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Counsel: AMFB alone liable for
Highland Towers collapse
19/07/2005 The Star
PUTRAJAYA: Arab-Malaysian Finance Bhd (AMFB) was solely liable for the
collapse of Block One of Highland Towers, counsel for the Ampang Jaya
Municipal Council (MPAJ) told the Federal Court.
V.S. Viswanathan said this was because the drainage of the surrounding areas
was in good working condition before AMFB became the owner of the land above
Highland Towers.
He said a finding of the trial judge supported his submission that there was
no hazard to the land until AMFB became the new owner.
"The intervening act by the fifth defendant (AMFB) was the real effective
cause of the collapse leading to the plaintiff’s abandonment of their
apartments in Blocks Two and Three.
"Whatever the negligence of the fourth defendant (MPAJ) has been eclipsed by
the act of the fifth defendant," he said.
MPAJ is appealing against the Court of Appeal's decision on Dec 3, 2002,
which reversed the findings of the High Court which found that although the
found was negligent, it was not liable in law as it was indemnified by
Section 95(2) of the Street, Drainage and Building Act.
Viswanathan said: "It is not correct to blame the fourth defendant (MPAJ)
for the failure of Highland Properties, draughtsman Wong Tin San and
engineer Wong Yuen Kean to ensure that the drainage for
the east stream flowing above Highland Towers was completed as planned.
He added that it was Highland Properties which created the diversion.
Subsequently AMFB, having become the new owner, had the duty to ensure that
no such danger arose, he said.
On the issue of pure economic loss suffered by the 81 residents of Blocks
Two and Three, Viswanathan said there was no evidence that MPAJ could have
foreseen such a loss.
He said this was because the plaintiffs did not make any complaint prior to
the collapse.
Submissions before Chief Judge of Sabah and Sarawak Justice Steve Shim and
Federal Court judges Justices Abdul Hamid Mohamad and Arifin Zakaria
continue today.
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