FELCRA BERHAD (NO. SYARIKAT : 432483-U 1. ) NIK MOHAMAA ANUAR BIN BADIRUDEEN (BERAMAI SEBAGAI RAKAN KONGSI DIBAWAH NAMA DAN GAYA "TETUAN HAMIDI & FARID:) 2. ) MOHD FARID BIN ISMAIL (BERAMAI SEBAGAI RAKAN KONGSI DIBAWAH NAMA DAN GAYA "TETUAN

FELCRA BERHAD (NO. SYARIKAT : 432483-U 1. ) NIK MOHAMAA ANUAR BIN BADIRUDEEN (BERAMAI SEBAGAI RAKAN KONGSI DIBAWAH NAMA DAN GAYA "TETUAN HAMIDI & FARID:) 2. ) MOHD FARID BIN ISMAIL (BERAMAI SEBAGAI RAKAN KONGSI DIBAWAH NAMA DAN GAYA "TETUAN

Defendants, acting as solicitors and stakeholders, improperly released trust funds while an interim suspension of execution and related proceedings were pending and without seeking clarification from the court; they offered no meritorious defence under Order 14/Rule 92, were held jointly liable for the wrongful release, and summary judgment in favour of the plaintiff was therefore warranted with an award of costs.

Citation
WA-22NCVC-819-11/2019 (Mahkamah Tinggi)
Parties
Appellant / Defendant: Mohd Farid bin Ismail; Appellant / Defendant: Nor Azlina binti Hasmin; Appellant / Defendant (firm): Hamidi & Farid; Defendant / Appellant: Nik Mohamad Anuar bin Badirudeen; Plaintiff / Respondent: Felcra Berhad
Court
High Court
Jurisdiction
Malaysia
Judgment Date
28 August 2020
Case Number
WA-22NCVC-819-11/2019 (Mahkamah Tinggi)
Procedural Posture
Civil / High Court Summary Judgment Application Under Order 14/rule 92; Appeal to Court of Appeal
Outcome
High Court allowed plaintiff's summary judgment application; defendants held jointly liable for wrongfully releasing trust funds; costs awarded to plaintiff.
Legal Topics
Summary Judgment (order 14/rule 92), Interim Suspension of Execution, Duty of Solicitor as Stakeholder, Failure to Comply With Court Order, Costs
Source Language
Malay/English
Civil Procedure Equity and Trusts (stakeholder/escrow) Legal Professional Conduct Appeals Summary Judgment (order 14/rule 92) Interim Suspension of Execution Duty of Solicitor as Stakeholder Failure to Comply With Court Order +1 more

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Parties

Mohd Farid bin Ismail

Appellant / Defendant

Nor Azlina binti Hasmin

Appellant / Defendant

Hamidi & Farid

Appellant / Defendant (firm)

Nik Mohamad Anuar bin Badirudeen

Defendant / Appellant

Felcra Berhad

Plaintiff / Respondent

Procedural Posture

Civil / High Court Summary Judgment Application Under Order 14/rule 92; Appeal to Court of Appeal

Legal Issues

  1. 1 Whether summary judgment should be entered against defendants under Order 14/Rule 92
  2. 2 Whether defendants breached their duty as solicitors acting as stakeholder by releasing trust funds despite an interim stay and pending proceedings
  3. 3 Whether defendants acted negligently and are jointly liable for the released funds

Ratio Decidendi

Defendants, acting as solicitors and stakeholders, improperly released trust funds while an interim suspension of execution and related proceedings were pending and without seeking clarification from the court; they offered no meritorious defence under Order 14/Rule 92, were held jointly liable for the wrongful release, and summary judgment in favour of the plaintiff was therefore warranted with an award of costs.

Court Disposition

High Court allowed plaintiff's summary judgment application; defendants held jointly liable for wrongfully releasing trust funds; costs awarded to plaintiff.

Orders

  • Application under Order 14/Rule 92 Kaedah-Kaedah Mahkamah 2012 allowed and summary judgment entered for Plaintiff against Defendants
  • Costs in the amount of RM2,000 awarded to Plaintiff, payable by each Defendant subject to assessment (fee alokatur)