STEVEN PHOA CHENG LOON & ORS V. HIGHLAND
PROPERTIES SDN BHD & ORS
HIGH COURT MALAYA, KUALA LUMPUR
JAMES FOONG J
[CIVIL SUIT NO: S5-21-174-1996]
11 AUGUST 2000
[Plaintiffs' claim against 6th, 9th and 10th defendants dismissed with
costs; plaintiffs' claim for negligence and nuisance against other
defendants allowed with costs; apportionment of contribution -1st defendant
15%, 2nd defendant 10%, 3rd defendant 10%, 4th defendant 15%, 5th defendant
30%, 7th & 8th defendants 20%; damages to be assessed.]
JUDGMENT
James Foong J:
Introduction
Highland Towers, as is collectively known, consist of three blocks 12
storey high apartments named simply as block 1, 2, and 3 respectively. It
was constructed sometime between 1975 and 1978 and the residents who dwelled
therein were middle income earners. Directly behind the three blocks was a
rather steep hill with a stream flowing west, if it was allowed to follow
its natural course. The attraction of this place was the natural
surroundings with an extensive view of the city of Kuala Lumpur.
On Saturday, 11 December 1993, at about 1.30pm, after ten days of
continuous rainfall, block 1 collapsed. When rescue operation was called off
after days of searching, 48 people were recorded dead. The nation declared
this incident as a - national tragedy.
Immediately after the collapse of Block 1 the residents of Block 2 & 3
were prevented from entering their apartments by the local authority having
jurisdiction of the area, the Majlis Perbandaran Ampang Jaya (MPAJ), for
fear of the instability of these two buildings. A couple of days later,
these occupants were allowed in, in restricted number, but only to collect
their personal valuables. At that time, even with the presence of the
security forces, the apartments were looted. With the eventual passing of
time especially when security was reduced and subsequently withdrawn
altogether vandalism became more intense. By 1998, when this court visited
the site, every apartment in Block 2 & 3 was completely stripped of
contents, including fittings leaving only the naked structure.
MPAJ had issued statutory notice to the purchasers/owners of the
apartments of Block 2 & 3 to demolish these two buildings. This was refused
leading to the affected purchasers/owners obtaining from the High Court at
Shah Alam an order to set aside this notice. To date Block 2 & 3 remain
standing but unoccupied for fear of instability.
Some three years after the Highland Towerstragedy the purchasers/owners
of Block 2 & 3 issued a writ against ten defendants. This is the case
against them.
The Defendants
The ten defendants are as follows:
The 1st defendant was the developer of the three apartment blocks in
Highland Towersand is still the registered owner of the three pieces of land
- Lot 494, 495, & 653 in the Mukim of Hulu Klang, District of Gombak, State
of Selangor, on which the buildings stood. For purposes of demarcation, I
shall refer to this entire land as the Highland Towers
Site.
The 2nd defendant was the purported architect of
Highland Towers.
The 3rd defendant, a brother of the 2nd defendant, was the engineer for
Highland Towers.
The 4th defendant is and was the local authority at the material time who
had jurisdiction over the Highland Towers Site,
the Arab Malaysian Land and the surrounding areas.
The 5th defendant is and was, at the material time, the registered owner
of 50 lots of bungalow land directly at the rear of
Highland Towers. I shall collectively refer to these lots as the Arab
Malaysian Land.
The 6th defendant (Tropic) is a company that carried out clearing works
on the Arab Malaysian Land in late 1978 and early 1979.
The 7th defendant is the registered owner of a large piece of land (Metrolux
Land) which is situated on top of a ridge, commonly known as Bukit
Antarabangsa. This land is located just above the Arab Malaysian Land and at
the material time was under development.
The 8th defendant is and, at all material times, the provider of
management services to the 7th defendant to develop the Metrolux Land into a
housing estate.
The 9th defendant is the State Government Selangor.
The 10th defendant is the Director of Lands & Mines of the Selangor
State.
The Plaintiffs' Claim
The plaintiffs' claim is for damages caused jointly and/or severally by
the acts and/or omissions of the defendants, their servants and/or agents in
causing and/or contributing to the collapse of Block 1 and thereby forcing
the plaintiffs to evacuate and abandon Block 2 & 3.
The causes of action relied on by the plaintiffs against the defendants
are: negligence, nuisance, the liability under Rylands v. Fletcher;
and breach of statutory duty.
During the course of the plaintiffs' submission, Mr. Navaratnam, the
leading counsel for the plaintiffs, announced that the plaintiffs are
abandoning the last cause of action - breach of statutory duty, leaving only
negligence, nuisance and liability under Rylands v. Fletcher.
At this stage I am of the view that it is pertinent to set out broadly
the principles governing these causes of actions so that this court will be
focus when analysing the allege liabilities of the defendants. An
amplification of them will be undertaken when I examine each defendant's
acts in detail.
Negligence
The liability of negligence as defined by Lord Atkin in case of
Donoughue v. Stevenson [1932] AC 562 is: that every man must take
reasonable care to avoid acts or omissions which he can reasonably foresee
would be likely to injure his neighbour, ie, those persons who are so
closely and directly affected by his act that he ought reasonably to have
them in contemplation as being so affected when he is directing his mind to
the acts or omissions which are called to question, and this results in
damage to the neighbour. By this, suffice to say, at this stage, that the
important elements for the plaintiffs to prove in this cause of action are:
causation and foreseeability.
Nuisance
In general, nuisance is a condition or activity which unduly interferes
with the use or enjoyment of one's land. There is public nuisance and
private nuisance. In this case we are only concerned with private nuisance
which is often described as "unlawful interference with a person's use or
enjoyment of land, or some right over, or in connection with it", and this
takes three forms. The first: is encroachment on a neighbour's land. The
second: is direct physical injury to the neighbour's land. And the third: is
interference with the enjoyment of the neighbour's land - see Winfield &
Jolowicz on Tort, 15th edn at p. 494.
But not all types of nuisance are actionable. Whether a nuisance is
actionable depends on a variety of considerations: the character of the
defendant's conduct, the act complained of, the effect of the complained act
and such likes. And all these are to be balanced off against the conflicting
interests of the parties; that of an occupier in using his land as he thinks
fit with that of his neighbour for the quiet enjoyment of his land.
In deciding the defendant's conduct, the test is: reasonableness ie,
"according to the ordinary usage of mankind living in 205 a particular
society" - see Sedleigh-Denfield v. O'Callaghan [1940] AC 880 at 903.
This factor of "reasonableness" of the defendant's conduct is different from
that in negligence. Here it signifies what is legally right between the
parties taking account "all the circumstances of the particular case; the
time and place of its commission, the seriousness of the harm, the manner of
committing it, whether it was done maliciously or in the reasonable exercise
of rights; and the effect of the commission, that is transitory or
permanent, occasional or continuous; so that it is a question of fact
whether or not a nuisance has been committed" - Winfield & Jolowicz on
Tort, 15th edn at pp. 497-8.
Thus "if the defendant is a reasonable user, he would not be liable for
consequent harm to his neighbour's enjoyment of his land; but if the user is
not reasonable, the defendant will be liable, even though he may have
exercised reasonable care and skill to avoid it." - Lord Goff in
Cambridge Water Co Ltd v. Eastern Counties Leather plc [1994] 1 All ER
53 at 70.
Of late another factor is added to this test. It is expounded by the
House of Lords in the same case of Cambridge Water Co Ltd. Lord Goff
introduced it in this way:
We are concern with the liability of a person where a nuisance has been
created by one for whose action he is responsible. Here, as I have said, it
is still the law that the fact that the defendant has taken all reasonable
care will not of itself exonerate him from liability, the relevant control
mechanism being founded within the principle of reasonable user. But it by
no means follows that the defendant should be held liable for damage of a
type which he could not reasonably foresee; and the development of the law
of negligence in the last sixty years points strongly towards the
requirement that such foreseeability should be a prerequisite of liability
in damages for nuisance, as it is of liability in negligence.
For if a plaintiff in ordinary circumstances only able to claim damages
in respect of personal injuries where he can prove foreseeability on the
part of the defendant, it is difficult to see why, in common justice, he
should be in a stronger position to claim damages for interference with the
enjoyment of his land where the defendant was unable to foresee such damage.
I find this added requirement reasonable and I have no reason for not
adopting it as part of the common law of this country for this cause of
action.
The Liability Under Rylands v. Fletcher
The rule expounded by Blackburn J in the case of Rylands v. Fletcher
is: "that the person who for his own purpose brings onto his land and
collects and keeps there anything to do with mischief if it escapes must
keep it at his peril, and, if he does not do so, is prima facie
answerable for all the damage which is the natural consequence of its
escape." When such a situation is found to exist, then there is no necessity
for the plaintiff to prove the negligent act of the defendant; this is a
case of strict liability.
However this rule has undergone changes in recent years in the common law
practicing countries. Starting with England, the House of Lords, in
Cambridge Water Co Ltd v. Eastern Counties Leather plc [1994] 1 All ER
53 has added to this principle the necessity to prove that the defendant
could have reasonably foresee the thing might, if escape, cause damage to
the plaintiff. Then in Australia, in the case of Burnie Port Authority v.
General Jones Pty Ltd 120 ALR 42, the High Court after describing this
rule as having "all its difficulties, uncertainty, qualifications and
exception" completely discarded it as an independent cause of action, and
incorporated it into the law of negligence. I tend to favour this Australian
approach since after the case of Cambridge Water Co the requirement
of foreseeability has deprived this independent cause of action of its
attractiveness. Since foreseeability is required to be proved, it might as
well be absorbed into the liability of negligence.
Objection To The Locus Standi Of Plaintiffs Number 44-73
The statement of claim has described plaintiffs 44 to 73 as having
assigned their rights and interest in their respective apartments in
Highland Towers to various financial
institutions for consideration of loans granted to them by these financial
institutions. The names of these financial houses are disclosed in para. 2
of the statement of claim against the amount owed by each of these
plaintiffs. As security for these loans, these plaintiffs have executed in
favour of these institutions what we commonly called a "loan agreement cum
assignment". In it, these plaintiffs assigned to these institutions all
their rights and interest in their apartments under the sale and purchase
agreement they entered with the 1st defendant. This method of conveyancing
was adopted for reason that no individual strata title was issued to the
apartments (not even till today) to enable the financiers to create a legal
charge over them. Seizing on this shortcoming all the defendants except
Tropic argued that these 59 plaintiffs have no right to bring an action
against the defendants since their rights have been assumed by the financial
institutions.
To substantiate this contention s. 4(3) of the Civil Law Act and the
principle as laid down in the case of Leigh & Sillavan v. Aliakmon
Shipping Co Ltd [1986] 2 All ER 145 are highlighted.
Section 4(3) of the Civil Law Act reads as follows:
Any absolute assignment, by writing, under the hand of the assignor, not
purporting to be by way of charge only, of any debt or other legal chose in
action, of which express notice in writing has been given to the debtor,
trustee or other person from whom the assignor would have been entitled to
receive or claim the debt or chose in action, shall be, and be deemed to
have been, effectual in law, subject to all equities which would have been
entitled to priority over the right of the assignee under the law as it
existed in the State before the date of the coming into force of this Act,
to pass and transfer the legal right to the debt or chose in action, from
the date of the notice, and all legal and other remedies for the same, and
the power to give good discharge for the same, without the concurrence of
the assignor (emphasis added).
And the principle as expressed by Lord Brandon in Leigh & Sillavan v.
Aliakmon Shipping (supra) is:
in order to enable a person to claim in negligence for loss caused to
him by reason of loss or damage to property, he must have either the legal
ownership of or a possessory title to the property concerned at the time
when the loss or damage occurred, and it is not enough for him to have only
had contractual rights in relation to such property which have been
adversely affected by the loss or damage to it (emphasis added).
In arguing against this objection, Mr. Navaratnam, insists that the
assignments executed by his clients to the financial institutions are
firstly: "not absolute", and secondly: "purporting to be by way of charge",
thus falling outside the ambit of s. 4(3) of the Civil Law Act.
By these assertions, the question that requires satisfaction, and which
will decide the fate of the defendants' objections, is: whether the
assignments in favour of the financial bodies are absolute (not purporting
to be a way of charge)? If it is in the negative, then the objections of
these defendants must fail.
As a guide to assist this court in its determination of this issue two
decisions, one from the then Supreme Court (Nouvau Mont Dor (m) Sdn. Bhd.
V. Faber Development Sdn. Bhd. [1985] CLJ 231), and the other of the
Federal Court (HiPParion (m) Sdn. Bhd. V. Chung Khiaw Bank Ltd. [1989] 1
CLJ 41) confirming the approach of its predecessor, are relevant. In the
case of Nouvau Mont Dor (m) Sdn. Bhd. V. Faber Development Sdn. Bhd.
[1985] CLJ 231, Seah FJ advises that: in deciding on such matter of,
"whether or not the assignment is absolute one (not purporting to be by way
of a legal charge only) within the meaning of s. 4(3) of the Civil Law Act
1956 is to be gathered only from the four corners of the instrument itself".
It must be recorded that in both these cases, the assignments by the
borrowers to the banks for loans granted of this nature were ruled absolute
(and not purporting to be by way of a legal charge only) rendering the
assignors no legal right to bring an action in their own names.
Of late there seems to be substantial number of authorities
distinguishing the finding made in Nouvau Mont Dor and Hipparion,
though not the test they set. Particularly visible are the High Courts'
decisions in Loh Hoon Loi & Ors v. Viewpoint Properties (Sabah) Sdn Bhd
[1995] 4 MLJ 804, Bank of Commence (M) Bhd v. Mahajaya Property Sdn Bhd
[1997] 3 MLJ 620 and Pak Ki Yau v. Kumpulan Promista Sdn Bhd [1999] 6
MLJ 220. The two latter cases ruled that there was no absolute assignment in
the document of assignments before them.
The various instruments of assignment created by these plaintiffs in
favour of their respective financial institutions are tendered in court.
Though they are worded in various fashions, but common to all are the
following features: (a) It is in consideration for loans granted by the
financial institutions to these plaintiffs, as borrowers. (b) There are no
individual documents of title issued to the apartments offered as securities
for the loans to enable a legal charge to be created over them. (c) The
assignments by these plaintiffs to the financial institutions are of the
plaintiffs' rights and interest in the sale and purchase agreements they
entered with the 1st defendant, when they purchased their respective
apartments. (d) There are covenants by these financial institutions, as
assignors, to reassign the said apartments back to the plaintiffs in the
event individual documents of title are issued, and if the loans are still
then subsisting, to create registrable legal charges over the properties so
secured. (e) And if individual documents of title were not issued when the
loans are repaid the assignors would reassign back the rights and interest
in the sale & purchase agreements to the plaintiffs.
This type of arrangement is presently recognised as an "equitable
mortgage" or even as a "equitable charge" by the Federal Court in the case
of Chuah Eng Khong V. Malayan Banking Berhad [1995] 3 CLJ 581. In
fact Peh Swee Chin's FCJ in his judgment in the same case accepted such
creation despite the existence in this country of the National Land Code
which speaks only of a "charge" with the following statement:
The Court of Appeal used the words "equitable mortgage" in relation to
security transaction without restraint, and totally without inhibition in
the face of the National Land Code.
We support such usage.
With recognition by such high authority of such loan agreement cum
assignment to be an equitable charge, I see no reason why the word "charge"
in s. 4(3) of the Civil Law Act should not include equitable charge of this
nature. For after all, is this equitable charge not specie of a charge? Thus
when this instrument of assignment purports to be by way of a charge, the
effects of s. 4(3) of the Civil Law Act is no longer applicable.
Further, after perusing these loan agreement cum assignments, I honestly,
within the four corners of these documents cannot interpret them to be
absolute assignments by these plaintiffs to the financial institutions.
Though the word "absolute" appears in the documentation of these loan
agreement cum assignments, there are also other clauses to show that the
rights and interest in the sale & purchase agreements so assigned have not
been transferred to the assignors. This is explicitly revealed Clement
Skinner JC (as he then was) in Pak Ki Yau v. Kumpulan Promista Sdn Bhd
(supra). Though the clauses referred by Skinner JC in his judgment may
not be exactly the same in wordings and in numerical order as those in the
various loan agreement cum assignments in our present case but they are
present and practically alike. The following is his exposition of which I
adopt in full for the consideration in this case.
Clause 19 in particular permits or recognises that the appellants
(plaintiffs in our case) may execute or create a further or subsequent
assignment, charge, mortgage or encumbrance over the said property or any
part thereof, and to do so would not constitute an event of default; the
only sanction such an event invites is that the bank is entitled to open a
separate account and any money repaid by the appellants is paid into such
new account and will not be treated as a repayment of the loan. In my view,
a clause such as the above which allows the appellants to exercise rights
over the said property as if he is still the owner thereof, must surely by
strong indication mean that the parties did not intend the assignment to be
absolute. In addition to the above, cll. 15, 26 and 33 all recognised the
appellants are entitled to have possession of and enjoy the said property
except that the appellants are obliged to insure, maintain and upkeep the
same. If the assignment was intended to be absolute so as to transfer all
rights, title and interest in the said property, as contented for by the
respondent, then the appellants' occupation and use of the said property
would only be possible with the permission and licence of the respondent.
Yet, there are no word in the loan cum assignment that indicates that the
position of the appellants are that of a licensee.
With this, and the reason as expressed earlier, my answer to the question
posed earlier is in the negative. This paves the way for these plaintiffs to
pursue with their claims.
Besides the finding above, I am also of the view that by the principle of
equity of redemption these plaintiffs are also able to maintain their right
to sue. Though the defendants concerned have submitted to me that this
equitable principle has no place in our system of land registration since
1917, as expressed in Haji Abdul Rahman v. Md. Hassan [1917] 1 FMSLR
290 and approved by the FMS Court of Appeal in Wong See Leng V. C
Saraswathy Ammal [1953] 1 LNS 123 which says:
It seems to their Lordships that the learned judges have been too much
swayed by the doctrines of English equity, and not paid sufficient attention
to the fact that they were dealing with a totally different land law, namely
a system of registration of title contained in a codifying enactment.
The very phase 'equity of redemption' is quite inapplicable in the
circumstances.
I find that this attitude have changed by the decision of the Federal
Court in Chuah Eng Khong V. Malayan Banking Berhad [1995] 3 CLJ 581.
There, Peh Swee Chin FCJ has categorically revived this principle with
these:
If it is an equitable mortgage, like a legal mortgage, the borrower has
obtained a second right to redeem after the contractual date for redemption
has expired, i.e. he has got equity of redemption for, in the eyes of
equity, the lender is not the owner of the said land notwithstanding the
said assignment, but the borrower is, but subject to mortgage, and the
lender a mere "encumbrancer". The equity of redemption arises as soon as any
document on a true construction is found to be a mortgage.
The word "mortgage" may sound like sacrilege in view of the presence of the
Code which does not use the word, especially to a legal man who specialises
in "common law" but not to one who is familiar with "Chancery practice"; for
the latter; despite the assignment, the borrower is still the owner of the
land subject to the mortgage.
The learned judge then proceeds to determine as follows:
Although there is a well-known distinction between a mortgage where a
borrower's land is usually transferred or assigned subject to the equity of
redemption and a charge where such land is not transferred or assigned at
all but it gives the chargee rights over the land, a charge of land has
always been regarded as a species of mortgage for most practical purposes,
see "Law of Real Property" by Sir Robert Megarry (former Vice
Chancellor of the Supreme Court of the United Kingdom) and HSR Wade,
5th Ed, at p. 914.
