In the case of Hall & Shivers v Van der Heiden [2010], the courts rejected the previously held belief that the Employer rights to deduct liquidated and ascertained damages ends upon termination of the contract by the Employer. In this case the courts adamantly rejected this principle, leaving it open for an Employer to claim LADs after termination of the contract. In his judgment handed down in March 2010, the Judge awarded the Employer liquidated damages beyond termination through to completion of the project several months later by a replacement Contractor. The court rejected the argument ‘as a matter of principle’ that liability to pay liquidated and ascertained damages ceased when the Contractors employment was terminated.
Hall & Shivers v Van der Heiden [2010]
Malaysian Construction and Contract Law 