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2022 MarsdenLR 314

HIGH COURT SABAH & SARAWAK KOTA KINABALU
BORNEO MUSIC CONSERVATORY SDN BHD – Appellant
Versus
MALAYSIAN RED CRESENT SOCIETY (SABAH BRANCH) – Respondent
[Suit No: BKI-22NCvC-67/8-2020]



Petitioner Advocates:Sudirman Lasama ,Respondent Advocate: Shireen Sikayun

Consolidation of cross-actions is prohibited to prevent inconsistent judgments, emphasizing efficiency and fairness in judicial proceedings.

Headnote:(A) Consolidation of Proceedings – Rules of Court 2012 – Orders 4 r 1(1) and 15 r 4(1) – High Court dismissed application for consolidation of High Court Suit and Sessions Court Suit due to cross-actions and lack of efficiency in consolidation – The Plaintiff's submission for consolidation deemed delaying tactics, impacting trial dates – Court emphasized that consolidation must serve judicial economy and not perpetuate complexity. (Paras 41, 42)

(B) Cross-Actions – It is an established principle that cross-actions cannot be consolidated – The roles of plaintiffs and defendants are reversed in parallel suits, heightening the risk of inconsistent judgments if consolidated. (Paras 35, 36)

Facts of the case: The Plaintiff applied to consolidate claims involving the Management Agreement related to a leased property, with roles reversed in separate suits regarding possession and related costs. (Paras 2-4, 33)

Findings of Court: The application was dismissed, given cross-actions and that the delay in filing for consolidation presented potential prejudice and inconsistency. (Paras 42)

Issues: Whether consolidation of separate suits with reversed roles is appropriate when it may lead to inconsistent judgments. (Paras 35-36)

Ratio Decidendi: The court ruled that consolidation of cross-actions contradicts principles of judicial economy and fairness given the differing claims and positions of the parties, which could result in an unfair impact on the defendant. (Paras 42)

Result: Application dismissed with no order as to costs.

JUDGMENT

(Enclosure 54)

Leonard David Shim J:

[1] This is an application by the Plaintiff for this Suit to be consolidated with the Sessions Court Suit No.BKI-A52NCvC-2/1-2020 (the Sessions Court Suit) including the Third Party Proceedings therein and to proceed as one action.

The Facts

[2] This case centres on the Management Agreement entered between parties in 2018 where it was agreed the Plaintiff would operate, maintain, and manage the buildings on Town Lease 017519836 situated at Jalan Punai Tanah, Likas, 88430 Sabah, Malaysia ("the said Premises") from the Defendant who is the registered owner of the said Land.

[3] In the Sessions Court Suit the roles and position of the parties are reversed. Borneo Music Conservatory (BMC) is the Defendant whereas Malaysian Red Crescent (Sabah Branch) (MRCS) is the Plaintiff in the Sessions Court Suit. It is the Defendant ' s case before the Sessions Court that the Plaintiff has been in possession of the said Premises without any payment of the monthly token as agreed under the Management Agreement since August 2018.

[4] The Defendant (MRCS) has further pleaded before the Sessions Court that the Plaintiff (BMS) has allowed an unlicenced playschool plus nursery to operate on the said Premises in breach of the Management Agreement.

[5] Before the filing of the Sessions Court Suit, the Defendant (MRCS) had filed the same Writ of Summons and Statement of Claim before the Magistrates' Court, which was discontinued 3 days after the service of the Defence and Counterclaim. The Defendant (MRCS) proceeded to file the Writ of Summons and Statement of Claim before the Sessions Court about 15 days later.

[6] The Plaintiff (BMC) then decided to maintain the proceedings before the Magistrates ' Court and filed for transfer of proceedings from the Magistrates' Court to the High Court, which is now before this Court.

[7] The chronology of events of both Suits as set out in the Defendant ' s submission are as follows:-

DateParticularsRemarks
2 December 2019Filing Writ of Summons and Statement of Claim to Magistrates' Court (MC5)BKI-A72NCvC-508/12-2019 (MC)
3 December 2019Served Sealed copy of Writ of Summons and Statement of Claim to Borneo Music Conservatory Sdn Bhd(BMC)
12 December 2019Affidavit of Service filed to Magistrates' Court (MC)
11 December 2019BMC served the Memorandum of Appearance to Malaysian Red Crescent Society (MRCS) (MC)BMC Solicitors, Messrs SK Pang & Co
30 December 2019BMC served on MRCS the Statement of Defence and Counterclaim (MC)
3 January 2020Filed Writ of Summons and Statement of Claim to Sessions Court (SC)A52NCvC-2/1-2020 (SC3)
14 January 2020

Served Notice of Discontinuance to BMC (MC)

Served sealed copy of Writ of Summons and Statement of Claim to BMC (SC)

21 January 2020BMC served Memorandum of Appearance (SC) to MRCS (SC)
6 February 2020BMC served the Statement of Defence and Set Off to the MRCS (SC)
2 March 2020BMC filed Originating Summons to High Court to transfer the BMC's Counterclaim proceedings from Magistrates' Court to the High Court (the Transfer of Proceedings Application)BKI-24-26/3-2020 (HC3)
23 June 2020Trial dates fixed by Sessions Court on 24 - 25 September 2020
7 July 2020Trial dates fixed by Sessions Court on 1 - 2 October 2020
3 March 2021Trial dates fixed by Sessions Court on 17 - 18 August 2021
6 August 2021Trial dates fixed by Sessions Court on 23 - 24 February 2022Trial dates 17 - 18 August 2021 vacated in view of Chief Justice's Circular No 9 of 2021 - priority given to part heard cases.
16 August 2021Second and final session for mediationOutcome: Failed.
29 September 2021Trial dates fixed by High Court on 12 - 15 September 2022
21 December 2021Order for Leave to Issue Third-Party Notice served on Defendant
7 February 2022Trial dates fixed by Sessions Court on 18 - 19 April 2022; and 14 - 15 June 2022.Trial dates 23 - 24 February 2022 vacated
4 January 2022Notice of Third-Party Proceedings filed by Plaintiff.
14 March 2022Notice of Consolidation filed by Plaintiff.
18 March 2022S



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