The Court of Appeal recently ruled in favor of Maritime Waterfront Suites Sdn Bhd (MWS) and its owner, Noorzaina Mat Zain, but awarded only RM50,000 in nominal damages after their legal battle with the Penang City Council (MBPP). This follows a previous decision where the High Court had awarded MWS RM865,000 in damages, based on a promotional brochure, which the Court of Appeal found to be speculative and unreliable.

The case stems from a dispute in 2016 when MBPP revoked MWS’s temporary operating permit six months before it was set to expire. The Federal Court had already ruled that MBPP’s actions were illegal, and the case was sent back to the High Court to assess damages. MWS had been operating a hotel with a temporary permit granted under a Penang government moratorium program aimed at legalizing unlicensed hotels.

Despite MBPP’s rejection of MWS’s application to rezone the building, which led to the permit’s revocation, the Court of Appeal decided that only RM50,000 in nominal damages was appropriate, as the original formula for assessing damages was deemed speculative. The court also ruled that each party would bear their own legal costs.

This case highlights the complexity of legal decisions in disputes over permits and the need for accurate, reliable evidence when calculating damages.

For the full article, you can read it here.