1. ZHAO DONGMING 2. ZHAO XIAO QING 1. ) ZHAO KHAI 2. ) GALAXY CENTURY BUILDERS SDN BHD 3. ) FU YUPING 4. ) UE E&C SANJIA (M) SDN BHD

1. ZHAO DONGMING 2. ZHAO XIAO QING 1. ) ZHAO KHAI 2. ) GALAXY CENTURY BUILDERS SDN BHD 3. ) FU YUPING 4. ) UE E&C SANJIA (M) SDN BHD

Court held plaintiffs established contractual entitlement against Galaxy Century Builders Sdn Bhd (D2) only: P1 is entitled to judgment for RM2,000,000 (cash bond) and plaintiffs are entitled to RM4,716,667.60 for works as valued by court‑appointed QS; claims against D3 and D4 under section 71/quantum meruit were rejected due to privity and because D2 is the contracting party; loss of profit claim dismissed as speculative; conspiracy not proved; interest at 4% p.a. from statement of claim to realisation; costs reserved such that parties bear their own costs.

Citation
WA-22C-52-04/2017 (Mahkamah Tinggi)
Parties
Plaintiff: Zhao Dongming; Plaintiff: Zhao Xiao Qing; Defendant: Zhao Kai; Defendant: Galaxy Century Builders Sdn Bhd; Defendant: Fu Yuping; Defendant: UE E&C Sanjia (M) Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
8 November 2019
Case Number
WA-22C-52-04/2017 (Mahkamah Tinggi)
Procedural Posture
Construction Contract Dispute / Judgment (high Court)
Outcome
Judgment for plaintiffs in part against Galaxy Century Builders Sdn Bhd (D2); claims against Zhao Kai (D1), Fu Yuping (D3) and UE E&C Sanjia (M) Sdn Bhd (D4) dismissed; counterclaim dismissed.
Legal Topics
Performance Bond, Section 71 Contracts Act 1950, Quantum Meruit, Accounts Inquiry, Termination of Contract, Loss of Profits, Mareva Injunction
Source Language
Malay/English
Contract Law Restitution / Unjust Enrichment Construction Law Civil Procedure Tort Conspiracy Performance Bond Section 71 Contracts Act 1950 Quantum Meruit +4 more

Case Brief

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Parties

Zhao Dongming

Plaintiff

Zhao Xiao Qing

Plaintiff

Zhao Kai

Defendant

Galaxy Century Builders Sdn Bhd

Defendant

Fu Yuping

Defendant

UE E&C Sanjia (M) Sdn Bhd

Defendant

Procedural Posture

Construction Contract Dispute / Judgment (high Court)

Legal Issues

  1. 1 Whether cash performance bond (RMB3.2m / RM2m) must be refunded and to whom
  2. 2 Whether plaintiffs can recover from non-contracting parties (D3/D4) under section 71 Contracts Act 1950 or quantum meruit
  3. 3 Valuation of works done and entitlement under accounts inquiry

Ratio Decidendi

Court held plaintiffs established contractual entitlement against Galaxy Century Builders Sdn Bhd (D2) only: P1 is entitled to judgment for RM2,000,000 (cash bond) and plaintiffs are entitled to RM4,716,667.60 for works as valued by court‑appointed QS; claims against D3 and D4 under section 71/quantum meruit were rejected due to privity and because D2 is the contracting party; loss of profit claim dismissed as speculative; conspiracy not proved; interest at 4% p.a. from statement of claim to realisation; costs reserved such that parties bear their own costs.

Court Disposition

Judgment for plaintiffs in part against Galaxy Century Builders Sdn Bhd (D2); claims against Zhao Kai (D1), Fu Yuping (D3) and UE E&C Sanjia (M) Sdn Bhd (D4) dismissed; counterclaim dismissed.

Orders

  • Judgment for Zhao Dongming (P1) against Galaxy Century Builders Sdn Bhd for RM2,000,000 with interest at 4% per annum from date of Statement of Claim to realisation
  • Judgment for plaintiffs against Galaxy Century Builders Sdn Bhd for RM4,716,667.60 with interest at 4% per annum from date of Statement of Claim to realisation