Whether legal fee is a species of special damages and thus claimable over and on top of costs in a legal proceeding?





In the recent case of Golden Star & Ors v Ling Peek Hoe & Anor and another appeal [2024] MLJU 909, the Federal Court held as follows:-

(i) The court agrees with the appellants that respondents cannot claim legal charges, fees, or costs as special damages in the same proceedings between the same parties, based on principles, policy, and social policy.

(ii) The court answers both questions in favor of the appellants, stating that costs, including legal costs, are distinct from damages and cannot be recovered as special damages in the same proceedings between the same parties.

(iii) The appeals are allowed, and the decisions of the Court of Appeal and the High Court awarding legal fees as part of special damages are set aside. The specific amount of RM2,604,000.00 is set aside, while other orders of the High Court are maintained.

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