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TORT – PURE ECONOMIC LOSS BAR REAFFIRMED: MMC LIABLE FOR NEGLIGENCE BUT PROTECTED FROM LOST PROFIT CLAIMS

In Asia Pacific Higher Learning Sdn Bhd v Majlis Perubatan Malaysia & Anor [2025] MLJU 3144, the High Court awarded over RM2 million in damages against the Malaysian Medical Council (MMC) for negligence, breach of statutory duty, and misfeasance during its accreditation of Lincoln University College’s medical programmes. While the court allowed direct financial losses such as survey costs, it barred claims exceeding RM550 million for lost profits, reaffirming the Federal Court’s rulings in Steven Phoa and UDA Holdings that pure economic loss is not recoverable from public or statutory bodies. The second defendant was further ordered to pay RM100,000 in exemplary damages for acting with targeted malice, marking a rare personal liability finding against a regulatory officer.

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16 11 月 ,2025
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EXEMPLARY DAMAGES – STATUTORY BODY DUTY – DAMAGES – OBTAINING APPROVAL

In Big Man Management Sdn Bhd v Tenaga Nasional Bhd [2025] 5 MLJ 290, the Federal Court reinstated nearly RM3.56 million in special damages and awarded RM100,000 in exemplary damages against TNB for wrongfully disconnecting electricity to an ice factory. The Court ruled that “strict proof” of special damages does not mean a higher burden beyond the civil standard of proof and affirmed that TNB, as a statutory monopoly, breached its statutory duty by using disconnection as leverage to collect payment. The judgment underscores that public utilities cannot misuse statutory powers, and consumers wrongfully deprived of essential services may be entitled to punitive remedies in exceptional cases.

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16 11 月 ,2025
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MEDICAL NEGLIGENCE – WHEN SILENCE HURTS: COURT SLAMS GOVERNMENT WITH RM2M+ IN AMPUTATION NEGLIGENCE SUIT

In L/Kpl Naraayanan Nair a/l Subramaniam v Kerajaan Malaysia & Ors [2025] 8 MLJ 503, the High Court delivered a landmark ruling in a medical negligence suit involving a young police corporal who lost his arm due to delayed and negligent treatment. Citing emotional trauma, denial of timely access to medical records, and ongoing life-altering consequences, the court awarded over RM2 million in damages – including RM200,000 in aggravated damages – this shows the judiciary’s increasing emphasis on dignity, transparency, and rehabilitative justice in personal injury claims.

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15 11 月 ,2025
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MEDICAL NEGLIGENCE & VICARIOUS LIABILITY – VACUUM EXTRACTION GONE WRONG: COURT HOLDS HOSPITAL LIABLE FOR CHILDBIRTH INJURY

The Court of Appeal decisively overturned the High Court’s findings, emphasizing the critical importance of accurate medical documentation and proper patient counseling. The hospital was held vicariously liable for its medical officer’s negligence, highlighting a clear judicial stance on protecting patient rights during childbirth procedures.

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15 11 月 ,2025
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ANCHORED IN CONTROVERSY: M/T AFRA OAK AND THE COST OF NAVIGATIONAL NEGLIGENCE

The English High Court’s decision in the M/T Afra Oak [2024] 2 Lloyd’s Rep 609 case sheds light on the delicate balance between following charterer instructions and exercising good seamanship. Anchoring in prohibited waters led to the vessel’s detention and highlighted the importance of complying with local and international maritime laws, such as UNCLOS. This ruling serves as a cautionary tale for operators in Malaysia and the region, emphasizing clear communication, legal compliance, and proactive risk management in high-traffic zones like the Straits of Malacca.

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1 1 月 ,2025
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TORT – BREAKING CONFIDENTIALITY – COURT CRACKS DOWN ON INSIDER LEAKS AND CORPORATE CONSPIRACY

In a recent ruling on corporate confidentiality, the court held two former employees liable for disclosing sensitive business information to a competitor, deeming it a breach of both employment contracts and fiduciary duties. This case highlights the serious consequences of unauthorized sharing of proprietary data and reinforces that such disclosures can lead to substantial legal and financial repercussions, even for the receiving parties if they knowingly benefit from confidential information.

