Thomson Grand's MCST takes developer, two contractors to court over alleged defects

Feb 28, 2022



THE Management Corporation Strata Title (MCST) of Thomson Grand has filed a lawsuit against a unit linked to Hong Kong developer CK Asset Holdings, a joint venture of construction firm Lian Beng, as well as Jinyue Aluminium Engineering over alleged defects at the condominium.

According to the Statement of Claim, which was filed in Singapore's High Court in October last year, the MCST is alleging that "numerous defects have become manifestly apparent" at the 99-year leasehold development, which achieved its temporary occupation permit in October 2015.

The MCST is pursuing action against the three defendants for common property defects, which includes a claim in contract against the developer, Luxury Green Development, by the MCST on behalf of over 100 of the original buyers.

The MCST is claiming against Luxury Green for breach of contract, breach of statutory duty and/or negligence.

Meanwhile, it is claiming against Paul Y-Lian Beng JV for breach of statutory duty and/or negligence as well as breach of warranties. In addition, claims are being made against Jinyue for breach of warranties and for negligence.

Paul Y-Lian Beng JV was the main contractor for the development, while Jinyue was engaged to carry out aluminium and glazing works.

The Statement of Claim lists a range of alleged defects at common areas such as the lap pool; the carpark and driveways; the roof at certain blocks; and at staircases and lift lobbies.

It also makes mention of alleged defects - ranging from water seepage to debonding of the tiles - at certain homes.

The plaintiff is seeking damages, interest, and costs, in addition to any other relief the court might see fit. Lim Tat, managing partner at Aequitas Law, is representing the MCST.

In response to queries, Luxury Green declined to comment through its legal representative Dentons Rodyk.

The defence filed in court by Dentons Rodyk this month stated that Luxury Green properly discharged its obligations and responsibilities in relation to the development and is not responsible for the alleged defects.

It also denies allegations that it breached the sale & purchase (S&P) agreements with the original purchasers.

In addition, it was stated in the defence that the alleged defects were due to "fair wear and tear, and/or natural deterioration" for which it is not liable, and that the "alleged defects were caused by the actions and/or inactions of the plaintiff and/or parties other than" Luxury Green.

Meanwhile, the defence also highlighted that Paul Y-Lian Beng JV was hired as the main contractor for the development, and that Luxury Green "exercised reasonable skill and care" in selecting the main contractor.

In a separate notice of action to Paul Y-Lian Beng JV, Luxury Green said that while it denies it is liable to the plaintiff, if held liable, it will claim against the main contractor for an indemnity in respect of all sums that it might be deemed liable to pay.

Paul Y-Lian Beng JV is represented by Kennedys Legal Solutions, which did not comment.

For its part, the JV's defence filed this month stated that the alleged defects are not attributable to Paul Y-Lian Beng JV; and the alleged defects arose from "fair wear and tear, and/or were due to the plaintiff's failure to maintain the common property and/or were due to damage caused by third parties".

Paul Y-Lian Beng JV also asserted that it, and/or its sub-contractors, carried out works "in a good and workmanlike manner", in line with approved plans, specifications, codes of practice and market standards, (and) "ensured that the development was reasonably free from defects".

In addition, it stated it is "not vicariously liable for damages (if any) caused by (the) independent sub-contractors."

Meanwhile, in its defence, Jinyue denied the allegations against itself, and also stated that all defects brought to its notice had been attended to and made good. Jinyue is represented by CTLC Law Corp.

Tan Beng Swee, director at CTLC Law Corp, said: "Nevertheless, our client will explore every option to resolve the disputes with the MCST amicably."

Located at Sin Ming Walk, Thomson Grand consists of 361 residential units across 9 blocks of 20-storey residential flats and 22 units of two-storey strata terrace houses. Facilities include a swimming pool, sun deck and a clubhouse.

CK Asset has a substantial portfolio in Hong Kong and China, as well as a significant presence in Singapore and the United Kingdom. It is backed by tycoon Li Ka-shing, who retained the top spot on Forbes Hong Kong's rich list this year.

In Singapore, CK Asset is currently marketing the luxury freehold development, Perfect Ten (the former City Towers), in Bukit Timah in District 10.

Based on data from the Urban Redevelopment Authority, 15 units at the 230-unit project have been sold at a median price of S$3,206 per square foot (psf) to date.

It has developed other projects in Singapore such as Stars of Kovan at Upper Serangoon Road, Cairnhill Crest, and - together with Keppel Land and Hongkong Land - Marina Bay Financial Centre and One Raffles Quay.