In an intriguing twist within Singapore's bustling food and beverage industry, a legal saga has unfolded between two former business partners who once ruled the Chang Cheng empire—an enterprise famed for its vibrant coffee shops, food courts, and popular stalls spread across the island.

The split between Mr. Ricky Kok and Mr. Yap Wing Sang dates back to 2018, marked by a contentious disagreement over their oral agreement to part ways. Both claimed they had reached a mutual understanding, yet each offered conflicting accounts when the dispute escalated to court.

Mr. Kok argued that Mr. Yap had agreed to vacate the operational companies while retaining a stake in the property-holding entities. Conversely, Mr. Yap maintained that he sold his share of ten operating companies to Mr. Kok and was still awaiting proper compensation.

On September 9, a pivotal ruling from the Appellate Division of the High Court sided with Mr. Kok, reversing a lower court's decision that had found neither party credible in establishing their claims. The earlier judgment had suggested that Mr. Kok merely held Mr. Yap's shares in trust.

However, the Appellate Division concluded that the actions of the business partners demonstrated the existence of a legally binding contract. Notably, Mr. Yap’s two-year silence regarding payment for his shares after their purported agreement played a crucial role in the court's assessment.

The duo initially ventured into the food business in the late 1990s with economy rice stalls, cultivating a brand that blossomed into a collection of notable names, including Chang Cheng Mee Wah and Ming Kitchen Seafood.

Their partnership took a harsh turn in 2018, leading to a legal clash in 2021 as the two grappled with distinguishing the companies they co-owned and the implications of their attempts to separate.

What's fascinating is the structure of their business, commonly referred to as the "Chang Cheng Group"—an entity not designed as a traditional holding company but comprising operational businesses alongside property holding firms.

Following their fallout, a flurry of negotiations sought to untangle their intertwined interests, with Mr. Kok asserting that an understanding was reached for Mr. Yap to relinquish his stakes in the operational companies, while his interests in property and the Chang Cheng Group would remain secured.

Despite these claims, Mr. Yap contended that he was never adequately compensated for his share transfers, leading to the eventual court battle. After transferring his shares and resigning from key positions in late 2018, a restructuring of the group's shareholding occurred shortly thereafter, dissolving their joint ownership.

Ultimately, the court's ruling leaned heavily on the timeline of actions taken by both men in late 2018 and early 2019, favoring Mr. Kok's narrative. This court decision underscores not only the complexities of oral agreements in business but also highlights the fierce rivalries that can arise in the competitive food and beverage landscape.