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LEGAL UPDATES – CIVIL PROCEDURE – MENTAL HEALTH – HIGH COURT FREEZES ASSETS BEFORE MENTAL CAPACITY IS DETERMINED

Can the High Court freeze a person’s assets before deciding whether he or she lacks mental capacity? In Ong Tjoei Aik Harold v Gan Siew Mui @ Gan Yook Hwa (F) & Ors [2026] 10 MLJ 115, the High Court answered yes. The Court held that, although the Mental Health Act 2001 only confers powers over a person’s estate after a declaration of incapacity, the High Court may exercise its inherent and equitable jurisdiction to grant urgent interim injunctions to preserve assets where there is a real risk of dissipation. The decision is an important authority on protecting vulnerable persons and ensuring that mental capacity proceedings are not undermined by the disappearance of the estate before the court can determine the merits.

LEGAL UPDATES – CONTRACT – PAYMENT FOR WORK DONE – APPELLATE REVIEW – ADDITIONAL WORK, YOU ASKED FOR IT, YOU PAY FOR IT: COURT ORDERS PAYMENT FOR ADDITIONAL WORKS

Can an employer refuse to pay for additional works after requesting and benefiting from them? In Samudera Wibawa Sdn Bhd v Prudence Energy Sdn Bhd [2026] 10 MLJ 229, the High Court said no. The Court held that contemporaneous WhatsApp messages, quotations and invoices clearly established that the additional works had been requested and approved, entitling the contractor to payment. The decision also reaffirms that a party cannot rely on its own conduct to avoid contractual obligations, and that claims for special damages must be strictly proved with proper evidence.

LEGAL UPDATES – TORT – NEGLIGENCE – CAUSATION – CHEMICAL EXPOSURE PROVEN, BUT NO LIABILITY: WHY CAUSATION MATTERS

Can a negligence claim succeed simply because unsafe conditions are proven? In Dr Nurul Aiman bt Mohd Yusof v Universiti Sains Malaysia [2026] 9 MLJ 893, the High Court held that it cannot. Although chemical contamination at the workplace was established, the plaintiff failed to prove that the exposure was the operative and effective cause of her heart condition. The Court reaffirmed that in negligence claims, proving a breach of duty is only half the battle – without establishing causation on a balance of probabilities, the claim must fail.

LEGAL UPDATES – TORT – PASSING OFF – INTERIM INJUNCTION – NO TRADEMARK? NO PROBLEM: COURT PROTECTS RESTAURANT’S GOODWILL FROM COPYCATS

Can a business protect its brand without a registered trademark? In Golden Damascus Diversifies Sdn Bhd v Aroi Thai Kitchen (Puncak Alam) Sdn Bhd [2026] 10 MLJ 97, the High Court held that it can. The Court granted an interim injunction restraining the defendant from operating under the name “Damascus Delights”, finding that there was a serious issue to be tried in passing off based on the plaintiff’s established goodwill, evidence of customer confusion, and allegations that the defendant had deliberately replicated the plaintiff’s restaurant concept and interior design. The decision underscores that goodwill and commercial identity can attract legal protection even in the absence of a registered trademark.

LEGAL UPDATES – CONTRACT – BREACH – LEGITIMATE EXPECTATION – HOPE IS NOT A CONTRACT: COURT REJECTS CLAIM BASED ON LEGITIMATE EXPECTATION

Can a party recover millions based on an expectation that a business relationship would continue? In Shapers International Sdn Bhd & Ors v Halal Industry Development Corp Sdn Bhd & Anor [2026] 10 MLJ 58, the High Court held that it cannot. While the plaintiffs successfully recovered the unpaid balance confirmed by a binding independent audit, the Court rejected their RM32 million claim for loss of future opportunities, holding that legitimate expectation cannot override clear contractual terms. Where a contract expressly requires fresh negotiations and written agreement for future projects, commercial expectations alone do not create enforceable legal rights.

LEGAL UPDATES – TORT – MEDICAL NEGLIGENCE – QUANTUM OF DAMAGES – GRIEF IS NOT A GROUND FOR A HIGHER AWARD IN BIRTH INJURY CASES

Can damages be increased simply because the consequences of medical negligence are tragic? In Kerajaan Malaysia dan lain-lain v Nirwana Tamba [2026] 10 MLJ 24, the High Court held that they cannot. Although the plaintiff suffered devastating physical and psychological injuries and tragically lost her child, the Court reaffirmed that damages must be based on legal principles and evidence, not sympathy. Finding that the awards for pain and suffering, aggravated damages and costs were already within the accepted judicial range, the Court dismissed the plaintiff’s cross-appeal and further held that claims for out-of-pocket litigation expenses must be specifically pleaded and proved.

LEGAL UPDATES – TORT – MEDICAL NEGLIGENCE – HOSPITAL LIABILITY – HOME CARE TRAGEDY: HOSPITAL AND DOCTORS CLEARED OF LIABILITY AFTER DISCHARGE

In Yong Har Leng v Pantai Medical Centre Sdn Bhd & Ors [2026] 9 MLJ 857, the High Court dismissed a medical negligence claim arising from a patient’s death after discharge into private home nursing care. The Court held that the hospital had no duty to train nurses independently engaged by the family and was not vicariously liable for the treating specialists, who were independent contractors. Crucially, there was also no sufficient causal connection between the alleged failures and the patient’s death. The decision highlights that hospital liability is not unlimited and depends on the responsibility actually assumed and the relationship between the parties.

CORPORATE LAW – PIERCING THE CORPORATE VEIL – PLAIN ERROR OF MIXED LAW AND FACTS – APPELLATE INTERVENTION WARRANTED

In Capital City Property Sdn Bhd v Teh Swee Neo & Anor [2026] MLJU 540, the Court of Appeal set aside a High Court ruling that had pierced the corporate veil of a developer company and held it liable for unpaid rent owed by a related tenant company. The Court reaffirmed that companies within a corporate group retain separate legal personality, and that veil piercing is permissible only in exceptional circumstances such as actual or equitable fraud. Common directors, shared addresses, or corporate control were held insufficient to impose liability. As the tenancy agreements were entered into solely with the tenant company and no fraud was proven, the developer could not be made responsible for the tenant’s unpaid rent.

INCOMPETENT MASTER – TEST FOR UNSEAWORTHINESS – GENERAL AVERAGE CONTRIBUTIONS – CARRIER’S DUTIES

In Unity Ship Group SA v Euroins Insurance JSC (The “Happy Aras”) [2026] 1 Lloyd’s Rep 151, the Admiralty Court dismissed a shipowner’s claim for general average contribution after finding that the vessel was unseaworthy due to the incompetence of its master. The Court held that the master’s numerous failures – including deviating from the passage plan, ignoring warnings, and making false log entries – amounted to a complete dereliction of duty. As the loss arose from the carrier’s own actionable fault and the owners failed to prove due diligence under the Hague Rules, the claim for contribution was defeated entirely.

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.