JUDGMENT

John Lee Kien How @ Mohd Johan Lee J:

(After Trial)

Introduction

[1] This lawsuit pertains to a dispute regarding stakeholder funds between a solicitor and his client, and the utilisation of stakeholder funds.

Brief Facts Of The Case

[2] Somewhere in 2011, Veheng Global Traders Sdn Bhd ("Veheng"), a company owned by Eddie Ng ("Eddie"), appointed the Plaintiff as counsel to represent them in a lawsuit against Kurnia Insurans (M) Bhd (now AM General Insurance Berhad) for insurance claims in the Shah Alam High Court Suit No: 22A NCVC-78-2011 ("Suit 78").

[3] The High Court ruled in favor of Veheng and ordered AM General Insurance Berhad to pay RM86,799,784.00 in compensation for fire insurance, along with 5% interest per year and RM1,200,000.00 in costs.

[4] A consent judgment dated 1 July 2016 ("Consent Judgment") pending appeal was entered, where Veheng would receive RM61,006,570.84 ("Stakeholder Money") within 7 working days of the Consent Judgment. This amount was to be held in trust by the Plaintiff's firm, KFEe & Co, until the appeal was resolved.

[5] However, upon request by Eddie to assist Veheng in repaying EXIM Bank to avoid a winding-up proceeding, the Plaintiff then en