1. ) LOOI CHEE HONG 2. ) CHEA AI RENE v 1. ) LCC BUILDER SDN BHJD 2. ) LEE CHEE CHUAN 3. ) FONG CHONG LAM

wa-12bncc-3-02-2025 High Court (Mahkamah Tinggi) 2 April 2026 • WA-12BNCC-3-02/2025 • 33 min read
18 cases cited (0 SG, 18 foreign)

Catchwords

Contract Law – Oral Contract, Implied Collateral Agreement, Privity of Contract, Intention to Create Legal Relations, Consideration – Formation of Oral or Implied Collateral Agreements – Whether a binding collateral agreement exists between third parties and defendants, independent of a primary credit facility, where one party exercises de facto control over a project and receives financial proceeds despite not being a party to the main contract. Civil Procedure – Third-Party Claim, Indemnity, Burden of Proof, Balance of Probabilities. Appellate Practice – Standard of Appellate Intervention, "Plainly Wrong" Test, Judicial Appreciation of Evidence, Margin of Appreciation – Scope of Appellate Intervention in Findings of Fact – Whether an appellate court can disturb a trial judge’s findings regarding the existence of an oral agreement when those findings are based on the trial judge’s assessment of witness demeanour and credibility. Evidence – Contemporaneous Documentary Evidence, Probative Weight, Credibility of Witnesses, Evasive Testimony, De Facto Control – Evidentiary Weight of Contemporaneous Documents vs. Oral Testimony – Whether a party’s subsequent oral denials can override contemporaneous documentary evidence, such as signed work orders and bank transfers with specific project references. Commercial Law – Construction Project Management, Sole Proprietorship, Reimbursement Defence – The Validity of a Reimbursement Defence in the Absence of Documentation – Whether a claim for reimbursement for costs advanced (exceeding RM 190,000) can be sustained in a commercial context without any prior agreement, invoices, or contemporaneous documentation acknowledging the debt. Liability of a Sole Proprietor – Business Entity – Whether, as a matter of law, a sole proprietor can rely on the fact that receipts were issued in their business name rather than their personal name to distance themselves from personal liability.

Practice Areas

Judges (1)

Parties (5)

Statutes Cited

Rules of Court 2012

Cases Cited (18)

UK (2)
[1913] AC 30 [1947] 2 All ER 372
MY (16)
[1965] 1 MLJ 228 [1968] 1 MLJ 170 [1980] 2 MLJ 86 [1986] 2 MLJ 206 [1990] 2 MLJ 152 [1996] 4 CLJ 545 [1998] 1 MLJ 697 [2004] 4 CLJ 309 [2005] MLJU 225 [2009] 2 MLJ 102 [2015] 6 MLJ 1 [2017] 1 MLRH 197 [2019] MLJU 99 [2020] 10 CLJ 1 [2022] MLJU 1455 [2026] MLJU 519

Judgment

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Source: eJudgment (wa-12bncc-3-02-2025)