W-02(W)-761-05/2015 (Mahkamah Rayuan)

W-02(W)-761-05/2015 (Mahkamah Rayuan)

The Court of Appeal held that TNB was not liable to Southern Steel in contract or tort because SSB failed to prove recoverable damages and its pleaded losses were, on the evidence and law, pure economic loss not recoverable in negligence; the High Court erred in awarding tortious damages by reference to s.74 Contracts Act 1950; consequently the High Court awards and the indemnity order against UEM were set aside, and the appeals by SSB were dismissed while the claim between TNB and UEM was left for amicable resolution.

Citation
W-02(W)-761-05/2015 (Mahkamah Rayuan)
Parties
Appellant (originally Plaintiff): Southern Steel Berhad; Respondent (cross Appellant): Tenaga Nasional Berhad; Appellant (third Party/defendant): UEM Construction Sdn Bhd
Court
W
Jurisdiction
Malaysia
Judgment Date
27 September 2022
Case Number
W-02(W)-761-05/2015 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal partly allowed in favour of Tenaga Nasional Berhad; High Court awards against TNB and indemnity orders against UEM set aside; SSB appeals dismissed; TNB's claim against UEM left undecided for party settlement
Legal Topics
Pure Economic Loss, Contributory Negligence, Indemnity, Quantum of Damages, Section 74 Contracts Act 1950
Source Language
Malay/English
Contract Law Tort (negligence) Commercial Law Remedies Damages Civil Procedure Pure Economic Loss Contributory Negligence Indemnity +2 more

Case Brief

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Parties

Southern Steel Berhad

Appellant (originally Plaintiff)

Tenaga Nasional Berhad

Respondent (cross Appellant)

UEM Construction Sdn Bhd

Appellant (third Party/defendant)

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether TNB was liable in contract to SSB
  2. 2 Whether TNB was liable in tort for negligence to SSB based on the same facts
  3. 3 Whether damages under s.74 Contracts Act 1950 can be awarded for tort

Ratio Decidendi

The Court of Appeal held that TNB was not liable to Southern Steel in contract or tort because SSB failed to prove recoverable damages and its pleaded losses were, on the evidence and law, pure economic loss not recoverable in negligence; the High Court erred in awarding tortious damages by reference to s.74 Contracts Act 1950; consequently the High Court awards and the indemnity order against UEM were set aside, and the appeals by SSB were dismissed while the claim between TNB and UEM was left for amicable resolution.

Court Disposition

Appeal partly allowed in favour of Tenaga Nasional Berhad; High Court awards against TNB and indemnity orders against UEM set aside; SSB appeals dismissed; TNB's claim against UEM left undecided for party settlement

Orders

  • High Court award of RM4,000,000 to Southern Steel Berhad set aside
  • Order that UEM indemnify TNB (RM2,000,000) set aside