REASONABLE SETTLEMENTS AND THE RECOVERY OF DAMAGES

Britestone Pte Ltd v Smith & Associates Far East Ltd [2007] SGCA 47

In Britestone Pte Ltd v Smith & Associates Far East Ltd [2007] SGCA 47 the Singapore Court of Appeal held that a party was entitled to recover from the defendant by way of damages for breach of contract the sum it had paid by way of settlement to a third party provided that the settlement was a reasonable one. In so concluding, the Court of Appeal sought to uphold the value of the settlement of claims, while at the same time retaining a power to review that settlement under the reasonableness test.