Cosmopolitan Avenue Sdn Bhd v Dickson Woo Boon Siew & Ors

Appellant(s): Cosmopolitan Avenue Sdn Bhd

Respondent(s):

• Dickson Woo Boon Siew
• Choong Soo Hoi
• Lee Swee Kiat
• Lee Mei Peng
• Chu Swee Wah
• Tiong Poh Ling
• Pristine Clear Sdn Bhd
• Csl Properties Sdn Bhd

• YAA Datuk Seri Hashim Bin Hamzah
• YA Dato' Lim Chong Fong
• YA Dato Alwi Bin Abdul Wahab

• The appellant, a property developer, sold commercial office suites to the respondents, but failed to deliver vacant possession within the contractual period.
• This delay led to claims for liquidated and ascertained damages (LAD) by the respondents, who were purchasers of the office suites.
• Some respondents entered into settlement agreements with the appellant regarding the LAD sums, but subsequently initiated a High Court suit alleging fraudulent misrepresentation and non-payment, and seeking to nullify these agreements.

• Whether the High Court erred in declaring the settlement agreements invalid and void on the grounds of fraudulent misrepresentation.
• Whether the High Court correctly found that the 6th respondent had made an overpayment to the appellant and correctly placed the burden of proof on the appellant to disprove receipt.
• Whether the High Court's discretionary orders for interest and costs were appropriate and warranted appellate intervention.

• The Court of Appeal found that there was no vitiating factor, such as fraudulent misrepresentation, to justify avoiding the settlement agreements, thus declaring them valid.
• The Court held that the High Court erred in placing the burden of proof on the appellant to disprove the alleged overpayment by the 6th respondent, as the burden lay with the 6th respondent to prove payment.
• The Court upheld the High Court's discretionary awards for interest and costs, finding them not to be outrageous, but varied the specific LAD sums awarded and deleted the High Court's declaration of invalidity of the settlement agreements and the order for repayment of the alleged overpayment.