{"id":6001,"date":"2025-11-16T13:07:31","date_gmt":"2025-11-16T05:07:31","guid":{"rendered":"https:\/\/yhalaw.com.my\/?p=6001"},"modified":"2025-11-16T13:07:34","modified_gmt":"2025-11-16T05:07:34","slug":"exemplary-damages-statutory-body-duty-damages-obtaining-approval","status":"publish","type":"post","link":"https:\/\/yhalaw.com.my\/zh\/exemplary-damages-statutory-body-duty-damages-obtaining-approval\/","title":{"rendered":"EXEMPLARY DAMAGES \u2013 STATUTORY BODY DUTY \u2013 DAMAGES \u2013 OBTAINING APPROVAL"},"content":{"rendered":"\n

1. Summary and Facts<\/strong><\/h3>\n\n\n\n

In Big Man Management Sdn Bhd v Tenaga Nasional Bhd [2025] 5 MLJ 290<\/strong>, the Federal Court reinstated the High Court\u2019s decision awarding special and exemplary damages against Tenaga Nasional Berhad (\u201cTNB\u201d) for wrongful disconnection of electricity supply to an ice-making factory.<\/p>\n\n\n\n

The appellant, Big Man Management Sdn Bhd, operated the factory owned by Ice Man Sdn Bhd. TNB had disconnected the factory\u2019s electricity twice, alleging meter tampering, despite the tampering being rectified. The disconnections caused business losses and prompted Big Man to procure generators and diesel to continue operations.<\/p>\n\n\n\n

The High Court awarded both special and exemplary damages, but the Court of Appeal reversed the award, holding that special damages were not strictly proven and exemplary damages were unavailable in contract. Big Man appealed to the Federal Court.<\/p>\n\n\n\n

2. Legal Issues<\/strong><\/h3>\n\n\n\n

\u2022 Whether exemplary damages are claimable by a consumer of electricity in a claim for breach against TNB.
\u2022 What principles should guide the assessment of quantum for exemplary damages.
\u2022 What is the correct interpretation of \u201cstrictly proved\u201d and the standard of proof for special damages?
\u2022 Whether exemplary damages can be awarded in a breach of contract claim.<\/p>\n\n\n\n

3. Court\u2019s Findings<\/strong><\/h3>\n\n\n\n

\u2022 The Federal Court allowed Big Man\u2019s appeal and restored the High Court\u2019s finding of liability.
\u2022 Special Damages<\/strong> \u2013 \u201cStrict proof\u201d refers only to proof on a balance of probabilities; Big Man successfully established losses on this standard.
\u2022 Exemplary damages<\/strong> may be awarded against a statutory body, including TNB, when it exercises monopoly powers.
\u2022 The Court granted RM100,000 in exemplary damages<\/strong>, stressing proportionality and case-specific assessment rather than fixed percentage formulas.
\u2022 General damages were not allowed because the appellant did not appeal the dismissal of that portion of the claim.<\/p>\n\n\n\n

4. Practical Implications<\/strong><\/h3>\n\n\n\n

\u2022 \u201cStrictly proved\u201d does not<\/strong> impose a higher evidentiary burden; it simply requires clear, credible proof of special damages.
\u2022 Statutory bodies with monopoly powers (such as TNB) may face exemplary damages for oppressive or arbitrary conduct<\/strong>.
\u2022 Exemplary damages in contract remain limited but may be awarded where there is independent wrongful conduct<\/strong>, including breach of statutory duty.
\u2022 TNB cannot use electricity disconnection as a method of debt recovery<\/strong>, reaffirming electricity supply as a public necessity.<\/p>\n","protected":false},"excerpt":{"rendered":"

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 \u201cstrict proof\u201d 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.<\/p>\n","protected":false},"author":1,"featured_media":6002,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1561],"tags":[2286,3733,3735,3734,1987],"class_list":["post-6001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tort","tag-contract-law","tag-exemplary-damages","tag-special-damages","tag-statutory-bodies","tag-tnb"],"yoast_head":"\nEXEMPLARY DAMAGES \u2013 STATUTORY BODY DUTY \u2013 DAMAGES \u2013 OBTAINING APPROVAL | Yew Huoi, How & Associates | Leading Malaysia Law Firm<\/title>\n<meta name=\"description\" content=\"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 \u201cstrict proof\u201d 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.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/yhalaw.com.my\/zh\/exemplary-damages-statutory-body-duty-damages-obtaining-approval\/\" \/>\n<meta property=\"og:locale\" content=\"zh_TW\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EXEMPLARY DAMAGES \u2013 STATUTORY BODY DUTY \u2013 DAMAGES \u2013 OBTAINING APPROVAL | Yew Huoi, How & Associates | Leading Malaysia Law Firm\" \/>\n<meta property=\"og:description\" content=\"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 \u201cstrict proof\u201d 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. 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