KEPPEL DC SINGAPORE 1 LTD. v DXC TECHNOLOGY SERVICES SINGAPORE PTE. LTD.
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Case Significance
In Keppel DC Singapore 1 Ltd v DXC Technology Services Singapore Pte Ltd [2024] SGHC 7, the General Division of the High Court (Suit No 222 of 2022) considered a contractual-interpretation dispute decided by Hri Kumar Nair J, who reserved judgment after the 22 December 2023 hearing and delivered it on 12 January 2024. The core issue was whether the written agreement between the parties allowed the defendant to unilaterally amend the scope of services the plaintiff had agreed to provide.
The judgment records that Keppel operates a six-storey data centre facility in Serangoon North Industrial Estate, and that on 30 November 2010 it entered a Standard Services Agreement (SSA) with DXC, under which Keppel was to provide data centre space and associated services for an initial five-year term with a renewal option. The Statement of Work at Exhibit A stated the total space was 20,300 sq ft across four modules (Modules A to D) of roughly 5,000 sq ft each, with DXC paying a Monthly Recurring Charge and electricity charges. Drew & Napier LLC, Bird & Bird ATMD LLP acted for the defendant and TSMP Law Corporation for the plaintiff.
Summary
Keppel DC Singapore 1 Ltd, which operated a data centre facility, sued DXC Technology Services Singapore Pte Ltd over a Standard Services Agreement under which Keppel provided data centre space across four modules, the central question being whether the agreement permitted DXC to unilaterally amend the scope of services and give up two of the modules. The dispute turned on the construction of the contractual terms. The court accepted Keppel's interpretation, holding that DXC was not permitted to unilaterally revise the services to exclude Modules C and D, that the 2021 change order was invalid and that DXC's refusal to pay for those modules amounted to a breach, and indicated it would hear the parties separately on relief.
What was the central issue in Keppel DC Singapore 1 Ltd v DXC Technology Services Singapore?
The central issue in [2024] SGHC 7 was whether the written Standard Services Agreement permitted the defendant, DXC Technology Services Singapore Pte Ltd, to unilaterally amend the scope of data centre services that the plaintiff, Keppel DC Singapore 1 Ltd, had agreed to provide.
What were the contract terms in the Keppel DC and DXC Standard Services Agreement?
The 30 November 2010 Standard Services Agreement provided data centre space for an initial five-year term with a renewal option. The Statement of Work specified 20,300 sq ft across four modules of about 5,000 sq ft each, with DXC paying a Monthly Recurring Charge plus electricity charges.
Who decided Keppel DC Singapore 1 Ltd v DXC Technology Services Singapore Pte Ltd?
Hri Kumar Nair J of the General Division of the High Court decided the matter in Suit No 222 of 2022. Judgment was reserved after the hearing on 22 December 2023 and delivered on 12 January 2024 as [2024] SGHC 7.
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Judgment
Read the full judgment on the official Singapore Courts portal.
Read on eLitigationSource: eLitigation ([2024] SGHC 7)