BNP Paribas Wealth Management v Lam Chi Kin David

BNP Paribas Wealth Management v Lam Chi Kin David

The court held that DL had had sufficient opportunity to top up or give effective instructions, that he in fact gave instructions which authorised certain sales and accepted the losses, that the 9 October follow-up demand was a legitimate continuation of earlier demands and did not reset the contractual...

Source-derived case information.

Citation
[2009] SGHC 117
Parties
Plaintiff/respondent: BNP Paribas Wealth Management; Defendant/appellant: Lam Chi Kin David
Court
General Division of the High Court
Jurisdiction
Singapore
Judgment Date
15 May 2009
Case Number
Suit 875/2008, RA 24/2009
Procedural Posture
Credit and Security / Summary Judgment Proceedings; Appeal in High Court (decision)
Outcome
Appeal dismissed; summary judgment for plaintiff affirmed
Legal Topics
Margin Requirement, Facility Agreement, Close Out of Positions, Notice and Demand, Summary Judgment
Source Language
english
Banking Contract Security Interests Civil Procedure Margin Requirement Facility Agreement Close Out of Positions Notice and Demand +1 more

Source-derived case record

Summary, issues, holding and outcome

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Parties

BNP Paribas Wealth Management

Plaintiff/respondent

Lam Chi Kin David

Defendant/appellant

Procedural Posture

Credit and Security / Summary Judgment Proceedings; Appeal in High Court (decision)

Legal Issues

  1. 1 Whether the bank's demand for immediate remittance was valid despite a contractual provision allowing top-up by the next business day
  2. 2 Whether the bank gave sufficient notice before closing out the client's positions and whether closing out was authorised by the facility agreement
  3. 3 Whether summary judgment was appropriate for the outstanding sum given the defendant's asserted defences

Ratio Decidendi

The court held that DL had had sufficient opportunity to top up or give effective instructions, that he in fact gave instructions which authorised certain sales and accepted the losses, that the 9 October follow-up demand was a legitimate continuation of earlier demands and did not reset the contractual next-business-day period, and therefore PWM was entitled to close out positions and obtain summary judgment for the outstanding sum.

Court Disposition

Appeal dismissed; summary judgment for plaintiff affirmed

Orders

  • Appeal dismissed with costs
  • Summary judgment entered for plaintiff for JPY 29,062,179.35 with contractual compound interest and costs of SD 4,000 and disbursements