The Court of Appeal used the words "equitable mortgage" in relation to
security transaction without restrain, and totally without any inhibition in
the face of the National Land Code.
We support such usage.
Here the said loan agreement, on true construction, is an equitable charge,
as there is no deposit of document of title 205
Since the loan agreement cum assignment is an equitable mortgage the
principle of the equity of redemption is back in force in this country; with
it comes the right of these plaintiffs to proceed with their claims.
The Cause Of Collapse Of Block 1
In order to determine the liabilities of defendants on the allegations as
charged by the plaintiffs, it is necessary at the onset to establish the
cause of the collapse of Block 1 which lead to the forced evacuation Block 2
& 3. To decide on this, it is essential to disclose some brief facts.
Highland Towers & Its Surrounding
Features
The Retaining Walls
The three apartment blocks of Highland Towers
were built on elevated land with a relatively flat base. Directly behind it
was a steep hill. Though some witnesses have describe the gradient of this
hill to be 10 to 20 degrees but, by my estimate from various photographs
tendered as exhibits, I perceive it to be far steeper. This hill was
terraced, supported by retaining rubble walls made of boulders and cobbles
of rock of varying size placed together by mortar at a random fashion. Some
of these walls had collapsed and were buried in the soil at the time of the
Highland Towers tragedy. Those left are still
standing, either in part or as a whole, but in a dire state of repair. From
a physical survey commissioned by MPAJ soon after the collapse of Block 1 on
the affected area, covering the Highland Towers
Site and the Arab Malaysian Land, it is apparent that these retaining walls
were constructed in a haphazardous manner. Some were located on the
Highland Towers Site with the rest in the Arab
Malaysian Land.
Ownership Of The Slope Behind Highland Towers
Both the Highland Towers Site and the Arab
Malaysian Land once belonged to a common owner - the 1st defendant, who
intended to develop the entire area into a housing scheme with three
apartment blocks on Highland Towers Site and
bungalows on the Arab Malaysian Land. When the lands were subdivided and
issued with individual documents of title, the 1st defendant mortgaged the
bungalow lots, consisting of 50 in number, to the 5th defendant in
consideration of some financial arrangements. When the loans were not
repaid, the 50 bungalow lots were transferred to the 5th defendant in
November 1991 to offset the amount due.
The East Stream & Pipe Culvert
At the furthest eastern corner of the Arab Malaysian Land water from a
stream, popularly known as the "East Stream" (which name is totally
inappropriate since it actually flows westward), enters the 5th defendant
land. The source of this stream originates from the Metrolux Land. It flows
down hill in a westerly direction until it reaches a plateau where it forms
a mud pond. From here the water is channeled into a set of concrete culverts
which directs it to a pipe culvert (pipe culvert). This pipe culvert runs
horizontally right across the hill slope of the Arab Malaysian Land. After
passing through 10 bungalow lots, the water from this pipe is discharged
into Lot 445 which is situated in the north. Lot 445 is a government land.
This entire section of the land, as described, seems unaffected by the
effects of the landslide that brought down Block 1.
The initial section of this pipe culvert was built as an integrated part
of a retaining wall. It has manholes located at various intervals. Just by
the side of this pipe culvert, running for some distance, is an open
concrete drain. This was intended to drain surface runoff water while the
pipe culvert catered for the water emanating from the East Stream.
All drainage and geo-technical experts who testified in this case agree
that the flow regime of the East Stream into the pipe culvert running across
the hill is highly undesirable and dangerous. Instead of water flowing along
its natural course - downhill (following its natural terrain), it is now
diverted into a man made structure that requires constant maintenance and
supervision. Failure to attend to this will affect slope stability, causing
a danger to humans living down slope. It must have been this concern that,
subsequent to the collapse of Block 1, the rescue operators, upon
discovering this unwarranted drainage system of the East Stream, redirected
the flow pattern of this stream to its natural course, downhill in a
westerly direction. They did it by placing sandbags in an area to prevent
the flow of water into the pipe culvert. This is not completely successful
since, by my observation during this court's visit to the area, water is
still detected in the pipe culvert.
Further down slope on the Arab Malaysian Land is network of drains. Those
at the upper sector are earth drains while at the lower portion are made of
concrete. These drains, I believed cater for surface water runoff while the
pipe culvert was take care of the discharge emanating from the East Stream.
Though in certain areas these drains are disconnected abruptly, presumably
caused by the landslide that brought down Block1, those at the upper level
are still intact. But they are in an odd fashion. Starting from the top, a
drain runs parallel for some distance along the pipe culvert. It then
suddenly makes a U-turn to flow back in the same direction from where it
came from. Then after proceeding for some distance, it is connected to a
culvert across a road reserve. At this culvert and joining it is a drain
coming from the opposite direction. By deduction, this drain from the
opposite caters for water runoff on the southern side of the slope. From the
junction the drain proceeds down hill and terminates abruptly at far right
at a level parallel to the rear of Highland Towers.
From an overall view of the post-collapse survey plan, this drain must have
continued along the rear of Highland Towers
until the end of Block 3 when it turned left down hill and drained into the
lower section of the government land - Lot 445.
This drainage pattern too, in the view of all experts in the field of
hydrology, is far from satisfactory. Firstly, large section of drains is
earth drains that can be easily eroded. Secondly, water can infiltrate into
the soil of these earth drains at a greater rate than those made of
concrete. Thirdly, the flow pattern of these drains is undesirable. It does
not flow naturally down hill. Instead it makes a number of U-turns, one of
which even flows backwards to the direction where it came from. Fourthly,
the drains are insufficient to accommodate the amount of runoff from the
slope. Fifthly, the drains are in a vegetated area and maintenance is
regularly and constantly required.
Before the Arab Malaysian Land was sold to the 5th defendant, one Mr. Lim
(DW1), an employee of the 1st defendant was in charge of the drains on the
slope. He ensured water in the drains flowed without interruptions,
particularly free from vegetation interference around it, and when the
drains were damaged he would repair them. Failure or neglect to ensure these
had serious consequences as can witnessed by the flooding in the car parks
of Highland Towers accompanied by rocks and mud,
as well as a landslide on the slope some months before the collapse of Block
1. This was when Tropic moved into the Arab Malaysian Land to excavate and
cleared the vegetation as well as leaving branches of trees and debris in
the drains.
Bruce Mitchell's Photographs
The three blocks of Highland Towers were
built in such a manner that Block 1 and 3 were almost parallel to each
other, with Block 2 in between set slightly back. From the window of the of
the 4th floor of Block 3, a resident, Mr. Bruce Mitchell, had the presence
of mind to snap a series of photographs just before the collapsed of Block
1. These highly commendable pictures, 6 in number, recorded the tragedy and
rendered us a grime reminder of the last moments before the disaster that
took so many lives and caused enormous loss of property. These pictures also
provided invaluable information to specialist in the field of geo-technology
to determine the cause of the collapse. They are marked as exhibit P7A - 7H
but are commonly, throughout this trial, referred to as the "Mitchell
Pictures".
As principal expert witnesses have relied extensively on these pictures
to form their opinion, it is essential that I give a brief description of
each of these.
Photograph P7A, shows a view of the rear section of
Highland Towers framed on both sides by the balconies of apartments
in Block 1 & 2. At the furthest end of the picture is the hill slope.
Erosion scars are seen in two areas engulfed by vegetation, mainly trees
which lean downhill as if being pushed by some force from above. Beneath is
a rubble retaining wall. In front of this wall is a heap of earth with
fragments of tar spawn over. Lower down from this spot is a continuous row
of corrugated asbestos roofs in a state of collapse, with motor vehicles
trapped under. Right next to this and slightly further front, is a cement
slap which looks like an openair badminton court. Supporting it is a rubble
retaining wall topped by flower plants.
The left side of picture P7B shows a partial profile of Block 1 with some
balconies of apartments facing Kuala Lumpur City protruding out. Beneath
these is a tar-paved road with three motor cars parked in a row. At the far
end of this road is a rubble retaining wall supporting a growth of lush
green vegetation. The lower portion of this retaining wall has explored with
soil spawn over a lower tier road. A lamppost standing close to the area
where the soil is seen emitting has leaned.
Photograph P7C is the second frame of the same spot as P7B. The soil seen
emitting in the earlier picture it is more profound. Substantial part of the
retaining wall has collapsed. Greater volume of earth is seen gushing out of
the disintegrated retaining wall. The lamppost has leaned more extreme.
P7D captures almost the entire Block 1 tilted at an angle with clouds of
dust emitting from the base.
P7E records Block 1 almost tumbling to the ground. The rear apartments'
balconies, now facing the sky are clearly visible.
P7F is a second frame of the same spot as P7E. In this subsequent shot,
taken a few seconds later, there is a sea of dust with intermittent sight of
a fallen building.
P7G reveals a wider view of the rear of Block 1 without the building
(Block 1) obstructing. The dust from the fallen Block 1 is still present as
evidenced by the white cloudily shades on the right side of the picture. In
the center, starting from the top is the hill slope marked by scars
extending to the right in a continuous line. Below, divided by a row of
vegetation, is a rubble retaining wall that is still standing but split in
the middle and slanting. In front of this is a large mess of expose earth,
and floating on top are some cars with parts of the corrugated roof, which
once provided a shade for the car park. At the extreme left of this
photograph stands Block 2, with its landscaped terraced garden fully intact.
P7H is a pathetic view of the collapsed Block 1 lying on the ground in
one piece with stunned spectators staring at the aftermath in total
disbelief.
Investigation & MPAJ Report
General
Immediately after the collapse of Block 1 rescue operation was mounted.
MPAJ who had administrative responsibility over the area assumed a leading
role. It set up a Commission of Inquiry (Commission of Inquiry) headed by
its President. This Commission consisted of representatives from various
government departments and professional bodies (like the Boards of
architects and engineers) relevant to the scope of the enquiry. The term of
reference of this Commission was to: determine the cause of the collapse,
identify the person or persons responsible, with recommendations on actions
that could be taken against him or them; make recommendations on measures to
prevent reoccurrence of such an accident; and to make assessment and
recommendations on the fate of Block 2 & 3.
The Commission divided its work into various committees which in turn
spread out its task to a number of sub-committees. At the end of three
months from date of inception, this Commission published a report. It is in
five volumes. For ease of reference, I refer to it as the "MPAJ report".
When the plaintiffs' counsel attempted to tender this document in court to
be marked as an exhibit some defendants raised objections. This is
understandable. The Commission of Inquiry, after identifying the cause of
collapse, also attributed faults to certain defendants. Such findings,
according to the affected defendants, is unfair since they were not
represented at the inquiry nor given an opportunity to test the validity of
the evidence adduced. It is pertinent to note that included in this report
are numerous data, plans, maps and information gathered by the investigating
section of the committee immediately after the collapse. These are useful
and offer enormous assistance to any expert in determining the cause of the
collapse of Block 1. In fact all the experts called to testify before me
had, in one form or other, relied on some of the plans, maps, and
information and data contained in the MPAJ report to formulate their expert
opinion.
The Admissibility Of The MPAJ Report
To determine this issue on the admissibility of this MPAJ report I called
for submission from both sides. After hearing arguments, I ruled that this
report is admissible and ordered it to be marked as P47 to P52.
To justify this the following are my reasons. It is set in the format of
question & answer.
1. Question: Is the MPAJ report a public document as defined under s. 74
of the Evidence Act?
Answer: Yes, it is for reason that it falls within the definition of s.
74(a)(ii) of the Evidence Act which states:
The following documents are public documents: documents forming
the acts or records of the acts of - official bodies and tribunals.
2. Question: Is MPAJ an official body within the term - "public bodies"
as set out in the specific section of the Act referred above?
Answer: Yes, it is for reason that in s. 78(1)(e) of the Evidence Act,
which relates to the tendering of such public document, local authority is
specifically mentioned in following manner:
The following public documents may be proved as follows: the proceedings
of a municipal body, town board or local authority in Malaysia - by a copy
of the proceedings certified by the lawful keeper thereof, or by a printed
book purported to be published by the authority of the body. (emphasis
added) 3. Question: Is the MPAJ report a proceeding of the local authority?
Answer: Yes it is for reason that MPAJ, being a local authority, under s.
28 of the Local Government Act:
pay from time to time appoint committees, either of a general or special
nature, consisting of the chairman and such number of the Councilors and
such other persons as the local authority may think fit, for the purpose of
examining and reporting upon any matter or performing any act which in the
opinion of the local authority would be more conveniently performed by means
of a Committee, and may delegate to any Committee such powers, other than
the power to raise money by rates or loans, as it may think fit, and may fix
the quorum of any such committee,
and the act of such committee in producing such a report must be
considered as a proceedings of MPAJ.
4. Question: Has the plaintiffs proved this document for the purpose of
admission as evidence in this proceeding?
Answer: Yes. The MPAJ report is in a printed book published by the
authority of that body.
5. Question: What is the probative value to be attached to the contents
of this MPAJ report?
Answer: By the Indian authority of Tara Kumar Ghose v. Kumar Arun
Chandra Singh 74 IC 383: A 1923 C 161, the High Court of Calcutta
expressed that:
it must be recognised that the question whether a document is admissible
in evidence as a public document is fundamentally distinct from the question
whether its contents are binding upon the tenants without proof of notice on
them or of their consent.
Though this Indian case involves the proving or disproving the existence
of tenancies to receive protection under some rent control enactment in
India, the principle expressed therein is sound and logical. I am persuaded
to adopt it for application to the circumstances of our case.
With this, I am of the view that though the MPAJ report is admitted as
evidence, the findings made therein, as well as opinions expressed have
still to be evaluated. And unless these are tested by the due process of the
procedural law ie, by examination of witness or witnesses who
personally form such opinions or made such findings, then very little weight
shall be attached when this court is asked to evaluate them.
Except for Dr. Nik Ramlan, who was a member of the Commission of Inquiry
and the head of the technical committee but was not personally involved in
formulating the opinions and findings, and the MPAJ architect, who acted as
the secretary for the Commission, no other members from this body or its
various sub-committees were called to testify. This leaves the conclusions,
findings, interpretations and opinions expressed in this MPAJ report quite
valueless except for the data, plans, maps and information, which most
parties made use of. Since these were accepted without objections, I shall
consider them on the basis as documents agreed upon by all parties
concerned.
The Theories Of Slope Failure
With sufficient disclosure above, I shall now proceed to analyse the
cause of the failure of Block 1. There are basically two conflicting
theories advanced: one from the plaintiffs and the other from the 5th
defendant. Experts in the field of geo-technology were called to
substantiate these. Supporting the plaintiffs' contention is Dr. Weeks
(PW9), and on the side of the 5th defendant, is Professor Simons (DW11). The
significance of these two theories is the belief that it will affect the
liabilities of the parties, particularly of the 1st and 5th defendant. If
Dr. Week's version is accepted, then it is contented that the cause of
failure emanated from the 5th defendant's land. Professor Simon, on the
other hand, insists that it originated from the 1st defendant's property.
Though both are defendants, but only one is of substance. This is the 5th
defendant, which is a financial institution as compared to the 1st
defendant, a company that was wound up when submission was coming to an end.
Thus, both the plaintiffs and the 5th defendant spent enormous energy in
attempting to convince me to their side of their belief.
Dr. Week's Theory
Dr. Weeks commences his testimony with an explanation of the factors
associated with slope stability when soil in the area consists of mainly
sand or sandy materials. He says that the three factors governing slope
stability are: firstly, the slope angle or the angle of the slope; secondly,
the shear strength; and thirdly, the pore water pressure. In respect of
shear strength, he explains that this is the strength of the soil material
before it slips. It is technically described as the relationship between
force weight and friction. In short, if you know the weight of the soil you
would know the force needed to cause a slip of that soil. Pore water
pressure is when water infiltrates into the sand, it fills up the pores of
the sand particles. Due to the height of the sand on top of each other,
pressure is asserted. This, in turn causes the grain of sand to loose
contact with each other and lifts itself - resulting in weight reduction.
When the weight is reduced the sand slips easily. Thus, any increase in pore
water pressure will result in a reduction to the resistance in sliding. Much
associated with these factors, is the reaction of sand caused by suction.
Dr. Weeks illustrates this with the experience of a mold created by an
upended bucket of beach sand. It is unstable when dry; when damp it will
stay; yet with too much water it will slide or topple over.
With the aforesaid preliminaries, Dr. Weeks proceeds to declare that it
was a series of landslides that brought down Block 1 and these were
primarily caused by - water. According to him, it was a failure of a
retaining wall on the upper slope of the 5th defendant's land which
initiated a rotational landslide. This in turn triggered off a mantle slide
just below due to the upper layer of the soil in this sector heavily
saturated with water. When the mantle slide came down in one piece it took
whatever was beneath it - the retaining walls, trees, vegetation, car parks,
badminton courts and Block 1. Because of the speed of this mantle slide and
the nature of the soil, being loose or very loose, and the presence of large
amount of water in the soil, he classifies this mantle slide into a special
category - called a flowslide.
At this stage there is a necessity to explain the types of landslide
described. A rotational slide: is landslide where a failed landmass comes
down in a rotational manner ie, the toe of the slip is forced out and
reverts backwards in a curve. A mantle slide: is when a failure involves
only the upper layer of the soil. As for a flowslide, it is a mantle slide
but has the characteristic of speed, material being loose or very loose, and
the depth of failure is relatively shallow depth with presence of
substantial amount of water.
To support his theory Dr. Weeks relied, firstly, on Dames & Moore's
borehole test. Dames & Moore is a firm of geo-technical engineers engaged by
the 5th defendant to conduct geological test on the
Highland Towers Site and the Arab Malaysian Land after the collapse
of Block 1. At locations where they did the test, results show loose or very
loose sandy soil. Such type of soil, in the opinion of Dr. Weeks, has large
pore space and of low density. It moves close to each other when saturated
with water, causing the pore water pressure to increase. When this happens
there will be a reduction to the resistance in the shear strength of the
soil - causing it to slide.
Secondly, Dr. Weeks relied on the Mitchell's pictures. At photo P7A, on
the top left-hand corner of the building, he points out a scar with mark
edges. This scar is more distinct in photo P7G. This, he claims, is where
the mantle slide originated. Slightly lower, just above the third balcony of
Block 1, counting from the top as shown in the same photo, Dr. Weeks
highlights another scar. This he says, is evidence of the landslide which
originated above had moved downhill. Next, he points to the signs of heaping
and buckling of the ground in front of the rubble wall at the second tier
car park (again revealed in the same photo). With no earth from the rear
overriding or falling from above onto the car park but instead of lifting it
up, Dr. Weeks feels that the landslide was proceeding beneath the ground. He
fortifies this view with the revelation of some cars have shifted to the
front and cracks appearing in the retaining wall that supported the
badminton courts as disclosed in photo P7A. Further, he claims that when
photos P7B & C were shot five seconds later, the retaining wall at the side
of Block 1 had busted. This, to Dr. Weeks, implies that the soil material
was moving very fast and by his calculation - at the speed of 1 1/2 meter
per second. This is based on the fact that the subsequent shot by Bruce
Mitchell in photo P7C, taken of the same area a few seconds later, shows
that the lamppost next to the retaining wall had leaned more extreme and the
wall itself was disintegrating, with soil exploding across the road. Also
found in this picture are cracks appearing on the tar pavement in front of
Block 1. Dr. Weeks insists that these are not only indications of the speed
of the soil movement but the momentum it generated to force the entire Block
1 to move, as shown in photo P7G.
