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Family Law

FAMILY LAW – CANADIAN PARTIES – CUSTODY BASED ON HABITUAL RESIDENCE – WELFARE OF CHILDREN IN MALAYSIA TAKES PRIORITY

In DPG v LAMG [2025] 12 MLJ 864, the High Court held that Malaysian courts have jurisdiction over custody disputes involving foreign children who are habitual residents in Malaysia, despite both parents being Canadian citizens. The Court found that the children had deep roots in Penang – schooling, therapy, church, and community – and that their welfare was best served by remaining under the father’s custody, care and control, with the mother granted extended weekend and virtual access. The defendant’s attempt to annul the earlier ex parte order was dismissed as academic, and the Court clarified that interim custody orders under s 89 LRA are not O 29 ROC injunctions.

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Family Law

FAMILY LAW – COSTLY AFFAIRS: A LANDMARK DECISION ON ADULTERY, SPOUSAL MAINTENANCE, AND ASSET DIVISION IN MALAYSIA

In Hai v Pai & Anor [2025] 8 MLJ 211, the Court decisively addressed the delicate intersection of marital betrayal and financial fairness. Affirming the award of damages against a third-party “homewrecker,” the decision underscores the judiciary’s firm stance on compensating emotional and financial harm arising from adultery. Furthermore, the ruling clarifies the importance of precise documentation and the consequences of commingling inherited wealth, reinforcing that matrimonial asset division requires careful, individualized assessment to achieve true equity.

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Family Law

FAMILY LAW – CHILDREN’S CUSTODY – CUSTODY DISPUTES IN MALAYSIA: ESSENTIAL INSIGHTS ON CHILD WELFARE AND PARENTAL ROLES

In a recent custody dispute, the court emphasized the importance of child welfare, reaffirming the maternal custody presumption for young children unless strong evidence suggests otherwise. In high-conflict situations, the court favored sole custody over joint arrangements to minimize stress on the children. This case underscores that Malaysian parents should provide credible evidence for their claims and focus on practical, child-centered solutions.

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Family Law

FAMILY LAW – DIVISION OF MATRIMONIAL ASSETS

Many people have this false conception that all assets of the husband including EPF, shares and monies will be divided equally when there is a divorce.
What is the law that governs division of matrimonial assets in Malaysia?

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Family Law

DISTRIBUTION OF ASSETS – LEGAL RIGHTS OF CHILDREN BORN IN UNREGISTERED CUSTOMARY MARRIAGES TO INHERIT INTESTATE ESTATES

Born to parents in an unregistered Chinese customary marriage, an individual was deemed illegitimate following their father’s intestate death. The key legal issue is whether this individual can inherit under the Distribution Act 1958 (DA). The DA does not restrict inheritance to legitimate children only; it includes all bloodline descendants. Therefore, the individual qualifies as ‘issue’ and is entitled to inherit their father’s estate despite questions of legitimacy.

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Family Law

FAMILY LAW – ANALYZING THE EFFICIENCY OF DIVORCE PROCEEDINGS IN CASES OF ADULTERY WITHOUT CLAIMS FOR DAMAGES

A husband filed for divorce due to living apart from his wife for two years, while the wife attributed the breakdown to adultery, involving the alleged adulteress without seeking damages. This raises questions about the necessity of addressing adultery in divorce when no compensation is sought, as Section 54 of the Law Reform (Marriage and Divorce) Act 1976 emphasizes irretrievable breakdown without fault.

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Family Law

FAMILY LAW – DIVORCE – REDEFINING SPOUSAL SUPPORT – FINANCIAL INDEPENDENCE IN DIVORCE PROCEEDINGS

A divorce case involving two insurance agents raises crucial questions about spousal maintenance for financially independent women and their shared responsibility in child support. The court will assess each party’s financial capacity and contributions, considering modern principles of gender equality and the ‘means and needs’ test under the Law Reform (Marriage and Divorce) Act 1976.

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Family Law

FAMILY LAW – ANNULMENT OF MARRIAGE

The annulment of marriage in Malaysia is regulated under the Law Reform (Marriage & Divorce) Act 1976. A distinction is made between a void marriage, which is deemed invalid from the time of solemnisation, and a voidable marriage, which remains valid from solemnisation until annulled by the court.

