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Business Law

 

LAWD 101

 

 

Group Reflective Journal

Contributing Members

 

           Jonathan Yeo Kuok Ping             0316532

           Ng Yong Sheng                            0316131

           Sherwin Teo                                 0317072

Links to the Articles

Introduction

In this reflection journal, it is aimed with the ambition to provide a comprehensive review of four selected articles. The articles will be those that are published within the consent of Malaysian jurisdictional news as of the year 2015. It will be in the coverage of three in a group to link what has being taught in the class of Business Law in our last Semester 6 of Diploma in Business programme with Taylor's University. This group assignment will marked as our last for the programme, and will be honorarily presented to our subject (LAWD101) lecturer, Ms. Jenita Kanapathy.

Article 1: Negligence

In this article publish on the 2nd of June 2015, the case of dispute was between two young boys named Jee Kinson, 13, and Jee Kinland, 11, versus the Malaysia Airlines System Berhad (MAS). This case is in regards to their late father, 41, who was a victim of the mysterious disappearance of the Malaysia Airlines flight MH370 occurred during 8th of March 2014. The case was initially brought upon to the Kuala Lumpur High Court in 1st of November 2014, sued under the plaintiff’s mother known as Ng.  The case was supported by the Messrs Rumah Arunan & Associates, and lawyer Datuk Dr. Arunan Selvaraj who represented the two boys. The main defendant acclaimed will be MAS, over the act of Negligence over thier duties. As well as the three others controlling bodies, under defence of Negligence, also includes the Department of Civil Aviation (DCA), the Immigration Department, as well as the Royal Malaysian Air Force.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illustration: Datuk Dr. Arunan Selvaraj who filed a lawsuit against Malaysia Airlines on behalf of the two boys whose father was on ill-fated MH370, speaks outside with reporters in the court of Kuala Lumpur.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The main focus that revolves around this case is the act of Negligence that the company must be able to comply. Negligence is formed under the Law of Intentional Torts, and is defined as the most important area of tort laws in Malaysia. From what has been learned in the class of Business Law, the law of intentional tort provides a course of remedy to compensate any injuries or damages. Furthermore, the way of how Negligence is formed will be categorized into 3 main areas. Which are:

 

                                                                               I. Duty of Care,

                                                                              II. Breach of Duty, &;

                                                                             III. Consequential Damage

 

In the Duty of Care, it is a legal obligation that is imposed to an individual or a firm. It requires these parties to be adherence to a standard of reasonable care, while performing any acts that may foreseeably harm others involved. This inflicts to MAS, where the company have been regarded to be kept in a constant standard to foresee any faults that may bring any foreseeable harm to its passengers. In this case of MH370, it has been reported that the company did not address the issue that the flight went missing during the first few hours of radar disappearance en route to Beijing. MAS had breach this order, in which this ultimately led to the breach of duty.

 

Breach of Duty explains that when the individual or the firm had fallen into a defence below the standard or reasonable case, then there is a breach of duty. During the first few hours of disappearance, MAS supposingly must make swift reports to the public of the missing plane. But instead, MAS breach this duty to form Negligence that they accumulated a few hours gap to report the missing plane to the public media.

 

In Consequential Damage, it is the damages caused from the neglection of the failures made by the breach of duty. In relation to the case, the two boys managed to file a lawsuit over Malaysia Airlines for the damage they have cause to the boys’ father, and ultimately towards the rest of the families involved as well. This brings from the start of the duty of care, towards the breach of that duty, and lastly to bring forth the consequential damages caused.

 

Furthermore, lawyers well-versed in aviation law highlights then that Putrajaya’s declaration was an admission of liability and the airline had no defence, should suits filed against it. In the case of the court, MAS has been sued for Negligence through vicarious liability. Vicarious liability refers to the situation when someone is held responsible for the actions or omissions of another person. In this context, MAS

 

In my personal opinion, MAS should be more responsible and prudent enough to report the missing plane right away as it is known during the catastrophe occurred. MAS will not be sued under Negligence if they have promptly reached out the public involved with swift and accurate answers. Instead the company will be filed just under breach of contract, as they are currently facing that defence as well. Instead of double counts of defences the company may need to be held upon. In the previous conference held by MAS, most of the time the company had given repetitive and inaccurate answers towards the media. This led to a public outrage that they perceived the company is not able to settle upon such crisis appropriately. Currently, the case settlement has been preceded by the compensation from MAS of US$ 50,000 (or RM180,000) to the Jee family under Negligence. But according to the Montreal Convention, a multilateral treaty that governs international transportation of passengers and cargo, a maximum of US$ 175,000 (or RM630,000) can be offered in compensation by airlines. In my view, MAS could have avoided this substantial lawsuit. If they were to follow a more outstanding approach towards their crisis management resolution, it is in order to appease the impacted families and also to the general public through this approach.