To further support his theory, Dr. Weeks refers to the oral testimony of
Bruce Mitchell. This witness has said that he noticed movement on the hill
slope before he took the photos. He describes it as "like something rippling
beneath". Dr. Weeks interprets this as representing a relatively shallow
landslide of the upper mantle layer taking with it trees, vegetation and
retaining walls on top.
Finally, for evidence of saturation of water on the slope, Dr. Weeks
relies on his own observation during his three visits to the Arab Malaysian
Land where he noticed water flowing in an uncontrolled manner over the
surface of the slope. This he said, is confirmed by various photographs
tendered as exhibits showing water over flowing a retaining wall and the
existence of "ponding" (pools of water) on the ground.
As for the failure of the retaining wall at the upper slope of the 5th
defendant's land which initiated the rotational slide, Dr. Weeks alludes
that this was due to a low factor of safety of this wall and the
uncontrolled water coming down the surface of the slope to cause movement on
the loose or very loose soil material at the spot. By Dr. Week's assessment,
the factor of safety for this retaining wall was only 1.02. This is far
below the accepted geo-technical engineering standard to determine slope
stability which rules that a slope will fail if it has a factor of safety of
1 or less than 1. Factor of safety in simple term means the reserve you have
before failure of a slope.
During the course of trial, Dr. Weeks advances an alternative theory -
that the landslide was caused by the existence of "a perched water table".
He says that he formulated this after his recent revisit to the site where
he discovered new landslide in the area. This caused him to "revisit" the
Dames & Moore data where it shows the presence of clay in the soil at the
Highland Towers Site and Arab Malaysian Land. He
explains that clay being a relatively impermeable substance does not allow
water to infiltrate the soil easily to reach the ultimate ground water
table. When there are lens of clay present in the sub-soil a perched water
table can be formed above. Such perch water table has enormous effect on the
pore water pressure of the loose or very loose soil at the mantle of the
slope causing it to be less resistance to slide.
To support his new alternative theory, Dr. Weeks relies on: (a) the
finding of clay or clayey materials at the sub-level of the slope as
indicated by the soil test from Dames & Moore borehole test; (b) the
relatively high water level recorded by Dames & Moore when the borehole test
was carried out.
As there is a challenge by the 5th defendant on this perception of a
perch water table there is a necessity to explain the technique used to
obtain the data mentioned above. To conduct a bore hole test an instrument
called a standpipe is inserted into a hole drilled to the ground till it
reaches the granite. The purpose is to obtain subterranean soil sample and
to ascertain where the ground water table is. For the latter, the theory
works in this manner. As granite is relatively impermeable water will remain
just above it. This level is considered as the ground water table. Readings
are taken periodically from this standpipe and with a series of standpipes
placed vertically in a row down slope one can chart a graph to determine the
gradient of its flow. The necessity to ascertain this is because the level
where this table is will effect the pore water pressure on the soil material
around it. Also, the pressure of this water table creates pressure against
any retaining wall around it.
Professor Simons's Theory
Professor Simons's theory is less complicated once the characteristic of
the soil material and its relationship to slope failure has been explained.
According to Professor Simons, the collapse of Block 1 was due to the
initial failure of the high rubble retaining wall of 10 to 11 meters
immediately behind the second tier car park. This wall he refers to as the
"High Wall" failed and initiated a series of retrogressive landslides up the
slope behind this wall. Simultaneously a forward movement down slope was
effected. This forward movement down hill created such a surcharge load that
Block 1, with its pile foundation not designed to accommodate any horizontal
load, collapsed, bringing along with it the structure it was supporting.
Professor Simons explains a "retrogressive slide" as a rotational slide
which begins at the bottom of the slope and regresses upward in a series of
rotational slide. Here, each rotational slide is a segment of a limited
failure and it happens next behind the other due to loss of toe support. It
continues progressively up slope, getting less active as it proceeds.
To support his contention, Professor Simons offers the following: First,
the aerial photograph (p. 30 of exh. P48) taken by the Investigation
Committee of the Commission of Inquiry a few days after the collapse of
Block 1. This photo shows a number of scars on the land behind the collapsed
building. "A scar" is interpreted here to mean "a step in the slope with
bare earth". It is the exposed surface of the earth after the ground had
slipped due to weakness and loss of support. According to Professor Simons's
interpretation of this photo, there are four scars. This, in accordance to
authoritative geo-technical engineering text represents a rotational
retrogressive failure beginning from the head scar at the lowest point. The
High Wall, he insists, was located here. Against this is Dr. Week's
interpretation of this photograph. He says there are only two scars. By
this, he claims, is in line with his theory of a rotational slide followed
by a flow slide.
Secondly, by the calculation done by Professor Simons this High Wall had
a very low factor of safety. In his opinion, this High Wall would fail at
the height of five meters without any water pressure acting at the back of
this wall. In fact, his analysis shows all those walls behind Block 1 had
only a factor of safety of 1.52 even on the assumption of no water pressure
was applied against them. This factor of water acting at the back of the
wall has relevance because water at the back of the wall will increase the
thrust on the wall and makes it more vulnerable to collapse. Thus, in his
opinion this High Wall with such a low factor of safety would have easily
failed on its own without any water influence.
Further, according to the words of Professor Simons, "This High Wall
consist of blocks of stone of varying sizes hand plastered in mortar at a
random fashion with no drainage blanket behind it. It does not appear to sit
on any foundation. It just rests directly on the ground ... It is simply not
big and heavy enough to carry earth pressure acting on it, let alone
additional water pressure." Such wall, in his opinion, was very vulnerable
to failure.
Before I proceed further I must express this court's appreciation to the
efforts of Dr. Weeks and Professor Simons in analysing the cause of failure
of Block 1. Though this court may believe one against the other, or even
only accepting part of either theories, but no aspersion is cast on the
integrity, competency and professionalism of both these two men. They are,
in the mind of this court, gentlemen of integrity and great learning in
their chosen discipline. From their c.v. presented, they rank among the top
personalities in the field of geo-technological engineering in this world.
This court has indeed benefited from their expertise.
My Analysis Of These Two Theories
With the views of both these experts forcefully put, I shall now proceed
to analyse the two theories advanced and attempt to come to a conclusion as
to which of the two is more probable.
I shall begin with the aerial photo. This photo, taken just two days
after the collapse of Block 1 by the Investigation Committee of Commission
of Inquiry is already interpreted by the various dotted lines drawn across
the scars. It shows three scars. According to Dr. Nik Ramlan, the person
responsible for this interpretation was a member of the Investigation
Committee and he was qualified to undertake such task. But since this
"interpreter" was not called to testify then such interpretation must be
ignored, leaving for consideration the different versions put forth by the
two experts based on the images captured in the photo. This photograph
proper is not disputed by the parties; what they are only unhappy about is
the interpretation by whoever who drew the lines on it.
After due consideration I am more inclined to adopt Professor Simons's
interpretation. But instead of his conclusion of four scars, I only can
detect three. I base this on the number of exposed naked surfaces
interspersed by the lines of vegetation which must obviously include the
area above the top most scar.
The next matter I shall consider is the soil condition of the failed mess
after the collapsed of Block 1. According to Dr. Weeks, in a mantle
flowslide the soil must be very saturated with loose or very loose material
spreading over a wide area. With such a characteristic one must expect the
area around the collapsed apartment to be wet and muddy. But, from evidence
adduced through various witnesses it is the contrary. Even Bruce Mitchell
who initially described the soil exploding from the side of the retaining
wall of Block 1 to water spurting out from a fire hydrant was forced to
admit that such material looks dry after reviewing his own photos P7B and C.
Proceeding therefrom, I find Dr. Week's reliance on Mitchell's photo P7A
to show the beginning of the mantle flow slide has many flaws. Firstly,
Bruce Mitchell's line of vision from his window in Block 3 was restricted.
What he saw, as reflected in this photo, was a landslide that had already
begun with the High Wall having failed. By "failed", I must adopt Professor
Simons's interpretation to mean, "the ground (beneath it) has failed" even
though "the foundation or structure of the wall may not fail". This explains
the reason why this wall remained upright in photos P7A and G as well as
that in p. 36 of P49. These pictures show this wall in a slanting position
but not disintegrated. But effectively, this wall had failed since it was no
longer capable of fulfilling its purpose of retaining soil behind it. Bruce
Mitchell in fact did not see this wall failing, in the sense as described
above, when he shot photo P7A. His line of vision did not extend to the area
where this wall was originally located. His vision was blocked by Block 2.
What he actually saw of the High Wall through photo P7A was after this wall
had moved 16 meters down slope after failing. The heap of earth material in
front of this High Wall must be the effect of a rotational slide where the
surcharge had lifted the earth in front of the failed mass and exposed it at
its toe. Dr. Weeks had attempted to explain the reason why this area heaved
since it is contrary to the characteristic of a mantle flow slide (which
would have brought this part of ground in one piece down slope). He said
that this location being dry, due to the tar surface of the car park,
prevented water from infiltrating into the soil. So when there was a
surcharge caused by the mantle flowslide this area just buckled up. I find
this unconvincing. To my mind a mantle flowslide progressing down hill at a
speed would have generated so much momentum that this relatively narrow area
would not be able to withstand any surcharge to even heave. It would have
been just swept down slope in one piece with everything on it. This heaped
up ground material was caused more probably by the effect of a rotational
slide.
As for the scars described by Dr. Weeks at the rear of this High Wall in
Mitchell's photo P7A, I am more inclined to think that they were actually
the effects of a retrogressive slide that happened after the High Wall had
failed. It could not be an indication of the beginning of a mantle flowslide
that progressed downwards from here. By the time this picture was taken, the
High Wall had moved a substantial distance and when seen together with the
scars spotted by Dr. Weeks, then it could not be an indication of the
beginning of a mantle slide.
I shall now proceed to comment on the alternative theory of Dr. Weeks -
the existence of a perched water table. When Mr. Han (DW10), who supervised
the borehole test for Dames & Moore, exposed that water, as a drilling
fluid, was used for all the borehole test this theory of the Dr. Weeks
losses creditability. By Dr. Week's own admission, when water was used
instead of foam then the reading of the standpipes inserted soon after the
boreholes were made would not represent the true water level for the purpose
of determining a perch water table of the ground. The reason is this: Water
introduced into the ground takes a substantial period to infiltrate into the
ground to reach ground water table. So when water level readings are taken
soon after water is introduced into the standpipes high water level will be
recorded. This may give a false indication of a perched water table existing
above the ground water table.
For a perched water table to prevail it is insufficient to just have clay
or clayey material present; there must be lenses of these and they must be
fairly proximate to each other to prevent water from infiltrating into the
soil below. Though clayey materials are found in the
Highland Towers Site and Arab Malaysian Land there is no evidence to
fortify that they are extensive enough to indicate presence of lenses of
clay of close proximity to form a perched water table. Against these facts,
Dr. Weeks criticises the methodology carried by Dames & Moore in its
investigation. He is of the view that Dames & Moore should have used a
piezometer (an instrument to detect pore water pressure beneath ground) to
locate the slip surface and in the course of this could have detected a
perched water table. I feel that this criticism is somewhat unwarranted. If
the plaintiffs wish to influence this court on the presence of a perched
water table then they must prove it. It is not for the 5th defendant to
carry out such task for the plaintiffs. As far as the methodology is
concerned, like in any form of investigation, there is more than one
approach. In this instance case I do not find the investigators of the 5th
defendant had carried out their probe in a manner unacceptable in their
professional field.
This Court's Finding
With the aforesaid reasoning I find that the landslide that brought down
Block 1 of Highland Towers was a rotational
retrogressive slide emanating from the High Wall behind the 2nd tier car
park.
Though this wall was the first to fail but what caused it to fail?
Professor Simons attributes it to poor design and construction and
reiterated that this wall, with a very low factor of safety, would have
failed even without any water pressure acting against it. But this High Wall
stood for ten years without failing. Why did it not fail earlier if it was
so weak and fragile?
Professor Simons causally offers this excuse: that at "certain location
the soil strength is stronger than what we have assessed". But I note that
he did not dismiss water as one of the factors that caused this High Wall to
fail, though he down played it by insisting that it only played a
"comparatively small role".
But I find this not convincing against all theories and principles
advanced to explain slope failure. Firstly, failure of a wall as defined by
Professor Simons means "the ground (beneath it) has failed" even though "the
foundation or structure of the wall may not fail". In this case it must be
the former since this High Wall is still visible in the Mitchell pictures.
With this, we must examine the soil condition beneath this wall. We have
evidence that the suspected area of failure consisted of sandy soil. Such
soil material is very permeable and water will percolate into it very fast.
With ten days of continuous rainfall in the area before the failure of this
wall surely the ground on which it stood would be saturated with water when
the drainage system of the slope was either insufficient or inadequate to
accommodate water. When this happened the pore water pressure in the soil
increased to cause the soil to be less resistance to slide. This must have
played a very major role in causing the ground on which this High Wall stood
to fail. Besides, it is also established that when soil is saturated behind
any retaining wall it will create a thrust against the wall. This must have
been the effect on this High Wall. Thus I find that water must have been a
major factor in causing the collapse of the High Wall and the landslide that
followed. In fact Professor Simons, in his expert report (P38) has
repeatedly emphasised water as a factor which caused the collapse of Block
1. But as to why he reduced its significance and importance is not
explained, leaving room for speculation.
Where Did The Water Come From?
But where did the water come from? From evidence adduced, it came from
two sources. The first was rainfall. Though rainfall in the area for the
same measured period of time did not exceed the amount which fell the
previous years it rained continuously for ten days preceding the day of the
collapse of Block 1. This rainfall that fell, part of it was absorbed into
the ground and percolated into the soil. The other would be runoffs and
washed along the surface. With the internal drains on the Arab Malaysian
Land, the water would be directed down the slope in a controlled manner. But
these drains on the Arab Malaysian Land were neither sufficient nor
efficient or maintained to carry the load, as described by the drainage
experts - Mr. Hooi (PW3) and Mr. Douglas Yee (DW12). Substantial part was
earth drains and this permitted easy percolation of water into the soil to
saturate it. Some were blocked or with vegetation growing over them, as
witnessed by the photographs taken soon after the collapse of Block 1. Such
blockage must have caused severe overflow on the terraced slope as disclosed
by Mr. Lim (DW1), the maintenance man of the Highland
Towers from the experience of the Tropic's clearance of the hill
slope without removing and clearing the debris from the hill slope drains.
The second source was water from the East Stream. As described earlier,
water from this stream was directed into the pipe culvert. A witness, Mr.
Mike Rickard (PW4) who tracked up the slope of the Arab Malaysian Land soon
after the collapse of Block 1 found this pipe culvert in very poor
condition, damaged in many parts with water leaking therefrom. He captured
these images on photographs exhibited in encl. 98. Subsequently, when Mr.
Hooi and Mr. Douglas Yee visited the same site to carry out investigations
they too confirmed what Mr. Mike Rickard described.
Not only was water not flowing smoothly along the pipe culvert, the area
before the water of the East Stream entered this channel was also heavily
silted. Mr. Lim (DW1), testifies that when he went up to this spot just
after the Highland Towers tragedy he found the
mud pond and the inlet into the pipe culvert completely covered with silt.
Due to this, water from the East Stream over flowed onto the slope. This
view is reiterated by Mr. Rickard with his photographs.
Liability Of Each Defendant
I shall now begin to examine the accusations by the plaintiffs on each of
the defendants and determine whether they are liable.
1st Defendant
Beginning with the 1st defendant, who was the developer of the
Highland Towers, the plaintiffs accuse it of the
following: Firstly, for not employing reasonably fit, competent, skilled and
qualified persons to design, draw, sign and submit architectural and
engineering drawings and plans for the construction of
Highland Towers and the hill slope behind it. Secondly, failing to
ensure that the three apartment blocks of Highland
Towers and the drainage system and rubble retaining walls around it
were constructed in a workmanlike and safe manner by giving consideration to
the surrounding terrain, soil condition and drainage requirement. Thirdly,
of obtaining Certificate of Fitness (CF) to occupy the three apartment
blocks when the drainage system in the Highland Towers
Site and Arab Malaysian Land were incomplete.
The first accusation levied against the 1st defendant is much connected
and associated with the liability of the 2nd and 3rd defendants. For the
second and third allegations, these too require examination of the works and
deeds of the 2nd, and 3rd defendants. For this reason I shall defer my
analysis on the liability of this defendant until my finding is made at
least against the 2nd and 3rd defendants.
The 2nd Defendant
In 1974 the 1st defendant engaged the 2nd defendant, an architectural
draftsman, to draw and submit layout plans for the development of
Highland Towers and the bungalows lots on the
Arab Malaysian Land. For this development, I shall hereinafter refer to it
as the "Highland Towers Project". According to
the 2nd defendant, an executive director of the 1st defendant, one Mr. Yap,
was aware that he was not a fully qualified and registered architect. When
the layout plan for the Highland Towers Project
was approved, the 2nd defendant proceeded to prepare and submit building
plans for the three apartment blocks of Highland Towers.
The following chronology of events will give an insight of what
transpired in the course of building Highland Towers
and the development of the Arab Malaysian Land including the surrounding
area.
Chronology Of Events
On 9 October 1974 a layout plan submitted by the 2nd defendant, for and
on behalf of the 1st defendant, to the district office of Kuala Lumpur, the
predecessor of the 4th defendant, was approved. This approved layout plan is
for a proposed building of three blocks of apartments on
Highland Towers Site and bungalows on the Arab
Malaysian Land. Accompanying this approval was a letter by this district
office to say that the approval was subjected inter alia to the
following conditions:
1. because the area approved for development is steep and hilly, all
excavation and levelling works must follow requirements set out by the
Public Works Department; and
2. the relevant technical departments must approve drainage, road and
other related plans before any development can begin.
The 2nd defendant in submitting this layout plan and subsequent building
plans for the Highland Towers was only a
draftsman, but had held himself out as a registered architect. The
authorities, by some error on their part in not checking the 2nd defendant's
credentials, had in fact permitted him to submit such building proposals and
plans.
On 22 November 1975, the Lembaga Bandaran Gombak (LBG), the local
authority who had taken over the administrative function of the area from
the district office, informed the 2nd defendant that the drainage plan
submitted was not approved by the Irrigation and Drainage Department (JPS)
because no provision was made to cater for the stream in the area. It
proceeded to advise the 2nd defendant to stop construction work on the
Highland Towers until the drainage for the
stream is incorporated in the plan.
(System Of Operation Between The Local Authority And The State
Government Departments)
At this stage it is necessary to disclose the system of operation between
the local authority, such as the LBG and its successor, the Majlis Daerah
Gombak (MDG), with various government departments of the State of Selangor.
During the construction and completion of the three apartment blocks of
Highland Towers the local authority having
jurisdiction over the area was in its formative years. It lacked manpower
and facilities. To assist them, the State Government of Selangor allowed the
local authority to use its various technical departments to consider and
evaluate all matters relating to the development projects under its
jurisdiction. This included land levelling and drainage. In such matters,
the local authority acted merely as a secretariat. Upon receiving relevant
development proposals and plans it would send them to the respective
technical departments of the state. JPS, being a department involved, would
study the matter referred to it and after due consideration returned these
to the local authority with comments and suggestions. Such comments and
advice were normally accepted. These were then communicated to the
developer.
