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Suing a Foreigner or a Foreign Company?
Should You Sue in Singapore or in Another Country?
If the person or company you want to sue is foreign, there may be some complications because of an area of law known as the ‘conflict of laws. This area of the law concerns the following main issues:
- Which is the most appropriate jurisdiction for the suit to be filed and heard in?
- Where are the parties located at present?
- Was there a contract, did it specify which laws govern the contract, and did it specify where disputes should be heard?
- Where did the subject matter of the dispute arise?
An experienced lawyer should be able to advise you on whether to sue the foreigner or foreign company in Singapore or overseas.
Risks of Suing Overseas
The problem with suing a foreigner or foreign company overseas is that you run the following risks:
- Some countries have a bias towards their own citizens and companies.
- It is very expensive to sue someone in some countries – this includes legal fees, court fees, exhaustive discovery processes, exchange rate losses, travel expenses, etc.
- Some countries have legal systems which take a very long time to adjudicate and pass judgment upon disputes. It may be years before you obtain a judgment in your favour.
- Some countries are rife with political interference, bribery, corruption, nepotism and even judicial corruption. You may not receive justice in any way, shape or form.
Suing in Singapore
If you chose to sue in Singapore, the first few questions you should be asking yourself are:
- Is the foreigner/foreign company in Singapore?
- Does it have assets in Singapore which may be used to satisfy a possible judgment against them?
If the foreigner or foreign entity is not in Singapore, your lawyer should assist you to obtain leave of court to serve any legal documents relating to your claim outside of Singapore. Once leave has been obtained, your lawyer should advise you on what the procedure and costs of effecting service of legal documents in the foreign country.
Leave is granted to effect service on foreigners if all 3 of the following requirements are met:
- The claim must fall within one or more of the appropriate situations under Order 11 Rule 1 of the Rules of Court (there are 18 categories).
- The legal claim must have sufficient merit – an issue or issues that ought to be tried on the substance of the case.
- Singapore must be the ‘proper forum’ for the case to be tried in – the courts will consider the interests of both parties and justice in general. Th courts normally examine the following issues:
- Whether the dispute has the closest connections with Singapore as opposed to overseas
- Whether justice will be denied if the case was tried overseas
- Has the foreign party accepted Singapore’s jurisdiction over the contract or claim?
If the foreigner’s assets are overseas and you obtain a judgment against them in Singapore, you would have to enforce the Singapore judgment overseas. Your lawyer should advise you, from the moment information is obtained about where the foreigner’s assets are located, about whether the other country recognizes and enforces Singapore judgments.
Do take note that even if the foreigner and his assets are in Singapore, and you file suit here, there is still the risk that the foreigner or the foreign company may challenge the legal proceedings by arguing that Singapore is not the natural forum for the matter to be tried in court.
Need Advice ?
Speak to a Lawyer Now
At Lions Chambers LLC, we pride ourselves on being responsive. We understand that some problems need immediate attention, let us assist you.
Practical Tips
Preventing yourself from dealing with foreigners and foreign companies due to all the risks involved is just not feasible in this hyper-connected world. However, there are steps you can take to protect your position:
- Consider arbitration instead of litigation in the courts. Arbitral awards are more readily recognized and enforced worldwide compared to court judgments (161 countries are contracting states to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards). In many cases, arbitration is cheaper and faster. If possible, negotiate for the contract to stipulate Singapore as the choice of law and Singapore as the seat of arbitration.
- If arbitration has been ruled out, then insist that the contract stipulates that disputes are to be resolved in Singapore courts. In cases where the foreign company does not have a proper presence in Singapore, a good lawyer will also advise you to include a clause that compels the foreign company to appoint a process agent in Singapore to accept the service of legal documents.
- Always find out and verify as many details as possible about the foreigner or foreign company, their addresses, business locations, assets, location of assets, associates and associated companies, etc.
How We Can Help You
Suing a foreigner or a foreign company is a technical legal issue, with a wrong step, you could lose valuable time and money going through proceedings that may not result in any purpose or benefits. This is where we come in.
At Lions Chambers LLC, we have experienced lawyers who are patient and well-versed with the legal system in Singapore. We will guide you through the process and explain to you each and every stage of your matter, and see you to safety on the other side.
Lions Chambers LLC is an established law firm in Singapore. Our team of lawyers specialise in various areas of law and will be able to assist you. Our consultations are free. Please call +65 8777 3677 or click here to WhatsApp us today.