1. ) ALLIANZ GENERAL INSURANCE COMPANY (MALAYSIA) BERHAD 2. ) FUJI ELECTRIC (MALAYSIA) SDN BHD 1. ) FUJI LOGISTICS (M) SDN. BHD. 2. ) STE TRUCKING SERVICES SDN BHD

1. ) ALLIANZ GENERAL INSURANCE COMPANY (MALAYSIA) BERHAD 2. ) FUJI ELECTRIC (MALAYSIA) SDN BHD 1. ) FUJI LOGISTICS (M) SDN. BHD. 2. ) STE TRUCKING SERVICES SDN BHD

Insurer (First Plaintiff) had locus standi to sue by subrogation after paying the insured; the purported waiver of subrogation in a later quotation was not incorporated into the Basic Agreement because the Basic Agreement contained an entire agreement clause and the waiver was expressly rejected prior to incorporation; therefore the Second Plaintiff did not breach the contract and the First Defendant failed to prove its counterclaim; counterclaim dismissed and costs awarded to Second Plaintiff.

Citation
PA-22NCvC-127-08/2020 (Mahkamah Tinggi)
Parties
First Plaintiff: Allianz General Insurance Company (Malaysia) Berhad; Second Plaintiff: Fuji Electric (Malaysia) Sdn Bhd; First Defendant: Fuji Logistics (M) Sdn Bhd; Second Defendant: STE Trucking Services Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
11 October 2024
Case Number
PA-22NCvC-127-08/2020 (Mahkamah Tinggi)
Procedural Posture
Civil Insurance Subrogation and Contract / Judgment After Full Trial (appeal by First Defendant; Grounds of Judgment Dated 11 November 2024)
Outcome
First Defendant's appeal dismissed in respect of its counterclaim; counterclaim by First Defendant against Second Plaintiff dismissed; Plaintiffs' subrogation claim maintained (First Plaintiff has locus standi).
Legal Topics
Subrogation, Waiver of Subrogation Clause, Locus Standi, Construction of Contract, Costs, Counterclaim
Source Language
Malay/English
Insurance Law Contract Law Tort (negligence) Civil Procedure Subrogation Waiver of Subrogation Clause Locus Standi Construction of Contract +2 more

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Parties

Allianz General Insurance Company (Malaysia) Berhad

First Plaintiff

Fuji Electric (Malaysia) Sdn Bhd

Second Plaintiff

Fuji Logistics (M) Sdn Bhd

First Defendant

STE Trucking Services Sdn Bhd

Second Defendant

Procedural Posture

Civil Insurance Subrogation and Contract / Judgment After Full Trial (appeal by First Defendant; Grounds of Judgment Dated 11 November 2024)

Legal Issues

  1. 1 Whether the First Plaintiff (insurer) has locus standi to sue by subrogation
  2. 2 Whether a waiver of subrogation clause in a quotation was validly incorporated into the Basic Agreement between Second Plaintiff and First Defendant
  3. 3 Whether the Second Plaintiff breached the contract by failing to include a waiver of subrogation in its insurance policy

Ratio Decidendi

Insurer (First Plaintiff) had locus standi to sue by subrogation after paying the insured; the purported waiver of subrogation in a later quotation was not incorporated into the Basic Agreement because the Basic Agreement contained an entire agreement clause and the waiver was expressly rejected prior to incorporation; therefore the Second Plaintiff did not breach the contract and the First Defendant failed to prove its counterclaim; counterclaim dismissed and costs awarded to Second Plaintiff.

Court Disposition

First Defendant's appeal dismissed in respect of its counterclaim; counterclaim by First Defendant against Second Plaintiff dismissed; Plaintiffs' subrogation claim maintained (First Plaintiff has locus standi).

Orders

  • Counter-claim by First Defendant against Second Plaintiff dismissed
  • First Defendant to pay costs of RM15000.00 to Second Plaintiff (costs assessed on indemnity basis)