On 5 January 1976, in pursuant to a proposal by the 2nd defendant to
relocate some drains, JPS issued the following advice to the local authority
- LBG:
1. though the proposal of the 2nd defendant is acceptable but a drainage
proposal plan must be submitted by the consultant; and in the meantime no
physical construction work on the Highland Towers
should continue;
2. that the land being steep, care must be taken to construct silt traps
to prevent landslides or problems to the drains and stream.
On 13 February 1978, MDG who replaced LBG as the local authority of the
area, requested the 2nd defendant to construct an underpass drain to divert
water from the area proposed for drainage to the Klang River which was
across the main trunk road - Jalan Ulu Kelang and the cost should be borne
by the 1st defendant. This was met with displeasure from the 1st and 2nd
defendants as they felt other developers in the area should also contribute
to such cost.
On 19 August 1978 there was a request by the 2nd defendant to MDG to
issue a Certificate of Fitness (CF) for Block 1. Obviously construction on
the Highland Towers proceeded despite the
earlier order by the PLG not to do so.
On 29 September 1978 JPS suddenly informed MDG that its objection to the
2nd defendant's request for CF is withdrawn provided that no further
construction work should proceed on the Highland Towers.
One Dato' Goonting (DW17), the then director of JPS, explained that this
attitude was adopted because the authorities feared complaints from
purchasers of Block 1 who wished to move into the completed building.
Further JPS believed that the developer could still carry out the drainage
plan for the area after this CF was issued.
On 8 October 1978 JPS wrote to MDG to advise that no construction on the
other blocks of Highland Towers should proceed
since the land to be acquired by the 1st defendant for the drainage was not
implemented.
On 6 April 1979 the 2nd defendant submitted drainage plans to MDG. These
were rejected on grounds that they lack computation and detail and not of
engineering quality.
On 17 April 1981, MDG in response to the 1st defendant request for
issuance of CF for Block 2 required drainage plan to be approved by JPS
before consideration.
On 18 April 1979 JPS wrote to MDG stating that there were complaints from
residents in the vicinity of Highland Towers of
flooding. MDG was to instruct the 1st defendant to stop earth works and to
build silt traps as well as to submit drainage plans. In consequence of
this, the 1st defendant engaged the 3rd defendant as consulting engineer to
submit drainage plans. When the 3rd defendant came into the scene there were
proposals to acquire some land below Highland Towers
to channel water in the area to Klang River. This, however, did not
materialise.
On 18 September 1981 the 3rd defendant submitted a drainage plan to JPS.
This was partially approved.
On 2 October 1981 JPS withdrew its objection for the issuance of CF to
Block 2 provided the following conditions were met:
1) the 1st defendant was to put up a bank ganruntee for RM100,000 to
ensure that any drainage proposal when approved is carried out; and
2) that such drainage proposal, when approved, must be completed within a
period of four months.
On 6 November 1981, upon the 1st defendant securing the bank guarantee
which was placed with JPS, CF to Block 2 was issued by MDG. But no drainage
proposal was forwarded to JPS nor was there any approved drainage system
implemented within the period stipulated. Because of this, the bank
guarantee was extended.
On 5 June 1982, in pursuance to a request by the 1st defendant for a CF
to be issued to Block 3, JPS advised MDG to refrain from entertaining such
request until a drainage plan is approved and implemented.
On 6 May 1985 the 3rd defendant submitted a drainage plan (exh. P34).
This plan involves the construction of concrete drains all along the hill
slope of Arab Malaysian Land starting from the point where the East stream
enters lot 3671. Water from here will flow along these concrete channels
eastward down slope to join a set the drains along the road reserve at lot
3666. Following the road, the drains then proceed behind the three blocks of
Highland Towers in a northerly direction. Then
at the end of Block 3 they turn left until they reach Lot 3626. At this
point they will be connected to a larger drain situated on lot 445 which
belongs to the government. The point of entry into Lot 445 is marked on this
plan as "C".
On 24 October 1985, P34 was approved by MDG with the consent of JPS.
On the 2 December 1985 without the knowledge and presence of any official
from JPS, a technical assistant with MDG, one Mohd Harris (DW5) accompanied
only by a director of the 1st defendant went to the
Highland Towers Site and inspected a constructed concrete drainage
structure located at point "C" on P34. Such an inspection, according to Dato'
Gooting, was not the normal practice where usually a representative of JPS
would be present. Further, this inspection only focussed on a particular
section of an extensive approved drainage system. Thus this does not reflect
the drainage works approved in P34 has been complied with. After this
purported inspection, DW5 returned to MDG and wrote a report stating that
the drainage works were duly completed according to plan.
On 24 May 1985 based on the above inspection report, CF for Block 3 was
duly issued by MDG.
Plaintiffs' Claim & The 2nd Defendant's Defence
In the plaintiffs' statement of claim, the plaintiffs allege that this
defendant held himself out to be a suitably qualified, competent and skilled
person to design, prepare and sign architectural and other building plans
pertaining to the developments of Highland Towers
and the Arab Malaysian Land. In the performance of this task, the 2nd
defendant has breached a common law duty of care to the plaintiffs to take
reasonable care and diligence in ensuring that: the drainage requirement and
rubble walls in the Highland Towers Site and the
Arab Malaysian Land, and the earthworks thereon were adequately and properly
designed, supervised during its construction, and in compliance with the
requirements as set by the authorities. Further, by these same acts or
omissions, the 2nd defendant has created nuisance on the hill slope behind
Highland Towers.
The defendant's replies to the plaintiffs' allegations are as follows:
Firstly, he does not owe such duty of care to the plaintiffs. Secondly, even
if such duty of care exists, it is not breached. He explains that he was
only engaged to design the three apartment blocks of
Highland Towers and was never involved in the design, supervision and
construction of drains, rubble walls and earthworks within and outside of
Highland Towers Site. The 1st defendant, he
discloses, carried out these works; he played no part in them. Thirdly, he
blames intervening acts of the 4th, 5th, 7th, and 8th defendants in the
altering the condition of the area to cause the collapse of Block 1. This he
submits, breaks the chain of causation arising from his wrong doings (if
any), and exempts him from liability.
Analysis - Negligence
Preliminary Issue: 2nd Defendant Not A Qualified Architect
There was a considerable outcry over the qualifications of this defendant
in submitting and dealing with the development, building and other related
matters in the Highland Towers Project for
reason that this defendant was only a building draftsman and not a qualified
architect at the material time. As a building draftsman he was only
permitted under the Architects Act 1967 to design buildings of no more than
two stories in height and limited floor space. In this case, each apartment
block of Highland Towers consisted of 12 stories
with a built-up area far exceeding that allowed for a building draftsman to
undertake. This defendant seemed to have got round the authorities at that
the material time by inducing a relevant government department to grant him
a "specially authorized person" status under a repealed enactment (the
Architect Ordinance 1951). This he claims entitled him to summit and oversee
construction works of three apartment blocks.
To the plaintiffs, whether this defendant misrepresented himself as to
his qualification makes little difference to the duty of care he owes to the
plaintiffs. According to the plaintiffs' counsel, "if a man is unqualified
but holds himself out to be possessing a skill, he will be judged by the
standards of a reasonably competent qualified person" - see Jackson &
Power on Professional Negligence, 4th edn at 86 where the case of
Cardy v. Taylor [1994] 38 Con. LR 79, is cited in support.
I am in full agreement with this view. When this defendant had
represented himself as a qualified architect to all and sundry, as displayed
by his actions, then he must be judged according to the character he had
assumed.
Duty Of Care By The 2nd Defendant To The Plaintiffs
As an architect, his duty is primarily to his client because he has a
contractual relationship with him. But in law, an architect is also liable
to anyone who is sufficiently proximate and whom the architect could foresee
that his act and/or omission would cause damage to that person - see
Halsbury's Laws of England, 4th edn, vol. 4(2) at para. 525. In this
case, the plaintiffs are the purchasers of the two apartment blocks
designed, supervised and built by the 2nd defendant. At the time when this
defendant exercised his duty as an architect for the
Highland Towers Project he must have foreseen that the apartments he
built would be sold, and purchasers, their servants and or agents would be
occupying them. Thus these purchasers would be closely and directly affected
by his acts and/or omissions and for this, he must have or ought to have
them in contemplation when he was directing his mind to his acts and/or
omissions. By this, I find a duty of care exist between the 2nd defendant
and the plaintiffs who are purchasers of these Highland
Towers apartments.
The 2nd defendant has insisted that he was engaged only to design and
supervise the construction of the three apartment blocks. He vehemently
denies that his scope of work extended to the drainage, earthworks and
construction of rubble walls on the Highland Towers
Site and the Arab Malaysian Land. And since there is nothing defective in
the design of the three apartment blocks that contributed to the collapse of
Block 1 then he should not be held liable. And if it relates to the
foundation of the Block 1, then the finger should not be pointed at him; it
is the responsibility of the 3rd defendant, the engineer. He declares that
he had not even been up the hill slope behind Highland
Towers before designing the buildings, let alone being aware of the
East Stream, which he only discovered while accompanying the judicial visit.
I think the 2nd defendant is under a serious misapprehension that an
architect is engaged just to design and supervise the construction of a
building and need not bother with the surrounding area where the building is
to be erected. Surely the primary consideration for the construction of any
building, or structure for that matter, besides the aesthetic aspect, is the
safety of the building. To achieve this, the condition of the land on which
the building is to be built as well as those in the vicinity must be
considered and evaluated, particularly if it has potential adverse effect to
the building planned. Like in this case, there was a steep hill right behind
the three blocks of apartments and a stream nearby. Both these elements may
affect the ground condition and drainage of the area on which the building
stood. These dangers were not unknown to this defendant, as he wishes this
court to believe. They were duly brought to his notice by the authorities
from the day the layout plan was approved.
Further, I find that his claim that his work was limited to only the
apartment blocks is false. When he submitted the layout plan for approval it
included the development of the Arab Malaysian Land. When the development
plan was approved this hill slope must naturally be part and parcel of an
overall scheme for which he must assume certain amount of responsibility.
Besides, he has taken an active role in corresponding with the authorities
and submitted drainage plans to them. All these are again evidenced in the
chronology of events and there is no necessity in singularising them out.
Though the terracing and the construction of the retaining walls on the hill
slope may be carried out by the 1st defendant but he, as architect for the
project, must ensure that such work be carried out in a competent
workmanlike manner so as not to affect the Highland
Towers which he was responsible. He must ensure that no soil from the
hill slope would come crashing down on his designs. With this, I cannot
accept this 2nd defendant's contention that his scope of work did not
include the hill slope and the drainage of the Highland
Towers Site and the Arab Malaysian Land nor that he had any knowledge
of these.
As an architect responsible for building the three apartment blocks, the
2nd defendant must have foreseen the plaintiffs, who were the purchasers of
the buildings, would be affected by his acts and/or omissions as stated
above. But Mr. Choo, his counsel, argues that though this might be so but
when there are intervening acts of 3rd parties which his client could not
have reasonably foreseen nor could have prevented, then his client should
not be made liable for any negligence to the plaintiffs. The intervening
acts, Mr. Choo claims, were the deliberate acts or omissions of other
defendants which caused and/or contributed to the plaintiffs' loss. To
support this he cited the case of Smith v. Littlewood Ltd [1987] 2
WLR 481. This is a case where some teenagers who were playing in a disused
cinema set it on fire. Not only was the cinema destroyed but also the
neighbouring properties. Those who suffered brought a claim against the
cinema owner. On appeal it was ruled that the defendant should not be held
liable because the defendant could not have foreseen such danger or
prevented the deliberate acts of the third party (the teenagers) in setting
fire to the premises which affected the neighbours.
I do not dispute the principle set out in Smith v. Littlewood Ltd.
But in our present case, the 2nd defendant did foresee the danger of not
exercising his professional skill, care and diligence in attending to the
initial and basic factors regarding drainage and the stability of the hill
slope. As an architect, or someone who represented himself as one, he must
have foreseen the dangers that if no proper, adequate and sufficient
drainage system and retention walls were built there would be danger to the
buildings erected below. Yet he neglected this basic duty. The intervening
acts of 3rd parties he may not be foreseen by him, but if a proper, adequate
and sufficient drainage system and retaining walls were implemented and
erected then the collapse of Block 1 may not even have occurred.
Was There A Breach Of Duty Of Care?
Having decided that the 2nd defendant owes a duty of care to the
plaintiffs, the next issue to determine is whether he has breached such duty
of care. In evaluating this, the standard of care to be applied is, as
expressed by Justice Windeyer in Voli v. Inglewood Shire Council
[1963] ALR 657 to be:
An architect undertaking any work in the way of his profession accepts
the ordinary liabilities of any man who follows a skilled calling. He is
bound to exercise due care, skill and diligence. He is not required to have
an extraordinary degree of skill or the highest professional attainments.
But he must bring to the task he undertakes the competence and skill that is
usual among architects practicing their profession. And he must use due
care. If he fails in these matters and the person who employed him thereby
suffers damage, he is liable to that person.
This liability can be said to arise either from the breach of his contract
or in tort.
From the facts as set out above it is obvious that the 2nd defendant has
breached his duty of care to the plaintiffs. He had failed in his duty as an
architect and had also refused to comply with the requirements imposed by
the authorities on the drainage of the area. Besides he had also colluded
with the 1st and 3rd defendants to obtain CF for the three apartment blocks
of the Highland Towers without fulfilling the
conditions as set out by the 4th defendants and/or its predecessors. The
compliance of these requirements and conditions were part of his duties as
an architect and failure to do so is a breach of his duty of care - see the
case of B.L. Holdings Ltd v. Robert J Wood & Partners [1978] 10 BLR
(though this case was reversed on appeal but not on this principle
enunciated). Further, though he was aware of the terracing on the hill slope
and the construction of the retaining walls which would effect the buildings
which he was in charge of constructing, he did not investigate as to whether
these were properly designed, adequately provided for and sufficient to
withstand any slope failure. His excuse of "how can I stop my boss from
doing anything" and "though I know I put great danger on everyone but (I)
have no choice (for I have) to earn a living" is not only inexcusable but,
as this case has displayed, 46 lives were loss as well as properties. On
this score, I cannot, but to reiterate my feelings towards such attitude as
expressed in my judgment in the case of Perunding Alam Bina Sdn. Bhd. v.
Errol Ho & Ors [1999] 2 CLJ 875 at 882 which is:
Though undoubtedly the ultimate decision of whether to proceed with, or
without approved amended plans lies with the proprietor, but when the law is
broken, the plaintiffs, as architects, to my mind, must report the matter to
the authorities. Otherwise they may not only be an accessory to the
commission of an offence but also liable to unprofessional conduct. If
everyone adopts the attitude that it is "the client's decision" and not the
architect's, and that in the general practice of the industry to built first
before approval, then there is practically no necessity to obtain approval
of plans for any building. And if the argument relates to only major changes
needs approval first, then where is the line to be drawn between what is
major and minor. Is the episode of Jaya Supermarket which built an
additional four office floors without prior approval a minor deviation since
only a fine was imposed? If this is the attitude of the industry to rely on
the precedent of Jaya Supermarket experience, then it will be practically
forcing the authorities to compromise; very similar to thumping the nose of
the authorities.
Surely, as citizens and professionals, the plaintiffs must ensure that the
law must be followed, even at the risk of being discharged by the client;
otherwise, the architectural profession will suffer irreparable damage if
allowed to continue with such mentality.
Pure Economic Loss
Mr. Choo (as well as other defendants) has raised the issue that this
claim of the plaintiffs cannot be maintained because it is a claim for "pure
economic loss"; the two apartment blocks being the defective product.
To understand this legal terminology of pure economic loss it is
necessary to return to the case of Donoghue v. Stevenson which
commands the basic principle of negligence. In this concept, where there is
a duty to exercise care, reasonable care must be taken to avoid acts or
omissions which can reasonably be foreseen to be likely to cause physical
injury to person or damage to his property other than the damaged property
itself. By this proposition, a person without contractual relationship can
claim from another, damages for injury suffered by him or damage to his
property, other than the defective product itself. Any claim for this
defective product, either in the manner of making good or replacement
thereto, is a claim for pure economic loss. The facts in the very case of
Donoghue v. Stevenson gives the best illustration. Here, the consumer of
a bottle of ginger beer that contained a dead snail was successful in her
claim against the manufacturer of the drink for negligence resulting in
injuries to her health and damage to her property (if any). But she could
not claim damages on the bottle of ginger beer either in the form of asking
the manufacturer to make good this defective product or for a replacement of
it. This is because such claim would be considered as a claim for pure
economical loss.
By analogy to the factual situation regarding the 2nd defendant, the
plaintiffs' claim against him is actually for pure economic loss. The
plaintiffs are asking compensation from this defendant to make good the
defective building or for a replacement thereof which he was engaged to
built.
Over the years, arising out of dissatisfaction over this principle of
pure economic loss, the common law practicing countries had a change of
approach and decided to eradicate this rule. But sadly, the English Courts
after having agreed to this change reverted back to the old concept that
pure economic loss cannot be claimed. This stimulated fierce debate
throughout the Commonwealth where common law is followed. Malaysia was no
exception. In the case of Dr. Abdul Hamid Rashid v. Jurusan Malaysian
Consultants [1997] 3 MLJ 546 I gave my views that claim for pure
economic loss in this country can be maintained against a defendant. The
reasons for supporting this are comprehensively documented in that reported
case and I do not think it wise to add to the growing pages in this
judgment.
On this contention of the 2nd defendant, as well as all those defendants
who relied on this defence of pure economic loss, suffice me to say that it
must fail on the same reasons expressed in the case of Dr. Abdul Hamid
Rashid v. Jurusan Malaysian Consultants (supra).
Based on the reasons aforesaid, I find the 2nd defendant negligent.
Analysis - Nuisance
The other cause of action against the 2nd defendant is nuisance. To
succeed, the plaintiffs must prove that this defendant was an unreasonable
user of the neighbouring land to that of the plaintiffs' property and that
he did foresee that his acts/or omissions would cause damage to the
plaintiffs. On the first factor, Mr. Navaratnam claims that this arose from
the 2nd defendant being one of the creators of the situation on the hill
slope behind Highland Towers that gives rise to
the nuisance which caused the collapse of Block 1 and forced the plaintiffs
to evacuate their apartments. To support this, he cited the text by Winfield
& Jolowicz on The Law of Tort at pp. 59 & 66.
There is substantial degree of over-lapping between nuisance and
negligence in this case. Thus there is no necessity to recount the facts and
analysis already stated for negligence which is equally applicable to
nuisance. Based on the facts and analysis expressed and elaborated when I
considered negligence, I find this first factor of the 2nd defendant being
an unreasonable user of the land proved. Also satisfied is the requirement
of foreseeability. For this, I find the plaintiffs' claim for nuisance
established against this defendant.
3rd Defendant
The Plaintiffs' Claim & The 3rd Defendant's Explanation
The plaintiffs claim that the 3rd defendant by his acts an/or omissions
in preparing, designing and supervising in the construction of
Highland Towers and the drainage system of the
Highland Towers Site and the Arab Malaysian Land
was negligent and had caused nuisance to them.
