Furniture & Households Square Ltd v Brosco International Pte Ltd

• Jurisdiction: Singapore
• Judge: S Rajendran J
• Judgment Date: 11 January 1997
• Neutral Citation: [1997] SGHC 9
• Court: High Court (Singapore)
• Year: 1997
• Published date: 06 February 2013
• Plaintiff Counsel: Savliwala Din with Shirley Tan (Harry Elias & Pnrs)
• Defendant Counsel: Ng Hui Bing with Eunice Goh (Vivin Ng & Co)
• Citation: [1997] SGHC 9

Judgment:

GROUNDS OF JUDGMENT

1. The plaintiffs are a Hong Kong incorporated company engaged in the retail furniture trade in Hong Kong. The defendants, a Singapore incorporated company, are wholesalers and suppliers of home furniture.

2. In 1995, the plaintiffs agreed to buy and the defendants agreed to sell various items of furniture particularised in the invoices issued by the defendants as follows:

(i) 660 Dining Sets (GT/GC-104) in 3 shipments in March, May and July 1995.

(ii) 1,365 Butterfly Sets (BR-2734) in 5 shipments between May and September 1995.

(iii) 1,200 JW 315 Breakfast Sets in 6 shipments over the period May to August 1995.

(iv) Harada II (Model 924): 210 units of 924A 3-seater sofa 60 units of 924A Arm chair with cushions 80 units of 924A Coffee table with Bottom shelving to be shipped by 10 June 1995

Payments were to be by irrevocable letters of credit. Pursuant to the contract, the plaintiffs opened the required letters of credit and the defendants commenced making shipments.

3. The plaintiffs were not satisfied with the furniture that was shipped and this led to an exchange of correspondence. On 28 June 1995, the plaintiffs sent to the defendants a long letter in which (at Exhibition III ) the plaintiffs catalogued the complaints they had with respect to the furniture that they had so far received. By this letter the plaintiffs asked the defendants to settle what they described as the serious losses they had incurred and added:

Before you come-up with satisfy settlement, we will not accept any further shipment from you.

It is impossible for us to bear this looses and we have to claim you. However, in view of our pass good relationship we are now intending to only claim you part of the item and hope you can restore the situation and ship us the good quality product in future.

We exercise our claims for following items:- A1 ............... US$ 2,535.40 B1 a ............... US$ 26,356.00 b ............... US$ 26,356.00 c ............... US$ 2,300.00 d ............... US$ 475.00 D1 ............... US$ 1,800.00 Total Claim Amount ...... US$ 59,812.40 Please arrange you shipping agent to collect the GWT/GWC dinning set A.S.A.P.

The reference to A1 in the above letter was a reference to claim in respect of certain furniture (Tulip) which does not feature in these proceedings. B1 referred to two shipments of 200 sets each of GT/GC-104 Dining Sets. B1(a) and B1(b) was the invoice value of each shipment. D1 referred to the JW 315 Breakfast Set. The US$1,800 in respect of D1 was a claim for reimbursement for additional warehouse charges incurred, the plaintiffs reserving their rights to claim compensation for defects in the furniture after the surveyors' report was obtained.

4. The letter of 28 June 1995 resulted in the defendants sending their representative, Francis Goh, to Hong Kong on 5 July 1995 to meet the plaintiffs. In Hong Kong, Martin Cheung Wai Keung, the product manager of the plaintiffs and Agnes Yan, an executive director of the plaintiffs, met Francis Goh.

5. According to the plaintiffs, Francis Goh inspected the furniture together with Martin Cheung and Agnes Yan on 6th and 8th July 1995 and on 8 July 1995 Francis Goh agreed in writing to compensate the plaintiffs the US$2,525.40 claimed in respect of A1 (the Tulip Tables) and agreed to pay the sum of US$13,178 as compensation for the defects in the two shipments of GT/GC-104.

6. Francis Goh also signed a note agreeing to pay extra handling charges of HK$50 per set for 273 sets of the BR 2734 Butterfly Sets. No final agreement was reached in respect of the JW 315 Breakfast Set and the Harada II (Model 924). Francis Goh was to return...