Decision on MPAJ stands

19/04/2006 The Star

PUTRAJAYA: The Federal Court will not review its earlier decision to absolve the Ampang Jaya Municipal Council (MPAJ) of liability from the events leading to, as well as following, the collapse of Block One of Highland Towers.

Yesterday, the Federal Court dismissed an application for leave by 73 residents and owners of units in Blocks Two and Three to review its decision.

Federal Court Justices Alauddin Mohd Sheriff, Nik Hashim Nik Ab Rahman and S. Augustine Paul unanimously held that they could not review the decision because it involved a finding of fact.

The application for review was the residents’ final avenue for recourse.

On Feb 17, the court unanimously allowed MPAJ’s appeal to set aside the Court of Appeal’s ruling that MPAJ was 15% responsible for the pre-collapse period.

At the same time, the Federal Court also dismissed, with a 2-1 majority, the cross-appeal by the 73 plaintiffs against the Court of Appeal’s ruling that the MPAJ was not liable for losses suffered during the post-collapse period.

On Dec 11, 1993, a landslide following heavy rains caused the 12-storey Block One of the Highland Towers condominium to collapse, killing 48 people and leaving more than 1,000 residents in two other blocks homeless when they were ordered to move out.

About three years later, the 73 plaintiffs filed a suit against 10 defendants for causing or contributing to the collapse of Block One and the subsequent abandonment of the other two blocks.

They were Highland Properties Sdn Bhd (owner and developer of the land where the towers were located), draughtsman Wong Ting San, engineer Wong Yuen Kean, the MPAJ, the Selangor government, the state Land and Mines Department director, Arab-Malaysian Finance Bhd, which owned the terraced hill slope behind the collapsed block, its agent Tropic Development Sdn Bhd, and Metrolux Sdn Bhd and MBf Property Services (owners of some adjoining properties).

On Aug 11, 2000, the High Court ruled for the 73 plaintiffs and apportioned liability as: Arab-Malaysian Finance Bhd (30%), Metrolux and MBf Property Services (20%), Highland Properties (15%), MPAJ (15%), Ting San (10%) and Yuen Kean (10%).

Five of these six defendants appealed against the High Court finding, but on Dec 3, 2002, the Court of Appeal dismissed their appeals.

AmFinance Bhd (formerly Arab-Malaysian Finance Bhd) agreed to pay RM52mil to 139 residents and owners of Highland Towers in an out-of-court settlement in August 2004.