“Taking Note” may end on a bad note for litigants

Brief Facts

Espace Automobile Ltee (the Plaintiff) lodged a claim against Ascencia Ltd (the Defendant) before the Supreme Court for wrongful termination of a lease agreement under which the Plaintiff was operating a car gallery. It is the plaintiff’s case that, the defendant sold, in a secretive manner, the said portion of land to the State for the purpose of the construction of a metro station, as a result of which the Plaintiff’s business has been significantly affected.

In the course of the trial, the Defendant has raised two objections regarding the pleadings on record. According to the Defendant, the Plaintiff, by choosing to use the words “take note” in the plea when addressing certain paragraphs is deemed to have admitted those paragraphs in the plea.

Purpose of reply

The Supreme Court referred to Rule 12 of the Supreme Court Rules which reads as follows:

“Except for a reply which may be filed solely in response to the averments of the plea, no further pleading shall be allowed.”

It is generally accepted that there is no obligation on a Plaintiff to file a reply in case he chooses not to do so. A reply is usually not necessary if its sole object is to deny what the Defendant has stated in his defence, “for in its absence there is an implied joinder of issue”. Therefore, if no reply is filed, all material statements of fact in the defence are deemed to have been denied and put in issue.

Decision of the Court

The Supreme Court was of the view that the objections were well taken and held that:

• those paragraphs of which “note” has been taken, are deemed to be admitted. The basic principle remains that any allegation of fact unless traversed is admitted. Equivocal or ambiguous phrases will be construed as admissions.

Reference was made to the case of Wong Yun Shing J. T. v Chankaul Lin D. O. [2024 SCJ 10], Lai Hang Tsang L. C.K & Anor v Legai S. P [2024 SCJ 287] and Odgers’ Principles of Pleading and Practice, 22nd edition (1981) at page 133:

“There is no third or intermediary stage. If the judge does not find in the pleading a specific denial or a definite refusal to admit, there is an end of the matter, the fact stands admitted.”

• The paragraphs 14-19 of the plea are mostly paragraphs which put the plaintiff to the proof of paragraphs 17 – 23 of the plaint with summons, and failure to address them in the reply is not likely to be of consequence. However, the averments at paragraphs 14.1 – 14.4, not replied to, are deemed to be admitted.
• Paragraphs 13.3, 13.6 and 13.7 of the plea and not dealt with in the reply, are also deemed to be admitted in the absence of an express joinder.

Commentary

The court has reiterated the significance of proper drafting in pleadings. Clear and precise pleadings are essential for effective legal communication, as they help ensure that all parties understand the material issues at stake, avoiding misunderstandings and streamlining the litigation process. It also serves the implied purpose of avoiding wasting the time of the Court and narrowing down issues for a quicker determination by the Court.

Litigants are warned that by taking note, they could end up on a bad note.