Chapter 8 - Summary Judgment, O.14 Flashcards
SUMMARY JUDGMENT
Overview
1) General principles on SJ
2) Pre-requisites of SJ
3) Requirements to invoke jurisdiction to grant SJ
4) Other requirements to invoke SJ
5) Procedures to apply for SJ
6) Outcomes of SJ hearing
7) Issues in SJ
8) Dismissal, setting-aside or appeals against SJ
GENERAL PRINCIPLES ON SUMMARY JUDGMENT
Overview
1) Nature of SJ
2) Jurisdiction to grant SJ
3) Relationship between O.14 & O.81
4) Test for SJ
GENERAL PRINCIPLES ON SUMMARY JUDGMENT
Nature of SJ
Malayan Insurance (M) Sdn Bhd v Asia Hotel Sdn Bhd:
- Plaintiff: O.14 is a summary procedure that allows the court to grant judgment to P without a trial;
- Object: to prevent a plaintiff clearly entitled to the money from being delayed his judgment where there is no fairly arguable defence to the claim.
- Defendant: This will effectively shut D from defending himself at trial;
- Nature: In this sense, it is draconian & must only be exercised in the clearest of cases.
GENERAL PRINCIPLES ON SUMMARY JUDGMENT
Jurisdiction to grant SJ
Lee Teng Siong v Lee Kheng Lian & Ors:
- O.14(1) & O.81(1) are not merely procedural in nature - they are jurisdictional.
- Non-compliance with any of the pre-requisites under these Rules render any order made by the court pursuant to the rules are of without jurisdiction & a nullity.
GENERAL PRINCIPLES ON SUMMARY JUDGMENT
Relationship between O.14 & O.81
Lee Teng Siong v Lee Kheng Lian & Ors:
- O.14 is mutually exclusive from O.81;
- O.14: P cannot apply for summary judgment until appearance has been entered & court cannot exercise its jurisdiction until then;
- O.81: P can apply for summary judgment even before appearance has been entered & O.81 concerns with the forms of specific relief or damages as an alternative.
GENERAL PRINCIPLES ON SUMMARY JUDGMENT
Test for SJ
Bank Negara v Mohd Ismail:
- O.14 is for cases which are virtually uncontested or incontestable;
- A defendant ought to have a leave to defend where he shows that:
1) FAIR CASE: he has a fair case for defence; or
2) REASONABLE GROUNDS: reasonable grounds for setting up a defence; or
3) FAIR PROBABILITY: a fair probability that he has a bona fide defence.
PRE-REQUISITES FOR SJ
Overview
1) The law & scope
2) Meaning of fraud under O.14
PRE-REQUISITES FOR SJ
The law & scope
1) The law:
O.14, r.1
2) Scope:
i) Statement of Claim:
- P must have served SOC on D.
ii) Appearance:
- D must have entered appearance;
iii) Ground of application:
- P must apply on the grounds that D has no defence to the claim.
iv) Cause of action:
- O.14, r.1(2): must NOT involve libel, slander, malicious prosecution, false imprisonment, seduction, breach of promise to marry, any allegation of fraud;
- O.73, r.5(1): action must NOT against the government.
PRE-REQUISITES FOR SJ
Meaning of fraud under O.14
Letchumanan Chettiar Alagappan (as executor) & Anor v Secure Plantations Sdn Bhd (FC)
- the term ‘fraud’ in r. 1(2)(b) was construed to take the meaning as used in Derry v Peek.
1) Ref. Derry v Peek: - when it is shown that a false representation has been made knowingly or without belief in its truth or recklessly, careless whether it be true or false.
2) Ref. Vincent Tan See Yin v Noone & Company & Anor: - a claim based on fraud not within Derry v Peek will not fall within r. 1(2)(b) and the entry of summary judgment in that situation is not prevented by that rule.
REQUIREMENTS TO INVOKE JURISDICTION TO GRANT SJ
Overview
1) General requirements
2) For P & D
3) Meaning of burden
4) Recent case
REQUIREMENTS TO INVOKE JURISDICTION TO GRANT SJ
General requirements
National Company for Foreign Trade v Kayu Raya:
1) Requirements:
- Whether the case comes within the Order, i.e. not the cause of action specified under r.1(2)(a) & (b) or action against Govt under O.73, r.5(1).
