Kami Offshore Sdn. Bhd Norr System Hydraulics Pte. Ltd.

Kami Offshore Sdn. Bhd Norr System Hydraulics Pte. Ltd.

The court dismissed the appeal because the plaintiff proved the outstanding debt by invoices, statement of account and admissions; the OPA was ambiguous and did not operate as a back-to-back pay-if-paid clause; non-provision of the warranty bond was excused because commissioning was taken over by THHE and the delay/approval process was attributable to THHE; interest at 2% was enforceable as agreed in invoices; and LAD was not recoverable because the delay was caused by THHE approvals constituting a valid exemption from the compensation clause.

Citation
JA-12B-54-11/2019 (Mahkamah Tinggi)
Parties
Appellant/defendant: KAMI OFFSHORE SDN BHD; Respondent/plaintiff: NORR SYSTEM HYDRAULICS PTE LTD
Court
High Court
Jurisdiction
Malaysia
Judgment Date
11 August 2020
Case Number
JA-12B-54-11/2019 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal / High Court Judgment on Appeal From Sessions Court
Outcome
Appeal dismissed; judgment entered for Respondent (Plaintiff)
Legal Topics
Payment Dispute, Pay If Paid / Pay When Paid Clauses, Collateral/outstanding Payment Agreement, Liquidated Damages, Interest on Late Payment, Unjust Enrichment, Warranty Bond / Commissioning
Source Language
Malay/English
Contract Law Commercial Law Civil Procedure Remedies Payment Dispute Pay If Paid / Pay When Paid Clauses Collateral/outstanding Payment Agreement Liquidated Damages +3 more

Case Brief

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Parties

KAMI OFFSHORE SDN BHD

Appellant/defendant

NORR SYSTEM HYDRAULICS PTE LTD

Respondent/plaintiff

Procedural Posture

Civil Appeal / High Court Judgment on Appeal From Sessions Court

Legal Issues

  1. 1 Whether the Outstanding Payment Agreement (OPA) created a back-to-back pay-if-paid obligation preventing plaintiff’s claim
  2. 2 Whether plaintiff entitled to outstanding milestone payments and contractual interest despite lack of warranty bond and incomplete commissioning
  3. 3 Whether allowing plaintiff’s claim would result in unjust enrichment

Ratio Decidendi

The court dismissed the appeal because the plaintiff proved the outstanding debt by invoices, statement of account and admissions; the OPA was ambiguous and did not operate as a back-to-back pay-if-paid clause; non-provision of the warranty bond was excused because commissioning was taken over by THHE and the delay/approval process was attributable to THHE; interest at 2% was enforceable as agreed in invoices; and LAD was not recoverable because the delay was caused by THHE approvals constituting a valid exemption from the compensation clause.

Court Disposition

Appeal dismissed; judgment entered for Respondent (Plaintiff)

Orders

  • Appeal dismissed
  • Judgment for the Respondent for USD183,477.88