PROPERTY LAW – MANAGEMENT CORPORATION – STRATA MANAGEMENT ACT 2013

It is common knowledge that a Management Corporation (“MC”) is in charge with maintenance and management of the common properties of a condominium or strata development.

Q: Can a MC be compelled to supply natural gas (a service previously provided by the developer of the project)? Can a MC be compelled to make payments for license to supply natural gas?

A: Section 59(2) of the Strata Management Act 2013 (“SMA 2013”) provides as follows:

The powers of the MC:

a) to collect the Charges from the proprietors in proportion to the share units or provisional share units of their respective parcels or provisional blocks;
b) to collect the contribution to the sinking fund from the proprietors of an amount equivalent to ten percent of the Charges;
c) to authorize expenditure for the carrying out of the maintenance and management of the subdivided buildings or lands and the common property;….

It does not include supplying natural gas.

Q: Can the MC collect gas charges?

A: No. s.59(2) SMA 2013 only allows MC to collect maintenance charges and sinking funds. Not charges related to the supply of natural gas.

The powers of a MC cannot be expanded. If it is not expressly or impliedly permitted by the SMA 2013, it is considered prohibited.

Q: Can the MC take over and charge natural gas supply fee?

A: No. The MC lacks the power to take over the supply and management of the gas supply.

Sorotan Terkini

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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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The UK Supreme Court clarified the limits of force majeure clauses, ruling that “reasonable endeavours” do not require a party to accept alternative performance outside the agreed contract terms. This decision emphasizes that force majeure clauses are meant to uphold, not alter, original obligations – even in unexpected circumstances. The case serves as a reminder for businesses to define alternative options explicitly within their contracts if flexibility is desired.

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NEGLIGENCE – MEDICAL NEGLIGENCE – HOSPITAL ACCOUNTABILITY REINFORCED: COURT UPHOLDS NON-DELEGABLE DUTY IN MEDICAL NEGLIGENCE

In a landmark ruling, the court reinforced the hospital’s non-delegable duty of care, holding that even when services are outsourced to independent contractors, the hospital remains accountable for patient welfare. This decision emphasizes that vulnerable patients, reliant on medical institutions, must be safeguarded against harm caused by third-party providers. The ruling ultimately rejected the hospital’s defense of independence for contracted consultants, underscoring a high standard of duty owed to patients.

17 November ,2024 Tiada Ulasan

CONTRACTS – CONTRACT FOR THE SALE OF GOODS FOB – REMOTENESS OF DAMAGES IN BACK-TO-BACK CONTRACTS – COURT DEFINES LIMITS ON LIABILITY

In a complex dispute involving back-to-back contracts, the court clarified the boundaries for assessing damages, emphasizing that a chain of contracts does not automatically ensure liability passes through. Although substantial losses resulted from delays and disruption, the court highlighted the importance of the remoteness of damages, noting that each contract’s unique terms ultimately limited liability. This decision emphasise the need for parties in chain contracts to carefully define indemnity and liability provisions, as damages are assessed based on foreseeability rather than simply the structure of linked agreements.

17 November ,2024 Tiada Ulasan

TORT – BREAKING CONFIDENTIALITY – COURT CRACKS DOWN ON INSIDER LEAKS AND CORPORATE CONSPIRACY

In a recent ruling on corporate confidentiality, the court held two former employees liable for disclosing sensitive business information to a competitor, deeming it a breach of both employment contracts and fiduciary duties. This case highlights the serious consequences of unauthorized sharing of proprietary data and reinforces that such disclosures can lead to substantial legal and financial repercussions, even for the receiving parties if they knowingly benefit from confidential information.

17 November ,2024 Tiada Ulasan

PROPERTY LAW – CLAIMING OWNERSHIP: COURT UPHOLDS LEGAL TITLE AND DISMISSES CONSTRUCTIVE TRUST IN PROPERTY DISPUTE

In a recent property dispute, the court dismissed a claim for a constructive trust over property, underscoring that such a trust requires solid evidence of unfair conduct or fraud. Without sufficient proof of ownership.

17 November ,2024 Tiada Ulasan

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