The Singapore High Court has ruled in favor of Keppel DC REIT for its lawsuit against DXC, reports the Business Times.
The high court has concluded that DXC Technology Services Singapore was in breach of its Standard Services Agreement (SSA) over its lease with Keppel at a data center in Serangoon North.
The lawsuit in question was filed in March 2022. DXC had tried to reduce the amount of floor space it leased from Keppel, but the latter argued that this was not included in the SSA.
DXC entered that agreement with Keppel in 2010 for 20,300 sqm (218,500 sq ft) across four modules. In 2020 and 2021, DXC wanted to give up two of those modules, filing for the reduction in May 2021.
Keppel was seeking S$3 million (US$2.25m today) from DXC for the period between April 2021 to December 2021, as well as all losses incurred by DXC (in total S$14.8 million - US$11.1m) refusing to pay for space it gave up between April 2021 and March 2025.
DXC argued that Keppel's SSA has a clause saying companies can request changes at any time, however, Justice Hri Kumar Nair ruled that this "does not stipulate that Keppel is obliged to agree to DXC’s requested changes.”
The SSA additionally guarantees Keppel a minimum charge as a result of the termination or suspension of services.
While Justice Nair has stated he accepts Keppel's interpretation of the agreement, appeals will be heard after Keppel's claim is dealt with. A trial is scheduled for February.
