Lim Muk Seng (Berniaga Dalam Nama Dan Gaya Cycle Upline (No. Pendaftaran Kc81344)) v 1. ) WTC SUPPLEMENT SDN. BHD. 2. ) WONG KIM MENG 3. ) TETUAN MOHAMED A. ALI & ASSOCIATES 4. ) ASMARANI BINTI ALI

wa-22ncvc-537-09-2022 High Court (Mahkamah Tinggi) 20 January 2025 • WA-22NCvC-537-09/2022

Catchwords

Breach of fiduciary duty by stakeholder solicitors in commercial transactions. This judgment concerns a dispute arising from a failed transaction for the purchase of medical gloves during the Covid-19 pandemic. The plaintiff sought recovery of a RM1,000,000.00 deposit paid to the 3rd defendant, a law firm acting as stakeholder. The court held that the 3rd and 4th defendants breached fiduciary duties by disbursing the deposit without fulfilling the agreed conditions. The judgment affirms that stakeholders, particularly solicitors, must act impartially and strictly comply with stakeholder terms and may be held liable for unauthorised disbursements.

Practice Areas

Equity & Trusts

Judges (1)

Ahmad Shahrir b. Mohd Salleh Delivered

Parties (5)

TETUAN MOHAMED A. ALI & ASSOCIATES Defendant WTC SUPPLEMENT Sdn Bhd Defendant Asmarani binti Ali Defendant Lim Muk Seng (berniaga Dalam Nama Dan Gaya Cycle Upline) Plaintiff Wong Kim Meng Defendant

Judgment

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Read on eJudgment

Source: eJudgment (wa-22ncvc-537-09-2022)