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News and Updates

Admiralty

ONE-YEAR TIME BAR FOR MISDELIVERY CLAIMS REINFORCED BY COURT OF APPEAL IN FIMBANK PLC V KCH SHIPPING CO LTD (THE GIANT ACE) [2024]

In the recent decision of the English Court of Appeal in FIMBank plc v KCH Shipping Co Ltd (The Giant Ace) [2024], the court upheld that the one-year time bar under Article III Rule 6 of the Hague-Visby Rules, which are applicable in Malaysia under the Carriage of Goods by Sea Act 1950 (COGSA), applies to all liabilities, including claims for misdelivery of cargo, even when the misdelivery occurs after discharge. The court emphasized the broad application of the phrase “all liability whatsoever in respect of the goods”, confirming that the amended rule was designed to extend the time limit to cover such claims. This ruling underscores the need for timely legal action within the one-year period, reinforcing legal protection for carriers in both the UK and Malaysia.

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Admiralty

LEGAL IMPLICATIONS OF FRAUDULENT VESSEL REGISTRATION: LESSONS FROM COSCO SHIPPING HEAVY INDUSTRY V OSTA FLEET

In Cosco Shipping Heavy Industry (Dalian) Co Ltd & Anor v Osta Fleet Sdn Bhd, the court examined a vessel registration dispute involving allegations of fraudulent documentation. The Plaintiffs argued that Osta Fleet fraudulently registered the vessel “Dalian Developer” using a falsified Builder’s Certificate. The court’s forensic analysis revealed inconsistencies in the document, ultimately deeming the registration invalid under the Merchant Shipping Ordinance. The case underscores the importance of due diligence and legal safeguards in vessel registration processes.

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Admiralty

WHEN CARGO GOES ASTRAY: THE RISKS OF DELIVERING WITHOUT A BILL OF LADING

In a recent English Court of Appeal decision, the issue of misdelivery without the presentation of the original bill of lading was brought into focus. The court examined the shipowner’s delivery of cargo without presentation of the bill of lading and the subsequent endorsement to UniCredit Bank. Although a breach was found, the claim was dismissed on causation grounds, as the bank had knowledge of and implicitly authorized the delivery. This case emphasizes the crucial role of bill of lading in maritime transactions.

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Negligence

TORT — NEGLIGENCE — MEDICAL NEGLIGENCE — A MISSED LIFELINE: COURT HOLDS MEDICAL TEAM LIABLE FOR BRAIN DAMAGE IN HIGH-RISK PREGNANCY CASE

A recent High Court ruling involved a plaintiff who suffered severe brain damage after an emergency caesarean section at 33 weeks of pregnancy due to alleged medical negligence. The court examined whether the medical team breached their duty of care by failing to properly monitor the patient, resulting in oxygen deprivation and irreversible damage. The defendants, including doctors and nurses, were found liable for not acting on clear warning signs, leading to significant damages awarded to the plaintiff for her physical and mental disabilities.

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Tort

NAVIGATING LIABILITY: THE UNSEAWORTHINESS OF THE FJORD WIND AND ITS LEGAL CONSEQUENCES

The Court of Appeal ruled in The Fjord Wind case that the vessel was unseaworthy at the time of departure from Rosario on 30.06.1990, due to known issues with the crankpin bearings that had not been adequately addressed. This unseaworthiness led to a main engine failure shortly after departure, necessitating the transhipment of cargo and incurring additional costs.

The court found the shipowners liable for damages, emphasizing their failure to exercise due diligence in maintaining the vessel’s seaworthiness. The ruling underscores the critical importance of thorough inspections and repairs in maritime operations, highlighting the legal responsibilities of shipowners to prevent unseaworthiness and related liabilities.

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Property Law

STRATA MANAGEMENT – COMMON PROPERTY CONUNDRUM: CENTRALIZED AC COSTS AND THE STRATA MANAGEMENT DEBATE

In a recent legal dispute, the classification of centralized air conditioning facilities (CACF) as common property has come under scrutiny. The Plaintiff, a parcel owner in Tower A of Menara UOA Bangsar, challenged the Management Body’s use of maintenance funds for the upkeep of CACF, which primarily benefits parcels in Tower B. The court is likely to dismiss the Plaintiff’s claim, reinforcing the principle that as long as CACF serves two or more occupiers, it is deemed common property, thus falling under the Management Body’s purview without requiring reimbursement from individual parcel owners.

