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Admiralty

MARITIME LAW – LIEN, LOSS AND LMAA: ENGLISH COMMERCIAL COURT ORDERS SALE OF DETERIORATING CARGO

In Lord Marine Co Ltd v Vimeksim Trans SA & Anor [2025] 2 Lloyd’s Rep 52, the English Commercial Court exercised its powers under s.44 Arbitration Act 1996 to order the sale of a deteriorating cargo of Ukrainian corn over which the shipowners had exercised a lien for unpaid freight. Mr Justice Bryan held that the cargo was the “subject of the proceedings” and that the court could intervene to preserve its value pending LMAA arbitration. The decision clarifies that a “freight prepaid” stamp does not estop owners where freight has not actually been paid and the bills of lading never left owners’ possession, and that possession can be maintained even when the cargo is stored in a receivers’ warehouse. This case reinforces the court’s readiness to act swiftly to prevent the loss of value in perishable cargo while safeguarding parties through fortified undertakings in damages.

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Arbitration

ARBITRATION – SHIPPING – REPAIR GONE WRONG: CLARIFYING SHIPYARD LIABILITY IN ARBITRATION (“MARE NOVA”)

In Hai v Pai & Anor [2025] 8 MLJ 211, the Court decisively addressed the delicate intersection of marital betrayal and financial fairness. Affirming the award of damages against a third-party “homewrecker,” the decision underscores the judiciary’s firm stance on compensating emotional and financial harm arising from adultery. Furthermore, the ruling clarifies the importance of precise documentation and the consequences of commingling inherited wealth, reinforcing that matrimonial asset division requires careful, individualized assessment to achieve true equity.

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Admiralty

SHIPPING – ADMIRALTY IN REM – ANCHORED BUT NOT ADRIFT: REDEFINING “SHIP” IN ADMIRALTY JURISDICTION

The Singapore High Court in Vallianz Shipbuilding & Engineering v Owner of the Vessel ‘Eco Spark’ [2025] 1 Lloyd’s Rep 195 clarified the definition of a ‘ship’ under admiralty jurisdiction. Despite conversion into a stationary floating fish farm, the vessel retained its status as a ship due to its inherent navigational capability, significantly broadening the scope of admiralty law.

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Arbitration

NAVIGATING THE INTERSECTION OF ARBITRATION AND LITIGATION

Explore the delicate balance between court proceedings and arbitration in our latest legal update, focusing on a pivotal case where a request to file a defense leads to a significant legal debate on the appropriate forum for dispute resolution. Gain insights from key cases that define when to push for arbitration over litigation.

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Recent Legal Updates

STRATA TITLES ACT – DEVELOPER MUST ACCOUNT FOR COMMON PROPERTY COMPENSATION: HIGH COURT IMPOSES CONSTRUCTIVE TRUST

In JMB Kelana Square v Perantara Properties Sdn Bhd & Ors [2025] 12 MLJ 51, the High Court held that a developer who received compensation for land compulsorily acquired for the LRT 3 project could not retain sums attributable to common property. Although the compensation was paid entirely to the developer as registered proprietor, the Court found that part of the acquired land constituted common property, and the developer therefore held RM6.05 million on constructive trust for the Joint Management Body. The decision affirms that JMBs have proprietary standing to recover compensation for common property and that courts will intervene to prevent unjust enrichment in strata developments.

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UNFAIR DISMISSAL – MEDICAL LEAVE IS NOT MISCONDUCT: HIGH COURT UPHOLDS INDUSTRIAL COURT’S PROTECTION OF SICK EMPLOYEE

In Aerodarat Services Sdn Bhd v Lawerance Raj a/l Arrulsamy & Anor [2025] 11 MLJ 26, the High Court dismissed an employer’s judicial review and affirmed that prolonged medical leave does not, by itself, amount to misconduct justifying dismissal. The Court held that the employer failed to prove the critical element of intention not to return to work or unwillingness to perform contractual duties, despite high absenteeism caused by serious illness and surgery. The ruling reinforces that employers must distinguish between genuine illness and misconduct, and cannot rely on medical absence alone to terminate employment.

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WILL AND PROBATE – COURT OF APPEAL INVALIDATES WILL OF 97-YEAR-OLD TESTATOR: CAPACITY, SUSPICION AND UNDUE INFLUENCE PROVED

In Kong Kin Lay & Ors v Kong Kin Siong & Ors [2025] 5 MLJ 891, the Court of Appeal set aside a will executed by a 97-year-old testator, holding that there was real doubt as to testamentary capacity, compounded by serious suspicious circumstances and undue influence by certain beneficiaries. The Court emphasised that while the “golden rule” is not a rule of law, failure to obtain medical confirmation of capacity where doubt exists is a grave omission. Credibility issues with the drafting solicitor, beneficiary involvement in the will’s preparation, and suppression of evidence led the Court to declare the will invalid and order intestacy.

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NOT AN ‘AGREEMENT TO AGREE’: ENGLISH COURT OF APPEAL SAVES LONG-TERM SUPPLY CONTRACT DESPITE OPEN PRICE CLAUSE

In KSY Juice Blends UK Ltd v Citrosuco GmbH [2025] 2 Lloyd’s Rep 581, the UK Court of Appeal held that a long-term supply contract was not unenforceable merely because part of the price was stated as “open price to be fixed”. The Court implied a term that, in the absence of agreement, the price would be a reasonable or market price, noting that the product’s value could be objectively benchmarked against the market price of frozen concentrated orange juice. Emphasising that courts should preserve commercial bargains rather than destroy them, the decision confirms that section 8(2) of the Sale of Goods Act 1979 operates as a saving provision, not a bar to enforceability.

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DISCOVERY APPLICATION – HIGH COURT ORDERS JPN TO DISCLOSE FAMILY TREE — STATUTORY RIGHT OVERRIDES ADMINISTRATIVE SECRECY

In V Kalanathan a/l Veeran v Ketua Pengarah Jabatan Pendaftaran Negara (JPN) & Ors [2025] 12 MLJ 529, the High Court directed JPN to disclose the family tree details of a deceased co-proprietor to assist in probate proceedings. The Court held that such information, recorded in JPN’s digital registers, constitutes a “document” under Order 24 rule 7A ROC 2012 and is not an official secret in the absence of a valid OSA certification. JPN’s reliance on internal circulars was rejected, as statutory rights under the Births and Deaths Registration Act 1957 cannot be curtailed by administrative policy. The ruling reinforces that discovery against government agencies is permissible where necessary to ensure the fair disposal of proceedings.

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PROFESSIONAL NEGLIGENCE – SOLICITOR – PANEL SOLICITORS LIABLE: LITIGATION BRIEF DOES NOT EXCUSE FAILURE TO PROTECT BANK’S SECURITY

In Malayan Banking Bhd v Russell Lua Kok Hiyong & Ors [2025] 12 MLJ 599, the High Court held the bank’s former panel solicitors professionally negligent for failing to safeguard the bank’s proprietary interest in a charged property during litigation. The Court ruled that a solicitor’s duty to protect a client’s interests extends beyond the confines of a ‘litigation-only’ brief, particularly where the risk of loss is obvious and foreseeable. Limitation was held to run only when actual loss crystallised, and all partners were found jointly and severally liable under the Partnership Act 1961. The decision is a clear warning that solicitors must act proactively to protect client interests, even outside their immediate scope of instruction.

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