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COURT OF APPEAL PUTRAJAYA
PROJEK LEBUH RAYA UTARA-SELATAN SDN BHD – Appellant
Versus
KIM SENG ENTERPRISE (KEDAH) SDN BHD – Respondent
[Civil Appeal No: P-02-544-2011]



A party remains liable for contractual obligations unless a clear waiver or agreement superseding the initial terms is established; both parties must adhere to contracted terms, including obligations of maintenance and care.

Headnote:(A) Breach of Contract - Negligence - Nuisance - Rylands v. Fletcher - Appeal against High Court decision granting damages - The respondent’s claims for damages due to landslide and trespassing by the appellant's contractors were considered, with the court determining the liability and breaches under the agreements entered between parties (Para 1, 8, 12).

(B) Key Findings - The contract stipulated obligations regarding land use and earth dumping, which the appellant contended were breached by the respondent. The High Court’s affirmative finding of breach by the appellant was overturned by the appellate court due to misinterpretation of contract terms and the actions of the respondent (Paras 21, 54, 68, 74).

(C) Issues - The primary issues involved contractual breaches, the liability for damages, and assessments based on the Tol Agreement and the June Agreement (Paras 18, 110-133).

(D) Result - Appeal allowed, High Court's judgment set aside, and the amount of RM188,760.33 ordered to be paid by the appellant to the respondent (Paras 135, 136).

Table of Content
1. background of the parties involved. (Para 1 , 2 , 3)
2. description of property damages and remedial efforts. (Para 4 , 5)
3. claim details regarding damages and compensation. (Para 8 , 9)
4. defendant's argument about trial errors. (Para 12 , 13)
5. burden of proof in damages assessment. (Para 72 , 73 , 74)
6. legal principles relating to nuisance and trespass. (Para 123 , 124 , 126 , 127 , 129)
7. final judgment and order. (Para 134)

[1] After a full trial before the High Court, judgment was entered in favour of the respondent (the plaintiff before the High Court) with costs of RM30,000.00. Aggrieved, the appellant (the defendant before the High Court) appeals to this Court.

The Parties

[2] The respondent is the registered proprietor of three pieces of land known as Geran Mukim No: 3607, Lot No: 2391 ("Lot 2391"), Geran Mukim No: 2954, Lot No: 4197 ("Lot 4197") and Geran Mukim No: 3608, Lot No: 2392 ("Lot 2392") and they are all located at Mukim Ayer Putih, Daerah Pendang, Kedah (hereinafter referred to as "the lands").

[3] The appellant is the North-South Highway Concessionaires who built the highway just next to the lands belonging to the respondent.

The Brief Facts

[4] There is a hill known as Bukit Jenun on the lands belonging to the respondent. At the material time, the lands were planted with oil palm trees.

[5] Sometime in January 2000, there was a landslide at Bukit Jenun within the side of the appellants right of the way. The appellant entered into the lands belonging to the respondent to carry out remedial works as a result of that landslide. Thereafter, the appellant sought to enter into a Temporary Occupation Agreement dated 16 August 2000 (hereinafter referred to as the "Tol Agreement") with the respondent and, consequently, breached the terms of the Tol Agreement and damaged the lands belonging to the respondent thereby causing loss and damage.

[6] ln the statement of claim, the respondent sought for the following damages as reflected in para 13 which was worded as follows:

"13. Memandangkan perkara-perkara yang tersebut di atas, plaintif telah mengalami kerugian dan kerosakan.

Butir-Butir

A. Pampasan mengikut skala yang ditetapkan:

kaki persegi x RM6 x 30%

Setiap 134.55 kaki persegi) x RM129

66,813.76

----------------

B. Kos pengukuran tanah berdasarkan keluasan: RM36,190.75.

C. Kos untuk menstabilkan cerun bukit yang berhala Timur atas hartanah-hartanah tersebut dan kerja-kerja pemulihan tanah (soil treatment) di hartanah-hartanah tersebut: 59,233.47 meter persegi x RM200 = RM11,846,694.00

D. Yuran jurutera perunding dan juru ukur untuk kerja-kerja ukur tanah, tanah, penstabilan cerun bukit dan pemulihan tanah: RM196,721.27.

E. Kerugian sehari sebab tergendalanya projek perumahan atas hartanah-hartanah tersebut: RM3,500.00 sehari dari 16 Februari 2001 dan masih berlanjutan."

[7] And at para 14 of the statement of claim, the respondent sought for the following prayers:

"14. Dan plaintif menuntut:

(a) Wang jumlah RM1,958,211.10;

(b) Secara alternatif atau selanjutnya gantirugi am;

(c) Selanjutnya gantirugi aggravated;

(d) Faedah;

(e) Kos;

(f) Lain-lain relief atau perintah selanjut yang dianggap patut oleh mahkamah."

The Respondents Claim

[8] On 16 August 2000, the respondent and the appellant entered into a Tol Agreement. By this Tol Agreement, the appellant was allowed to do remedial works on the lands belonging to the respondent. The Tol Agreement contained the following clauses:

(a) That the appellant be given a temporary licence to enter and occupy part of Lot 2391 for a period of six months from 16 August 2000 until 15 February 2001. The temporary licence can be extended with the written authority of the respondent.

(b) The appellant has to furnish an "as-built" drawing for the works done on the said Lot 2391.

(c) A final joint inspection has to be conducted within seven days from the date of the completion of the works.

(d) The appellant has to demobilise and remove from Lot 2391 all plant, equipment, labour, rubbish, surpl

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