Court dismisses conspiracy suit brought by MK Land subsidiary against JMB

Court dismisses conspiracy suit brought by MK Land subsidiary against JMB

The Shah Alam High Court also ordered RM120,000 in costs to be paid to the defendants.

The joint management body of the Armanee Terrace Condominium was accused of conspiring against the developer, resulting in delays.
PETALING JAYA:
The Shah Alam High Court last Friday dismissed a conspiracy and unlawful interference suit filed by an MK Land Holdings Berhad subsidiary against the joint management body (JMB) of a property which it had developed.

It also ordered RM120,000 in costs to be paid to the defendants – the Armanee Terrace Condominium JMB and seven of its former joint management committee members.

The suit, filed by Saujana Triangle Sdn Bhd (STSB) in 2019, claimed that the JMB and the seven individuals had conspired to unlawfully interfere with the business and economic interests of the developer, which led to a substantial delay in completing the construction of Block B of the development.

As a result of the delay, STSB paid out a staggering RM106 million in liquidated ascertained damages (LAD) to owners of condominium units in Block B. The LAD payout is believed to be one of the highest for a residential development in Malaysia’s history.

“The JMB as a body (had) nothing to do with any construction delays and (were) not parties to the sale and purchase agreements,” Shaun Paulian of D&P Law Group, who represented the defendants, said in a statement.

Paulian said the case involved several novel issues, such as whether a JMB can be made liable for a claim of conspiracy brought by the developer, who was represented on the JMB, and whether a JMB can be made contributorily-liable for liquidated ascertained damages (LAD) paid out by the developer to its purchasers.

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