DTX ADVANCE ENGINEERING SDN BHD 1. ) ENG HONG ELECTRIC SERVICE 2. ) CHENG WENG KANG (didakwa sebagai individu dan sebagai rakan kongsi dalam Eng Hong Electric Service) 3. ) CHENG WEI CHIA (didakwa sebagai individu dan sebagai rakan kongsi d

DTX ADVANCE ENGINEERING SDN BHD 1. ) ENG HONG ELECTRIC SERVICE 2. ) CHENG WENG KANG (didakwa sebagai individu dan sebagai rakan kongsi dalam Eng Hong Electric Service) 3. ) CHENG WEI CHIA (didakwa sebagai individu dan sebagai rakan kongsi d

On the balance of probabilities the court found a valid and enforceable contract existed between Plaintiff and the 5th Defendant based on quotations, revisions, emails, verified progress claims, meetings and part performance; 1st to 4th Defendants acted as agents for the 5th Defendant and were not personally liable except for an admitted RM85,000; the 5th Defendant's expert reports were discredited for lack of verification and procedural noncompliance; therefore 5th Defendant was ordered to pay RM1,839,319.45 with interest and costs and 1st-4th Defendants ordered to pay RM85,000 as admitted.

Citation
PA-22C-9-11/2022 (Mahkamah Tinggi)
Parties
Plaintiff: DTX Advance Engineering Sdn Bhd; 1st Defendant: Eng Hong Electric Service; 2nd Defendant: Cheng Weng Kang; 3rd Defendant: Cheng Wei Chia; 4th Defendant: Ng Siam Hong; 5th Defendant: Innospec Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
14 September 2023
Case Number
PA-22C-9-11/2022 (Mahkamah Tinggi)
Procedural Posture
Civil Suit / Judgment After Full Trial (grounds of Judgment)
Outcome
Plaintiff's claim allowed against 5th Defendant; claim partly allowed against 1st to 4th Defendants (limited to admitted sum)
Legal Topics
Breach of Contract, Payment for Construction Works, Agency and Ostensible Authority, Admissibility and Reliability of Expert Evidence, Quantification of Damages, Variation Orders
Source Language
Malay/English
Contract Law Construction Law Agency Civil Procedure Evidence Law Breach of Contract Payment for Construction Works Agency and Ostensible Authority +3 more

Case Brief

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Parties

DTX Advance Engineering Sdn Bhd

Plaintiff

Eng Hong Electric Service

1st Defendant

Cheng Weng Kang

2nd Defendant

Cheng Wei Chia

3rd Defendant

Ng Siam Hong

4th Defendant

Innospec Sdn Bhd

5th Defendant

Procedural Posture

Civil Suit / Judgment After Full Trial (grounds of Judgment)

Legal Issues

  1. 1 Whether a binding contract existed between Plaintiff and 5th Defendant despite absence of formal written agreement
  2. 2 Whether 1st to 4th Defendants acted as agent for 5th Defendant and are personally liable
  3. 3 Whether 5th Defendant is liable to pay claimed progress claims and variation sums

Ratio Decidendi

On the balance of probabilities the court found a valid and enforceable contract existed between Plaintiff and the 5th Defendant based on quotations, revisions, emails, verified progress claims, meetings and part performance; 1st to 4th Defendants acted as agents for the 5th Defendant and were not personally liable except for an admitted RM85,000; the 5th Defendant's expert reports were discredited for lack of verification and procedural noncompliance; therefore 5th Defendant was ordered to pay RM1,839,319.45 with interest and costs and 1st-4th Defendants ordered to pay RM85,000 as admitted.

Court Disposition

Plaintiff's claim allowed against 5th Defendant; claim partly allowed against 1st to 4th Defendants (limited to admitted sum)

Orders

  • 5th Defendant Innospec Sdn Bhd to pay Plaintiff RM1,839,319.45
  • Interest on judgment sum at 5% per annum from date of writ until full settlement payable by 5th Defendant