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Recent Legal Updates

STRATA TITLES ACT – DEVELOPER MUST ACCOUNT FOR COMMON PROPERTY COMPENSATION: HIGH COURT IMPOSES CONSTRUCTIVE TRUST

In JMB Kelana Square v Perantara Properties Sdn Bhd & Ors [2025] 12 MLJ 51, the High Court held that a developer who received compensation for land compulsorily acquired for the LRT 3 project could not retain sums attributable to common property. Although the compensation was paid entirely to the developer as registered proprietor, the Court found that part of the acquired land constituted common property, and the developer therefore held RM6.05 million on constructive trust for the Joint Management Body. The decision affirms that JMBs have proprietary standing to recover compensation for common property and that courts will intervene to prevent unjust enrichment in strata developments.

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UNFAIR DISMISSAL – MEDICAL LEAVE IS NOT MISCONDUCT: HIGH COURT UPHOLDS INDUSTRIAL COURT’S PROTECTION OF SICK EMPLOYEE

In Aerodarat Services Sdn Bhd v Lawerance Raj a/l Arrulsamy & Anor [2025] 11 MLJ 26, the High Court dismissed an employer’s judicial review and affirmed that prolonged medical leave does not, by itself, amount to misconduct justifying dismissal. The Court held that the employer failed to prove the critical element of intention not to return to work or unwillingness to perform contractual duties, despite high absenteeism caused by serious illness and surgery. The ruling reinforces that employers must distinguish between genuine illness and misconduct, and cannot rely on medical absence alone to terminate employment.

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WILL AND PROBATE – COURT OF APPEAL INVALIDATES WILL OF 97-YEAR-OLD TESTATOR: CAPACITY, SUSPICION AND UNDUE INFLUENCE PROVED

In Kong Kin Lay & Ors v Kong Kin Siong & Ors [2025] 5 MLJ 891, the Court of Appeal set aside a will executed by a 97-year-old testator, holding that there was real doubt as to testamentary capacity, compounded by serious suspicious circumstances and undue influence by certain beneficiaries. The Court emphasised that while the “golden rule” is not a rule of law, failure to obtain medical confirmation of capacity where doubt exists is a grave omission. Credibility issues with the drafting solicitor, beneficiary involvement in the will’s preparation, and suppression of evidence led the Court to declare the will invalid and order intestacy.

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NOT AN ‘AGREEMENT TO AGREE’: ENGLISH COURT OF APPEAL SAVES LONG-TERM SUPPLY CONTRACT DESPITE OPEN PRICE CLAUSE

In KSY Juice Blends UK Ltd v Citrosuco GmbH [2025] 2 Lloyd’s Rep 581, the UK Court of Appeal held that a long-term supply contract was not unenforceable merely because part of the price was stated as “open price to be fixed”. The Court implied a term that, in the absence of agreement, the price would be a reasonable or market price, noting that the product’s value could be objectively benchmarked against the market price of frozen concentrated orange juice. Emphasising that courts should preserve commercial bargains rather than destroy them, the decision confirms that section 8(2) of the Sale of Goods Act 1979 operates as a saving provision, not a bar to enforceability.

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DISCOVERY APPLICATION – HIGH COURT ORDERS JPN TO DISCLOSE FAMILY TREE — STATUTORY RIGHT OVERRIDES ADMINISTRATIVE SECRECY

In V Kalanathan a/l Veeran v Ketua Pengarah Jabatan Pendaftaran Negara (JPN) & Ors [2025] 12 MLJ 529, the High Court directed JPN to disclose the family tree details of a deceased co-proprietor to assist in probate proceedings. The Court held that such information, recorded in JPN’s digital registers, constitutes a “document” under Order 24 rule 7A ROC 2012 and is not an official secret in the absence of a valid OSA certification. JPN’s reliance on internal circulars was rejected, as statutory rights under the Births and Deaths Registration Act 1957 cannot be curtailed by administrative policy. The ruling reinforces that discovery against government agencies is permissible where necessary to ensure the fair disposal of proceedings.

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PROFESSIONAL NEGLIGENCE – SOLICITOR – PANEL SOLICITORS LIABLE: LITIGATION BRIEF DOES NOT EXCUSE FAILURE TO PROTECT BANK’S SECURITY

In Malayan Banking Bhd v Russell Lua Kok Hiyong & Ors [2025] 12 MLJ 599, the High Court held the bank’s former panel solicitors professionally negligent for failing to safeguard the bank’s proprietary interest in a charged property during litigation. The Court ruled that a solicitor’s duty to protect a client’s interests extends beyond the confines of a ‘litigation-only’ brief, particularly where the risk of loss is obvious and foreseeable. Limitation was held to run only when actual loss crystallised, and all partners were found jointly and severally liable under the Partnership Act 1961. The decision is a clear warning that solicitors must act proactively to protect client interests, even outside their immediate scope of instruction.

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