170 Pines members win suit against Exklusiv Resorts but awarded nominal S$1,500 each
Tay Peck Gek
THE 170 members of The Pines have won their class-action suit against motoring tycoon Peter Kwee's company Exklusiv Resorts for unilaterally relocating the clubhouse at Stevens Road to a shared site in Tanah Merah.
But the plaintiffs have not proven the loss they had suffered, so Justice Chua Lee Ming awarded them only a nominal sum of S$1,500 each. They had sought damages of more than S$110,000 each and other reliefs. Each member incurred about S$4,000 to launch the lawsuit where three of the members represented 170 of them.
The High Court will decide on the issue of costs, that is, whether the plaintiffs and defendants will get legal costs reimbursed by the opposing party, and the quantum of costs if they do.
The plaintiffs had sued for breach of contract, deceit, negligence and negligent misrepresentation. But the court allowed only the breach-of-contract claim, dismissing the other three.
Exklusiv Resorts is the owner of the club and the 74-year-old Mr Kwee is Exklusiv Resorts' director and indirect owner. They had argued that membership application forms stated that the constitution and by-laws of the club may be amended "from time to time". Exklusiv Resorts had amended the rules and regulations of the club to allow it to relocate the club and clubhouse at its sole discretion in March 2016.
But Justice Chua found that Exklusiv Resorts had breached the implied terms in the membership contract when the clubhouse was no longer situated in the core central region. If the defendants' argument is correct, the judge said, "that would mean that it can amend the rules even to the extent of providing nothing more than, for example, a members’ lounge in a one-room 'clubhouse' in the middle of an industrial estate in the west end of Singapore".
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The amendments by Exklusiv Resorts in relation to the relocation at its sole discretion were thus declared invalid by the judge.
Justice Chua, however, ruled that the plaintiffs' claims for deceit and negligent misrepresentation were not made out, because the defendants did intend to provide the club members with a new clubhouse at Stevens Road but were ultimately unable to do so for various reasons.
The Pines had incurred about S$61 million in total losses between 2003 and 2012 due to its low membership, the court had heard earlier in the trial that started last November.
Mr Kwee had estimated that The Pines would require at least 4,000 members for its operations to break even, but it had only about 1,500 members as of 2012. Exklusiv Resorts could carry on business only because Mr Kwee provided financial support.
Thus, Mr Kwee started discussions with various parties from around 2010 to explore possible solutions to the club’s loss-making position.
The Pines club members were updated on a plan by Exklusiv Resorts in March 2013 to redevelop the clubhouse and the progress of the redevelopment plans. The day after, Exklusiv Resorts granted property developer Oxley Gem an option to purchase the site. The option furnished Exklusiv Resorts the first right of refusal to lease from Oxley Gem the part of the development comprising the club facilities.
But, by late 2015, it became apparent to Exklusiv Resorts that it was impossible to build and operate the new clubhouse at the original site due to the regulator's gross floor area restrictions and the insufficiency of car park lots permitted for the entire development. Therefore, Mr Kwee tried sourcing for alternative locations for the club but was unsuccessful.
Eventually, Exklusiv Resorts decided to relocate the club to the Laguna National Golf & Country Club, with The Pines members given access to the non-golfing facilities at the golf club and the facilities at the Dusit Thani Laguna Singapore Resort. The Pines club members were informed of the challenges Exklusiv Resorts faced in continuing to provide the club’s services in Stevens Road.
Also, Exklusiv Resorts and Oxley Gem entered into a tenancy agreement in 2020 for a three-year lease of the first floor of a two-storey building on the original site with an option to renew the lease for another three years to serve as the satellite clubhouse of The Pines.
Two hotels, Novotel Singapore and The Mercure Singapore, opened on the Stevens Road plot in late-2017.
Lim Seng Hoo, one of the plaintiffs, told The Business Times that they "are grateful for the victory" in respect of Exklusiv Resorts being found in breach of the contract. He said club members had sued because they did not think that club proprietors are entitled to disregard members' interests and move a centrally located social club to the suburbs. Mr Lim stated that they were studying the judgment, when asked if they would appeal.
When the court delivered its decision on Wednesday morning, Mr Kwee was present via Zoom, although this was not required. He will see how the judge rules on the issue of cost before deciding on whether to appeal, BT was told.
BC Lim & Lau's Lau Kah Hee acted for the plaintiffs, while Rajah & Tann's Vikram Nair and Foo Xian Fong represent Mr Kwee and Exklusiv Resorts.
The Pines club's legal disputes might be over, but another potential lawsuit involving Mr Kwee's Laguna National Golf and Country Club and tens of millions of dollars might be on the cards. Mr Kwee had earlier told BT that 100-odd club members of the Laguna National Golf and Country Club are awaiting redemption of their 30-year, non-interest-bearing unsecured notes of S$120,000. These notes have matured, but the holders are not likely to get their money back.
