Yew Huoi, How & Associates | Leading Malaysia Law Firm

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

1. Summary and Facts:
DPG V LAMG [2025] 12 MLJ 864, the parties are Canadian citizens living in Malaysia with two children who had been habitually resident in Penang since 2022. On 7.5.2024, the defendant wrongfully removed the children to Canada without the plaintiff’s consent. The Supreme Court of British Columbia held that the removal was wrongful, the children were habitually resident in Malaysia, and Canada lacked jurisdiction over custody. The plaintiff returned to Malaysia with the children on 8.9.2024, where they remained in his care. He subsequently applied for sole custody, care, and control, while the defendant sought to set aside the earlier ex-parte interim custody order.

2. Legal Issues:
• Whether the Malaysian High Court had jurisdiction to adjudicate custody where all parties are foreign nationals.
• Whether custody should be granted to the plaintiff-father pending foreign divorce proceedings.
• Whether the prior ex parte interim order was irregular and ought to be set aside.
• Whether the defendant’s application to annul the ex parte order remained relevant after a full inter partes hearing.

3. Court’s Findings:
• The Court has the jurisdiction under section 3(1) Law Reform (Marriage and Divorce) Act 1976 (“LRA 1976”) as the parties are physically in Malaysia.
• The children were habitually resident in Malaysia where the court will only make temporary welfare orders but the permanent custody lies with Canada.
• The custody was granted to the father but mother gets reasonable access since the children are stable and settled in Penang which maintained by the father including child A’ special needs.
• Section 88(3) presumption rebutted because the father provided stability, while the mother lacked housing and employment.
• The defendant argued that the ex parte injunction lapsed under O 29 r 1(2BA) ROC, but the Court held the interim order was made under s 89 LRA, not under ROC O 29. Therefore, the timelines for inter partes hearing did not apply.
• Any irregularity became irrelevant because the parties later recorded a consensual interim order.
• The defendant’s application was struck of with no order as to costs since Encl. 1 was already heard inter partes, so the ex parte issue was academic.

4. Practical Implications:
This judgment affirms the several principle of laws including;
• Malaysian Courts can act to protect children physically in Malaysia even if the parents are foreign.
• Malaysian Court will not decide permanent custody for foreign nationals.
• The welfare of the child is always the strongest factor despite the citizenship, domicile or parental status.

Recent Post

ADMIRALTY IN REM – WRONGFUL ARREST – POSSESORY RIGHT – ARREST GONE WRONG: WHEN A SHIP ARREST BACKFIRES WITH DAMAGES

In Eletson Holdings Inc & Ors v The Vessel “Paros” [2026] 8 MLJ 80, the High Court set aside an arrest after finding that the plaintiffs had no proprietary or possessory right to the vessel at the time of the writ, as the bareboat charter had already been terminated. The Court held that the claim was in substance a corporate control dispute dressed up as an admiralty action, and emphasised that such disputes do not fall within admiralty jurisdiction. Critically, the plaintiffs’ failure to disclose the termination of the charter when obtaining the arrest warrant amounted to a serious breach, leading the Court to find mala fides or gross negligence and order damages for wrongful arrest. The decision reinforces that ship arrest is a powerful remedy that must be exercised with full disclosure and a proper maritime foundation.

Read More »

GUARANTEE – PERSONAL GUARANTEE ≠ PAY ON DEMAND: COURT DRAWS THE LINE BETWEEN SURETYSHIP AND DEMAND GUARANTEES

In CE Energy DMCC v Bashar [2026] Lloyds’s Rep 267, the Commercial Court clarified that not all guarantees labelled “on demand” will be treated as demand guarantees. On a proper construction, the court held that the personal guarantee in question was a contract of suretyship, requiring proof of the principal debtor’s liability rather than automatic payment upon demand. Crucially, the court found that the debtor’s “irrevocable” admissions of debt in a payment agreement created a binding contractual estoppel, which the guarantor could not challenge. The decision also confirms that, where payment is due on a “day certain”, a seller may still claim the price notwithstanding retention of title. The case underscores the importance of precise drafting and the risks of entering into settlement agreements that conclusively fix liability.

Read More »

MARITIME NEGLIGENCE – PLAINTIFF CLAIMED FOR DAMAGES CAUSED DURING ANCHOR DEPLOYMENT OPERATION – CALDERBANK OFFERS

In Tom Eastwind 365 Sdn Bhd v The Owners of the Vessel “Icon Sophia” [2025] 9 MLJ 397, the High Court held that the doctrine of res ipsa loquitur applied in a maritime collision during an anchor deployment operation, allowing an inference of negligence against the tug owner. The Court clarified that the doctrine is not defeated merely because the defendant adduces evidence explaining the accident – such evidence goes to rebutting the inference, not preventing it. While liability was established due to the tug master’s error of judgment in manoeuvring too close to a stationary barge, the plaintiff failed to properly prove its damages and was awarded only RM50,000. Notably, despite succeeding on liability, the plaintiff was ordered to pay costs after rejecting reasonable Calderbank offers, underscoring the risks of pursuing litigation without properly substantiated claims.

Read More »

JURISDICTION – BILLS OF LADING – BREACH OF HIMALAYA CLAUSE – BREACH OF EXCLUSIVE JURISDICTION CLAUSE – ONEROUS OR UNUSUAL TERMS

In Maersk Guinéa-Bissau SARL v Almar-Hum Bubacar Baldé SARL [2026] 1 Lloyd’s Rep 215, the English Commercial Court held that a shipper was liable for breach of an exclusive jurisdiction clause and a Himalaya clause after commencing proceedings in Guinea-Bissau instead of England. The Court confirmed that such clauses are standard and enforceable, and that commencing foreign proceedings in breach of them can give rise to a claim for damages. Notably, the Court also recognised that Himalaya clauses may be used offensively, allowing subcontractors to recover losses caused by wrongful litigation. The foreign judgment was not recognised due to lack of jurisdiction and denial of natural justice.

Read More »

DELIVERY WITHOUT PRESENTATION OF BILL OF LADING – LOI WON’T SAVE YOU: SHIPOWNER LIABLE FOR MISDELIVERY DESPITE INDEMNITY

In United Overseas Bank Ltd v The “Maersk Katalin” [2026] 1 Lloyd’s Rep 18, the Singapore High Court reaffirmed that delivery of cargo without presentation of original bills of lading remains a fundamental breach, even where carried out against letters of indemnity. The Court held that LOIs merely shift commercial risk but do not authorise misdelivery, and rejected arguments of consent, ratification and causation. Significantly, the Court emphasised that the burden lies on the carrier to prove that the loss would have occurred in any event – a burden not easily discharged. The decision underscores the continued strict liability regime in misdelivery cases, particularly where banks as bill holders are involved.

Read More »

CONTRACT LAW – ‘UK COURTS’ MEANS ENGLAND: COURT UPHOLDS JURISDICTION DESPITE VAGUE CLAUSE

In SMT Global Logistics Ltd v Georgian Airlines LLC [2025] Lloyd’s Rep. Plus 89, the Commercial Court held that a clause referring disputes to “the court in accordance with current legislation of the United Kingdom” was a valid jurisdiction clause in favour of the High Court of England and Wales. The Court also confirmed that the Montreal Convention does not apply to pure contractual claims for non-performance, such as repayment and loss of profits. Emphasising a broad and commercially sensible interpretation, the Court enforced the parties’ choice of forum and refused to stay proceedings, reaffirming that jurisdiction clauses will be upheld unless there are overwhelming reasons to depart.

Read More »
en_USEN