PPG Industries (Singapore) Pte Ltd v Compact Metal Industries Ltd

PPG Industries (Singapore) Pte Ltd v Compact Metal Industries Ltd

The Court held that the defendant was not liable for the full 273 days of additional site preliminaries because 87 days of the delay (78 days for stop work orders and 9 days for exceptionally adverse weather) were caused by events not attributable to the defendant; damages were therefore reduced from $1,040,662.35 (273 days) to $709,022.70 (186 days). The Court also held that the respondent’s claim for liquidated damages was recoverable under the first limb of Hadley as ordinary and foreseeable loss imputed to the defendant given the construction industry context, and remitted the defendant’s counterclaim to the Judge below for determination because the GD did not disclose reasoning on...

Citation
[2013] SGCA 23
Parties
Appellant (original Defendant): Compact Metal Industries Ltd; Respondent (original Plaintiff): PPG Industries (Singapore) Pte Ltd
Court
Court of Appeal
Jurisdiction
Singapore
Judgment Date
14 March 2013
Case Number
Civil Appeal No 125 of 2011
Procedural Posture
Civil Appeal / Court of Appeal Decision on Appeal From the High Court
Outcome
Appeal allowed in part; High Court decision otherwise affirmed; counterclaim remitted to trial judge
Legal Topics
Causation of Delay, Concurrent Delays and Apportionment, Liquidated Damages, Remoteness of Damage (hadley V Baxendale), Expert Evidence Weight, Separate Legal Personality and Attribution
Source Language
English
Contract Law Construction Law Company Law Civil Procedure Evidence Causation of Delay Concurrent Delays and Apportionment Liquidated Damages +3 more

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Parties

Compact Metal Industries Ltd

Appellant (original Defendant)

PPG Industries (Singapore) Pte Ltd

Respondent (original Plaintiff)

Procedural Posture

Civil Appeal / Court of Appeal Decision on Appeal From the High Court

Legal Issues

  1. 1 Whether the defendant’s breach caused 273 days of delay or whether parts were caused by other delaying events
  2. 2 Whether damages for additional site preliminaries should be reduced to reflect concurrent delays
  3. 3 Whether the plaintiff could recover liquidated damages it paid to the main contractor and whether such loss was too remote

Ratio Decidendi

The Court held that the defendant was not liable for the full 273 days of additional site preliminaries because 87 days of the delay (78 days for stop work orders and 9 days for exceptionally adverse weather) were caused by events not attributable to the defendant; damages were therefore reduced from $1,040,662.35 (273 days) to $709,022.70 (186 days). The Court also held that the respondent’s claim for liquidated damages was recoverable under the first limb of Hadley as ordinary and foreseeable loss imputed to the defendant given the construction industry context, and remitted the defendant’s counterclaim to the Judge below for determination because the GD did not disclose reasoning on...

Court Disposition

Appeal allowed in part; High Court decision otherwise affirmed; counterclaim remitted to trial judge

Orders

  • Reduce damages for additional site preliminaries from $1,040,662.35 to $709,022.70
  • Remit the defendant’s counterclaim to the Judge below for decision and reasons