Homeowners ordered to pay PR1MA damages over failed LAD suit

A Johor Bahru High Court ruling has mandated unit owners in the affordable housing complex Residensi Prima Tebrau to compensate the federal agency, Perbadanan Perumahan Rakyat 1Malaysia (PR1MA), with RM15,000 in damages and costs. The dispute arose from the owners' pursuit of additional compensation for late unit delivery, following a prior settlement agreement with PR1MA.

Justice Wong Mee Ling, in a recent decision, ordered each of the 86 unit owners to pay PR1MA nominal damages of RM10,000 and RM5,000 in costs. The owners had previously settled with PR1MA, receiving full payment, but chose to sue for extra compensation due to delays. Wong held that once parties fulfill an agreement's terms and accept its benefits, they cannot renege on the compromise.

She noted that the signed letter of acceptance formed a binding settlement under the Contract Act 1950, effectively discharging PR1MA from further liability. Additionally, Wong dismissed LAD claims brought by seven non-participating unit owners, stating their claims were time-barred under the Limitations Act 1953. The legal dispute centered on statutory sale and purchase agreements between PR1MA and the unit owners, which set a 54-month completion period for vacant possession and common facilities.

Wong ruled that the extended completion period remained valid despite a subsequent change in the law, and that the six-year limitation period applied to all unit owners due to the timing of their cause of action.