The 3rd defendant is, and at all material time was, a qualified civil
engineer. His brother, the 2nd defendant, appointed him to be the consulting
engineer for Highland Towers. Initially, his
scope of work was restricted to the structural aspect of the three apartment
blocks. But subsequently, when the 1st and 2nd defendants encountered
difficulties with JPS over drainage of the area, the 3rd defendant was
engaged by the 1st defendant to submit proposals to the authorities to
resolve the problem. This resulted in his drainage plan, exh. P34, being
approved by the authorities. Slightly later, he was also retained by the 1st
defendant to design and supervise the construction of two retaining walls on
the Highland Towers Site. Both were in front of
Block 2. Other than these, he disclaims responsibility for the remainder of
the retaining walls on the Arab Malaysian Land and
Highland Towers Site. The 1st defendant, he insists, constructed
these; he has nothing to do with it. Though admitting that he was aware of
these walls being built he was under the apprehension that they were
designed and supervised by qualified engineers engaged by the 1st defendant.
Analysis - Negligence
The principles or test applicable to determine whether this defendant is
liable for negligence is the same as those used in analysing the liability
of the 2nd defendant for this same cause of action. They are both considered
as persons possessing special skills - see the case of Greaves & Co
(Contractors) Ltd v. Baynham Meikle & Partners [1975] 1 WLR 1095, and
thus their conducts are judged according to the standard of a skill and
competence of person in their respective profession.
From the particulars listed in the statement of claim the plaintiffs
identify three areas of negligence caused by this defendant. The first is on
the foundation of Highland Towers, particularly
that of Block 1. As disclosed in evidence, used rail piles welded together
were accepted as foundation to support of the three apartment blocks. Both
Dr. Weeks and Professor Simons consider this type of piles as inferior to
concrete pile. But as this type of piles was accepted in the engineering and
building industry to support high-rise building at the material time in this
country no fault can be attributed to the 3rd defendant in approving its use
since he was only adhering to the accepted professional practice at the
time.
But what I find unacceptable is the lack of consideration paid by this
defendant to the hill and the slope directly behind the three apartment
blocks. Though the 3rd defendant seemed to have taken comfort on what he
claims was the hill of low gradient (10 to 20 degrees as perceived by him)
and being some distance away from the building, I am bemused as to how this
impression can be formed when the physical appearance of the place was
completely different. What I saw during this court's visit to the site and
from the photographs and plans of the area taken both before and after the
collapse of Block 1, was a steep hill exceedingly close to the three
apartment blocks. In fact the hill was so close that this defendant had to
design and erect the two retaining walls in front of Block 2 to keep it from
intruding into the buildings. In one of the photographs adduced by the 5th
defendant, it shows the hill being separated from Block 1 by a narrow ally
way. When you had a hill so close and acute then the 3rd defendant should
have reasonably foreseen, judging by professional standard as an engineer
responsible for the structure of Block 1, the danger of a landslide
producing a lateral load against the foundation of the building. For this,
he should have exercised care to either design and construct a foundation to
accommodate lateral load or ensure that the slope was reasonably stable.
Failure to do so is a breach of his duty of care he owes to the plaintiffs
since his duty was to ensure the safety of the buildings he designed and
built.
The same excuse as the 2nd defendant was offered to disclaim
responsibility as to why the slope was not attended to. This is: he (the 3rd
defendant) was not involved in the design or construction of the other
retaining walls on the hill slope; it was the 1st defendant who did it. But
this view is totally unacceptable since, and as I have stated, the paramount
duty of an engineer for the Highland Towers was
the safety of the buildings he was involved. This duty cannot be exempted by
a mere belief of the retaining walls and terracing of the slope were
designed, supervised and built by the 1st defendant, whose director was an
engineer himself, or another firm of consultant, and therefore presumed
safe. If this was the belief of the 3rd defendant, then it encumbered upon
him to inquire and to ascertain whether: firstly, this other consultant is a
qualified professional, and secondly, what he was doing would have any
effect on the safety of Highland Towers. To
support this view I shall quote a passage from the judgment of Bingham LJ in
the case of Eckersley v. Binnie & Partners [1988] 18 Con. LR 1:
205 a professional man should command the corpus of knowledge which forms
part of the professional equipment of the ordinary member of his profession.
He should not lag behind other ordinarily assiduous and intelligent members
of his profession in knowledge of the new advances, discoveries and
developments in his field. He should be alert to the hazards and the risk
inherent in any professional task he undertakes to the extent that other
ordinarily competent members of the profession would be alert. He must bring
to any professional task he undertakes no less expertise, skill, and care
than other ordinarily competent members would bring but need bring no more.
The standard is that of the reasonable average.
The law does not require of a professional man that he be a paragon
combining the qualities of polymath and prophet.
The second area of negligence is in regards to drainage. Though P34, the
drainage plan, was approved but it was not fully implemented by the 1st
defendant. The reasons offered by this defendant were: shortage of financial
resources of developer; the need to bring down the road level to fit the
drains; and prohibition on rock blasting in the area. On the last reason,
evidence has proved this to be false. The second reason is much associated
with the first, but to my mind, what ever the excuse may be it did not
entitle and warrant the 3rd defendant to issue a notice to the authorities
stating that the entire approve drainage proposal was implemented when,
according to my estimates, only 10% was completed. This was a gross
violation of his duty of care which, as a consultant engineer for the three
apartment blocks, he owes to the plaintiffs as purchasers of
Highland Towers particularly when this approved
drainage system was so fundamental to the safety of the building. I have
reiterated my strong sentiments against this type of attitude of
professionals whose only consideration is to guard and secure their own
interest rather than their duties and obligations to those closely affected
and the public on which so much faith and reliance are placed on them to
carry out their professional duties. I need not elaborate further except to
remind this defendant that he has to live out the rest of his life knowing
truly well that he had contributed to the tragedy of
Highland Towers.
Based on the above I find the 3rd defendant liable to the plaintiffs for
negligence.
Analysis - Nuisance
On the cause of action for nuisance, I also find this defendant liable to
the plaintiffs. The reasons are similar to that stated under this category
of liability for the 2nd defendant which is basically: he who did the first
wrong must answer for the damage resulting from it - see Winfield &
Jolowicz On Tort, 14th edn at 514.
Returning To The 1st Defendant
Now that the actions and/or omissions of the 2nd and 3rd defendants are
examined and determined I shall return to consider the liability of the 1st
defendant.
Analysis - Negligence
On the cause of action for negligence the plaintiffs announce that this
defendant owes a duty of care to them in four areas and the 1st defendant
has breached this duty of care.
The first concerns the appointment of competent consultants to carry out
the designs, construction and supervision of the architectural and
engineering works.
As admitted by the 2nd defendant, he was not a registered qualified
architect when he designed, drew and supervised the
Highland Towers Project. In fact this was his first job of such
magnitude on his own. As decided earlier, he was incompetent and lacking in
skill. He failed to consider the effects of the steep hill on the building
he was engaged to build. He adopted a narrow view in not considering all
other factors that an architect of experience for such type of structures
would have taken into account. Worse is his failure to comply with
regulations set by the local authority for the drainage of the area,
particularly when he knew or ought to have known that unless the drainage of
the area was implemented he should not have applied for CF for the three
blocks.
The acts and/or omissions of the 3rd defendant are no better. His failure
covers: designing of suitable foundation, care and concern of the hill and
slope, and the issuance of a notice to the authorities confirming the
drainage works was completed when only a fraction of it was done. These are
certainly traits of incompetence and lack of skill expected of a
professional engineer.
Against these accusations, the 1st defendant counsel, Mr. Rajah argues
that though these consultants may be incompetent and lacking in skill but
they were independent contractors responsible for their own acts. In such a
situation, the 1st defendant is not liable for the acts of its independent
contractors.
Undoubtedly as a general rule, it is a correct proposition that an
employer of independent contractor is not liable for the default or
negligence of such a contractor. But here the plaintiffs are focusing on the
appointment of such personalities, not after they were appointed. This means
that before their appointments there was a duty placed upon the 1st
defendants to vet through them to ensure that they are competent and possess
such skill for the task they are employed to undertake. This involved
inquiries and investigations into their credentials and qualifications as
can be seen in the Supreme Court case of Datuk Bandar Dewan Bandaraya v.
Ong Kok Peng & Anor [1993] 2 MLJ 234 at 239. Obviously these were not
done. In fact even more extreme happened. Despite being notified by the 2nd
defendant that he was not a qualified architect, the 1st defendant proceeded
to engage him and even allowed him to appoint the 3rd defendant as the
consultant engineer for the project. This is surely negligent on the part of
the 1st defendant.
The second area negligence relates to the terracing of the slope and
construction of retaining walls and drains on both the Arab Malaysian Land
and the Highland Towers Site. Both 2nd and 3rd
defendants have expressly declared that it was the 1st defendant who carried
out such works. There is no denial of this assertion by the 1st defendant.
When implementing such works, the 1st defendant must have reasonably
foreseen that such works if insufficient and ineffective would cause the
collapse of Block 1 and result in damages to the plaintiffs, who are his
neighbours under the principle of negligence. The retaining walls have
proved to be insufficient and inadequate, as disclosed by both Dr. Weeks and
Professor Simons. In respect of the drains, there are the testimonies of Mr.
Hooi and Mr. Douglas Yee - the hydrology and hydrogeology experts (whose
theories and opinions I shall be alluding in the later part of this
judgment) to announce that these were insufficient to effect proper and
adequate drainage of water run-offs on the slope and those originating from
the East Stream.
With such disclosures I must conclude that the 1st defendant has breached
its duty of care to the plaintiffs and must therefore be liable to the
plaintiffs for negligence in the erection and construction of these
retaining walls and drains.
The third area complained of involves diversion of the East Stream from
its natural path to the pipe culvert which ran horizontally across the hill
slope directly above the three blocks of apartments. According to Dr. Weeks
this is exceedingly dangerous, as water should be always, when possible,
flow away from residential areas. But who diverted this East Stream? There
is a conflict of claims. The plaintiffs of course blame the 1st defendant
for having done this. Though the 1st defendant never directly denies this,
but Mr. Rajah drew this court's attention to an aerial photograph taken in
1966 (contain in the MPAJ report - P47) of the
Highland Towers Site and Arab Malaysian Land.
It shows the East Stream was already diverted across the hill slope before
the 1st defendant became owner of the said properties. This implies that the
1st defendant could not have performed this diversion. But surprisingly the
aerial photographs taken in subsequent years - 1974 and 1975 do not pick up
this diversion; it had disappeared. Then subsequently in later pictures it
reappeared. It was certainly there not long before the collapse of Block 1
for Mr. Lim - DW1 was in charged of maintaining it before the bungalow lots
were sold to the 5th defendant.
To this mystery the plaintiffs counsel offers this cue. He announces that
this temporarily disappearance of the division was caused by the 1st
defendant when they terraced the hill slope in preparation for the bungalow
lots. After terracing the pipe culvert was incorporated as an integral part
of the retaining wall to support the slope. Thus this diversion reappeared
in the later pictures.
I find this proposition probable. Looking at the retaining wall and the
pipe culvert besides it, the pipe culvert is actually an integral part of
the wall. It is not constructed independently and it does not stand on its
own. It is a section of the wall. Since the 1st defendant built this wall it
must be inferred that the 1st defendant also built the pipe culvert. By
installing this pipe culvert, the 1st defendant must be considered to have
diverted the East Stream from its natural course. And as declared by Lord
Finlay LC in the well-known case of Greenock Corpn. v. Caledonian Rly.
Co., and Greenock Corpn. v. Glasgow & South Western Rly. Co
[1917] AC 556, which is quoted by Abdul Hamid FJ (as he then was) in the
Federal Court case of Seong Fatt Sawmills Sdn. Bhd. v. Dunlop Malaysia
Industries Sdn Bhd. [1984] 1 MLJ 286 at 291:
It is the duty of anyone who interferes with the course of the stream to see
that the work which he substitutes for the channel provided by nature are
adequate to carry off the water brought even by extraordinary rainfall, and
if damage results from the deficiency of the substitute which he has
provided for the natural channel he will be liable.
As this pipe culvert was insufficient and inadequate to drain the
discharge of the East Stream, the 1st defendant is liable to the plaintiffs.
The fourth area involves the exception to the principle of an employer
who employs an independent contractor to carry out works on its behalf is
directly responsible for the manner in which those works are carried out if
the works are extra-hazardous in nature. This legal concept is incorporated
into our law through the case of Datuk Bandar Dewan Bandaraya v. Ong Kok
Peng & Anor (supra) as an exception to the general rule that an employer
is not liable for the acts of an independent contractor. But in order for
this rule to apply the works involve must be of an extra-hazardous nature.
Thus the first question that must be answered before attributing liability
to the 1st defendant for the negligence of his independent contractor ie,
the 2nd and 3rd defendants is whether the works carried out by these two
defendants were extra-hazardous? I do not believe so. What they did or
undertook to do involved the normal and usual course of things as expected
of them in their respective professions ie, to draw plans, submitting
them and supervise in the construction of what were approved. There was
nothing extra-hazardous in such activities. My concern is that this
exception to the general rule of an employer being liable for the act of an
independent contractor appointed by him should not be unduly expanded. It
must be sparingly applied, otherwise there will be a danger in exposing
every employer to liability when he engages an independent contractor, such
as the professionals in this case, to carry out a project which he himself
is unable to handle but has to rely and depend on the skills of such person.
It is only in cases where the works involved is of an extra-hazardous
nature, and not just hazardous, that the employer assumes full
responsibility. For this, I do not agree with the plaintiffs that the 1st
defendant should be make liable for the negligence of the 2nd and 3rd
defendants in this area.
Analysis - Nuisance
Like the 2nd and 3rd defendants, the 1st defendant is liable for nuisance
as one of the creators of the nuisance by its acts and/or omissions as
amplified above. Further, as an owner of the Highland
Towers Site it had not been a reasonable user of its land for it
failed to maintain the drainage system and the retaining walls on
Highland Towers Site resulting in the damages
suffered by the plaintiffs who are owners of the two apartments blocks which
must be considered as its neighbours. While in the performance of these acts
and/or omissions, the 1st defendant must have or ought to have reasonably
foreseen that its acts and/or omissions would cause nuisance to the
plaintiffs resulting in the loss mentioned. On this ground too, I find this
defendant liable to the plaintiffs under this cause of action.
4th Defendant
The Nature Of The Plaintiff's Claim
The plaintiffs have described the 4th defendant and its
predecessors-in-title as the local authority who: (a) processed and granted
planning permission and building approval for the
Highland Towers Project; (b) supervised the construction of the three
apartment blocks of Highland Towers; (c)
maintained the Highland Towers and its
surrounding area. And in the course of these duties have caused negligence,
nuisance and liability under Rylands v. Fletcher.
For particulars of wrong the plaintiffs identified six areas.
Firstly, at the planning and design stage of
Highland Towers Project, this defendant had not taken reasonable
care, skill and diligence in checking the plans submitted to ascertain
whether they are reasonably fit for the purpose it was intended for. This
included matters relating to watercourses, streams and rivers in the
vicinity the Highland Towers Site, Arab
Malaysian Land and the surroundings which were under the jurisdiction of the
4th defendant.
Secondly, at the construction stage of the Highland
Towers, this defendant failed to exercise reasonable care, skill and
diligence to ensure the drainage system and the rubble walls on Arab
Malaysian land were adequately provided for and/or constructed in a workman
like manner before the issuance of the CF to the three apartment blocks.
Thirdly, failure of this defendant to maintain and upgrade drains and
rubble walls on Highland Towers Site and the
Arab Malaysian Land and to provide adequate drainage requirement to
watercourses, streams and rivers after the Highland
Towers was constructed.
Fourthly, failure to take any action against damage caused by the Tropic
for clearing the Arab Malaysian Land.
Fifthly, for failing to take remedial measures to remove, rectify and/or
minimise the hazards posed on the Arab Malaysian Land and the surroundings
after the collapse of Block 1.
Sixthly, in the aftermath of the collapse of Block 1 for failing to
prevent vandalism and theft to Block 2 & 3.
A Background Of 4th Defendant
The 4th defendant is the successor of the following:
Before 1975 the area where Highland Towers is
located was under the jurisdiction of District Officer of Kuala Lumpur.
In 1975 when Kuala Lumpur became a Federal Territory the area became a
district of Selangor called the Lembaga Bandaran Gombak (LBG).
Then in 1978 when the State Government of Selangor adopted the Local
Government Act, Gombak District Council or Majlis Daerah Gombak (MDG) as is
more commonly known was created.
In 1992, MDG was replaced by Majlis Perbandaran Ampang Jaya (MPAJ), the
name of the present 4th defendant.
Presently the area is under the jurisdiction of Majlis Perbandaran
Selayang.
System Of Operation
The system of operation between the local authority and the technical
department of the State Government of Selangor I have divulged earlier.
There is no necessity to repeat except to say that some time after the
setting up of the MDG, this local authority was able to recruit some
technical personnel - a qualified architect, an engineer and a few
supporting staff. With this, reliance on the Selangor State Government
departments was less as time went by except in certain field, such as the
drainage and irrigation, where it has no expertise.
Analysis - Negligence
Though Mr. Viswanathan, leading counsel for the 4th defendant, in his
submission made feeble attempts to influence me otherwise, I am convinced
that, judging from the facts as disclosed in the chronology of events, the
4th defendant is negligent of the wrongs as stated in the particulars,
except for item 4. As a local authority, the 4th defendant owes a duty of
care to the plaintiffs to use reasonable care, skill and diligence to ensure
that the hill slope and the drainage thereon were properly accommodated
before approving building or other related plans, and during construction
stage, to comply with and to ensure the implementation of drainage system.
Then when CFs were applied for, there should be proper and thorough
inspection on whether the buildings so built were safe in all aspect and not
just confined only to the structure. And after the
Highland Towers was erected, to ascertain drainage requirement in the
area was adequate to ensure slope stability behind Block 1. Then subsequent
to the collapse of Block 1, measures should have been taken to prevent
recurrence of the tragedy to Block 2 & 3.
Besides the above, which are associated with buildings, the plaintiffs
have accused this defendant for being negligent in not maintaining the East
Stream which is under the jurisdiction of this defendant. To convince me of
this, s. 49 of the National Land Code (NLC), s. 3 of the Water Act 1920 and
ss. 53 and 54 of the Street, Drainage & Building Act are cited together with
the case of Azizah Zainal Abidin & Ors. v. Dato' Bandar
Kuala Lumpur [1995] 5 CLJ 565. Mr. Navaratnam explains that
"river" under the definition section (s. 5) of the NLC includes streams and
watercourses and any deviation thereof. The ownership of these belongs to
the Ruler of the State in which the streams or watercourses are located -
see s. 49 NLC and s. 3 of the Water Act. In our present case the East Stream
is definitely in the State of Selangor and therefore His Royal Highness, The
Sultan of Selangor, is the purported owner. But under ss. 53 & 54 of the
Street, Drainage & Building Act, the 4th defendant, being the local
authority of the area, has a duty to maintain "watercourses" within its
jurisdiction. And "watercourses" under ss. 53 and 54 of the Street, Drainage
& Building Act, as defined in the case of Azizah Zainal Abidin & Ors v.
Dato' Bandar Kuala Lumpur (supra), include streams and rivers. Thus,
possessed of this duty, Mr. Navaratnam alleges that the 4th defendant has
breached its duty of care when it failed and/or neglected and is still
failing and/or neglecting to maintain this stream, which was a major factor
that caused the collapse of Block 1 and is an important element in ensuring
the instability of the slope behind Block 2 & 3 at the present moment.
