[1] This is a unanimous decision.

The Issues

[2] The appeal before us stemmed from a dispute relating to an industrial building project known as "Projek Skim Bangunan Industri Ringan Bersepadu Pencemaran Bebas" in Seberang Perai Tengah, Pulau Pinang. As its name suggests the project was a special industrial project intended to cater for industries that were likely to produce and discharge environmentally hazardous substances and which may pose environmental risks to living organisms as defined in the Environmental Quality Act 1974 ( EQA ).

[3] This appeal focuses on the practical problems in the law of negligence with regard to the general and consequential issues relating to the duty of care owed by the respondents to the appellants against damages being pure economic loss, not linked to any personal injury or structural defects or damage to the property.

Background Facts

[4] There were 50 appellants in this appeal. They were the purchasers of units of industrial building in the above named project. The developer of the project was Merger Acceptance Sdn Bhd. In 1995, the appellants signed their respective sale and purchase agreements (the SPAs) with the developer. Th