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17 11 月 ,2024
疏忽

TORT — NEGLIGENCE — MEDICAL NEGLIGENCE — A MISSED LIFELINE: COURT HOLDS MEDICAL TEAM LIABLE FOR BRAIN DAMAGE IN HIGH-RISK PREGNANCY CASE

A recent High Court ruling involved a plaintiff who suffered severe brain damage after an emergency caesarean section at 33 weeks of pregnancy due to alleged medical negligence. The court examined whether the medical team breached their duty of care by failing to properly monitor the patient, resulting in oxygen deprivation and irreversible damage. The defendants, including doctors and nurses, were found liable for not acting on clear warning signs, leading to significant damages awarded to the plaintiff for her physical and mental disabilities.

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7 10 月 ,2024
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NAVIGATING LIABILITY: THE UNSEAWORTHINESS OF THE FJORD WIND AND ITS LEGAL CONSEQUENCES

The Court of Appeal ruled in The Fjord Wind case that the vessel was unseaworthy at the time of departure from Rosario on 30.06.1990, due to known issues with the crankpin bearings that had not been adequately addressed. This unseaworthiness led to a main engine failure shortly after departure, necessitating the transhipment of cargo and incurring additional costs.

The court found the shipowners liable for damages, emphasizing their failure to exercise due diligence in maintaining the vessel’s seaworthiness. The ruling underscores the critical importance of thorough inspections and repairs in maritime operations, highlighting the legal responsibilities of shipowners to prevent unseaworthiness and related liabilities.

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7 10 月 ,2024
疏忽

NEGLIGENCE – HOTEL LIABILITY: UNVEILING THE LEGAL RISKS IN NEGLIGENCE AND VICARIOUS LIABILITY CASES

In the hospitality industry, the duty of care owed by hotels to their guests is paramount. This legal update explores a scenario where a hotel’s failure to safeguard access to guest rooms leads to tragic consequences. It examines the potential negligence claim against a hotel employee and the broader implications of vicarious liability for the hotel and its owners. Drawing on relevant case law, we delve into the essential elements of negligence and the circumstances under which a hotel can be held responsible for the actions of its staff.

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9 9 月 ,2024

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Recent Legal Updates

CIVIL PROCEDURE – STRIKE OUT UNDER ORDER 18 RULE 19(1)(A),(B) RULES OF COURT 2012 – EXTENSION OF TIME APPLICATION

16 11 月 ,2025

In Badan Pengurusan Subang Parkhomes v Zen Estates Sdn Bhd [2025] MLJU 3591, the High Court reaffirmed that non-compliance with Order 37 Rule 1(5) of the Rules of Court 2012 does not automatically invalidate assessment of damages proceedings. The Court held that procedural rules must be read with the overriding objective of ensuring justice, and that the six-month time limit to file a Notice of Appointment is directory, not mandatory. Finding no prejudice to the defendant and noting active case management by the plaintiff, the Court dismissed the developer’s strike-out bid and allowed an extension of time for assessment to proceed. The decision underscores the judiciary’s commitment to substantive fairness over procedural rigidity in post-judgment proceedings.

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TORT – PURE ECONOMIC LOSS BAR REAFFIRMED: MMC LIABLE FOR NEGLIGENCE BUT PROTECTED FROM LOST PROFIT CLAIMS

16 11 月 ,2025

In Asia Pacific Higher Learning Sdn Bhd v Majlis Perubatan Malaysia & Anor [2025] MLJU 3144, the High Court awarded over RM2 million in damages against the Malaysian Medical Council (MMC) for negligence, breach of statutory duty, and misfeasance during its accreditation of Lincoln University College’s medical programmes. While the court allowed direct financial losses such as survey costs, it barred claims exceeding RM550 million for lost profits, reaffirming the Federal Court’s rulings in Steven Phoa and UDA Holdings that pure economic loss is not recoverable from public or statutory bodies. The second defendant was further ordered to pay RM100,000 in exemplary damages for acting with targeted malice, marking a rare personal liability finding against a regulatory officer.

