The court clarified the burden of proof regarding ownership and standing in claims of conversion and trespass to goods, emphasizing the need for clear evidence presented in line with pleadings.

[1] This is an appeal by the appellant (the defendant in the High Court) against the decision of the High Court at Kuala Lumpur dated 5 May 2014, which allowed part of the respondent's (the plaintiff in the High Court) claim against the appellant, in that, the appellant was ordered to pay the respondent, damages in the sum of RM659,603.60 with cost and interest.

[2] The respondent in turn cross-appealed seeking to have the order that its claim for loss of profit in the sum of RM4,367,387.02 which was dismissed vide the order dated 5 May 2014, be allowed.

[3] For ease of reference, in this judgment the parties will be referred to as they were in the High Court.

Brief Background Of Facts

[4] The brief background facts (Agreed Facts as in Document marked as "E") had been set out by the learned judge in the Grounds of Judgment (GoJ) at paras 1 to 5. In order to save judicial time, the same are reproduced as follows.

[5] The plaintiff is a sole proprietor trading under the name and style of "Forest Wood Flooring", with her business address at No 66, Lorong Air Putih 21, Taman Seri Maju, 25300 Kuantan, Pahang.

[6] The defendant is a company with its registered address at 45B, Jalan Kepayang, Kawasan 16, off Jalan Meru, 41050 Klang, Selangor Darul Ehsan and its business address at Lot 2126, No 286, Jalan Pulau Carey 42500, Telok Panglima Garang, Selangor Darul Ehsan.

[7] Pursuant to an order by the Kuala Terengganu High Court dated 26 August 1999 vide Originating Summons No 24-35-99, the land described as HS (D) 2485, PT-No. 111, Mukim Bandi, Daerah Kemaman, Terengganu Darul Iman, then owned by Homeland Parquet Industries (Homeland) and charged to Malayan Banking Berhad (the Property), was sold by public auction.

[8] Homeland had since been wound up pursuant to an order of the Court dated 13 August 1999.

[9] The plaintiff is one of the Directors in a company known as Greenwood Corporation (M) Sdn Bhd with its address as that of Homeland.

[10] The plaintiff's husband, one Lee Guan Choon, is a shareholder of Greenwood Corporation (M) Sdn Bhd and is also a Director of Homeland.

[11] On or about 28 September 2009, pursuant to a public auction held at Kuala Terengganu High Court, the defendant was the successful bidder for the said Property which was auctioned off at RM3,060,000.00.

[12] Around the material time, the plaintiff claimed that she had, with the consent of Homeland, placed her machine and business equipment (the Machineries) at the said Property for purposes of storage.

[13] The plaintiff alleged that the defendant had wrongfully and/or unlawfully taken and/or removed the Machineries from the said Property to an undisclosed location without the plaintiff's permission and/or notice causing the plaintiff to suffer loss in the sum of approximately RM4,367,387.02. The particulars of plaintiff's loss and damages are as set out in para 9 of the plaintiff's Statement of Claim (SOC).

[14] A legal demand was made by the plaintiff through her solicitors by notice of demand dated 12 May 2010 for the sum of RM4,367,387.02.

[15] When the defendant failed to pay the amount claimed, the plaintiff commenced this suit on 10 August 2010.

[16] The defendant refuted the plaintiff's claim and in its Amended Defence, the defendant alleged that it has successfully bid for the said Property and before taking possession of the said Property, it has advertised public notices in two newspapers giving notice to the owner of the Machineries to claim the Machineries within a specified period. The defendant claimed that the plaintiff's husband, came to the Property and took away the Machineries