The Singapore High Court has ruled that The WatchFund, a company registered in Hong Kong and led by Singaporean watch expert Dominic Khoo, breached its contract with five investors. The firm, known for its luxury watch investment scheme, failed to repurchase watches valued at S$2.5 million as agreed.

The WatchFund had promised to repurchase the luxury watches within a year of the initial investment. However, disputes emerged when the company cancelled its repurchase offers, leading the investors to take legal action in 2021. The investors, represented by Raymond Lye of Union Law, argued that the cancellation of the repurchase offers was invalid.

Among the watches involved were high-end timepieces such as a Girard-Perregaux and a Hautlence Moebius, which had been purchased for significant amounts. Disagreements between the parties arose over the payment of sale fees and the return of the watches, further complicating the repurchase process.

The WatchFund, represented by Zhulkarnain Abdul Rahim of Dentons Rodyk & Davidson, claimed that the cancellation was due to the investors’ failure to pay the sale fee and return the watches. However, Justice Teh Hwee Hwee ruled that the company’s cancellation was invalid and that the plaintiffs were entitled to make payments to a corporate bank account.

The court did not uphold the plaintiffs’ claims of misrepresentation. They had alleged that The WatchFund had misrepresented the value of the watches, stating that they had been purchased at below 50% of their retail prices. However, the court found insufficient evidence to support these claims.

Dominic Khoo, the sole director and shareholder of The WatchFund, started the investment scheme in 2013. The company profits by earning fees when agreements are signed and when the watches are repurchased. Though The WatchFund operates in Hong Kong, it is also associated with a Singapore-based entity of the same name, which is not involved in this case.

The ruling marks a significant legal challenge for The WatchFund, which had built its reputation around luxury timepiece investments. Investors now expect the company to honour its repurchase commitments following the High Court’s decision.