Koh v Tay

The first plaintiff, Dr Koh, sought to recover the sum of $400,000 that he had paid to the first defendant, Tay, for a 50 per cent share of a commercial development in Pelican Cove. Dr Koh had been induced to enter into the agreement with Tay by means of fraudulent misrepresentations. Dr Koh sought to recover the difference between the amount he had paid and the true value of the property, together with interest on the amount he had paid. Dr Koh also sought to recover the loss of use of the money invested in the project. The second plaintiff, KT & T Developments Pty Ltd, sought to recover damages on the basis that the first defendant had breached his fiduciary duty to the company. The court found that Tay had indeed made fraudulent misrepresentations to Dr Koh and that Dr Koh was entitled to recover the difference between the amount he had paid for the half-share and its true value, together with interest on the amount paid. The court held that any damage which Dr Koh sustained by proceeding with the development of the project was too remote to be recoverable. The court found that Tay owed a fiduciary duty to KT & T but that no additional damages were sustained by the company as a result of the breach of fiduciary duty. The court dismissed the claim by KT & T and ordered that damages be paid to Dr Koh.