I am much convinced by this argument above and based on the facts as
disclosed I find such duty of care exists and this duty has been breached by
this defendant resulting in damages to the plaintiffs.
Section 95(2) Of Street, Drainage & Building Act (Street, D & B
Act)
Though negligent for the acts stated, the main thrust of the 4th
defendant's defence is its claim for immunity offered by s. 95(2) of the
Street, D & B Act which provides:
The State Authority, local authority and any public officer or officer or
employee of the local authority shall not be subject to any action, claim,
liabilities or demand whatsoever arising out of any building or other works
carried out in accordance with the provision of this Act and any by-laws
made thereunder or by reason of the fact that such building works or plans
thereof are subject to inspection and approval by the State Authority, local
authority, or such public officer or officer or employee of the State
Authority or the local authority and nothing in this Act or any by-laws made
thereunder shall make it obligatory for the State Authority of the local
authority to inspect any building, building works or materials or the site
of any proposed building to ascertain that that the provisions of this Act
or any by-laws made thereunder are complied with of that plans, certificates
and notices submitted to him are accurate.
In evoking this provision for the benefit of the 4th defendant, Mr.
Viswanathan did not fail to remind me of a passage in my judgment in Dr.
Abdul Hamid Rashid v. Jurusan Malaysian Consultant & Ors(supra)
supporting the concept of economical loss is recoverable where I reiterated
that:
If there is any fear that this approach may encumber the local
authorities to pay out substantial claims due to their negligence in
granting approvals or inspecting building works, there is section 95 of the
Street, Drainage and Building Act, 1974 (Act 133) which prohibits such
authorities to be sued.
Faced with this limitation, the plaintiffs' counsel advanced the
following arguments to overcome this obstacle.
The first is based on the Federal Court decision of MPPP v. Syarikat
Berkerjama-sama Serbaguna Sungai Gelugor [1999] 3 MLJ 45 which says
that:
unless there are special circumstances governing a particular case,
notwithstanding a privative clause, of not to be challenged, etc kind,
judicial review will lie to impeach all errors of law made by an
administrative body or tribunal and, we may add, inferior courts.
But where are the special circumstances in this case to qualify this
court's intervention? The negligent acts of the 4th defendant were not done
ultra vires nor were they involved in creating an error in the law.
This is a case of negligence and the legislature had promulgated that the
4th defendant, being the local authority, should be excused.
The second is based on the argument that since s. 95(2) of the Street, D
& B Act does not harmonise with s. 7(3) of the Government Proceedings Act,
and s. 124 of the Local Government Act to be read in line with s. 2 of the
Public Authorities Protection Act, this provisions should not prevail over
the latter two Acts of Parliament.
To comprehend this, it is necessary to set out the various provisions of
the Acts referred. Firstly, s. 7(3) of the Government Proceedings Act
states:
Nothing in this section shall prevent the bringing of any suit for damages
or compensation arising out of negligence or trespass in the execution of
any works of construction or maintenance undertaken by the Government in the
exercise of the said public duties (emphasis added).
Then s. 124 of the Local Government Act says:
The Public Authorities Protection Ordinance 1948, shall apply to any
action, suit, prosecution or proceeding against any local authority or
against any Councillor, officer, employee, servant or agent of any local
authority in respect of any act, neglect or default done or committed
(emphasis added).
But in s. 2(a) of the Public Authorities Protection Ordinance (which has
become the Public Authorities Protection Act 1948) it says:
Where, after the coming into force of this Act, any suit, action,
prosecution or other proceeding is commenced in the Federation against any
person for any act in pursuance or execution or intended execution of any
written law, duty or authority or in respect of any alleged neglect or
default in the execution of any such written law, duty or authority the
following provisions shall have effect - the suit, action, prosecution or
proceeding shall not lie or be instituted unless it is commenced within
thirty-six months next after the act, neglect or default complained of or,
in the case of continuance of injury of damage, within thirtysix months next
after the ceasing thereof (emphasis added).
Focusing on the emphasised words in the various sections of the Acts
above, the plaintiffs' counsel argues that since the cause of action for
negligence is preserved even against the local authority and its officer in
the various enactment mentioned, then s. 95(2) of the Street, D & B Act,
which does not harmonise with these provisions, should not be apply.
I do not agree with this advancement made by the plaintiffs. On the
contrary, as I see it, there is complete accord among all the enactment
highlighted. Indeed under the relevant sections of the Government
Proceedings Act, and the Local Government Act read with the Public
Authorities Protection Act, an action or suit for negligence is maintained
against government bodies, which includes local authorities, but it does not
mean that Parliament cannot create an exemption from liability for certain
acts committed by these bodies and its officers. It is my view that s. 95(2)
of the Street, D & B Act is just such a piece of legislation to exempt the
local authority and its officer from negligent act related to and connected
with certain specified activities. In our case, since the acts of the 4th
defendant found to be negligent by this court are within those specified
activities under s. 95(2) of the Street, D & B Act immunity applies to the
4th defendant.
The third is also associated with interpretation. Mr. Navaratnam feels
that by applying the established canon of interpretation of statute s. 95(2)
of the Street, D & B Act is not applicable. He cited two cases in support.
The first is the Metropolitan Asylum District v. Hill [1881] 6 App
Cas 193. The second is a more recent case of Allen v. Gulf Oil Ltd.
[1981] AC 1001.
I cannot agree with this contention that s. 95(2) of the Street, D & B
Act falls foul with the long established authority on statutory
interpretation. In fact both cases cited supports the view that if there is
specific provision for exemption then such provision applies. In the case of
Allen v. Gulf Oil Ltd (supra) an oil refinery was set up by an
English Act of Parliament. The residents in the vicinity of the refinery
claim damages for nuisance caused by noxious fume and excessive noise
emitted from the refinery. The defendant attempted to seek protection from
exemption from liability under an enactment meant for statutory authorities
since there is no such provision found in the Act that created the
defendant. The House of Lords in deciding against the defendant was of the
view that since no express exemption clause from paying compensation was
written in the Act that created the refinery then the defence must fail.
This is again the view of the same court in the case of Metropolitan
Asylum District v. William Lund [1881] AC 195, where the Law Lords
rejected a claim by the defendant for protection from tortuous liability
under a statute because no express words or by implication show that such
protection exist in the statute claimed. But when there is such express
provision provided, as in our present circumstances, then such protection
applies.
The fourth argument tendered by the plaintiffs is that the 4th defendant
when exercising its duty in approving building and development plans
discovered a danger or created one, then s. 95(2) of the Street, D & B Act
offers no protection since this act and/or omission (of discovering a danger
or created one) is no longer within the parameters of the s. 95(2). To
support this two cases are cited - Capital & Countries v. Hampshire CC
[1997] 3 WLR 331 and Pyrenees Shire Council v. Day [1998] 72 ALJR
152.
I need not discuss these two cases in detail since I believed that they
are not applicable in view of the wordings in our s. 95(2) of the Street, D
& B Act. This s. 95(2) covers situation "whatsoever arising out of building
or other works carried" out by the 4th defendant in accordance with the
provision of the said Act "or by reason of the fact that such building works
or the plans thereof are subject to inspection and approval". By the usage
of the phase "whatsoever arising" to relate with the specific acts described
then it must include any consequences arising from such specified acts.
Danger discovered or created in the course of the 4th defendant's specified
acts are certainly consequences or a result of such specified acts - thus
falling within the provision of s. 95(2) of the Street, D & Act.
The sixth argument submitted by the plaintiffs is that this s. 95(2) of
the Street, D & B Act only offers immunity to acts stated in the provision.
It offers no protection for any act and/or omission by the local authority
not mentioned or specified in this section. To support this proposition the
authority of Sivasubramanian V. Chong Cheong Wah & Anor. [1972] 1 LNS 138is
cited. In this case the defendant, a police officer, seized a book from the
plaintiff was charged by the plaintiff for the return of the book as well as
damages for its detention of the book. The defendant pleaded s. 18 of the
Control of Imported Publication Act which provides that no legal proceedings
whatsoever shall lie, instituted or maintained in any court for account of
any publication seized, detained, confiscated or destroyed. Syed Othman J
(as he then was) considered that this provision only allows the defendant to
claim immunity if the seizure of the book was carried out under the
provision of the Control of Publication Act and does not apply when the
subject matter was seized under Internal Security Act.
I am in full agreement with the view expressed by the learned judge as
stated above but the acts of negligence I found committed by the 4th
defendant, except those committed post-collapse of Block 1, are within the
terms described in the Street, D & B Act because with the conjunctive words
under s. 95(2) to include "other works carried out in accordance with the
provision of this Act", all drainage and stream relating to the
Highland Towers Project would be within the
ambit of the immunity provided for in s. 95(2) of the Street, D & B Act.
Thus, for these no claims can be brought against this defendant.
The seventh argument put forth by Mr. Navaratnam concerns the acts
committed by this defendant post collapse of Block 1. He submits that for
these, which is not associated with building, s. 95(2) of the Street, D & B
Act will not apply. He has in mind the 4th defendant's failure to attend to
the drainage problem after the tragedy. This he claims is no longer
connected or arising out of any building or other works carried out in
accordance with the Street, D & B Act. To reinforce this proposition, Mr.
Navaratnam cited a passage by Lee Hun Hoe CJ Borneo in the Supreme Court
case of Government of Malaysia & Anor. v. Akasah bin Ahad [1986] 1
MLJ 396 where he says:
It is the contention of the defendants that they are not liable for nuisance
under section 7 of the Government Proceedings Ordinance, 1956. We are not
concern with public nuisance which is covered by section 8. Clearly, section
7 permits a person to sue the Government for negligence or trespass.
However, the liability of the Government in tort is set out in section 5
which reads:
5. Subject to the provisions of this Ordinance, the Government shall be
liable for any wrongful act done or any neglect or default committed by any
public officer in the same manner and to the same extent as that in which a
principal, being a private person, is liable for any wrongful act done, or
any neglect or default committed by his agent, and for the purposes of this
section and without prejudice to the generality thereof, any public officer
acting or purporting in good faith to be acting in pursuance of a duty
imposed by law shall be deemed to be the agent of and to be acting under the
instructions of the Government.
This section is wide enough to cover private nuisance. It makes the
Government liable in tort in respect of any breach attaching at common law
to the ownership, occupation or control of property as though it were a
private person. The effect of this section is to render the Government
liable to nuisance in respect of property it occupies or owns. This refers
only to duties existing at common law.
From liabilities imposed upon owners or occupiers by the statute the
Government remains immune unless the statute imposing the liabilities itself
applies to the Government.
Though I have agreed that the maintenance of the East Stream is and was
under the jurisdiction of the 4th defendant, but I must maintain that until
the time of the issuance of the CFs for Highland Towers
all acts and/or omissions of the 4th defendant in relation to this stream
must be considered as matter arising out of the building or any works
carried out in accordance with the provision of the Street, D & B Act. Thus
s. 95(2) of the Act applies to acts and/or omissions committed by the 4th
defendant precollapse. But for those committed post-collapse, I agree with
plaintiffs' counsel that since there is no longer building or other works
carried out in accordance with the Street, D & B Act to associate the East
Stream with, then immunity from liability under s. 95(2) of the Street, D &
B Act is not available to the 4th defendant if it is found liable for any
negligent act relating to the East Stream. If one were to argue that "other
works carried out in accordance with the provision of this Act" in the said
s. 95(2) would cover situation such as this, then it is my opinion that such
a provision must be interpreted in accordance with the ejusdem generis
rule to defeat this approach. With the specific word "building"
mentioned in the said s. 95(2) before the phase: "other works carried out in
accordance with the provision of the Act", the latter becomes a general
description of the former and must be confined to objects of the same class
or kind as the former. It cannot stand by itself to cover every act
committed by the 4th defendant in accordance with the provision of the
Street, D & B Act. If Parliament had intended this, the august House would
not have singled out the works "building" as well as subsequently repeating
it in the same provision with: "building works or plans". They would have
simply just expressed it by saying, "all acts carried out under the said Act
shall be entitled to immunity".
To consider whether the 4th defendant is liable for the acts and/or
omissions committed post-collapse, it is necessary to disclose some events
that transpired after the collapse of Block 1. After the
Highland Towers calamity there were efforts by
the 4th defendant to stabilise the hill slope on Arab Malaysian Land to
ensure that no accident of the kind that caused the collapse of Block 1
would occur to Block 2 & 3. In January 1995, there was a briefing called by
the 4th defendant which was attended by the 5th defendant and some others.
They were told by the 4th defendant that a master drainage plan for the
entire area to accommodate all landowners in the vicinity of
Highland Towers would be prepared. It was
announced that the consultant engaged by the 4th defendant, M/s EEC would be
ready with the master drainage plan within three months from the date of the
briefing. It was obvious that any master drainage plan for the area must
cater for the East Stream. It was substantially due to this East Steam not
properly attended to that Block 1 collapsed. In fact this concern of the
East Stream, from the chronology of events as set out, was highlighted by
JPS from the very beginning of the development of the
Highland Towers Project. Thus the task to incorporate the East Stream
into the comprehensive master drainage plan falls upon the 4th defendant who
is the body in charge of this watercourse.
But after a period of one year there was no sight or news of this plan.
After numerous reminders by the 5th defendant of such a plan, the 4th
defendant on 29 March 1996 held another briefing. This time, the 4th
defendant informed the attendees that a new firm of consultant, by the name
of KN Associates, was engaged to replace the previous. Again the 4th
defendant gave an assurance that a comprehensive drainage plan of the area
would be forth coming with this replacement of consultant. Sad to say, until
the time when all evidence for this case was recorded by this court, no
comprehensive master drainage plan for the Highland
Towers and its surrounding area was adduced by the 4th defendant. In
fact this defendant offered no explanation as to why its promise was not
met. These delays had affected the 5th defendant who insist that without a
master drainage plan of the area approved and implemented by the 4th
defendant, and the retaining walls on their land as well as those on
Highland Towers Site are corrected or rectified,
then very little can be done by anyone to secure the stability of the slope
behind Block 2 & 3.
Despite this pressing need and the obvious knowledge of the urgent
requirement for a master drainage plan (for otherwise the 4th defendant
would not have initiated steps to appoint consultants for this work soon
after the collapse of Block 1) to secure the stability of the slope so as to
ensure the safety of the two apartment blocks, the 4th defendant did nothing
after the respective consultants were unable to meet their commitments. The
plaintiffs and all other relevant parties are kept waiting because of the
4th defendant. This is certainly inexcusable and definitely a breach of the
duty of care owed by the 4th defendant to the plaintiffs for not even
fulfilling its obligation towards maintenance of the East Stream. For this I
find the 4th defendant liable to the plaintiffs for negligence.
Lastly, the plaintiffs have also alleged that the 4th defendant failed to
take any action against the Tropic in clearing the 5th defendant's land. I
shall be elaborating in detail the acts of Tropic when I analyse the
position of the 5th defendant and Tropic. For the present moment, suffice me
to say that I do not consider the 4th defendant liable to the plaintiffs in
respect of the action committed by Tropic.
As for the claim of the plaintiffs on the 4th defendant for failing to
prevent vandalism and theft to Block 2 & 3, I allow it and my reasons will
be intimated in the later part of this judgment.
Analysis - Nuisance
By the acts and/or omissions of the 4th defendant elaborated above, I
also find that the 4th defendant is an unreasonable user of its land in
failing to maintain the East Stream post collapse which is under its care.
Its acts and or omissions are foreseeable to cause a damage to the
plaintiffs - its neighbour. For this, I find the 4th defendant is also
liable to the plaintiffs for nuisance.
Statute Of Limitation
Before I leave the arena of liability of the 4th defendant there is still
one other matter to discuss. This involves the assertion of the 4th
defendant that the plaintiffs' claim is statute barred under s. 2 of the
Public Authorities Protection Act which requires the suit against the 4th
defendant to be commenced "within thirty-six months next after the act,
neglect or default complained of or, in the case of continuance of the
injury or damage, within thirty-six months next after the ceasing thereof".
I find no merits in this contention. The plaintiffs brought their action
well within the time limit stipulated in the provision cited and which
should be considered to commence from the date of the collapse of Block 1.
Further, since the injury or damage to the plaintiffs are still continuing
and has not ceased then limitation of time to commence action against the
4th defendant has not even started to run.
5th Defendant
The Plaintiffs' Claim
The plaintiffs' claim against the 5th defendant is in respect of two
periods: pre-collapse and post-collapse of Block 1. The areas of complaint
during the time of pre-collapse are: (a) negligence and nuisance for failing
to periodically investigate and to ensure the drains and rubble walls on
Arab Malaysian Land were repaired, maintained and/or upgraded;
(b) negligence and nuisance for activities committed by Tropic;
(c) liability under Rylands v. Fletcher for the maintenance of
dams and reservoirs on Arab Malaysian Land.
For post-collapse:
(a) negligence and nuisance for failing to take measures to restore the
stability of the Arab Malaysian Land;
(b) negligence and nuisance resulting in the looting and vandalism of the
plaintiffs' property in the two apartment blocks.
Events & Background
Before analysing the liability of this defendant, a brief history of the
Arab Malaysian Land is essential.
As disclosed the 5th defendant became owners of the 50 lots of Arab
Malaysian Land (lot 3620 to 3673, but excluding lot 3628, 3653, 3665 & 3670)
in 1991 after some loan facilities associated with the 1st defendant were
not repaid. To set off these loans, the 5th defendant purchased these 50
lots with the objective of selling them as soon as possible in the open
market to recover the amount spent. Bank Negera (the Central Bank) approved
this deal (since the 5th defendant is a financial institution) with a
condition that the 5th defendant was only to hold this property for only a
period of a year from date of purchase.
Except for information contained in a valuation report prepared in 1985
for the purpose of the said loan facilities associated with the 1st
defendant, the 5th defendant, its servants and/or agents seldom visit the
land. Even when visits were made only a cursory glance was offered.
According to the evidence of Mr. Lim (DW1) he attended to the drainage of
the Arab Malaysian Land before it was sold to the 5th defendant. His duties
included the clearing of drains and vegetation and repairs. But since the
5th defendant became the owner he was instructed by the 1st defendant to
cease such duty. From then on no one from the 5th defendant came to assume
his duty.
In the latter part of 1992, the 5th defendant secured a buyer for the
Arab Malaysian Land. This was Tropic who paid an initial deposit equivalent
to 10% of the purchase price. They then entered into the land and commenced
clearing. This caused severe floods to the car parks in the
Highland Towers accompanied by mud and rock from
the slope. According to PW6, one Dr. Kok Mei Leng, she noticed a landslide
on the slope following the acts of Tropic. As a result of this, Miss Seow,
DW8, a senior officer of the 5th defendant who is and was in charge of the
Arab Malaysian Land received a telephone complaint from one Mr. Jerry Lim of
the 1st defendant about the effects caused by Tropic. She acted immediately
on this by requesting a colleague, Puan Lutifah - DW9 to investigate. DW9
did go to the site but only observed it from a corner of
Highland Towers. She did not enter the Arab
Malaysian Land. Obviously satisfied that the complaint was genuine, she
returned to her office and wrote a letter to Tropic demanding Tropic to
discontinue with whatever they were doing. On 5 May 1992 Tropic replied to
say that they will cease their activity on the land.