Article 2: Defamation

In this article, publish on 31st March 2015, it reflects to the case between a Malaysian lawyer named Tan Sri Muhammad Shafee Abdullah who has filled a lawsuit versus the Malaysian Bar Council and three prominent lawyers for defamation. The three other lawyers involved was the formal Bar president, Christopher Leong, lawyer Tommy Thomas, and Tan Sri V. C. George, who was sued earlier on February 2015. Tan Sri Muhammad Shafee has been accused on the following commentary original thought being made by the three individuals:

 

  1. Holding press conferences condemning Anwar Ibrahim who cannot respond as a convicted prisoner serving time;

  2. Drawing attention to his prowess, allegedly as a top rate prosecutor;

  3. Demeaning Anwar and his legal team, and the defence that were relied upon them in court proceedings;

  4. Giving interviews with the traditional and online media on his performance as prosecutor; and,

  5. Organizing and participating in nationwide roadshows with a political party, with the purpose of insulting a convicted prisoner and for bringing attention to his role in the conviction.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illustration: Tan Sri Muhammad Shafee being interrograted by numerous journalist from various media about the trail.

 

 

 

 

 

 

 

 

 

         Illustration: Christopher Leong.          Illustration: Tan Sri V. C. George on the left.           Illustration: Tommy Thomas.

 

The primary focus of this case is based on Defamation, under the Law of Intentional Torts learnt in the class of Business Law LAWD101. Defamation is the act of criticizing a character, in which it will effect the reputation of the said party. From this, it tends to lower one’s social reputation of the individual, and he or she may experience a considerable degree of disrepute perceived by public affairs. In the Defamation taught in Business Law, it will consist of two forms. First being slander, and the second being libel. Slander suggests that it is an action or a crime of making a falsely spoken statement that will damage a person’s reputation. It may be in a form of speech or gestures towards the aimed individual. Whereas libel gives meaning to permanent written ideas that has been publicly published of the person in regards.

 

In the context of this case, the deemed spread defamation of Tan Sri Muhammah Shafee was the circulation of the above five commentary among numerous lawyers who works within the Malaysian Bar Council. This case has been brought into the dispute resolution of the High Court in Kuala Lumpur, Malaysia. In the defence of the three prominent lawyers, they said that from the time the Federal Court convicted Anwar on February 10, Shafee had behaved in a repugnant and obnoxious manner, which brought the legal profession into disrepute. Tan Sri Muhammad Shafee highlighted this defamation case is in accordance to restrain the Malaysian Bar and the three other lawyers from discussing his roles in the sodomy trail. This trail is the Anwar Ibrahim second sodomy trail, which are a source of considerable political controversy that occurred in Malaysia.

 

In my personal opinion, the Defamation of Shafee must be consistent with his justification of the truth that may prevail in this case. The solid justification of the commentary will give a clear-cut explanation in the trails of the court. Thus, only through this appeasement will any forms of legal enforcement will be held towards the three identified lawyers. The following three defences that may uphold Shafee’s claim will be fair comment and privilege. The fair comment view of defence will be such comments that must be a matter of public interest and not statement of facts. It must to be made with fair honesty, and does not conceal any malicious commentary. As such, Shafee must gain the full interest of the public in order to resolve this Defamation proclamation. On the views of privilege, it is gained from the statements in parliament and judicial proceedings. In my review, Shafee has accumulated a substantial degree of parliamentary privilege, but yet he would not be regarded as above the law. The resolution of this case is still currently in order.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Article 3: Contract

In this article, which is published on 10 March 2015, a dispute happened between the Selangor state government and the Barisan Nasional federal government. In the case, a multi-billion ringgit water restructuring deal was cancelled due to the failure on honoring the crucial parts of the agreement, which is signed on the September 12 during the last year. One of the Selangor MB, Menteri Besar Azmin Ali said that the federal government actually wanted the free land where the water pipes were located. The land does not belong to the federal government, as the land is not stated clearly as part of the agreement when they signed the contract. This failure is due to the federal government’s refusal to respect the principles of the main agreement when the moment the both parties signed during that time. What was stated in the agreement and agreed upon by both sides was to handover the assets owned by the concessionaires.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illustration: Selangor MB Azmin Ali says the deal is off because Putrajaya didn’t adhere to contract.

 

In a press statement which was sent a while after the press conference, Azmin added that the reasons for the collapsed deal was because the BN government failed to:

 

  • Acknowledge the ownership of state assets worth RM14.9 billion which is about to be pumped in to Pengurusan Air Selangor Bhd.

