CROSS PROTECTION (M) SDN. BHD. IDS MEDICAL SYSTEMS SDN. BHD.

CROSS PROTECTION (M) SDN. BHD. IDS MEDICAL SYSTEMS SDN. BHD.

On the balance of probabilities the court accepted the Plaintiff's documentary and witness evidence rebutting the Defendant's allegations of defective goods, short shelf life and regulatory non-compliance; the court found no contractual obligation to provide sales data; the undated settlement letter constituted an unequivocal admission of liability by the Defendant; clause 8 of the EDA precluded any obligation on the Plaintiff to buy back purchased stock without mutual agreement. Consequently the Plaintiff proved its claim and the Defendant's counterclaim failed.

Citation
BA-22NCvC-208-04/2018 (Mahkamah Tinggi)
Parties
Plaintiff (main Claim); Defendant (counterclaim): IDS MEDICAL SYSTEMS SDN BHD; Defendant (main Claim); Plaintiff (counterclaim): CROSS PROTECTION (M) SDN BHD; Defendant (counterclaim): TAN GAIK CHEW; Defendant (counterclaim): CHAN HOE HOCK
Court
High Court
Jurisdiction
Malaysia
Judgment Date
30 January 2023
Case Number
BA-22NCvC-208-04/2018 (Mahkamah Tinggi)
Procedural Posture
Civil Breach of Contract and Counterclaim Arising From an Exclusive Distributorship Agreement / Judgment (grounds of Judgment Dated 17 April 2023)
Outcome
Plaintiff's claim allowed; Defendant's counterclaim dismissed.
Legal Topics
Breach of Contract, Exclusive Distributorship, Misrepresentation (negligent and Fraudulent), Termination and Post Termination Obligations, Set Off and Counterclaim, Lifting Corporate Veil, Statutory Registration of Medical Devices
Source Language
Malay/English
Contract Law Tort (misrepresentation) Commercial Law Evidence Breach of Contract Exclusive Distributorship Misrepresentation (negligent and Fraudulent) Termination and Post Termination Obligations +3 more

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Parties

IDS MEDICAL SYSTEMS SDN BHD

Plaintiff (main Claim); Defendant (counterclaim)

CROSS PROTECTION (M) SDN BHD

Defendant (main Claim); Plaintiff (counterclaim)

TAN GAIK CHEW

Defendant (counterclaim)

CHAN HOE HOCK

Defendant (counterclaim)

Procedural Posture

Civil Breach of Contract and Counterclaim Arising From an Exclusive Distributorship Agreement / Judgment (grounds of Judgment Dated 17 April 2023)

Legal Issues

  1. 1 whether the goods supplied were defective, had short shelf life and were unregistered medical devices
  2. 2 whether the Plaintiff failed to provide sales data as part of contractual obligations
  3. 3 whether the Plaintiff breached the EDA by selling directly to the dental market

Ratio Decidendi

On the balance of probabilities the court accepted the Plaintiff's documentary and witness evidence rebutting the Defendant's allegations of defective goods, short shelf life and regulatory non-compliance; the court found no contractual obligation to provide sales data; the undated settlement letter constituted an unequivocal admission of liability by the Defendant; clause 8 of the EDA precluded any obligation on the Plaintiff to buy back purchased stock without mutual agreement. Consequently the Plaintiff proved its claim and the Defendant's counterclaim failed.

Court Disposition

Plaintiff's claim allowed; Defendant's counterclaim dismissed.

Orders

  • Defendant to pay Plaintiff RM 311,371.55 with interest at 5% per annum from date of judgment until realization
  • Defendant to pay costs of RM 35,000 to Plaintiff for the main claim and the counterclaim