Except for a few bags of sand placed across the road at a section of the
Highland Towers Site, which was completely
inadequate and ineffective since a heavy down pour had washed them away,
nothing was done to prevent the damage caused by the acts of Tropic. However
as vegetation re-established itself after the Tropic stopped their work, no
further complaint of flooding was reported.
But as candidly admitted by Miss Seow, since the 5th defendant bought the
land no steps were taken to maintain the land. The reason was: "we (had)
intended to sell it". But the 5th defendant remained owner of this said land
till today. Its attempt to sell it was not successful, not even to Tropic,
who failed to pay the balance of the purchase price.
Events that followed after the collapse of Block 1 concerning the 5th
defendant are already disclosed rendering it unnecessary to repeat. To date,
not much work has been carried out on the Arab Malaysian Land except some
minor temporary measures recommended by the 5th defendant's experts. This
approach is adopted by the 5th defendant on the belief that unless a
comprehensive drainage plan of the whole area is implemented by the 4th
defendant and the retaining walls on the Highland
Towers Site are rectified, any remedial work on its land is
ineffective and futile.
Causation
Mr. Abraham in his submission argues that the plaintiffs must prove that
the acts and/or omissions of the 5th defendant was or were the effect cause,
or the causa causans of the collapse of Block 1 leading to the forced
evacuation of the plaintiffs from Block 2 & 3. To decide on this, reference
must be made to my finding on the cause of collapse of Block 1. Since it is
already decided that it was due to a landslide caused primarily by water
which emanated from the damage pipe culvert and the inadequate and
unattended drains on the 5th defendant's land, then the plaintiffs have
sufficiently proved the causa causan of the collapse of Block 1
leading to the forced evacuation of the plaintiffs from Block 2 & 3, was due
to the acts and/or omission of this defendant in not maintaining these
watercourses.
Analysis - Negligence
I shall now commence to deal with the first cause of action - negligence.
Foremost, the 5th defendant has denied that it owes a duty of care to the
plaintiffs. Basically, to impose a duty of care on the defendant, three
criteria must be fulfilled: that of the foreseeability by the defendant of
its act would cause injury or damage to the plaintiff; proximity of
relationship between the parties; and the reasonableness or otherwise of
imposing such a relationship.
Commencing with the first criterion, Mr. Abraham, leading counsel for the
5th defendant, stresses that the 5th defendant could not have foreseen the
seriousness of the injury or damage caused by the acts and/or omissions of
the 5th defendant. The collapse of Block 1 was not a reasonable probability
but more of a "fantastic possibility".
I find this contention completely devoid of merits. From the factual
circumstances as disclosed, I find that the 5th defendant could reasonably
foresee that by its acts and/or omissions in failing to take care of its
land, it would cause a land slide that would destroy Block 1 and forced the
abandonment of Block 2 & 3. When the 5th defendant became associated with
the Arab Malaysian Land it was in the capacity of as chargee. Before the
land was charged, a valuation report - D85 was submitted by the chargor to
the 5th defendant. In it was a description of the land with photographs as
illustration. These photographs reveal the terrain of the land being
extremely steep supported by high rubble retaining walls. From this, the 5th
defendant should have been aware of the nature of the land and its
venerability to slope failure if unattended. Yet when the 5th defendant
became the owner of the said land it was callous in its attitude towards
this factor. The 5th defendant's officers involved seem to believe that a
vacant piece of land need not be bothered with. Though officers of the 5th
defendant were sent to inspect the land periodically, they were never
concerned with the physical aspect of it; they only concentrated on whether
any trespassers had got onto the land. Even on this, I could not comprehend
how this could be achieved without going into the land itself, especially
when the area, as Miss Seow has described, was covered with vegetation. This
attitude and practice seemed to continue despite the complaints of the
flooding caused by the activities of Tropic. Puan Lutifah, who was sent to
investigate only stood at the bottom of the hill to look at the land. She
never entered the land to find out what was the cause of the floods. If she
had been more concerned and proceeded onto the land she would have
discovered the state and condition of the drains, and the drainage of the
area which were highly inadequate and unattended to as confirmed by various
witnesses who went up to the Arab Malaysian Land soon after the collapse of
Bock 1. Coupled with any blockage, such as those caused by Tropic, the land
would be a potential danger to those residents living down hill. Such
failure and neglect by the 5th defendant servants and/or agents must be
attributed to the 5th defendant and be considered as the 5th defendant
having known or ought to have known of the consequences for not attending to
its land. I am not alone on this view. Richard Malanjum J in Takong
Tabari V. Government Of Sarawak & Ors. [1995] 1 CLJ 403 at 459 supports
this proposition. Though this is a case concerning nuisance, but the
application of this principle is similar to that of negligence since in
nuisance one of the criteria is also foreseeability.
On Mr. Abraham's claim that his clients, or for that matter any
reasonable man, could never have foreseen that its acts and/or omissions
could produce consequences of such magnitude as the collapse of Block 1 and
the forced evacuation of the plaintiffs from their properties, it is
necessary to be reminded of the test set out in Steward v. West African
Terminal Ltd. [1964] 2 Llyod's Rep. 371 at 375 where Lord Denning says:
It is not necessary that the precise concatenation of circumstances should
be envisaged.
If the consequence was one which was within the general range which any
reasonable person might foresee (and was not of an entirely different kind
which no one would anticipate) then it is within the rule that a person who
is guilty of negligence is liable for the consequences.
Applying this principle to the present set of circumstances, I find that
a reasonable man might foresee that a steep hill slope of a nature as that
in the Arab Malaysian Land would collapse if not properly managed and
attended to, and with dwelling structures like that of the
Highland Towers situated downhill, the damage
caused would be those as happened in this case. Thus the collapse of Block
1, as well as the forced evacuation of the two other structures which still
remain standing, are not entirely unanticipated.
The next criterion is proximity of relationship. This is in reference to
those persons (neighbours) who are so closely and directly affected by the
defendant's act that the defendant ought reasonably to have them in
contemplation as being so affected when the defendant was directing his mind
to the acts and/or omissions which are called to question.
Geographically, the plaintiffs' properties are just below the 5th
defendant's hill slope. The parties are in fact immediate neighbours. The
5th defendant cannot deny that it has no knowledge of the presence of the
plaintiffs on Highland Towers as its officers
visiting the Arab Malaysian Land would have noticed that the buildings were
occupied. CFs for the Highland Towers were
issued long before the 5th defendant purchased its land. With these, I find
that the 5th defendant ought to have reasonably foreseen that its acts
and/or omissions in dealing with its land of a nature and condition before
the collapse of Block 1 would likely to cause damage to the plaintiffs.
On the third criterion of reasonableness in imposing such a relationship,
there is no excuse for the 5th defendant to say that: its intention was to
hold the Arab Malaysian Land on a temporary basis; that the walls and
drainage system thereon were not erected by it; that it was unaware of the
inadequacies of these structures; and finally that it did not actively adopt
or utilise these drains and walls. The last of these excuses is most absurd.
If these drains and retaining walls were not utilised by the 5th defendant,
I wonder what supported the slope and drained the water from it before the
collapse of Block 1? Other reasons will also not exculpate this defendant
from imposing such a relationship. The 5th defendant is, and at the material
time was, not an institution of little means or without personnel who could
make an effort to inspect its property. Such effort was relatively simple -
just enter into the land and observe. If only those officers who were sent
to inspect and to investigate had taken a little trouble then they would
have discovered all the deficiencies on the slope and made recommendations
for corrective and preventive measures which could have avoided the tragedy.
But sadly, this small step was not made.
By the reasons listed above, I find that the 5th defendant owes a duty of
care to the plaintiffs. Having established this, the next question to be
answered is whether the 5th defendant has breached this duty of care? The
answer to this is substantially based on my finding on the cause of collapse
of Block 1. But before I proceed to it one argument raised by Mr. Abraham
must be attended to. He is of the view that since some of the retaining
walls and drains, as shown on the post-collapsed survey plan, were on roads
reserves and boundaries of bungalow lots then such structures did not belong
to the 5th defendant and consequently the 5th defendant should no be liable
for negligence for failing to maintain these.
I find this reasoning has two shortcomings. Firstly, the post-collapse
survey plan only shows those structures that are still standing. Those
washed away by the slide and subsequent clearing of the area are no longer
visible. This includes the High Wall and other structures behind Block 1.
Without their exact location established how could the 5th defendant confirm
that these were not on its land. In fact a substantial number of walls still
standing are located on the 5th defendant's land itself, as can be seen from
the post-collapse survey plan. Secondly, this proposition of Mr. Abraham was
made before the cause of collapse of Block 1 was determined by this court.
With the ascertainment of the cause of collapse being attributed to water,
derived primarily from the leakage of the pipe culvert, which is and was on
the 5th defendants' land, as well as surface water from rainfall percolating
into the 5th defendant's land, the location of these walls and drains is of
little significance. For this, I find this excuse raised by the Mr. Abraham
cannot be sustained.
As stated above and in my reasons given on the cause of the collapse of
Block 1 - water was major culprit. This was followed by the poorly designed
and constructed walls and inadequate, unattended and defective drains.
Concentrating on water, this emanated from the leaks from the pipe culvert
and the surface flow from rainfall. If the pipe culvert had been maintained
and if there was a proper, adequate maintenance of the drainage system water
would not have saturated the ground to cause the collapse of the High Wall.
But it did happen and from the evidence adduced it was due to the failure
and/or neglect of the 5th defendant in not maintaining these. In fact, as
admitted by Miss Seow, the 5th defendant had not taken any steps to maintain
the slope. For this, I find that the 5th defendant has breached its duty of
care to the plaintiffs.
In respect of post-collapse, I am of the view that this duty of care to
maintain the slope on the Arab Malaysian Land continues after Block 1 had
fallen. Except for some diversions of water to a siltation pond further down
slope the 5th defendant did nothing else. The 5th defendant seems to be
passing the blame for its non-activity to the 4th and 1st defendants for
either not implementing a comprehensive drainage plan or neglecting to
ensure that the retaining walls on the Highland Towers
Site are rectified. I find this completely untenable. There is so much the
5th defendant can do on its land. It can at least prevent water from flowing
in an uncontrolled manner over its slope. The earth drains can be replaced
by concrete drains and if there is still water flowing into the pipe
culverts then this should be repaired. Then there are the retaining walls on
its own land. These can be repaired and/or strengthened or replaced with
better ones. Vegetation can be cleared and allowed to grow in a more
regulated manner to utilise its full advantage to maintain the stability of
the slope. All these can be adopted instead of waiting. For this, I again
find the 5th defendant negligent in failing in its duty to the plaintiffs
for the post-collapse allegations.
Analysis - Nuisance
Locus Standi
Against the allegation of the 5th defendant causing nuisance, the first
point raised by the 5th defendant is that the plaintiffs do not have
sufficient interest in their properties to bring such a suit under this
cause of action; the plaintiffs are not registered owners of the land on
which their apartments are built and they do not possess strata title to
their lot. To support this contention, Mr. Abraham quoted a passage by Lord
Goff in Hunter v. Canary Wharf Ltd. [1997] 2 WLR 684 at 695 which
says:
It follows that, on the authorities as they stand, an action in private
nuisance will only lie at the suit of a person who has a right to the land
affected. Ordinarily, such a person can only be sued if he has a right to
exclusive possession of the land, such as a freeholder or tenant in
possession, or even a licensee with exclusive possession. Exceptionally
however, as Foster v. Warblington Urban District Council shows, this
category may include a person in actual possession who has no right to be
there; and in any event a reversioner can sue in so far his reversionary
interest is affected.
But a mere licensee on the land has no right to sue.
I think this issue is much associated with the question of locus
standi of plaintiffs number 44 to 73 to bring this action against the
defendants. I have given my reasons why these plaintiffs can proceed with
their claims. These will be similarly applied here thus requiring no
necessity for repetition. As possession is the only criterion for this rule
and not the requirement of being a registered owner then, the plaintiffs
amply qualify. The plaintiffs certainly do have exclusive possession of
their respective properties and thus, posses every right to bring this
action for nuisance.
Was 5th Defendant A Reasonable User Of Its Land
Having decided on the above, I shall now move on to determine whether the
5th defendant was a reasonable user of its land. To begin with, this
defendant claims that it did not create any nuisance. If the nuisance
originates from the drainage system and the retaining walls then the 5th
defendant is not responsible for placing them there. The 1st defendant
constructed them and the 5th defendant maintains that it never adopted them
to constitute having continued with such nuisance created by the 1st
defendant.
To determine this, the test set forth by Lord Wilberforce in the Judicial
Committee of the Privy Council case of Goldman v. Hargrave [1967] 1
AC 645 is relevant. It is:
The law must take into account of the fact that an occupier on whom the duty
is cast has, ex hypothesi, had his hazard thrust upon him through not
seeking or fault of his own. His interest, and his resources, whether
physical or material, may be of a very modest character either in relation
to the magnitude of the hazard, or as compared with those of his threatened
neighbour. A rule which required him in such unsought circumstances in his
neighbour's interest a physical effort of which he is not capable, or an
excessive expenditure of money, would be unenforceable or unjust.
One may say in general terms that the existence of a duty must be based upon
knowledge of the hazard, ability to foresee the consequences of not checking
or removing it, and the ability to abate it 205 The standard ought to be
require of the occupier what is reasonable to expect of him in his
individual circumstances.
Thus the first element for consideration is whether the 5th defendant
knew of the hazard. The hazard in this case was the insufficient, defective
and unattended drains. Though I agree that the 5th defendant may not have
knowledge of this hazard at the time of the 5th defendant becoming owner of
the land, and the hazard may not even have existed then, but after being
notified of the flooding at the car parks in Highland
Towers, the 5th defendant should have investigated especially when
the complaint was that the flooding emanated from the 5th defendant's land.
But if the 5th defendant choose to ignore it instead of probing which, if it
did, would have certainly discovered the existence of the hazard, then the
5th defendant must be considered to have constructive knowledge of the
hazard. This lack of care to investigate or even making some effort to look
after its land does not absolve the 5th defendant's claim of lack of
knowledge of the hazard that caused the nuisance.
Having knowledge of the hazard, the next question is whether the 5th
defendant could foresee the consequences of not checking or removing it? On
this point, my answer is in the positive. To a reasonable man the
consequences caused the activities of Tropic resulting in flooding of the
car park in the Highland Towers accompanied mud
and rocks and a minor slip on the slope was a pre-warning of an impending
major land slide if no action is taken to abate it. Yet the 5th defendant
paid no heed.
On the ability to abate, I cannot find any excuse as to why the 5th
defendant could not perform such task. The complaint of flooding was lodged
directly to the 5th defendant and all that was necessary was for the 5th
defendant's personnel to, after inspection, to take remedial measures. This
did not require substantial and enormous financial or physical means. In
fact the abatement involved very little effort. All that was necessary was
to maintain and improve the drainage system mentioned. Surely, the 5th
defendant, as the leading financial house in this country could spare a
little sum to perform such menial task. But, this was not carried out.
Given the circumstances of this case and applying the common law
principle to nuisance as set out in the earlier part of this judgment, I am
convinced that the defendant caused an actionable nuisance to the
plaintiffs.
Regarding post-collapse I also find the 5th defendant liable for
actionable nuisance. The nuisance is still continuing and the 5th defendant
has not taken any measures to effectively abate it. I need not repeat the
circumstances constituting this since it is well documented under the
liability of negligence.
Vandalism
Since the issue on the liability of the 5th defendant on negligence and
nuisance is decided, it is appropriate at this stage to consider whether the
5th defendant (as well as all other defendants who oppose this) is also
liable for the acts of vandalism and thief committed on Block 2 & 3.
In the leading English authority of Ward v. Cannock Chase Council
[1986] 2 WLR 600, Scott J faced with an almost similar situation as in this
case perused extensively through the authorities related to remoteness of
damages. His conclusion was to apply the test of whether: "the vandals and
thieves was a reasonably foreseeable consequence of one of more of the
breaches of duty committed by the council (defendant)." I find this a
reasonable and logical approach and shall adopt it for application to the
circumstances at hand.
Considering the local condition, I find that when disaster strikes in our
country, such as a road accident or when a fire gutters a building, there
will be certain uncivil and contemptuous elements who take advantage of such
commotion to rob, steal and plunder. The Highland Tower tragedy was no
exception. Though security forces were present but with the need at that
material time to safe lives as well as preventing curiosity seekers from
entering the site, which was then considered unstable, it is foreseeable
that their strength and effectiveness in guarding the properties in Block 2
& 3 were less effective leading to the vandalism on the plaintiff's
properties. When public security was reduced to only daylight hours the
vandalism intensified. This must be expected. The plaintiffs could not
employ their own security personnel since they were not allowed to enter the
buildings. Even if they were allowed in, the fear of these two building
collapsing would have deterred such arrangement. All these, I find, were
reasonable consequence of the landslide that brought down Block 1 caused by
the acts of the 5th defendant as well as all other defendants who
contributed to this. Based on these, I find the 5th defendant liable for
thief and vandalism caused to to Block 2 & 3. 6th Defendant
The claim by the plaintiffs against the 6th defendant is for negligence
and nuisance. Though this defendant did not enter appearance the plaintiffs
did not obtain interlocutory judgment against it. For this, this court has
to consider whether the plaintiffs' claim against this defendant is
sustainable.
Analysis
There is no necessity for me to recount the facts concerning this
defendant since it has been disclosed during the analysis on the liability
of the other defendants, particularly that of the 5th defendant. Judging by
those facts I do not find that this defendant is negligent or committed
nuisance. There is no evidence advanced to link the acts of this defendant
in excavating and clearing the Arab Malaysian Land to the cause of the
landslide that tumbled Block 1. The acts of this defendant did bring about
floods to the car parks of the Highland Towers,
of which the 5th defendant should have investigated and if it did would have
discovered the hazard on the slope, but Tropic did not cause the
Highland Towers tragedy nor the damage to the
plaintiffs.
For this reason, I find that the 6th defendant is not liable for the
claim against it.
7th & 8th Defendant
Plaintiff's allegations
According to the plaintiffs between 1990 and December 1993, the 8th
defendant was the lawful occupier of the Metrolux Land as project manager
for and on behalf of the 7th defendant. In the course of the development of
the Metrolux Land, the plaintiffs alleged that the 7th and 8th defendants'
servants and/or agents carried out extensive and widespread clearing by
cutting down trees, plants and vegetation which caused a change in the flow
direction of the natural water path. This led to concentration of water
run-off to the Arab Malaysian Land. Alternatively, the clearing of the
Metrolux Land had caused greater surface run-off of water resulting in
higher infiltration and percolation into the soil. In turn, these charged
the Arab Malaysian Land with water to cause the landslide which brought down
Block 1 and the forced abandonment of Block 2 & 3. The following are listed
as the particulars of negligence of these defendants:
1. Failed to consider the impact of their works on the drainage
requirements of the neignbour's lands. 2. Failed to take any or adequate
precautions to ensure that water from Metrolux Land would not surcharge the
Arab Malaysian Land and Highland Towers Site to
reduce slope stability.
3. Diverted water to the neighbouring land.
4. Block the flow of streams and watercourses.
5. Deposited filth, mud, silt and other materials in streams and
watercourses.
6. Caused erosion, escape of filth, mud and silt from Arab Malaysian Land
to the Highland Towers Site.
