Asia Hotel Investments Ltd v Starwood Asia Pacific Management Pte Ltd and Another

Asia Hotel Investments Ltd v Starwood Asia Pacific Management Pte Ltd and Another

Majority: Starwood breached the non‑circumvention agreement and that breach materially assisted the Narulas to acquire the Lai Sun shares by providing management and a renovation loan; the appellant thereby lost a real and substantial chance to acquire the shares and need not prove on the balance of probabilities that it would certainly have succeeded — only that the chance lost was real/substantial; objective facts and the breach shifted the evidential burden to respondents to show the Narulas could have completed the deal without Starwood; appeal allowed and damages for loss of chance to be assessed. Dissent: plaintiff must prove on a balance of probabilities any hypothetical actions it...

Citation
[2004] SGCA 37
Parties
Appellant/plaintiff: Asia Hotel Investments Ltd; First Respondent/defendant: Starwood Asia Pacific Management Pte Ltd; Second Respondent/defendant: Starwood Hotels and Resorts Worldwide, Inc
Court
Court of Appeal
Jurisdiction
Singapore
Judgment Date
20 September 2004
Case Number
CA 143/2003
Procedural Posture
Contract — Non‑circumvention Agreement / Appeal to Court of Appeal From High Court; Judgment on Liability and Remit to Assess Damages
Outcome
Appeal allowed by majority; judgment entered on liability for appellant; damages for loss of chance to be assessed
Legal Topics
Loss of Chance, Causation, Nominal Damages, Remoteness of Damage, Onus and Evidential Burden, Standard of Proof
Source Language
English

Case Brief

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Parties

Asia Hotel Investments Ltd

Appellant/plaintiff

Starwood Asia Pacific Management Pte Ltd

First Respondent/defendant

Starwood Hotels and Resorts Worldwide, Inc

Second Respondent/defendant

Procedural Posture

Contract — Non‑circumvention Agreement / Appeal to Court of Appeal From High Court; Judgment on Liability and Remit to Assess Damages

  1. 1 Whether trial judge could determine quantum despite parties agreeing trial limited to liability
  2. 2 Whether defendant's breach caused plaintiff to lose a real and substantial chance to acquire shares sold by a third party
  3. 3 Appropriate standard of proof for plaintiff's hypothetical actions and for third parties' actions

Ratio Decidendi

Majority: Starwood breached the non‑circumvention agreement and that breach materially assisted the Narulas to acquire the Lai Sun shares by providing management and a renovation loan; the appellant thereby lost a real and substantial chance to acquire the shares and need not prove on the balance of probabilities that it would certainly have succeeded — only that the chance lost was real/substantial; objective facts and the breach shifted the evidential burden to respondents to show the Narulas could have completed the deal without Starwood; appeal allowed and damages for loss of chance to be assessed. Dissent: plaintiff must prove on a balance of probabilities any hypothetical actions it...

Court Disposition

Appeal allowed by majority; judgment entered on liability for appellant; damages for loss of chance to be assessed

Orders

  • Appeal allowed
  • Judgment on liability entered for Asia Hotel Investments Ltd against the respondents for breach of the non‑circumvention agreement