Court of Appeal slashes Klang council’s RM117m dumpsite damages bill to RM3m

The Court of Appeal has significantly reduced the damages that Klang Municipal Council, now known as Klang Royal City Council, owes to property developer NBC Land Sdn Bhd in a dispute over the rehabilitation of a former dumpsite. The ruling slashes the damages from RM117 million to RM3 million. The three-man bench of Datuk Ismail Brahim, K. Muniandy and Datuk Dean Wayne Daly also overturned nearly RM50 million in pre-judgment interest imposed by the Shah Alam High Court.

Justice Muniandy deemed the high court's damage assessment incorrect in both principle and law. The appellate court emphasized that the Klang Municipal Council was only required to cover 50 percent of the RM6 million soil capping scheme, estimated cost. The court ruled the council did not carry out the rehabilitation works and refused to award the substantial pre-judgment interest, stating it would penalize the local authority unfairly.

NBC Land had acquired the land and knew about its past as a dumpsite when it bought it. In December 2003, Klang Municipal Council and NBC Land agreed on the rehabilitation works, with the council bearing 50 percent of the estimated cost. However, the council failed to execute the works. In July 2020, the Court of Appeal previously held the council in breach of the agreement and referred the matter back to the High Court for damages assessment.

Later, the High Court awarded NBC Land RM117 million in damages, but today's ruling by the Court of Appeal has overturned that decision. Representatives from Klang Municipal Council and NBC Land were present in the court today.