Dian Xiao Er fails to quash suit by Soup's subsidiary

SINGAPORE - A court battle between roast duck joint Dian Xiao Er and a subsidiary of samsui ginger chicken firm Soup Restaurant Group is set to continue.

Dian Xiao Er earlier this week lost its appeal to get the High Court to dismiss a case brought against it by Soup Restaurant (Causeway Point).

High Court Justice Tay Yong Kwang on Monday upheld an earlier Subordinate Court ruling that the company may go ahead to sue Dian Xiao Er's owners, YES F&B Group, over the leasing of a unit in the VivoCity shopping mall at HarbourFront.

However, the judge also said on Monday that Soup Restaurant (Causeway Point) can no longer rely on a settlement agreement that it had used to bolster its case against YES earlier this year in the Subordinate Court.

Lawyer Adrian Tan of Drew and Napier, representing YES, successfully argued that the settlement agreement was between the Soup Restaurant Group and YES, and did not apply to the group's subsidiary Soup Restaurant (Causeway Point).

The judge on Monday also ordered Soup Restaurant (Causeway Point) to pay $10,000 in costs to YES.

Allen & Gledhill lawyer Edwin Tong, who represents Soup Restaurant (Causeway Point), said yesterday that even if the company cannot rely on the settlement agreement, it can still sue YES on the basis of a tenancy agreement, which is separate from the settlement agreement.

The dispute began over a unit in VivoCity that Soup Restaurant (Causeway Point) had sub-let to YES, and wanted to take back.

According to the tenancy agreement, the sub-tenancy of the unit was supposed to expire in October last year.

On Friday, YES managing director Samuel Yik said in a statement that Dian Xiao Er was still at the unit. "It is business as usual for us."

Dian Xiao Er's VivoCity branch also occupies two adjoining units that were not the subject of the suit.

melissat@sph.com.sg

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