SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 MarsdenLR 1846

FEDERAL COURT PUTRAJAYA
LIN WEN-CHIH & ANOR – Appellant
Versus
PACIFIC FOREST INDUSTRIES SDN BHD & ANOR – Respondent
[Civil Appeal No: 02(f)-38-07/2021(S)]



Petitioner Advocates:Roland Cheng Ho Wah ,Respondent Advocate: Alex Decena,Victor Chong Thien Loi,Leslie Chaw

The principle of res judicata applies to claims identical to those previously adjudicated, barring new actions based on the same issues, ensuring finality in litigation.

Headnote:(A) Limitation Ordinance, 1952 - Res Judicata - Unjust Enrichment - The court addressed ten questions of law regarding unjust enrichment, res judicata, limitation, and constructive trust. The principle of res judicata was applied as the issues in the 2013 suit were identical to those in the 1997 suit, confirming that the claims were barred. (Paras 1-5, 30-33)

(B) The court found that the plaintiffs' claims were based on an admitted debt acknowledged in a letter, which was not extinguished, but the plaintiffs failed to comply with the agreed payment mechanism, leading to the dismissal of their claim. (Paras 24-27)

Facts of the case:
The plaintiffs, former shareholders of a company, claimed a debt of RM10,134,000.00 owed to them. The debt was acknowledged but disputes arose regarding payment terms and compliance, leading to previous legal actions. (Paras 8-10, 12-18)

Findings of Court:
The court upheld the application of res judicata, stating that the claims in the 2013 suit were barred as they were identical to those previously dismissed in the 1997 suit. (Paras 5, 30)

Issues: The main issues included whether res judicata applied to the 2013 suit, the effect of limitation on the claim, and the interpretation of the terms of the letter of acknowledgment. (Paras 1, 29)

Ratio Decidendi: The court reasoned that res judicata applies to claims that could have been raised in earlier proceedings, emphasizing the need for finality in litigation and the importance of adhering to agreed terms in the acknowledgment letter. (Paras 34-46)

Result: Appeal dismissed with costs of fifty thousand ringgit to the respondents.

Table of Content
1. 10 questions of law for determination (Para 1 , 2 , 3)
2. background facts of debt claim (Para 7 , 8 , 9 , 10)
3. history of litigation and previous suits (Para 11 , 12 , 13 , 14 , 15 , 16)
4. high court's reasoning on limitation and res judicata (Para 17 , 18 , 19 , 20 , 21 , 22)
5. high court's dismissal of plaintiffs' claim (Para 23 , 24 , 25 , 26 , 27 , 28)
6. court of appeal's findings on limitation and res judicata (Para 29 , 30 , 31 , 32 , 33)
7. application of res judicata in wider sense (Para 34 , 35 , 36 , 37)
8. plaintiffs' arguments against res judicata (Para 38 , 39 , 40)
9. court's examination of res judicata (Para 41 , 42 , 43)
10. final conclusion on res judicata application (Para 44 , 45 , 46)
Abang Iskandar Abang Hashim PCA:

Introduction

[1] We heard this appeal on 14 February 2022 with 10 questions of law (QOL) granted at the leave stage for our determination. The 10 QOLs concern mainly issues of unjust enrichment; res judicata; limitation; constructive/implied trust; estoppel; frustration; reciprocal promises; and appellate jurisdiction. The 10 QOLs read:

(i) Whether the test for unjust enrichment is "act or delivery of thing that can be said to have done by the Plaintiffs which was not intended to be done gratuitously that had benefitted the defendants?

(ii) Whether res judicata applies to a 2nd action filed after the Federal Court in a 1st action has ruled it to be premature with unsatisfiled conditions precedent?

(iii) Whether the time ceases to run under the Sabah Limitation Ordinance ("SLO") during the duration of prosecution and appeal of a 1st action subsequently ruled by the Federal Court as premature and such time is excluded for filing a 2nd action?

(iv) Whether an admission of debt found and not extinguished can be categorised under constructive or implied trust thereby excluded under s 9 of SLO?

(v) Whether estoppel per se applies to admitted debt by a party from reneging its obligation to pay the admitted debt?

(vi) Whether a claim for unjust enrichment and/or for frustration falls under item 97 or 102 of SLO? If so, whether the limitation for unjust enrichment and/or frustration is 6 years or 12 years?

(vii) Whether a 2nd Panel of Court of Appeal may revisit and revise a finding by the 1st Panel of Court of Appeal on a same point of law and or fact? If so, what are the conditions under which a 2nd Panel of Court of Appeal may do so?

(viii) When does the cause of action arise and limitation starts to run for an admitted debt found to be not extinguished?

(ix) Whether the findings and pleadings in earlier judgments in a 1st action in respect of the same case by the High Court and Federal Court are binding on a 2nd Panel? If so, what are the circumstances in which the Court may go beyond the pleaded case and refer to an earlier judgment on the same case?

(x) Whether the test is "objective aim" or "real nature of transaction" to determine the order of performance of reciprocal promises?

[2] Before us, the major attack of the Court of Appeal decision was in respect of the alleged reopening of the issues that were already decided in the 1st 1997 suit in the sense that the Court of Appeal had redefined the meaning of "premature" inconsistent with what was held and decided by the Courts in the 1997 suit. This was raised in relation to the res judicata issue.

[3] Other matters concern the defence of limitation to the admitted debt that was allegedly not extinguished, unjust enrichment, constructive trust, frustration, estoppel and reciprocal promises. Our Decision

[4] Having read the cause papers and parties' written submissions and having heard and considered the oral submissions by both the learned Counsel on all issues raised, we were unanimous in our view that the one issue that will determine and dispose of the appeal was whether the Appellants' case was caught by res judicata.

[5] In that regard, we were with the learned Counsel for the Respondents that the Court of Appeal justices were correct in app

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top