Poteck Enterprise Sdn Bhd v Richallenge Corporation Sdn Bhd

s-02imncvc-151-01-2022 Court of Appeal (Mahkamah Rayuan) 13 May 2025 • S-02(IM)(NCvC)-151-01/2022 • 17 min read
8 cases cited (0 SG, 8 foreign)

Catchwords

Appellate courts may intervene in damages assessment appeals if the trial judge's findings are plainly wrong due to a lack of judicial appreciation of evidence, including failure to consider relevant facts or relying on unsupported assumptions. Damages must be proven with clear, precise evidence; reliance solely on expert opinion without factual support is insufficient. Where claims such as variations or loss of profit are not adequately proven, only nominal damages are appropriate. Courts may accept interim valuations like IPCs in the absence of joint measurement, but they must use the most accurate and updated version available.

Practice Areas

Appellate courts may intervene in damages assessment appeals if the trial judge's findings are plainly wrong due to a lack of judicial appreciation of evidence, including failure to consider relevant facts or relying on unsupported assumptions. Damages must be proven with clear, precise evidence; reliance solely on expert opinion without factual support is insufficient. Where claims such as variations or loss of profit are not adequately proven, only nominal damages are appropriate. Courts may accept interim valuations like IPCs in the absence of joint measurement, but they must use the most accurate and updated version available.

Judges (3)

Alwi bin Abdul Wahab Coram Lee Swee Seng Coram Lim Chong Fong Delivered

Counsel (6)

Goh & Associates Firm Ronny Cham & Co Firm Chleo Teo Counsel Respondent Joan Goh Pean Nee Counsel Appellant Ronnie Cham Ngit Shin Counsel Respondent Toh Puan Marina Tiu Counsel Appellant

Parties (2)

Poteck Enterprise Sdn Bhd Appellant Richallenge Corporation Sdn Bhd Respondent

Case Significance

Poteck Enterprise Sdn Bhd v Richallenge Corporation Sdn Bhd is a Court of Appeal (Mahkamah Rayuan) decision dated May 13, 2025 (citation: s-02imncvc-151-01-2022). <p>A main contractor appealed against the High Court's assessment of damages awarded to a sub-contractor for wrongful termination of a school construction sub-contract in Sabah worth RM35.2 million. The Court of Appeal allowed the appeal in part, reducing the damages for work done to RM783,200, substituting variation claims with nil, and reducing loss of profit to nominal RM10,000, finding the trial judge failed to consider relevant evidence and relied on unsupported expert assumptions.</p> The panel comprised Alwi bin Abdul Wahab, Lee Swee Seng and Lim Chong Fong, with Lim Chong Fong delivering the judgment. Counsel appearing: Chleo Teo (counsel for respondent), Joan Goh Pean Nee (counsel for appellant), Ronnie Cham Ngit Shin (counsel for respondent), Toh Puan Marina Tiu (counsel for appellant).

Summary

A main contractor appealed against the High Court's assessment of damages awarded to a sub-contractor for wrongful termination of a school construction sub-contract in Sabah worth RM35.2 million. The Court of Appeal allowed the appeal in part, reducing the damages for work done to RM783,200, substituting variation claims with nil, and reducing loss of profit to nominal RM10,000, finding the trial judge failed to consider relevant evidence and relied on unsupported expert assumptions.

What was the outcome of Poteck Enterprise Sdn Bhd v Richallenge Corporation Sdn Bhd?

<p>A main contractor appealed against the High Court's assessment of damages awarded to a sub-contractor for wrongful termination of a school construc...

Statutes Cited

Evidence Act 1950 (Cap 56)

Cases Cited (8)

UK (3)
[1938] 2 All ER 788 [1951] 1 KB 422 [1971] WLR 1731
MY (5)
[1990] 1 CLJ 133 [1995] 3 CLJ 511 [2007] 1 CLJ 611 [2020] 10 CLJ 1 [2020] 3 MLJ 704