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Property Law

RESHAPING HOUSING LAW: THE IMPACT OF ANG MING LEE ON DEVELOPERS AND BUYERS

The landmark Ang Ming Lee decision by the Federal Court invalidated the Minister’s power to grant extensions of time for housing projects, forcing developers to face Liquidated Ascertained Damages (LAD) claims for delays. Subsequent rulings clarified that this decision applies prospectively, ensuring stability in the housing market while reinforcing the need for strict compliance with statutory contracts. This case has significantly reshaped the legal landscape, emphasizing greater accountability for developers and enhanced protections for property buyers.

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Negligence

NEGLIGENCE – HOTEL LIABILITY: UNVEILING THE LEGAL RISKS IN NEGLIGENCE AND VICARIOUS LIABILITY CASES

In the hospitality industry, the duty of care owed by hotels to their guests is paramount. This legal update explores a scenario where a hotel’s failure to safeguard access to guest rooms leads to tragic consequences. It examines the potential negligence claim against a hotel employee and the broader implications of vicarious liability for the hotel and its owners. Drawing on relevant case law, we delve into the essential elements of negligence and the circumstances under which a hotel can be held responsible for the actions of its staff.

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Recent Legal Updates

STRATA MANAGEMENT – MANAGEMENT FEE SHOWDOWN – RESIDENTIAL VS. COMMERCIAL – WHO’S PAYING FOR THE EXTRAS?

In a landmark decision in Aikbee Timbers Sdn Bhd & Anor v Yii Sing Chiu & Anor and another appeal [2024] 1 MLJ 94 , the Court of Appeal clarified the rules on maintenance charges and sinking fund contributions in mixed strata developments. Developers and management corporations can impose different rates based on the distinct purposes of residential and commercial parcels. The judgment emphasizes fairness, ensuring residential owners bear the costs of exclusive facilities like pools and gyms, while commercial owners aren’t subsidizing amenities they don’t use. This ruling highlights the importance of transparency in budgeting and equitable cost-sharing in mixed-use properties.

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ILLEGALITY OF UNREGISTERED ESTATE AGENTS’ CLAIM – FINDER’S FEES AND ILLEGALITY: COURT DRAWS THE LINE ON UNREGISTERED ESTATE AGENTS

In a pivotal ruling, the Court of Appeal clarified that finder’s fee agreements are not automatically void under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981. The Court emphasized that illegality must be specifically pleaded and supported by evidence, and isolated transactions do not trigger the Act’s prohibition. This decision highlights the importance of precise pleadings and a clear understanding of the law’s scope.

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COMPANIES ACT – OPPRESSION – DRAWING THE LINE: FEDERAL COURT DEFINES OPPRESSION VS. CORPORATE HARMS

In a decisive ruling, the Federal Court clarified the boundaries between personal shareholder oppression and corporate harm, overturning the Court of Appeal’s findings. The Court held that claims tied to the wrongful transfer of trademarks belonged to the company, not the individual shareholder, reaffirming that corporate harm must be addressed through a derivative action rather than an oppression claim.

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COMPANIES LAW – WHEN DIRECTORS BETRAY: COURT CONDEMNS BREACH OF TRUST AND CORPORATE MISCONDUCT

In a stark reminder of the consequences of corporate betrayal, the court found that the directors had systematically dismantled their own company to benefit a competing entity they controlled. By breaching their fiduciary duties, conspiring to harm the business, and unjustly enriching themselves, the defendants were held accountable through significant compensatory and exemplary damages, reaffirming the critical importance of trust and integrity in corporate governance.

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JURISDICTION – CHOOSING THE RIGHT COURT: THE SEA JUSTICE CASE HIGHLIGHTS WHERE MARITIME DISPUTES SHOULD BE HEARD

In The Sea Justice cases [2024] 2 Lloyd’s Rep 383 and [2024] 2 Lloyd’s Rep 429, the Singapore courts tackled a key question: which country should handle a maritime dispute when incidents span international waters? After examining the location of the collision, existing limitation funds in China, and witness availability, the courts concluded that China was the more appropriate forum. This ruling highlights that courts will often defer to the jurisdiction with the closest ties to the incident, ensuring efficient and fair handling of cross-border maritime disputes. This approach is also relevant in Malaysia, where similar principles apply.

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