Star Media Group Berhad Jaks Resources Berhad

Star Media Group Berhad Jaks Resources Berhad

The Court of Appeal held that findings made in interlocutory originating summonses concerning the call on bank guarantees are tentative and not final for the purposes of res judicata or issue estoppel where material facts remain disputed; because there were substantial disputed factual issues (variations, time-impact, defects, industry practice, deemed completion) the High Court erred in using Order 14A to dispose of the suits and in striking out JRB’s defence and counterclaim; the strike-out was set aside and the matters remitted for full trial.

Citation
W-02(IM)(NCvC)-1188-09/2020 (Mahkamah Rayuan)
Parties
Appellant (ca No.1122)/respondent (ca Nos.1188,1435)/corporate Guarantor/defendant: Jaks Resources Berhad; Appellant (ca Nos.1188,1435)/respondent (ca No.1122)/plaintiff: Star Media Group Berhad; Plaintiff (high Court Suit)/respondent (ca No.1435)/developer/contracting Party: Jaks Island Circle Sdn Bhd
Court
IM
Jurisdiction
Malaysia
Judgment Date
27 July 2021
Case Number
W-02(IM)(NCvC)-1188-09/2020 (Mahkamah Rayuan)
Procedural Posture
Civil Appeals to Court of Appeal (related High Court Proceedings Remitted) / Court of Appeal Judgment on Interlocutory and Summary Strikeout Decisions; Remitted to High Court for Full Trial
Outcome
Court of Appeal allowed JRB appeal (CA No.1122), set aside High Court decision striking out JRB’s defence and counterclaim, remitted Suit No. WA-22NCvC-258-04/2019 and related Suit No. WA-22NCvC-374-05/2019 to the High Court for full trial; dismissed Star Media appeals (CA Nos.1188 and 1435).
Legal Topics
Banker’s Guarantee, Interlocutory Injunction, Order 14 a Rules of Court 2012, Res Judicata / Issue Estoppel, Unconscionability Test for Restraining Calls on Guarantees, Extension of Time / Variations, Deeming Clause (ccc), Liquidated Damages / Election of Remedies
Source Language
Malay/English
Construction Law Contract Law Arbitration Law Banking/guarantee Law Civil Procedure Banker’s Guarantee Interlocutory Injunction Order 14 a Rules of Court 2012 +5 more

Case Brief

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Parties

Jaks Resources Berhad

Appellant (ca No.1122)/respondent (ca Nos.1188,1435)/corporate Guarantor/defendant

Star Media Group Berhad

Appellant (ca Nos.1188,1435)/respondent (ca No.1122)/plaintiff

Jaks Island Circle Sdn Bhd

Plaintiff (high Court Suit)/respondent (ca No.1435)/developer/contracting Party

Procedural Posture

Civil Appeals to Court of Appeal (related High Court Proceedings Remitted) / Court of Appeal Judgment on Interlocutory and Summary Strikeout Decisions; Remitted to High Court for Full Trial

Legal Issues

  1. 1 Whether findings made in interlocutory originating summons restraining or permitting call on BG operate as res judicata or issue estoppel in subsequent trial of underlying contract disputes
  2. 2 Whether the disputes were suitable for summary disposal under Order 14A Rules of Court 2012
  3. 3 Whether call on BG was unconscionable and therefore susceptible to interlocutory restraint

Ratio Decidendi

The Court of Appeal held that findings made in interlocutory originating summonses concerning the call on bank guarantees are tentative and not final for the purposes of res judicata or issue estoppel where material facts remain disputed; because there were substantial disputed factual issues (variations, time-impact, defects, industry practice, deemed completion) the High Court erred in using Order 14A to dispose of the suits and in striking out JRB’s defence and counterclaim; the strike-out was set aside and the matters remitted for full trial.

Court Disposition

Court of Appeal allowed JRB appeal (CA No.1122), set aside High Court decision striking out JRB’s defence and counterclaim, remitted Suit No. WA-22NCvC-258-04/2019 and related Suit No. WA-22NCvC-374-05/2019 to the High Court for full trial; dismissed Star Media appeals (CA Nos.1188 and 1435).

Orders

  • Costs of these appeals to be costs in the cause in the High Court