RULING

Proceeding:

This is an application by the Defendants to strike out the Plaintiffs' Writ of Summons dated 22.08.2006 and the Amended Statement of Claim dated 21.08.2006 on the grounds that the Plaintiffs' action is frivolous, vexatious and an abuse of the process of the court based on the principle of "res judicata " and/or "issue estoppel ".

Background facts:

From the facts set out in the affidavits filed in by the parties, the chronology of the events is as follows:-

a. The 1^st and 2^nd Plaintiffs had separately entered into 2 joint ventures with one MLGH (Sabah) Sdn Bhd ("MLGH") to develop 2 sites respectively, to wit-one off the seafront at Kampung Tanjung Aru, Kota Kinabalu and the other off the seafront at Kota Kinabalu ("joint venture").

b. Both the 1^st and 2^nd Plaintiffs are wholly owned by the 3^rd Plaintiff. MLGH is wholly owned by the 3^rd Defendant under his corporate name, "Chief Minister, State of Sabah", incorporated under the Chief Minister (Incorporation) Ordinance (Sabah Cap.23).

c. Arising from the failure of the said joint venture, the 1^st and 2^nd Plaintiffs and MLGH mutually agreed to submit their dispute in respect of the said joint venture to arbitration