W-02(NCVC)(W)-424-03/2017 (Mahkamah Rayuan)

W-02(NCVC)(W)-424-03/2017 (Mahkamah Rayuan)

The Court of Appeal held the discharge/indemnity documents constituted conditional authorisations (they authorised the insurer to use claimants' names at insurer's cost) and not absolute assignments; therefore the insurer did not obtain vested rights to sue in its own name and lacked locus standi to pursue recovery against Puspakom, JPJ, JKR and the Government; the High Court judgment was set aside.

Citation
W-02(NCVC)(W)-424-03/2017 (Mahkamah Rayuan)
Parties
Appellant (perayu): Puspakom Sdn Bhd; Respondent / Plaintiff: Multi-Purpose Insurans Bhd; Appellant (perayu): Ketua Pengarah, Jabatan Pengangkutan Jalanraya; Appellant (perayu): Ketua Pengarah, Jabatan Kerja Raya; Appellant (perayu): Kerajaan Malaysia; Defendant (first Defendant): SK Murni Tours & Travels Sdn Bhd; Defendant (second Defendant): San Express Holiday Sdn Bhd; Named Individual in Proceedings / Witness: Omar bin Shahidan (driver)
Court
NCVC
Jurisdiction
Malaysia
Judgment Date
28 August 2019
Case Number
W-02(NCVC)(W)-424-03/2017 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (tort and Insurance) / Court of Appeal Judgment on Appeal From High Court Decision
Outcome
Appeals allowed; High Court judgment dated 24.2.2017 (or 21.2.2017 as ordered) set aside
Legal Topics
Subrogation, Locus Standi, Assignment, Duty of Care, Indemnity, Statutory Interpretation
Source Language
Malay/English
Tort Insurance Law Administrative Law Road Traffic Law Subrogation Locus Standi Assignment Duty of Care +2 more

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Parties

Puspakom Sdn Bhd

Appellant (perayu)

Multi-Purpose Insurans Bhd

Respondent / Plaintiff

Ketua Pengarah, Jabatan Pengangkutan Jalanraya

Appellant (perayu)

Ketua Pengarah, Jabatan Kerja Raya

Appellant (perayu)

Kerajaan Malaysia

Appellant (perayu)

SK Murni Tours & Travels Sdn Bhd

Defendant (first Defendant)

San Express Holiday Sdn Bhd

Defendant (second Defendant)

Omar bin Shahidan (driver)

Named Individual in Proceedings / Witness

Procedural Posture

Civil Appeal (tort and Insurance) / Court of Appeal Judgment on Appeal From High Court Decision

Legal Issues

  1. 1 Whether insurer (Plaintiff) had locus standi to sue based on discharge/indemnity documents (assignment/subrogation)
  2. 2 Whether discharge receipts constituted an absolute assignment or conditional authority to sue in claimants' names
  3. 3 Whether Puspakom, JPJ, JKR and the Government owed and breached a duty of care causing the accident

Ratio Decidendi

The Court of Appeal held the discharge/indemnity documents constituted conditional authorisations (they authorised the insurer to use claimants' names at insurer's cost) and not absolute assignments; therefore the insurer did not obtain vested rights to sue in its own name and lacked locus standi to pursue recovery against Puspakom, JPJ, JKR and the Government; the High Court judgment was set aside.

Court Disposition

Appeals allowed; High Court judgment dated 24.2.2017 (or 21.2.2017 as ordered) set aside

Orders

  • Appeal by Puspakom (Rayuan No. W-02(NCVC)(W)-424-03/2017) allowed with costs of MYR 100000.00 (subject to alokatur)
  • Appeal by JPJ, JKR and the Government (Rayuan No. W-01(NCVC)(W)-95-03/2017) allowed with costs of MYR 100000.00 (without alokatur)