Afro-Asia Shipping Company (Pte) Ltd v Da Zhong Investment Pte Ltd and Others

• Jurisdiction: Singapore
• Judge: Judith Prakash J
• Judgment Date: 21 November 2003
• Neutral Citation: [2003] SGHC 286
• Citation: [2003] SGHC 286
• Date: 21 November 2003
• Year: 2003
• Plaintiff Counsel: Manjit Singh and Sree Govind Menon (Manjit and Partners)
• Docket Number: Suit No 352 of 2001
• Defendant Counsel: Peter Madhavan, Zaheer Merchant, Basil Ong and Cheva Yu (Madhavan Partnership),Edwin Lee (CTLC Law Corporation),Hong Heng Leong, Ng Wai Hong and Goh Wee Ling
• Court: High Court (Singapore)
• Published date: 09 February 2004

Judgment reserved

Judith Prakash J:

Introduction

1 The plaintiffs, Afro-Asia Shipping Company (Private) Limited, are the owners of the premises at 63 Robinson Road known as Afro-Asia Building (‘AA Building’). Up to March 1995, immediately to the left of AA Building along Robinson Road was a 6-storey building known as 57 Robinson Road. The first defendants, Da Zhong Investment Pte Ltd (‘Da Zhong’), the owners of these premises, decided sometime in 1995 to redevelop the land. This decision set in train the events that led to this action. The parties involved in the ensuing construction activities at 57 Robinson Road were the second defendants, Ong Hoo Kim Construction (Pte) Ltd (‘OHK’), the third defendants, Falcon Piling Pte Ltd (‘Falcon’), the fourth defendants, Trevi Contractors (Singapore) Pte Ltd (‘Trevi’), and the fifth defendants, Chin Kok Kwong Design & Build Pte Ltd (‘CKK’).

2 The redevelopment started in March 1995 with the demolition of the existing building by OHK. Following this, excavation and piling works were carried out in preparation for the construction of a 13-storey building. In 1997, however, the plans changed. First Capital Asia Land Pte Ltd (‘FCAL’) a company related to Da Zhong, acquired a leasehold interest in 55 Robinson Road, the plot of land immediately adjacent to the left boundary of 57 Robinson Road. Da Zhong then agreed to grant a lease of 98 years in respect of 57 Robinson Road to FCAL. The two plots of land were combined and FCAL proceeded to build a 20-storey building on them. From October 1997, further piling works took place on the combined plots and thereafter construction of the superstructure commenced. The building was eventually completed some time in 2000 and it is now known as Robinson Centre.

3 The plaintiffs complain that as a result of various construction activities at 57 Robinson Road, the AA Building suffered damage including cracks, soil settlement or subsidence, sinking of floors, tilting of the building and water seepage. Hence this action.

Summary of events leading up to the action

4 The involvement of the various defendants in the construction activities at 57 Robinson Road was as follows:

(1) Da Zhong made the decision for the redevelopment of the site, the demolition of the existing building and the construction of the 13-storey replacement. They employed OHK, Falcon and CKK.

(2) OHK was the demolition contractor engaged by Da Zhong to demolish the existing building. They were in control of the site from 15 March 1995 until 30 June 1995 when their demolition works were completed.

(3) Falcon was the piling contractor for the 13-storey building. They took over the site on 30 June 1995 and carried out piling works until 9 July 1996.

(4) CKK was the main contractor for the erection of the superstructure. They took over the site on 12 July 1996 to carry out the main building works. They stopped work after a few months due to the change in the plans.

(5) Trevi was employed by FCAL to do the piling work for the 20-storey building. They took over the new combined work site on 29 October 1997. The piling operations started about a month later and were completed on 26 June 1998.

(6) CKK was appointed by FCAL to build the 20-storey building and the combined site was handed over to them for this purpose on 12 August 1998.

5 A short description of the original construction site may be helpful. The front of the site faced Robinson Road. On the left was AA Building which was bounded by Robinson Road in front and McCallum Street on the left. On the right of the site was a 3-storey pre-war shophouse known as 55 Robinson Road. At the rear was a back lane, Boon Tat Link, which ran behind all three premises until it joined McCallum Street. On the other side of the back lane there was a multi-storey office building called Shing Kwan House that faced Shenton Way. Subsequently, the original site was enlarged by the incorporation of 55 Robinson Road. It must also be stated that Shing Kwan House was demolished in about 1998 and work then started on a new building on that site. In the course of the proceedings this second construction site was referred to as ‘the Kajima site’ after the name of the main contractor for that project.