- Whether the P has satisfied the preliminary requirements for proceeding under O.14;
2) Preliminary requirements:
- APPEARANCE: D must have entered appearance;
- SOC: SOC must have been served;
- AFFIDAVIT: Affidavit in support of the application must comply with the requirements under r.2.
3) Effect of non-compliance:
- The summons may be dismissed.
4) Effect of fully-compliance:
- The plaintiff will have established a prima facie case and he becomes entitled to judgment.
- The burden shifts to the defendant to satisfy the Court why judgment should not be given against him, by virtue of O.14, r.3 & 4.
REQUIREMENTS TO INVOKE JURISDICTION TO GRANT SJ
For P&D
Cempaka Finance Bhd v Ho Lai Ying & Anor:
- In an application under O.14, the burden is on the plaintiff to establish the following conditions:
1) D must have entered appearance;
2) SOC must have been served on the D;
3) that the affidavit in support must comply with O.14, r.2;
- i.e. it must verify the facts on which the claim is based and must state the deponent’s belief that there is no defence to the claim;
- Once these conditions are fulfilled, the burden then shifts to the D to raise triable issues.
REQUIREMENTS TO INVOKE JURISDICTION TO GRANT SJ
Meaning of burden
Cempaka Finance Bhd v Ho Lai Ying & Anor:
- The burden of proof remains with P & the procedure in O.14 merely eases the discharge of that burden in straightforward cases.
- Once P has crossed the Kayu Raya threshold, burden is then for D to show why judgment should not be entered against him.
- This “burden” is commonly referred to as the evidential or tactical burden.
REQUIREMENTS TO INVOKE JURISDICTION TO GRANT SJ
Recent
HC, 2020
CIMB Bank Bhd v Reliance Shipping & Travel Agencies Sdn Bhd:
- Whether the issues raised are triable or otherwise is essentially a question of facts as disclosed in the affidavit evidence.
OTHER REQUIREMENTS TO INVOKE SJ
Overview
1) No defective affidavit
2) No delay
3) No defective SOC
OTHER REQUIREMENTS TO INVOKE SJ
No defective affidavit
1) Tan Tik Sing v Gomez Development:
- The person making the affidavit in support must verify the cause of action and state that in his belief there is no defence to the action.
- Failure to do so is fatal to any application for summary judgment;
- OTF, the plaintiff had not complied with the affidavit requirements & application was dismissed in limine.
2) Chai Cheon Kam v Hua Joo Sdn Bhd:
- The affidavit that fell short of the requirement that P must verify “facts on which the claim or part of a claim to which the application relates is based” as set-out in Form 13;
- This ground alone renders O.14 application being dismissed.
OTHER REQUIREMENTS TO INVOKE SJ
No defective affidavit - recent
Kerajaan Malaysia v Nooryana Najwa Najib (HC, 2020):
- the claim for summary judgment was made but the deponent’s affidavit-in-support did not state that in her belief, there is no defence to the claim but instead P averred that D “had no defence with merits”;
- HC held that natural & ordinary meaning of the averment was that D had a defence but the defence was without merits.
- claim for SJ was dismissed on the basis that whether a defendant’s defence is with or without merits, is a question that ought to be decided at trial and could not be decided summarily.
OTHER REQUIREMENTS TO INVOKE SJ
No delay
Perkapalan Shamelin Jaya Sdn Bhd v Alpine Bulk Transport New York:
- Court may refuse to exercise its jurisdiction if the application is made too late in the day as that would defeat the very purpose of O.14.
- However, delay cannot be a bar to an O.14 application if there is no bona fide triable issue disclosed by D.
OTHER REQUIREMENTS TO INVOKE SJ
No defective SOC
United Malayan Banking Corporation Bhd v Palm Vegetable Oils (M) Sdn Bhd:
- Any defect or omission in the Statement of Claim cannot be amended by supplementing affidavit evidence;
- if the defect is one of substance, the application for summary judgment will be dismissed.