Lawsuits over alleged condo defects

Feb 28, 2022

AS THE Management Corporation Strata Title (MCST) of condominium Thomson Grand finds itself embroiled in a dispute with the developer and two contractors over alleged defects, here are other lawsuits which have cropped up in previous years.

Management Corporation (MC) vs Seasons Park Condominium

In 2003, the MC brought the lawsuit against the developer, a joint venture between Far East Organization's Orchard Parade Holdings and Pidemco Land, on behalf of the owners of Seasons Park in Yio Chu Kang for alleged defects such as water leakages and cracks in the plaster.

In the High Court ruling, the Justice highlighted that the developer was not liable in tort as it had relied on independent contractors' expertise and competence.

Under the independent contractor defence, an employer is not vicariously liable for the negligence of an independent contractor, as long as the developer had exercised reasonable care in appointing them.

The MC would thus have to take action against the contractor or other parties seen responsible. The MC appealed against the decision but it was upheld by the Court of Appeal.

MC of The Seaview condominium vs developer Mer Vue Developments, main contractor, architect, and engineering firm

In 2011, the MC filed a lawsuit against Mer Vue Developments (which is a unit of Wheelock Properties); main contractor Tiong Aik Construction; RSP Architects Planners & Engineers; and engineering firm Squire Mech over alleged defects at the Amber Road condominium.

These included foul odours, falling concrete blocks and loose swimming pool tiles.

A total of S$14 million was initially sought in damages but this reportedly grew to S$32 million. The parties eventually settled the long-running case in 2016, out of court. The terms were confidential.

MCST versus Orion-One Development, main contractor

In 2014, the MCST of a nine-storey commercial building, Northstar @ AMK brought an action against both the developer Orion-One and main contractor Sanchoon Builders for alleged defects in the units and in the common property of the building, such as cracks in the walls and water ponding.

One of the arguments by the MCST for claiming relief against the developer was that the developer was in breach of the sale and purchase agreement that it had entered into with each original buyer of a unit as it should have built the common property in a "good and workmanlike manner".

The arguments against the main contractor were for breach of deeds of warranties and indemnity and a duty of care in tort owed to the MCST.

Ahead of the trial, the claim amount during mediation was estimated at around S$4 million, although the MCST is understood to have been successful in later increasing its claim against the defendents.

The court found that certain alleged defects, but not all, were caused by a lack of proper care and skill in the construction of the building.

Both the MCST and developer went on to appeal the judgment. On appeal, the developer was found not liable for design defects.