6 The AA Building comprises two structures: a 7-storey building and a 4-storey annex. The 7-storey building was constructed in the 1950s as an L-shaped building with frontages on Robinson Road and McCallum Street. It is of reinforced-concrete frame construction and was built on piled foundations. In about 1956, a single storey building which became an electrical sub-station was constructed at the rear corner of the 7-storey building. This sub-station was used first by the Public Utilities Board and thereafter by PowerGrid Ltd. The 4-storey annex was apparently constructed in two phases. The first phase comprised the first (ground) and second floors, apparently built in 1969/70. The third and fourth floors were built about two years later. The first phase extended over the sub-station, which was increased in width, and also over the second storey terrace at the back of the 7-storey building. The roof slab of the sub-station became part of the second storey floor of the extension. In the second phase, the annex was increased to four storeys with an additional reinforced concrete floor and a steel roof structure with metal roofing. The annex was supported off the original piled structure, the piled roof terrace columns on new piled foundations along Boon Tat Link and also off the sub-station. The sub-station itself did not have a piled foundation.

Events in 1995

7 In February 1995, Messrs Graham Miller (Singapore) Pte Ltd (‘Graham Miller’) conducted a photographic survey of AA Building and 55 Robinson Road in order to ascertain the then existing condition of these two buildings. This survey was carried out in anticipation of the demolition and construction work to be carried out on Da Zhong’s land. On 15 March, the site was handed over to OHK in order that they could commence demolition of the existing building. Work started shortly thereafter.

8 The work had an almost immediate effect on AA Building. From 28 March onwards, the plaintiffs complained both verbally and in writing of defects caused to their building by the works. The complaints were of noise and vibration felt by tenants and other persons in AA Building, of cracks appearing in parts of the building and also of water seepage. By then the demolition had reached the stage of exposing the wall of AA Building that was adjacent to Da Zhong’s building.

9 On 12 April, a meeting was held at AA Building in respect of the plaintiffs’ complaints. Among those present were representatives of the plaintiffs, of OHK, of Graham Miller and of Da Zhong. The meeting was held to check and record the list of defects that had appeared in AA Building. Graham Miller subsequently prepared a report dated 19 April which listed the defects found.

10 On 27 April, the plaintiffs complained that OHK had knocked through part of the wall of AA Building between the 6^th and 7^th storeys at the front lift lobby area. Da Zhong instructed their consultant engineers, DE Consultants Pte Ltd (‘DE Consultants’) to look into this complaint. After investigation, DE Consultants informed Da Zhong that there was no boundary brickwall between the plaintiffs’ building and 57 Robinson Road from the 6^th floor downwards. In fact only a master board separated the two buildings. They also discovered that the clip-lock roof at the 4^th storey of AA Building was secured to their boundary wall (which was due for demolition) instead of being supported by independent supports from AA Building. The plaintiffs informed Da Zhong that they were taking steps to deal with these matters but also kept on asking Da Zhong what remedial measures they were taking in respect of the damage that their works had caused to AA Building.

11 In June, the plaintiffs put on record that the floor of unit #04-03 seemed to have sunk since the demolition work started and that fresh hairline cracks had been seen in the ceiling of the unit directly below that floor. Further, the marble slabs of the building column fronting Robinson Road had been damaged the previous weekend and strong vibrations were being felt by the tenants whilst the demolition works were on going. The next month, the plaintiffs renewed their complaints about possible water seepage damage.

12 In July, the architect instructed OHK to undertake certain repairs to AA Building. These included rectifying cracks found in the building, filling up holes on the wall and repairing some damaged rainwater pipes. OHK did not do the work and Da Zhong eventually appointed another contractor to carry it out. The cost of this repair (some $4,500) was deducted from the contract sum due to OHK.

13 On 30 June, Falcon took over the site from OHK. Before starting their piling work which was going to take place in close proximity not only to the neighbouring buildings but also to the MRT tunnel below Robinson Road, Falcon arranged for a pre-condition survey to be carried out on the surrounding buildings and areas by Thomas Howell Group (Singapore) Pte Ltd (‘Thomas Howell’). Thomas Howell issued their survey report in August.

14 Falcon commenced their piling works from the rear of the work site and at the area next to the sub-station in AA Building. On 4 August which was the day on which the first pile was being installed, Da Zhong received a letter from the plaintiffs advising them that new cracks had appeared in AA Building as a result of commencement of piling works. Also, other cracks had deteriorated quite significantly. The plaintiffs asked Da Zhong to instruct Falcon to stop work immediately. A site inspection was then made by both Falcon and DE Consultants. On 5 and 7 August, joint inspections were conducted by Falcon, Thomas Howell and the plaintiffs’ representatives. Thomas Howell subsequently issued an...