Lee Chee Wei v Tan Hor Peow Victor and Others

Lee Chee Wei v Tan Hor Peow Victor and Others

The court held that damages were to be assessed as at the date of breach (30 April 2005); in the absence of financial projections the net asset value method was the reliable valuation method and the defendants failed to discharge the burden to show DCF should be used, entitling the plaintiff to damages of $3.57m against the first, third and fourth defendants jointly and interest at 5% per annum from date of judgment.

Citation
[2008] SGHC 88
Parties
Plaintiff: Lee Chee Wei; First Defendant: Tan Hor Peow Victor; Second Defendant: Yip Hwai Chong; Third Defendant: Damien Ang Tse Aun; Fourth Defendant: Ong Ghim Choon
Court
General Division of the High Court
Jurisdiction
Singapore
Judgment Date
9 June 2008
Case Number
Suit 488/2005, NA 8/2008
Procedural Posture
Contract Damages in Lieu of Specific Performance / Assessment of Damages Following Trial on Liability
Outcome
Judgment for plaintiff on assessment of damages; award against first, third and fourth defendants jointly
Legal Topics
Specific Performance, Damages in Lieu, Share Valuation, Interest, Assessment of Damages
Source Language
English
Contract Equity Civil Procedure Specific Performance Damages in Lieu Share Valuation Interest Assessment of Damages

Case Brief

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Parties

Lee Chee Wei

Plaintiff

Tan Hor Peow Victor

First Defendant

Yip Hwai Chong

Second Defendant

Damien Ang Tse Aun

Third Defendant

Ong Ghim Choon

Fourth Defendant

Procedural Posture

Contract Damages in Lieu of Specific Performance / Assessment of Damages Following Trial on Liability

Legal Issues

  1. 1 Appropriate date for valuation of shares (date of breach v date of judgment)
  2. 2 Appropriate valuation methodology (net asset value v DCF)
  3. 3 Measure of damages where purchaser defaulted on share purchase

Ratio Decidendi

The court held that damages were to be assessed as at the date of breach (30 April 2005); in the absence of financial projections the net asset value method was the reliable valuation method and the defendants failed to discharge the burden to show DCF should be used, entitling the plaintiff to damages of $3.57m against the first, third and fourth defendants jointly and interest at 5% per annum from date of judgment.

Court Disposition

Judgment for plaintiff on assessment of damages; award against first, third and fourth defendants jointly

Orders

  • Damages awarded $3,570,000 jointly and severally against the first, third and fourth defendants
  • Interest at 5% per annum from date of judgment