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Supplier loses $3.6m suit against taxi firm
Title: Supplier loses $3.6m suit against taxi firm
Source: Straits Times
Author: K.C. Vijayan
A SUPPLIER has failed in its High Court suit to claim $3.6 million in potential revenue losses from Trans-Cab Services after the taxi operator terminated a contract to rent credit-card reading devices from it.
The company, MovingU, had a four-year contract inked with Trans-Cab in January 2009 to provide 2,500 units of equipment and related accessories. An initial batch of 500 units was delivered.
Problems arose after the second batch of 500 units was supplied in March last year.
Four days after the delivery, lawyers for Trans-Cab wrote to reject the units, claiming they could not be used.
When MovingU examined the returned stock, it found that most of the units had been tampered with. There were burn marks, screws had been removed and cuts were observed on the integrated circuit component pins.
MovingU lodged a police report and it is understood that it was advised that the case was a civil matter, which led to the High Court suit for damages and wrongful termination of the contract. At issue in the case before Justice Andrew Ang was whether the credit-card terminals had been tampered with and who the culprits were.
MovingU's lawyers R.S. Bajwa and Alan Shankar alleged Trans-Cab had tampered with the units, pointing to their witness who had visited the taxi operator's premises and testified that the units were scattered all over a room where they were stored.
Two experts had also testified that the damage to the units had not been caused by manufacturing defects but by manual removal of the parts.
Trans-Cab, through lawyers Philip Ling and Lim Khoon, denied the claims and pointed to a report by its own commissioned expert who said the cause of damage could not be confirmed by current examination methods.
Justice Ang in judgment grounds released yesterday said he was not convinced that Trans-Cab had tampered with the units. He found that, in many of the affected units, the same components had been removed, for example.
'I am doubtful that (Trans-Cab) on its own would be capable of tampering... via such a fairly targeted and precise procedure.'
He noted both sides had agreed that the units had been tampered with and held that Trans-Cab did not wrongfully terminate the contract as the goods supplied were defective.
He ordered that the taxi firm be refunded all the monies it had previously paid, with costs and damages to be assessed.