Court : MPAJ not liable for collapse

18/02/2006 The Malay Mail

PUTRAJAYA, Feb 17 (Bernama) -- The Federal Court on Friday held that the Ampang Municipal Council (MPAJ) is not liable for losses suffered by 73 residents of two blocks of Highland Towers condominium who had to evacuate after the collapse of block one 13 years ago killing 48 people.

A three-member panel of judges presided by Chief Judge of Sabah and Sarawak Tan Sri Steve Shim Lip Kiong, Federal Court judges Datuk Abdul Hamid Mohamed and Datuk Arifin Zakaria ruled that MPAJ were not liable for the pre-collapse and post collapse of block one.

The quorum unanimously ruled that local authorities such as MPAJ were given full immunity under Section 95 (2) of the Street, Drainage & Building Act 1974 (Act 133) from claims for pre-collapse period.

The court today unanimously allowed MPAJ's appeal to set aside the Court of Appeal's decision holding MPAJ 15 per cent responsible for pre-collapse of the block one condominium

However, the quorum, in a majority 2-1 decision, dismissed the cross-appeal by the 73 residents of block two and three of the condominium against the Court of Appeal's ruling in not holding MPAJ for post-collapse liability.

MPAJ was apportioned by the then High Court Judge Datuk James Foong (now Court of Appeal Judge) for post-collapse liability after he held that MPAJ was indemnified from post-collapse liability but the Court of Appeal, which set aside the High Court's decision to apportion post-collapse liability instead held MPAJ for pre-collapse liability.

President of the Highland Towers Owners and Residence Association Dr Benjamin George said they were saddened by the Federal Court's decision.

"It is the end of the line and we accept the decision. We're surprised (by the decision). We have to accept the final verdict," he said.

When asked whether the residents would pursue the other suits, he said the residents have yet to decide whether to pursue with the suits or end it.

Besides MPAJ, the High Court, on Aug 11, 2000 held Arab Malaysian Finance Bhd (AMFB) 30 per cent liable for the collapse of block one, engineer Wong Yuen Kean (10 per cent), Metrolux Sdn Bhd and MBF Property Services Sdn Bhd (20 percent), developer Highland Properties Sdn Bhd (15 per cent), draughtsman Wong Ting Sang (10 per cent).

The 73 residents of Blocks 2 and 3 had sued 10 parties for between RM31 million and RM35 million to repair the two blocks which had to be evacuated after the collapse of block one on Dec 11, 1993 which had rocked the nation and the world.

The High Court held that the landslide was caused by soil on the hillslope being saturated with excessive water which triggered the failure of the high retaining wall within the Highland Towers compound causing retrogressive landslide resulting in the collapse of block one.

The trial judge concluded that the presence of the water was due to the existence of an inadequate drainage system and held that MPAJ had breached its duty of care in failing to maintain the stream on the hillslope behind Highland Towers which was diverted.

On Nov 3, 1997, the Coroner's Court returned a verdict of misadventure following an inquest into the tragedy which, among others, claimed the lives of Carlos Rashid and Rozita Abu Bakar, the son and daughter-in-law of former deputy prime minister Tan Sri Musa Hitam.

On July 29 last year, the board of engineers of Malaysia's Board of Appeal upheld its disciplinary board's decision to revoke the practising licence of engineer Wong Yuen Kean.