SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 MarsdenLR 2988

HIGH COURT MALAYA MUAR
BOULEVARD PILLAR SDN BHD – Appellant
Versus
GOH HARDWARE & CONSTRUCTION SDN BHD – Respondent
[Civil Suit No: JB-22NCVC-32-11/2023]



Petitioner Advocates:Tan Jose Nan,Tay Ming Hung ,Respondent Advocate: Yap Che Kai

The standard of proof in civil cases is based on the balance of probabilities, determining contractual obligations and breaches relevant to claims and counterclaims.

Headnote:(A) Contracts - Breach of Contract - Standard of Proof - Plaintiff claimed damages from Defendant for breach of contract by abandoning the site, while Defendant counterclaimed for unpaid progress claims. The court held that Plaintiff proved damages based on the balance of probabilities and declines Defendant's claim as it failed to provide specific evidence of outstanding payments. (Paras 20, 90)

(B) Contractual Obligations - The court found Defendant's termination was unlawful since there were no sums due to them, and thus they were liable for damages incurred by Plaintiff in engaging a new contractor to complete the work. (Paras 43, 94)

Facts of the case:
The Plaintiff engaged Defendant as a contractor for two construction contracts. Defendant halted work, claiming non-payment for progress claims, leading to mutual claims of breach of contract. (Paras 4-12)

Findings of Court:
The court concluded that Defendant did not establish that any payment was due upon their termination of the contract, making their actions unjustifiable. (Paras 42, 93)

Issues: Whether Defendant breached the contract by stopping work and abandoning the site, and whether they had unpaid progress claims that justified their termination. (Paras 22-23)

Ratio Decidendi: The court determined that based on the evidence, Defendant had no valid grounds for termination and was liable for additional costs incurred by Plaintiff in hiring new contractors. (Paras 43, 94)

Result: Plaintiff's claim for damages allowed; Defendant's counterclaim partly allowed and set off against Plaintiff's damages award.

Table of Content
1. introduction to contract breach case. (Para 1 , 2 , 3)
2. details on construction contracts and payments. (Para 4 , 5 , 6 , 8 , 10)
3. claims from both parties regarding contract breach. (Para 12 , 13 , 28)
4. plaintiff's new contracts pursue claims for damages. (Para 14 , 18 , 19)
5. the standard of proof in civil cases. (Para 20 , 21)
6. analysis of breach and its justification. (Para 22 , 23 , 25 , 26 , 29)
7. documentation and evidence regarding claims. (Para 30 , 32 , 35)
8. termination and payments due noted. (Para 40 , 42)
9. case law referencing breach analysis. (Para 44 , 46)
10. plaintiff's claims compared with harmony's costs. (Para 47 , 48 , 50 , 51)
11. determining works completed before termination. (Para 53 , 54 , 56)
12. communication breakdown after contract termination. (Para 60 , 62)
13. entitlement to damages established. (Para 87 , 89)
14. defendant's counterclaim for payment. (Para 92 , 93)
15. court’s award and costs decision. (Para 95 , 99 , 100)
Suria Kumar Dj Paul J:

Introduction

[1] This is yet another dispute between a developer and a main contractor.

[2] Both parties point fingers at each other alleging the other had breached the contract.

Background Facts

[3] The Plaintiff company is a developer and the Defendant is the contractor.

[4] On 24 April 2019, the Plaintiff appointed the Defendant as the main contractor to construct houses on two pieces of land.

[5] The houses were to be constructed on PTD 61070 HSM 9052 and PTD 61072 HSM 9054, Jalan Parit Hup Soon Kang, Mukim Simpang Kanan, Daerah Batu Pahat, Johor.

[6] Two separate contracts were entered into for the construction works on the two pieces of land. The first contract will be referred to as PTD 61070 and the second contract as PTD 61072 based on the land title number.

[7] The total value of contract PTD 61070 is RM 3,099,780.00. The commencement date was 1 October 2019 and the completion date was 30 September 2020.

[8] The total value of the contract PTD is 61072 RM 3,171,280.00. The commencement date was 1 September 2019 and the completion date was 31 August 2020.

[9] The Defendant accepted the appointment, executed the contract and commenced work. However, the evidence does not indicate when precisely the Defendant commenced work for both contracts.

[10] For contract, PTD 61070, documentary evidence in the form of progressive claims indicates that Defendant submitted three progressive claims to Plaintiff. One was submitted on 29 May 2020 and two on 12. 6.2020. Whereas for contract PTD 61072, Defendant submitted eight progressive claims to Plaintiff on 26 October 2019, 27 November 2019, 28 December 2019, 22 January 2020, 25 February 2020, 16 April 2020, 29 May 2020 and 12 June 2020. Some of the dates for these progressive claims do not tally with the date of submission.

[11] About eleven months later, Defendant stopped work and left the project site on 27 July 2020.

[12] Plaintiff claims Defendant stopped work and abandoned the site. Thus, according to Plaintiff, Defendant breached the contract.

[13] On the other hand, Defendant claims they did not receive payment for three progressive claims from Plaintiff for contract PTD 61070. As for contract PTD 61072, they make a general plea that Plaintiff failed to honour their progressive claims without specifying any details. Therefore, Defendant contends Plaintiff had breached the terms of payment under the contract, prompting Defendant to terminate the contract vide their letter dated 27 July 2020 and leave the site.

[14] Thereafter, Plaintiff sourced new contractors to take over and continue with the construction works yet to be completed by Defendant.

[15] The Plaintiff obtained one tender from SKBP Construction Sdn Bhd However, they decided to appoint another contractor called Harmony Building Construction ('Harmony'), whose quotation was much lower than that of SKB Construction Sdn Bhd.

[16] The letter of award from the Plaintiff to Harmony and Articles of Main Contact for PTD 61070 and 61072 between bo

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top