Lloyd's Maritime and Commercial Law Quarterly
NEGOTIATING DAMAGES ONCE AGAIN
Lau Kwan Ho*
Turf Club v Yeo
In One Step (Support) Ltd v Morris-Garner,1 the Supreme Court held that an award of Wrotham Park damages2 for breach of contract was compensatory, rather than restitutionary, in nature. The decision, unquestionably a seminal one, was offered a cautious reception by academic commentators. It has now been considered in detail by a Commonwealth court of final appeal. Interesting and valuable views on One Step were recently expressed by the Court of Appeal of Singapore in Turf Club Auto Emporium Pte Ltd v Yeo Boong Hua.3 Many will find something in the later judgment to capture their attention, from its insightful treatment of theoretical principles to the thoughtful formulation of a test of real application. Fascinating as the decision may be for its broader conceptual implications on other areas of the law of damages, this commentary instead explores some of the key points of judicial convergence and departure, focusing in particular on the test that was newly introduced and its possible paths of development in future cases in Singapore and elsewhere.
Turf Club involved a complicated set of facts, although a pure point of contract law had distilled itself into being by the time the case came up on appeal. Two consortia had entered into a joint venture to develop a plot of land. The first consortium, known as the SAA Group and comprising five individuals, held 62.5% of the shares in each of the two joint venture companies, while the second consortium (made up of three individuals) held 37.5% of each joint venture company. The two companies were not actually the owners of the plot of land, but had each taken a subtenancy from SAA (a company controlled by the SAA Group). SAA itself was merely the head-tenant, having taken a three-year lease of the land from the Singapore Land Authority beginning September 2001. The commercial intention was for the two joint venture companies to earn revenue by granting to the ultimate tenants sub-subtenancies in units located on the plot of land.
There unfortunately arose disputes between the two consortia during the development of the landed site. The second consortium brought claims of minority oppression against the SAA Group consortium. An independent event, unrelated to the alleged minority oppression, took place in September 2004: the head lease from the Singapore
* Assistant Professor of Law, Singapore Management University.
1. [2018] UKSC 20; [2018] 1 Lloyd's Rep 495; [2018] 2 WLR 1353.
2. So named after Wrotham Park Estate Co Ltd v Parkside Homes Ltd [1974] 1 WLR 798.
3. [2018] SGCA 44; [2018] 2 SLR 655.
Case and comment
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