HANDSKAR (M) SDN BHD 1. ) QUBE MEDICAL PRODUCTS SDN BHD 2. ) TEO SIONG YAM

HANDSKAR (M) SDN BHD 1. ) QUBE MEDICAL PRODUCTS SDN BHD 2. ) TEO SIONG YAM

The claim against the 2nd Defendant was struck out because the plaintiff did not plead any facts that the director acted outside his duties or authority, or breached any personal fiduciary or other legal duties; therefore the Said v Butt immunity applied and the tort claim against the director was plainly unsustainable.

Citation
WA-22NCC-44-02/2023 (Mahkamah Tinggi)
Parties
Plaintiff: HANDSKAR (M) SDN. BHD.; 1st Defendant: QUBE MEDICAL PRODUCTS SDN. BHD.; 2nd Defendant: TEO SIONG YAM
Court
High Court
Jurisdiction
Malaysia
Judgment Date
12 December 2023
Case Number
WA-22NCC-44-02/2023 (Mahkamah Tinggi)
Procedural Posture
Commercial Division Contract and Tort / Striking Out Application (judgment)
Outcome
2nd Defendant's Striking Out Application granted
Legal Topics
Breach of Contract, Unlawful Interference/inducing Breach, Directors' Personal Liability, Striking Out for Failure to Plead
Source Language
Malay/English
Contract Law Tort Company Law Civil Procedure Breach of Contract Unlawful Interference/inducing Breach Directors' Personal Liability Striking Out for Failure to Plead

Case Brief

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Parties

HANDSKAR (M) SDN. BHD.

Plaintiff

QUBE MEDICAL PRODUCTS SDN. BHD.

1st Defendant

TEO SIONG YAM

2nd Defendant

Procedural Posture

Commercial Division Contract and Tort / Striking Out Application (judgment)

Legal Issues

  1. 1 Whether a director can be personally liable in tort for his company's breach of contract when acting in his capacity as director
  2. 2 Whether the plaintiff pleaded facts showing the director acted outside his authority or in breach of personal fiduciary or other duties
  3. 3 Whether Said v Butt immunity applies to the 2nd Defendant's conduct

Ratio Decidendi

The claim against the 2nd Defendant was struck out because the plaintiff did not plead any facts that the director acted outside his duties or authority, or breached any personal fiduciary or other legal duties; therefore the Said v Butt immunity applied and the tort claim against the director was plainly unsustainable.

Court Disposition

2nd Defendant's Striking Out Application granted

Orders

  • Statement of claim against the 2nd Defendant struck out
  • Costs awarded to the 2nd Defendant