelisa Pacific Holdings Ltd v Hyundai Engineering & Construction Co LtdHigh CourtYes[2005] 2 SLR(R) 270SingaporeCited to distinguish the facts where the arbitrator had adopted a method of apportioning liquidated damages that was only advanced in one party’s reply submissions and was not put forward in the course of the proceedings.
PT Asuransi Jasa Indonesia (Persero) v Dexia Bank SACourt of AppealYes[2007] 1 SLR(R) 597SingaporeCited for the principle that errors of law or fact, per se, do not engage the public policy of Singapore.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Arbitration Act (Cap 10, 2002 Rev Ed)Singapore
s 48(1)(a)(vii) of the Arbitration ActSingapore
s 48(1)(b)(ii) of the Arbitration ActSingapore
International Arbitration Act (Cap 143A, 2002 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Arbitration
  • Natural Justice
  • Public Policy
  • Extension of Time
  • Liquidated Damages
  • Condition Precedent
  • Implied Terms
  • Rectification Costs

15.2 Keywords

  • Arbitration
  • Construction
  • Natural Justice
  • Public Policy
  • Singapore

17. Areas of Law

Area NameRelevance Score
Arbitration90
Building and Construction Contracts70
Construction Law70
Construction70
Breach of Contract60
Contract Law60
Natural justice50
Civil Procedure30
Civil Practice30

16. Subjects

  • Arbitration
  • Construction Dispute