W-02(W)-691-04/2015 (Mahkamah Rayuan)

W-02(W)-691-04/2015 (Mahkamah Rayuan)

The Court held the High Court erred in awarding damages against TNB in tort based on s.74 Contracts Act 1950, found SSB failed to prove recoverable damages and that the losses claimed were pure economic loss not recoverable in negligence absent physical damage; consequently TNB is not liable and the High Court awards and indemnity order against UEM were set aside, leaving the separate TNB claim against UEM unresolved for settlement.

Citation
W-02(W)-691-04/2015 (Mahkamah Rayuan)
Parties
Plaintiff/appellant: Southern Steel Berhad; Defendant/respondent: Tenaga Nasional Berhad; Third Party/respondent: UEM Construction Sdn Bhd
Court
W
Jurisdiction
Malaysia
Judgment Date
27 September 2022
Case Number
W-02(W)-691-04/2015 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal W-02(W)-628-04/2015 partly allowed in favour of TNB leaving TNB's claim against UEM unresolved; Appeal W-02(W)-691-04/2015 by Southern Steel dismissed; Appeal W-02(W)-761-05/2015 allowed. High Court awards and indemnity orders set aside.
Legal Topics
Damages, Pure Economic Loss, Contributory Negligence, Indemnity, Res Judicata, Contracts Act S.74
Source Language
Malay/English
Contract Tort Negligence Commercial Law Civil Procedure Damages Pure Economic Loss Contributory Negligence +3 more

Case Brief

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Parties

Southern Steel Berhad

Plaintiff/appellant

Tenaga Nasional Berhad

Defendant/respondent

UEM Construction Sdn Bhd

Third Party/respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether TNB was liable in contract or tort to SSB for interruption of power supply
  2. 2 Whether s.74 Contracts Act 1950 could be used to award damages in tort
  3. 3 Whether claimed losses constituted recoverable damages or mere pure economic loss

Ratio Decidendi

The Court held the High Court erred in awarding damages against TNB in tort based on s.74 Contracts Act 1950, found SSB failed to prove recoverable damages and that the losses claimed were pure economic loss not recoverable in negligence absent physical damage; consequently TNB is not liable and the High Court awards and indemnity order against UEM were set aside, leaving the separate TNB claim against UEM unresolved for settlement.

Court Disposition

Appeal W-02(W)-628-04/2015 partly allowed in favour of TNB leaving TNB's claim against UEM unresolved; Appeal W-02(W)-691-04/2015 by Southern Steel dismissed; Appeal W-02(W)-761-05/2015 allowed. High Court awards and indemnity orders set aside.

Orders

  • High Court award of RM4,000,000.00 to Southern Steel Berhad set aside
  • Order that UEM Construction Sdn Bhd indemnify Tenaga Nasional Berhad (RM2,000,000.00) set aside