Nearly 1,000 members had taken up the debenture to help finance construction of the golf and country club. The majority of them had either surrendered their notes in exchange for alternatives such as credit spending and membership extension, or had passed on.
THE 170 members of The Pines have won their class-action suit against motoring tycoon Peter Kwee's company Exklusiv Resorts for unilaterally relocating the clubhouse at Stevens Road to a shared site in Tanah Merah. But the plaintiffs have not proven the loss they had suffered, so Justice Chua Lee Ming awarded them only a nominal sum of S$1,500 each. They had sought damages of more than S$110,000 each and other reliefs. Each member incurred about S$4,000 to launch the lawsuit where three of the members represented 170 of them. The High Court will decide on the issue of costs, that is, whether the plaintiffs and defendants will get legal costs reimbursed by the opposing party, and the quantum of costs if they do. The plaintiffs had sued for breach of contract, deceit, negligence and negligent misrepresentation. But the court allowed only the breach-of-contract claim, dismissing the other three. Exklusiv Resorts is the owner of the club and the 74-year-old Mr Kwee is Exklusiv Resorts' director and indirect owner. They had argued that membership application forms stated that the constitution and by-laws of the club may be amended "from time to time". Exklusiv Resorts had amended the rules and regulations of the club to allow it to relocate the club and clubhouse at its sole discretion in March 2016. But Justice Chua found that Exklusiv Resorts had breached the implied terms in the membership contract when the clubhouse was no longer situated in the core central region. If the defendants' argument is correct, the judge said, "that would mean that it can amend the rules even to the extent of providing nothing more than, for example, a members’ lounge in a one-room 'clubhouse' in the middle of an industrial estate in the west end of Singapore". The amendments by Exklusiv Resorts in relation to the relocation at its sole discretion were thus declared invalid by the judge. Justice Chua, however, ruled that the plaintiffs' claims for deceit and negligent misrepresentation were not made out, because the defendants did intend to provide the club members with a new clubhouse at Stevens Road but were ultimately unable to do so for various reasons. The Pines had incurred about S$61 million in total losses between 2003 and 2012 due to its low membership, the court had heard earlier in the trial that started last November. Mr Kwee had estimated that The Pines would require at least 4,000 members for its operations to break even, but it had only about 1,500 members as of 2012. Exklusiv Resorts could carry on business only because Mr Kwee provided financial support. Thus, Mr Kwee started discussions with various parties from around 2010 to explore possible solutions to the club’s loss-making position. The Pines club members were updated on a plan by Exklusiv Resorts in March 2013 to redevelop the clubhouse and the progress of the redevelopment plans. The day after, Exklusiv Resorts granted property developer Oxley Gem an option to purchase the site. The option furnished Exklusiv Resorts the first right of refusal to lease from Oxley Gem the part of the development comprising the club facilities. But, by late 2015, it became apparent to Exklusiv Resorts that it was impossible to build and operate the new clubhouse at the original site due to the regulator's gross floor area restrictions and the insufficiency of car park lots permitted for the entire development. Therefore, Mr Kwee tried sourcing for alternative locations for the club but was unsuccessful. Eventually, Exklusiv Resorts decided to relocate the club to the Laguna National Golf & Country Club, with The Pines members given access to the non-golfing facilities at the golf club and the facilities at the Dusit Thani Laguna Singapore Resort. The Pines club members were informed of the challenges Exklusiv Resorts faced in continuing to provide the club’s services in Stevens Road. Also, Exklusiv Resorts and Oxley Gem entered into a tenancy agreement in 2020 for a three-year lease of the first floor of a two-storey building on the original site with an option to renew the lease for another three years to serve as the satellite clubhouse of The Pines. Two hotels, Novotel Singapore and The Mercure Singapore, opened on the Stevens Road plot in late-2017. Lim Seng Hoo, one of the plaintiffs, told The Business Times that they "are grateful for the victory" in respect of Exklusiv Resorts being found in breach of the contract. He said club members had sued because they did not think that club proprietors are entitled to disregard members' interests and move a centrally located social club to the suburbs. Mr Lim stated that they were studying the judgment, when asked if they would appeal. When the court delivered its decision on Wednesday morning, Mr Kwee was present via Zoom, although this was not required. He will see how the judge rules on the issue of cost before deciding on whether to appeal, BT was told. BC Lim & Lau's Lau Kah Hee acted for the plaintiffs, while Rajah & Tann's Vikram Nair and Foo Xian Fong represent Mr Kwee and Exklusiv Resorts. The Pines club's legal disputes might be over, but another potential lawsuit involving Mr Kwee's Laguna National Golf and Country Club and tens of millions of dollars might be on the cards. Mr Kwee had earlier told BT that 100-odd club members of the Laguna National Golf and Country Club are awaiting redemption of their 30-year, non-interest-bearing unsecured notes of S$120,000. These notes have matured, but the holders are not likely to get their money back. Nearly 1,000 members had taken up the debenture to help finance construction of the golf and country club. The majority of them had either surrendered their notes in exchange for alternatives such as credit spending and membership extension, or had passed on.
