CNA Explains: What the settlement between AHTC, SKTC and WP leaders means

This was seen as a legal win for the defendants. However, the costs order was only for the appeals on liability, which the defendants largely won, and the costs for the trial itself had not been decided. The trial judge was to decide on costs for the trial after determining damages.

SKTC had confirmed in a statement to the media that costs payable associated with the trials would be covered by SKTC’s operating funds, “with provisions already in place”.

The town council clarified that the WP, as a political entity, is not involved in the matter and no payments will be made to the party.

AHTC did not respond at the time to queries about who was footing the bill for legal costs, and CNA has contacted the town council again on this issue after news of the settlement broke.

As for how the defendants are likely covering their legal costs, members of the public in October 2018 raised more than S$1 million in under a week after the three WP leaders called for help to raise funds to fight the case.

Mr Baiross said it was possible that any sum paid by the defendants in the settlement could cover part or all of the plaintiffs’ costs.

“However, without specific details, it’s not possible to definitively say how much of the plaintiffs’ costs are covered,” he said. 

Asked to compare estimated costs for the trial against the costs of about S$388,800 the town councils were ordered to pay the defendants for the appeals, Mr Chooi said costs for appeals are usually lower than costs for trials.

This is primarily because an appeal is heard over fewer days – usually half a day or at most one day.

However, Mr Baiross said more detailed financial data from the trial itself is required to estimate trial costs. This is because costs for a trial can vary significantly and can be higher or lower than costs for appeals, depending on the complexity and duration of each phase.

Mr Lau agreed on the difficulty of making such an estimate, saying that every case is different, and “much would depend on the amount of time and work involved in the trial and the appeal respectively”.

So who won, and who lost?

Asked who was the winner or loser in the settlement, Mr Lau said mediation is confidential and one would not be able to ascertain what the terms of settlement are.

“However, in most, if not all mediations which have resulted in a settlement, the outcome is usually a win-win for both parties,” he said.

Mr Chooi said neither side can be seen as a winner or loser, as a settlement is meant to be “win-win”, with both sides obtaining closure and finality.

“Very often it can also be expressed to be on a ‘without admission of liability’ basis, which means that neither party admits fault,” he said.

Mr Chooi said this is possible even if the court has ruled on liability – for example if the court expressed a view that damages would be difficult to quantify – which was the case here.

He said that if damages would end up being nominal, parties might rather just settle.

Mr Baiross said it is not always clear who the “winner” or “loser” is, as settlements are generally seen as a compromise, and each party may have gained or conceded something in the agreement.

Even if it is a win-win situation legally, political analysts told CNA that WP is likely to gain some “political capital” from the settlement and will be able to focus on other more pertinent matters, like building up its team ahead of the next General Election.

Singapore’s next General Election must be held by November 2025.

Is this the end of the case?

By the looks of it, yes.

A settlement usually concludes the case against the settling parties, and it is generally final, said Mr Baiross.

“Reviving the case would depend on the terms of the settlement and any developments or breaches of the agreement,” he said.

Mr Lau said the mediation, based on news reports, has resulted in a settlement agreement which is binding on all parties who have entered into the said agreement. 

“This settlement agreement will usually stipulate that it is in full and final settlement of all claims in the particular dispute. Hence, the case is likely to be over,” he said.