Read More »

ERINFORD INJUNCTION – COURT OF APPEAL CLARIFIES: EX-PARTE ERINFORD INJUNCTIONS ARE THE EXCEPTION, NOT THE RULE

16 11 月 ,2025

In Edisijuta Parking Sdn Bhd v TH Universal Builders Sdn Bhd & Anor [2025] 5 MLJ 524, the Court of Appeal clarified that ex parte Erinford injunctions at the appellate stage should only be granted in truly exceptional circumstances where giving notice would defeat the purpose of the order. Wong Kian Kheong JCA held that, under rule 50 of the Rules of the Court of Appeal 1994, such applications should generally be heard inter partes to ensure fairness and prevent abuse. Exercising powers under section 44(1) of the Courts of Judicature Act 1964, the Court granted a conditional interim Erinford injunction pending appeal, fortified by a RM200,000 deposit and an undertaking to pay damages. The ruling provides clear guidance on balancing urgency, procedural fairness, and judicial efficiency in appellate injunctions.

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TOTAL FAILURE CONSIDERATION – FEDERAL COURT OVERRULES BERJAYA TIMES SQUARE: TOTAL FAILURE OF CONSIDERATION REDEFINED

16 11 月 ,2025

In Lim Swee Choo & Anor v Ong Koh Hou @ Won Kok Fong [2025] 6 MLJ 327, the Federal Court unanimously overruled Berjaya Times Square Sdn Bhd v M Concept Sdn Bhd and clarified that the doctrine of total failure of consideration applies only to restitutionary relief, not to contractual termination. The Court held that the correct test is whether the promisor has performed any part of the contractual duties in respect of which payment is due, adopting Stocznia Gdanska SA v Latvian Shipping Co [1998] 1 WLR 574. Finding that the appellants had partly performed their obligations and the respondent had derived benefits, the Court rejected the respondent’s claim for restitution and restored the appellants’ contractual claim. The landmark decision restores clarity between contract and restitution, reinforcing commercial certainty in Malaysian law.

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CONTRACT (BILL OF LADING) – NO DUTY TO DETECT FRAUD: COURT CLEARS MAERSK OF LIABILITY FOR FALSE CONTAINER WEIGHTS

16 11 月 ,2025

In Stournaras Stylianos Monoprosopi EPE v Maersk A/S [2025] 2 Lloyd’s Rep 323, the English Commercial Court held that carriers are not liable for fraudulent misdeclarations by shippers where bills of lading are issued for sealed containers. The Court ruled that Maersk had no duty to verify or cross-check declared weights against Verified Gross Mass (VGM) data under the SOLAS Convention, as its obligation under the Hague Rules extended only to the apparent external condition of cargo. However, the judgment signals that a limited duty of care could arise in future where a carrier is put on notice of fraud. For now, carriers may rely on shipper declarations, but consignees must exercise commercial vigilance and due diligence when relying on bills for payment.

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EXEMPLARY DAMAGES – STATUTORY BODY DUTY – DAMAGES – OBTAINING APPROVAL

16 11 月 ,2025

In Big Man Management Sdn Bhd v Tenaga Nasional Bhd [2025] 5 MLJ 290, the Federal Court reinstated nearly RM3.56 million in special damages and awarded RM100,000 in exemplary damages against TNB for wrongfully disconnecting electricity to an ice factory. The Court ruled that “strict proof” of special damages does not mean a higher burden beyond the civil standard of proof and affirmed that TNB, as a statutory monopoly, breached its statutory duty by using disconnection as leverage to collect payment. The judgment underscores that public utilities cannot misuse statutory powers, and consumers wrongfully deprived of essential services may be entitled to punitive remedies in exceptional cases.

Read More »

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