THE 170 members of The Pines have won their class-action suit against motoring tycoon Peter Kwee's company Exklusiv Resorts for unilaterally relocating the clubhouse at Stevens Road to a shared site in Tanah Merah. But the plaintiffs have not proven the loss they had suffered, so Justice Chua Lee Ming awarded them only a nominal sum of S$1,500 each. They had sought damages of more than S$110,000 each and other reliefs. Each member incurred about S$4,000 to launch the lawsuit where three of the members represented 170 of them. The High Court will decide on the issue of costs, that is, whether the plaintiffs and defendants will get legal costs reimbursed by the opposing party, and the quantum of costs if they do. The plaintiffs had sued for breach of contract, deceit, negligence and negligent misrepresentation. But the court allowed only the breach-of-contract claim, dismissing the other three. Exklusiv Resorts is the owner of the club and the 74-year-old Mr Kwee is Exklusiv Resorts' director and indirect owner. They had argued that membership application forms stated that the constitution and by-laws of the club may be amended "from time to time". Exklusiv Resorts had amended the rules and regulations of the club to allow it to relocate the club and clubhouse at its sole discretion in March 2016. But Justice Chua found that Exklusiv Resorts had breached the implied terms in the membership contract when the clubhouse was no longer situated in the core central region. If the defendants' argument is correct, the judge said, "that would mean that it can amend the rules even to the extent of providing nothing more than, for example, a members’ lounge in a one-room 'clubhouse' in the middle of an industrial estate in the west end of Singapore". The amendments by Exklusiv Resorts in relation to the relocation at its sole discretion were thus declared invalid by the judge. Justice Chua, however, ruled that the plaintiffs' claims for deceit and negligent misrepresentation were not made out, because the defendants did intend to provide the club members with a new clubhouse at Stevens Road but were ultimately unable to do so for various reasons. The Pines had incurred about S$61 million in total losses between 2003 and 2012 due to its low membership, the court had heard earlier in the trial that started last November. Mr Kwee had estimated that The Pines would require at least 4,000 members for its operations to break even, but it had only about 1,500 members as of 2012. Exklusiv Resorts could carry on business only because Mr Kwee provided financial support. Thus, Mr Kwee started discussions with various parties from around 2010 to explore possible solutions to the club’s loss-making position. The Pines club members were updated on a plan by Exklusiv Resorts in March 2013 to redevelop the clubhouse and the progress of the redevelopment plans. The day after, Exklusiv Resorts granted property developer Oxley Gem an option to purchase the site. The option furnished Exklusiv Resorts the first right of refusal to lease from Oxley Gem the part of the development comprising the club facilities. But, by late 2015, it became apparent to Exklusiv Resorts that it was impossible to build and operate the new clubhouse at the original site due to the regulator's gross floor area restrictions and the insufficiency of car park lots permitted for the entire development. Therefore, Mr Kwee tried sourcing for alternative locations for the club but was unsuccessful. Eventually, Exklusiv Resorts decided to relocate the club to the Laguna National Golf & Country Club, with The Pines members given access to the non-golfing facilities at the golf club and the facilities at the Dusit Thani Laguna Singapore Resort. The Pines club members were informed of the challenges Exklusiv Resorts faced in continuing to provide the club’s services in Stevens Road. Also, Exklusiv Resorts and Oxley Gem entered into a tenancy agreement in 2020 for a three-year lease of the first floor of a two-storey building on the original site with an option to renew the lease for another three years to serve as the satellite clubhouse of The Pines. Two hotels, Novotel Singapore and The Mercure Singapore, opened on the Stevens Road plot in late-2017. Lim Seng Hoo, one of the plaintiffs, told The Business Times that they "are grateful for the victory" in respect of Exklusiv Resorts being found in breach of the contract. He said club members had sued because they did not think that club proprietors are entitled to disregard members' interests and move a centrally located social club to the suburbs. Mr Lim stated that they were studying the judgment, when asked if they would appeal. When the court delivered its decision on Wednesday morning, Mr Kwee was present via Zoom, although this was not required. He will see how the judge rules on the issue of cost before deciding on whether to appeal, BT was told. BC Lim & Lau's Lau Kah Hee acted for the plaintiffs, while Rajah & Tann's Vikram Nair and Foo Xian Fong represent Mr Kwee and Exklusiv Resorts. The Pines club's legal disputes might be over, but another potential lawsuit involving Mr Kwee's Laguna National Golf and Country Club and tens of millions of dollars might be on the cards. Mr Kwee had earlier told BT that 100-odd club members of the Laguna National Golf and Country Club are awaiting redemption of their 30-year, non-interest-bearing unsecured notes of S$120,000. These notes have matured, but the holders are not likely to get their money back. Nearly 1,000 members had taken up the debenture to help finance construction of the golf and country club. The majority of them had either surrendered their notes in exchange for alternatives such as credit spending and membership extension, or had passed on.
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