  • Acknowledge and accept the transfer of RM2 billion worth of Air Selangor’s assets for the purpose of funding Air Selangor to take over all water concessions in Selangor

  • Issue a Facilities License to Air Selangor as confirmation of the asset ownership of Air Selangor

  • Sign the Hire Purchase agreement between Pengurusan Aset Air Berhad and Air Selangor

 

The deal was supposed to return the rights to managing water to the state instead of the current four concessionaires: Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga Sdn Bhd (Puncak Niaga), Konsortium Abbas Sdn Bhd (Abbas) and Syarikat Pengeluar Air Selangor Sdn Bhd (Splash).

 

The main focus on this case is based on the termination of contract, which is under the chapter on the law of contract where we had learnt during the Business Law class. In the Malaysian legislation, the Contract Act (CA) 1950 confines all standards of contracts to be abide through this case. A contract is a legally enforceable agreement between two parties. Each party to a contract makes a promise to either perform a certain duty or pay a certain amount. If one party fails to act as promised, and the other party has fulfilled the duties under the contract, the other party is entitled to legal relief. A breach of contract states that it is a failure to fulfill the duties under the contract terms. In this case, there are few things we should look at which are discharges by breach and discharge by frustration.

 

In the discharge by breach, it is stated that when a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promise may put an end to the contract, unless he has signified by words or conduct his acquiescence in its continuance which is under the section 40. In the case, the federal government actually wanted to have a free land for the water restructuring exercise, but then they could not perform any tasks, as the land is not included as a part of the agreement. This causes the contract to be breached.

 

While in the discharge of frustration, it occurs when neither party has defaulted on the original contract but other circumstances have intervened to prevent the contract from being performed as originally intended. The result must be that further performance of the contract is impossible, illegal or radically different from what the parties contemplated when they entered into the contract. If a frustrating event occurs the contract automatically ends and the parties are excused from their future obligations, although any accrued liabilities will remain. It is important that a party is sure that frustration has actually occurred if it is going to rely on frustration to justify ceasing to perform its obligations under the contract to avoid being in breach if the event is not in fact a frustrating one.

 

In my own opinion, the contract should not be terminated. A clear wording must have before the contract is made. As with most contract provisions, clear wording will be required before a termination for convenience clause will be fully effective. In the case, the land should be stated clearly to be part of the agreement in order to be able to proceed on the water restructuring exercise. Another way to overcome this problem is the court may order an “equitable remedy”. It consists in the court by ordering one or both of the parties to take certain actions to resolve the dispute. Under the Specific Relief Act 1950, specific performance is used to solve the problems where a court can require the breaching party to perform their duties under the contract.

Article 4: Criminal Laws

In this article, published on the 18th May 2015, it involves two women, which were business partners. A wedding photographer, Rajeswari Supaya stabbed her colleague, Nur Nisha Abdullah, when a business arrangement had gone south. The incident took place at Block E-4-22 Danau Kota flats, Jalan 2/3D, Taman Danau Kota which is located in Setapak, at 4:30am on the 13th of May. Whereby, Rajeswari entered the house of Nur Nisha, and found her sitting in the living room, Rajeswari had then walked up to her and stabbed her in the back several times. Nur Nisha managed to escape from Rajeswari somehow, then later on called another colleague that had rushed her to the hospital. The case was eventually brought up to the Magistrate’s court.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illustration: Ground view of the Danau Kota Flat where the crime had taken placed.


Rajeswari Supaya that was brought to trial had pleaded guilty to the charge of voluntarily causing hurt by dangerous weapons or means. She had been arrested on 13th of May itself, and was ordered by the court to start serving her five-day prison sentence. To start off, Rajeswari, who was unrepresented, paid the fine of RM7,000 and N. Joy Jothi was the deputy public prosecutor. Rajeswari had asked for a light sentence, as she was a single mother to her two children, aged 13 and 11. Despite being a widow, N. Joy Jothi was against it and asked for a deterrent sentence, stating that the victim’s life was in danger due to the multiple stabbing wounds. After trial has been done, Magistrate Muhamad Faizal Ismail sentenced Rajeswari to five days in jail and a fine RM7,000 and eight months in prison.

 

The law sentenced falls under the second magistrate court, under criminal jurisdiction. Reason why it falls under the second magistrate court, as because it states that the criminal jurisdiction is trial of offences for which the maximum term of imprisonment does not exceed 12 months imprisonment or offences punishable by fine only. And from the case above, it is stated that Rajeswari is sentenced to only eight months in prison.

 

In my opinion, the sentenced made for Rajeswari was appropriate for what she has done. Despite the fact that she is a single mother with two children, it doesn’t mean she should be able to get away with an offence so easily. Especially when it’s an offence such as stabbing, it should not be taken lightly. Adding the point, that the argument was probably not such big of a deal, which could have been settled by words or another manner. With a strict judging system, it shows an example to others, that by doing crime, the punishment would be severe. Therefore, it would help reduces such incidents occurring.

References

JY

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