2025 MarsdenLR 5034
HIGH COURT MALAYA KUALA LUMPUR
SS MOTOR CENTURY SDN BHD – Appellant
Versus
WAWASAN SINAR GEMILANG SDN BHD & ORS – Respondent
[Suit No: WA-22NCvC-642-11/2023]
Vicarious liability cannot attach to property owners in the absence of an employer-employee relationship, and a mere landlord-tenant relationship is insufficient to impose liability.
Headnote:(A) Rules of Court 2012 - Order 18, Rule 19(1) - Application to strike out Writ and Statement of Claim - Defendants contended that Plaintiff's claim was frivolous and lacked reasonable cause of action - Court emphasized that vicarious liability cannot attach to property owners in absence of employer-employee relationship - Application allowed, costs ordered against Plaintiff. (Paras 1, 14, 18, 24)
(B) Vicarious Liability - Requirements for establishing vicarious liability include a relationship of employer-employee or agent-principal - Mere landlord-tenant relationship insufficient to impose liability. (Paras 20, 22)
(C) Duty of Care - Landowners owe a duty of care to ensure safety but liability depends on control over the business operation. (Paras 17, 21)
| Table of Content |
|---|
| 1. factual background of the case (Para 2 , 3 , 4 , 5 , 6 , 7 , 8) |
| 2. arguments regarding liability and standing (Para 13 , 14 , 15) |
| 3. court's reasoning on striking out (Para 16 , 17 , 18) |
| 4. application of vicarious liability principles (Para 19 , 20 , 21 , 22 , 23) |
| 5. decision on striking out application (Para 24) |
[1] This was an application by the 4th Defendant ('D4') and 5th Defendant ('D5') to strike out the Plaintiff's Writ and Statement of Claim ('SoC') dated 15 November 2023 pursuant to limbs (a) to (d) of O 18, r 19(1) of the Rules of Court 2012 ('RC 2012').
[2] The Plaintiff is a company incorporated under the Companies Act 1965 with its registered address at No 4-1, Suite 2, Bangunan Simvest, Jalan Seri Bintang 4 (7/36), Bukit Sri Bintang, 52100 Kuala Lumpur and business address at 6, Jalan Metro Perdana Barat 11, Taman Perindustrian Sri Edaran, 52100 Kuala Lumpur ('Plaintiff's Factory'). The Plaintiff is in the business of wholesaling and trading of motorcycle spare parts.
[3] The 1st Defendant ('D1') is also a company incorporated under the Companies Act 1965 with its registered address at No 19 (Suite A), Jalan Forest Heights 8, Forest Heights, 70450 Seremban, Negeri Sembilan and business address at No 6, Jalan 9/34B, Off Jalan Kepong, Sri Edaran Industrial Park, 52100 Kuala Lumpur ('D1's Factory'). D1 carries out paper coating and varnish works at D1's Factory, which is adjacent to the Plaintiff's Factory.
[4] The 2nd Defendant ('D2') and 3rd Defendant ('D3') are the directors of D1.
[5] D4 and D5 are the registered owner of the property known as PN26981, Lot 55065, Mukim Batu, Daerah Kuala Lumpur ('Property') where D1's Factory is located.
[6] The Plaintiff alleged that, on 24 August 2023, a fire which originated from D1's Factory had spread to the Plaintiff's Factory. The Plaintiff's workers contacted the Fire and Rescue Department ('FRD') and the firemen extinguished the fire.
[7] The Plaintiff was informed by the FRD that the source of the fire was because there had been a "resistance heating" on the motor of the machine in D1's Factory, which is attributed to the flammable material around the machine.
[8] Due to the damage from the fire, the Plaintiff's Factory could not be used and occupied, thus resulting in loss of business to the Plaintiff. The Plaintiff brought this action against D4 and D5 as the landowners.
[9] It is undisputed fact that the Plaintiff had signed the Discharge, Indemnity and Subrogation Form dated 13 December 2023 with Takaful Ikhlas General Berhad ('Takaful Ikhlas') and the Property Discharge and Subrogation Forms dated 23 January 2024 with Generali Insurance Malaysia Berhad ('Generali').
[10] Pursuant to the abovementioned Forms, the Plaintiff was paid RM1,462,383.27 by Takaful Ikhlas and RM3,661,995.42 by Generali.
[11] On 11 June 2024, Takaful Ikhlas and Generali made a claim for the said amounts against D1 vide Suit No WA-22NCC-386-06/2024 ('Suit 386'). Suit 386 was transferred from the Commercial Division of the Kuala Lumpur High Court to this Court on 8 October 2024 and registered as Civil Suit No: WA-22NCvC-174-03/2025 ('Suit 174'). On 17 March 2025, an order was made for the present suit to be heard together with Suit 174.
[12] The cause papers in relation to encl 37 are as follows:
(a) Notice of Application dated 17 July 2024 (encl 37);
(b) D4's and D5's Affidavit In Support ('AIS') affirmed by D5 on 16 July 2024 (encl 36);
(c) the Plaintiff's Affidavit In Reply ('AIR') affirmed by its Director, See Soo Sien on 13 August 2024 (encl 38); and
(d) D4's and D5's AIR affirmed by D5 on 30 August 2024 (encl 40).
[13] D4 and D5 relied on all four limbs under O 18, r 19(1) of the RC 2012 in their attempt to strike out the Writ and SoC, which reads as follows:
" Striking out pleadings and endorsements (O 18, r. 19)
19. (1) The Court may at any stage of the proceedings order to be struck out or amended any pleading or the endorsement, of any writ in the action, or anythi