Retailer sues interior design firm for $463,000 over delays in store opening, awarded $500
The judge said the project was followed by an “unfortunate” breakdown in the companies’ relationship.
A Singaporean retailer, ReFormd, sued interior design firm Kopigi for $463,000 in damages over delays in opening a new store at Cineleisure Orchard. However, the High Court awarded the firm just $500 in nominal damages. ReFormd claimed that Kopigi's delays and failure to meet the mall landlord's requirements caused the store's opening to be pushed back by about two months.
The court rejected most of ReFormd's case, stating that Kopigi was not contractually required to meet the deadline or the "porosity" requirement imposed on the store's design. Kopigi breached the agreement by terminating it immediately instead of giving one week's notice. The dispute began when the two companies entered into a consultancy agreement in February 2024 for Kopigi to provide design services for a store selling mechanical keyboards.
The landlord had set out requirements for built-up features and cross visibility, but the landlord's fit-out guide did not contain the alleged porosity requirement. Kopigi was found to have terminated the agreement wrongfully and prematurely, as the agreement allowed either party to terminate it by giving one week's written notice.
ReFormd's estimated damages included rent for June and July 2024, lost revenue, additional operating costs, and a refund of money paid to Kopigi. However, the court found ReFormd's methodology for estimating lost profits unsatisfactory and the evidence supporting its claim for acceleration costs inadequate.
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