Renault SAS v Liberty Engineering Group Pte Ltd (Credit and Security - Guarantees and indemnities) [2024] SGHC(I) 6 (14 February 2024)

Renault SAS v Liberty Engineering Group Pte Ltd (Credit and Security - Guarantees and indemnities) [2024] SGHC(I) 6 (14 February 2024)

Alvance (Liberty Wheels) was not a party to the FSA and had no liability under it, as it did not exist at the time of the FSA and there was no sufficient evidence of subsequent adherence or substitution under French law. However, by requesting and accepting the financial support from Renault, Alvance entered into a separate contract with Renault on terms corresponding to the FSA, creating a liability 'in relation with' the FSA. LEG, as guarantor, was liable under the Guarantee for Alvance's default in repayment. The claim in OA 9 succeeded as the 1 June 2023 payment was not made, triggering LEG's liability; OA 3 failed as the acceleration event did not trigger LEG's liability at that time.

Citation
[2024] SGHC(I) 6
Parties
Claimant: Renault SAS; Defendant: Liberty Engineering Group Pte Ltd
Jurisdiction
Singapore
Judgment Date
14 February 2024
Procedural Posture
Originating Applications (oa 3 and OA 9 of 2023) / Judgment After Trial
Outcome
OA 9 allowed; OA 3 dismissed
Legal Topics
Pleadings, Contractual Terms, Guarantees and Indemnities
Civil Procedure Contract Credit and Security Pleadings Contractual Terms Guarantees and Indemnities

Case Brief

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Parties

Renault SAS

Claimant

Liberty Engineering Group Pte Ltd

Defendant

Procedural Posture

Originating Applications (oa 3 and OA 9 of 2023) / Judgment After Trial

Legal Issues

  1. 1 Whether Alvance (Liberty Wheels) was a party to the Financial Services Agreement (FSA) and liable to repay the financial support
  2. 2 Whether Alvance was liable to repay the financial support under a separate contract or quantum meruit
  3. 3 Whether Renault sufficiently pleaded a separate contract basis for liability

Ratio Decidendi

Alvance (Liberty Wheels) was not a party to the FSA and had no liability under it, as it did not exist at the time of the FSA and there was no sufficient evidence of subsequent adherence or substitution under French law. However, by requesting and accepting the financial support from Renault, Alvance entered into a separate contract with Renault on terms corresponding to the FSA, creating a liability 'in relation with' the FSA. LEG, as guarantor, was liable under the Guarantee for Alvance's default in repayment. The claim in OA 9 succeeded as the 1 June 2023 payment was not made, triggering LEG's liability; OA 3 failed as the acceleration event did not trigger LEG's liability at that time.

Court Disposition

OA 9 allowed; OA 3 dismissed

Orders

  • LEG to pay Renault €5,250,025.61 plus interest as determined by the court in OA 9
  • No order in OA 3