Court stays Brainlab suits pending recusal appeal

The Court of Appeal has temporarily halted two multi-million ringgit corporate lawsuits involving German medical technology company Brainlab AG and its Hong Kong subsidiary. The stay is not an attempt to delay the trials, but rather to maintain the integrity of the appellate process. The decision comes as defendants appeal a High Court judge's refusal to recuse himself from the cases.

Three-judge bench, comprising Justices Ahmad Fairuz Zainol Abidin, Evrol Mariette Peters and Leonard David Shim, unanimously approved the stay application. The recusal appeal raised concerns about the appearance of bias and the potential for unfair or impartial hearings.

The court emphasized that the stay was necessary to preserve the integrity of the appellate process and prevent duplication of work, additional costs, and use of resources. Participation in ongoing trials might be seen as an acquiescence in the judge's decision to continue hearing the matter.

The judges also highlighted the importance of public confidence in the judicial system, noting that the issue goes beyond a private dispute and concerns the impartiality of the judicial process. The recusal appeal is set to be heard on January 21 next year. The original lawsuits were filed by Brainlab and its Hong Kong subsidiary against a former regional sales director and others over an alleged unauthorized device-rental scheme, breach of fiduciary duties, and secret profits.