RECOVERABILITY OF ECONOMIC LOSS ARISING FROM DEFECTIVE BUILDINGS IN MALAYSIA: BALANCING THE JUST INTERESTS

Abstract

The judicial approach to the recoverability of economic loss arising from defective buildings has been uncertain globally. Malaysia has been no exception to this process. Until recently, it either allowed or disallowed such claim irrespective of the status of the defendant and public interest. However, in two reported cases of 2006, namely Majlis Perbandaran Ampang Jaya v Steven Phoa Cheng Loon and Lim Teck Kong v Dr. Abdul Hamid Abdul Rashid, the court came out with two different judgments although the plaintiffs in both cases claimed defective building economic loss. The varying decisions took into consideration the status of the defendants and public interest rather than the nature of claim. Analysis of both judgments suggests that the Malaysian judiciary is playing a constructive role in the evolution of a just society in Malaysia.