Singapore court rules on costs in international commercial dispute

Introduction

The Singapore International Commercial Court (SICC) delivered a significant judgment concerning the allocation of costs in a complex international commercial dispute between W Power Group EOOD and Mingyang Wind Power (International) Co Ltd. The case, which revolved around a breach of contract claim related to a wind power project, highlighted the intricacies of assessing costs in cross-border litigation.

Background

The proceedings were initially commenced in the General Division of the High Court in June 2022 and subsequently transferred to the SICC in March 2023. The transfer was accompanied by an order that the costs scale from the General Division would continue to apply to pre-transfer proceedings.

Pre-transfer Costs

Mingyang claimed $54,285 for pre-transfer costs, citing the complexity of the case and the extensive work required. W Power contested this, arguing for a lower amount based on the guidelines in Appendix G of the Supreme Court Practice Directions 2021. The court ultimately awarded $21,000, acknowledging the complexity and the need for an uplift from the standard range.

Post-transfer Costs

For post-transfer costs, Mingyang sought $171,955, including significant sums for case management and a strike-out application. The court assessed these costs under the SICC Rules, which focus on proportionality and reasonableness, and awarded $177,401.97, reflecting the complexity and importance of the issues involved.

Foreign Counsel's Fees

Mingyang also claimed fees for foreign counsel, including Hong Kong and Bulgarian lawyers. The court scrutinised these claims, allowing reasonable amounts for necessary work related to the case's international aspects.

Conclusion

The judgment underscores the SICC's approach to costs, balancing the need for reasonable compensation for successful parties with considerations of proportionality. The decision provides valuable insights for practitioners involved in cross-border commercial disputes.

Learn More

For more information on international commercial litigation, see BeCivil's guide to International Commercial Law.