Court of Appeal reduces Klang council's damages from RM117mil to RM3mil
PUTRAJAYA: The Court of Appeal today reduced the damages payable by the Klang Municipal Council, now known as the Klang Royal City Council, to property developer NBC Land Sdn Bhd from RM117 million to RM3 million in a dispute over the rehabilitation of a former dumpsite.
The Court of Appeal in Malaysia recently reduced the damages payable by the Klang Municipal Council to property developer NBC Land Sdn Bhd in a dispute over the rehabilitation of a former dumpsite. The original ruling by the Shah Alam High Court had set the damages at RM117 million, including nearly RM50 million in pre-judgment interest.
However, the appellate court has now reduced the damages to RM3 million, representing the council's agreed 50 percent share of the RM6 million rehabilitation cost. The appellate court ruled that the high court's assessment of damages and pre-judgment interest was incorrect, as the rehabilitation works were never executed and the landfill was never excavated, and third-party contractors were not paid.
The appellate court also noted that the agreement between the parties did not require the local authority to eradicate all waste or convert the dumpsite into virgin ground, but rather to execute a specific proposal for in-situ soil capping at an estimated cost of RM6 million.
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