7. Created hazards on Metrolux Land.
In support of the plaintiffs' claim, two material witnesses testified -
Mr. Rickard (PW4) and Mr. Hooi (PW10).
Rickard's Evidence
According to Mr. Rickard, a resident of Highland
Towers for three years prior to the collapse of Block 1, he tracked
up the hill behind Highland Towers on 8 January
1994. This was some twenty-two days after the collapse of Block 1. He
followed the East Stream until he reached the top. This spot he identified
as the Metrolux Land which stood on a ridge known as Bukit Antarabangsa. On
it he saw "total deforestation" with "serious erosion and scars". One
particular item which caught his attention, and of vital importance to the
plaintiffs' case, was an earth bund (East West Bund) running east to west
across Metrolux Land at the southwestern corner, as well as a silt pond
close by. He described this East West Bund as an earth bund of one meter in
height created for the purpose of blocking the natural flow of water coming
from the higher sections of the Metrolux Land to the lower level in the
north and directing it to the East Stream. Having no camera with him, no
picture was recorded of this.
On 15 January 1994, this witness went up again to the Mertolux Land from
Highland Towers following the East Stream. This
time he noticed heavy siltation in the stream with vegetation flattened on
either side. He noticed that the East West Bund was still in existence. No
photograph was again taken.
Then on 7 February 1994, as a member of the ad hoc committee of
the resident association of Highland Towers, he
accompanied some Inquiry Commission members who included Dr. Nik Ramlan, to
the Metrolux Land. This time he brought along a camera which captured a
number of valuable photographs depicting the condition of the area at the
material time. Two things struck him on this visit. Firstly, the East West
Bund was demolished. However from the photograph P10, he pointed out the
remnants of this. Secondly, he found along the edge of the southern corner
of the Metrolux Land, at the entrance of the East Stream, a newly
constructed earth retention wall (Earth Retention Wall) built right up to
the boundary of the Metrolux Land. With this structure, effectively, this
court was told subsequently by the 7th and 8th defendants' witnesses, no
water could be discharged to the East Stream from Metrolux Land.
Some six days later, Mr. Rrickard went up the East Stream again and with
a camera he took a series of photographs which are displayed in exh. P10.
These pictures reflect the narration of this witness that this stream was
heavily silted with sandy deposits right up to the area where the water
entered the pipe culvert. The pipe culvert, he stresses, was in an exceeding
poor condition, broken at various intervals with water leaking therefrom.
Brief Description Of Metrolux Land In Connection To East Stream
Before proceeding further, it is necessary to elaborate briefly the
nature of the Metrolux Land in relation to the East Stream. The Metrolux
Land is vast, consisting of many acres. Development of residential houses
was initiated in the north, the lowest part of the land. In the other parts
no construction had commenced at the time of the collapse of Block 1 but the
area was denuded of vegetation. As one proceeds south, the land rises
steeply with two hillocks on its extreme sides forming its boundary. The
East Stream is at the far southeastern corner of this part of the land.
Since this southeastern corner was the subject of intense study by experts
on drainage, I shall refer to it as the Metrolux Site to differentiate it
from Metrolux Land which covers the entire area belonging to the 7th
defendant.
Hooi's Evidence
Mr. Hooi is a civil engineer with vast experience in the field of water
technology. He has, at the commencement of his testimony, disclosed that his
sister owns an apartment in Highland Towers but
he declared that this had not and would not influence him in his preparation
of an expert report and in the oral testimony he was to give. By his
demeanor and the quality of his testimony, which is supported by theories
based on factual data, I believe this assertion and accepts his evidence as
tendered.
According to Mr. Hooi, it is necessary to first identify the catchment
area selected for study. In this case it is the area related to the East
Stream commencing from its source. Once the catchment area is determined the
amount of water flowing into the East Stream can be calculated. To ascertain
the catchment area, he followed these procedures. He personally visited the
area concern. Obtained a topography map of the place and aerial photographs
taken of the area in 1992 from the survey department. Secured a drainage
plan (exh. P18) prepared and drawn by the 7th & 8th defendants' own
engineers known as HS Liao & Rakan of the entire Metrolux Land. With these,
he marked out the boundary of the Metrolux Site with all natural drainage
found therein. Then by drawing a line to join the ridges of this zone he
mapped out the catchment area. Next, by using a photograph he identified the
section of this land which was cleared of vegetation. From here he
formulated Figure B in his report (P44). This figure has the entire Metrolux
Land, Highland Towers Site, Arab Malaysian Land
and the immediate surrounds marked out on a plan. The area denuded of
vegetation in the Metrolux Land is coloured in mustard while the East Stream
from its source is marked out in blue and the catchment area is delineated
by a circular line. An enlargement of this plan, with all the features as
described, is also displayed in his report. In his enlarged figure, Mr. Hooi
subdivided the catchment area into four parts. He selected the part that
contributes to the East Stream. Limiting to this section he calculated the
discharge of water to the East Stream when the land is with vegetation and
when it is denuded of it. He arrived at a calculation that the cleared area
in this catchment contributing to the East Steam has a runoff increased by
approximately 22% for a return period of two years as compared to this part
of the land covered with vegetation. By this, he concludes that "the
clearing of the land within the Metrolux boundaries which lay within the
catchment had a significant contribution to the runoff entering the drainage
system, and consequently to overflow into the hillside".
7th & 8th Defendants' Version
From the above testimonies two relevant matters are identified. The first
concerns the physical condition of the Metrolux Site. The second involves
the additional runoff from the Metrolux Site to the East Stream.
Concerning the physical condition, the defendants' witnesses deny the
presence of the East West Bund as observed by Mr. Rickard. Miss
Visanathamala (DW13), the consulting engineer in charge of earth works at
the Metrolux Site at the material time, denies the existence of such a
blockage. She claims that there was no necessity for such a structure since
by the natural contour the land water would flow naturally to the north
where it would be picked up by the main drains constructed at the lower
northern region of the Metrolux Land. From here the water would be drained
into Sungei Sering, situated on the other side of Bukit Antarabangsa. Miss
Visanathamala then insists that when she visited the Metrolux Site, some
three days after the collapse of Block 1, she noticed the Earth Retention
Wall. This wall, she claims was constructed by the contractors who excavated
this section when they brought down the level from the original to a
required depth. Effectively, this wall would, in her opinion block off any
water run off to the East Stream.
DW15 is one Mr. Lee, the consulting engineer of the Metrolux project and
was Miss Vasanathamala's superior. He too confirms the existence of the
Earth Retention Wall which he saw constructed in September 1993 and was
still there during his monthly site meetings with the contractors.
Mr. Douglas Yee (DW12) has described himself as an expert in hydrology
and hydrogeology. The former is the study of surface water flow pattern over
land, the amount of runoff of such water at any particular place and
provisions for such runoff. The latter pertains to movement of ground water
through the soil from which a subterranean flow regime can be ascertained.
Besides detail analysis on the contribution of the water runoff from the
Metrolux Site to the East Stream, which I shall deal with later, this
witness also confirms two things. The first is: by the nature of the surface
flow pattern and the existence of the Earth Retention Wall there was no
surface water runoff entering the East Stream. The second is: by the geology
of the area, ground water will flow towards the north of Metrolux Land
without discharging into the East Stream. In addition, this witness adds
that during his site visits he observed that the originating tributary of
the East Stream inside Metrolux Land was dry. The other, which was close to
the Metrolux boundary, had only trickles of water. The actual volume of
water that contributed to the East Stream was from a third tributary. This
was located some distance away from Metrolux Land. In short, he concludes
that hardly any water from the Metrolux Site contributed to the East Stream.
After careful study of the evidence and due consideration to the theories
forwarded I am of the following views:
Whether There Was Discharge Of Water From Metrolux Site To The East
Stream
Firstly, from the testimony of Mr. Rickard and the photographs presented
there was substantial of deposits of silt and sandy materials in the East
Stream close to the source at the Metrolux Site. The 7th and 8th defendants
never denied this. So where did this come from when there was no other
development in this catchment area that fed to the East Stream except the
earth works at the Metrolux Site?
Secondly, as to whether there existed the Earth Retention Wall before the
collapse of Block, 1 Miss Vasanathamala's evidence on this point is of
little value. She only confirms the existence of this wall after Block 1 has
collapsed, not before. Thus, she is unaware of whether this configuration
was erected before the collapse of Block 1.
As for Mr. Lee's (DW15) evidence which confirms the existence of this
wall since September 1993, I am very skeptical. He made this statement
without tendering any details of this wall. Further, by his demeanor I find
him to be an unreliable witness. He seems to be exceedingly bias towards
these defendants who are still his clients. This can be reflected on two
occasions. The first was when asked under cross-examination as to why he
thought there was silt in the East Stream he replied that it could be due to
erosion in the same area. But there was clearly no development along this
course of the East Stream. The next is his "no comments" reply to a question
asked during cross-examination on the creation of the silt pond at this
corner of the Metrolux Site. This attitude may be due to the fact that he is
still engaged by the 8th defendant as the engineer for the project and
several others handled by the 8th defendant within Bukit Antarabangsa.
Further, I find it unlikely that this witness visited this part of the site
to observe details when he had delegated such work to his junior, Miss
Vasanathamala.
Against these implication of the existence of this Earth Retaining Wall
is the unbiased observation of Dr. Nik Ramlan who went up to this part of
the Metrolux Site soon after the collapse of Block 1. He remarked that
someone had "recently" dammed the flow path from Metrolux Site "to the
Highland Towers area and had tried to stop the
flow from the plateau into the channel". This is obviously in reference to
this Earth Retention Wall. This perception from an independent and
knowledgeable person, whose mind was focused as an investigator to the cause
of collapse of Block 1, has substantial probative value and I am inclined to
accept it as the truth to imply that this retention wall was a relatively
new creation; not that as claimed by the 7th and 8th defendants.
Fourthly, the photographs taken by Mr. Rrickard of this Earth Retention
Wall as found in exh. P10 speaks a lot by itself. Though the 7th and 8th
defendants' witnesses argue that they represent a wall that was in existence
for sometime, I doubt this claim. I am of the view that this wall, depicted
in the pictures, is a recent creation of soil from another area dumped on
site. It does not appear to be soil excavated from the same area by a "cut
and fill method" carried out by the contractors. Some surviving vegetation
can be observed in this heap to indicate that this lot is foreign. Though
erosion lines are noticeable on the surface of the soil it is not conclusive
that it has been there for some substantial period of time. It could have
been formed during the two months from the time of collapse of Block 1 to
the time when Mr. Rickard took these pictures.
Fifthly, is the noticeable absence of the 8th progress earth works
report. It was the practice of the earth works contractor at the Metrolux
Site to submit progress report after certain work was carried out to the 8th
defendant's engineer for verification and approval to facilitate payments
for such services. Such report would reveal the amount of earth excavated
and the location where it was done. By this, one can verify approximately
when this Earth Retaining Wall was erected and whether this wall was made up
of localized material since these defendants have claimed that this wall was
erected when the contractors excavated this part of the land. This report -
the 8th progress report - supposed to cover the period just before the
collapse of Bock 1 is mysteriously missing. All other reports which are in
sequence and numbered consecutively are available except progress report
number 8. Even a subsequent report - number 9 - is present. But why is this
most crucial report - number 8 - gone missing, especially when this may
determine whether the Earth Retaining Wall was built at this time or much
earlier? In the absence of any convincing reason other than it being lost,
serious aspersion is cast on these defendants for refusing disclose for fear
that no earth work was affected in this part of the land to support their
claim that such a wall was in existence before the collapse of Block 1 and
not after.
Sixthly, concerning the East West Bund, these defendants have
consistently maintained that: (a) there was no necessity for such a
structure since by the natural contour of the Metrolux Land water would flow
down hill towards the north; and (b) when it reaches downhill, main drains
at the lower region of the Metrolux Land would pick it up and carry it
through other housing schemes in Bukit Antarabangsa before discharging into
Sungei Sering.
But this is not quite the factual position as explained by Mr. Douglas
Yee relating to water runoff from the Metrolux Site. The two hillocks which
I briefly disclosed earlier, and which I shall refer to them as the eastern
hillock and the western hillock according to their position, generated water
after rainfall. Water from the eastern hillock would, according to Mr.
Douglas Yee's water-flow chart titled "Catchment C" as illustrated at p. 6
of his report (P35), did enter the East Stream; and not completely flowing
towards the north. Of course, if the Earth Retention Wall was there then
this water would be prevented from entering the East Stream. Water
originating from the western hillock however, would naturally flow into the
East Stream as marked out under "Catchment C2" in Mr. Douglas Yee's flow
chart. But this, according to him, was blocked by an earth outcrop (which
may not be there at the material time of the collapse of Block 1 since this
composite pictures formulating these flow charts were taken much later after
the tragedy) to force the water to turn left down hill towards the north.
Thus from these charts, water in the Metrolux Site did not naturally flow
downhill as these defendant wish this court to believe; some flowed into the
East Stream.
Secondly, if the Earth Retaining Wall had been built before the collapse
of Block 1 then, to be viable and effective, there must be in existence
readymade main drains at the lower portion of the Metrolux Land to receive
the water coming down hill. Otherwise, water would be flowing in an
uncontrolled manner to affect ongoing construction work then taking place at
this lower northern section of the Metrolux Land. But from the evidence
tendered, no concrete main drains were constructed at this lower part of the
slope. Only erosion channels were exposed from the photographs tendered; not
drains as claimed by these defendants.
By these revelations, I believed that there was a need for a barrier,
like the East West Bund to prevent water from flowing down hill in order not
to interfere with ongoing construction works below. With an existing avenue
- the East Steam, it is probable that these defendants under these
circumstances must have utilised this stream as a conveyance to discharge
runoffs from their land, and in order to do, so they must have erected the
East West Bund to prevent water flowing down hill onto the lower part of
their land. This discharge into the East Stream added extra volume of water
to this watercourse besides eroded materials from the Metrolux Site. These
have contributed to the collapse of Block 1. I do not believe that there was
no Earth Retaining Wall constructed to prevent such flow as claimed by the
7th & 8th defendants before the collapse of Block 1. Such claim, I find is a
creation of these defendants as an afterthought to evade liability.
Contribution Of Water From Metrolux Site To East Stream
The material difference between Mr. Hooi's opinion and that of Mr.
Douglas Yee is the amount of surface water runoff from the catchment area of
the Metrolux Site to the East Stream just before the collapse of Block 1. In
Mr. Hooi's view there was an additional runoff of 22%. Mr. Douglas Yee, on
the other hand, feels that the additional runoff calculated on the basis of
this area "not being deforested" was only 12% and, if the said land was
developed, it was 5% - 6%. The greater degree of the former, he explains,
was due to the steep gradient of the land which caused a higher degree of
surface runoff as compared to a relatively flat surface which permitted
water to concentrate in percolating into the ground.
After hearing the mass of evidence adduced to explain the concept and
methodology used by these two experts in arriving at the respective
opinions, I find that the difference in their conclusion lies primarily on
the materials and raw data used to determine the location of the boundary of
the Metrolux Land. In the case of Mr. Hooi, he relied on the drainage plan
submitted by the consultant engineers of these defendants. For Mr. Douglas
Yee, he used a surveyed plan prepared by a surveyor, also engaged by these
defendants. The significant difference in these two plans is that in P18
(the drainage plan) there are distinctively four originating tributaries in
the Metrolux Site which flow into the East Stream. In the survey plan used
by Mr. Douglas Yee it shows only one with another just tipping the boundary.
Indeed, as candidly admitted by Mr. Hooi, if the boundary of the Metrolux
Land is incorrect then his calculation would be wrong. But what makes one
more accurate than the other when both are, ironically, supplied by same
defendants? Of course, Mr. Douglas Yee criticised P18 and declared that it
is far from accurate. But by the same token, how can one be certain that the
survey conducted by the surveyor, who was not called to testify and whose
identity could not even be ascertained, does not contain faults. P18 was an
important plan drawn and prepared by the consultant of the 7th and 8th
defendants and submitted to the authorities for drainage approval. Surely
the boundary of the Metrolux Land would have been ascertained before it was
presented for submission since it involved provisions to cater for
sufficient drainage system for the entire Metrolux project. So why should it
be inaccurate? In fact, the survey plan relied on by Mr. Douglas Yee is
suspected to be used for covering up the disadvantages to these defendants.
By these reasons, I am inclined to find that Mr. Hooi is not incorrect in
his calculation for the runoff when he relied on P18.
Mr. Douglas Yee also criticised Mr. Hooi for not considering the land in
the catchement area to be sufficiently flat since the terrain in this area
has been excavated. By not taking into consideration this factor, he said,
Mr. Hooi's calculation would be incorrect. I find this accusation not
justifiable. Though earth works in the form of excavation was carried out in
the area, but the land was not completely flattened. Substantial part of the
land is still comparatively hilly, as displayed by the two prominent
hillocks which are noticeable on the photographs as well as when this court
visited the site.
Next, Mr. Douglas Yee commented that Mr. Hooi's usage of the aerial
photograph to determine the catchment area is inaccurate. Such photograph,
being black and white, would only produce shades of grey. By this method the
catchment area can never be located. If this theory of Mr. Douglas Yee is
true then Mr. Hooi would not even be able to ascertain anything except,
presumably by guesswork. But after comparing the catchment area of both
these experts, surprisingly, I find them to be remarkably and strikingly
similar. Thus either Mr. Douglas Yee is wrong in his view or Mr. Hooi's
guesswork is a coincidentally correct. Nevertheless since both catchment
areas are relatively similar, I find this factor makes very little
difference to their respective calculations.
There are other areas of differences between these two experts but I find
them minor compared to the main conflict on the boundary as stated above. I
shall not dwell into these since, as agreed by both experts, hydrology is
not an exact science; it is based on a lot of guesswork and assumptions.
Before I conclude on the finding of facts in this area, I find it
difficult to comprehend on two aspects of Mr. Douglas Yee's testimony. The
first was his discovery of only one originating tributary of the East Stream
in the Metrolux Land, which he said was dry, and another tributary nearby
with only trickles of water. This is strange, for during this court's visit
to the site, I observed a substantial flow of water in a tributary which
seems to originate from the Metrolux Land. In fact there were even some
Indonesian workers, obviously engaged in the development work on the
Metrolux Site, bathing there. Secondly, I did inquire as to the source of
this water. Mr. Douglas Yee replied that it was from the ground and
extracted by an insertion of a pipe to the soil. If this is true, then
firstly, Mr. Douglas Yee's theory of no ground water flowing from Metrolux
Land into this area, except to the north, must also be incorrect. Secondly,
it is very probable that this stream with abundance of water originates from
the Metrolux Land giving more credence that P18, which was used by Mr. Hooi.
By reasons aforesaid, I find Mr. Hooi's conclusion on the amount of water
runoff is more probable than that presented by Mr. Douglas Yee. With such
increase in water runoff there was a surcharge on the Arab Malaysian Land
which was a factor that effectively caused the collapse of Block 1.
Preliminary Issue
Having determined the facts I shall now proceed to apply it to the law.
The legal principles applicable to the liabilities of negligence and
nuisance have been extensively set out in the course of my analysis into the
liabilities of other defendants. I do not propose to repeat them here unless
necessary and relevant.
Before I proceed to discuss each of the causes of action individually, I
shall first deal with an issue raised by the 7th & 8th defendants that is
common to both the claims of negligence and nuisance.
This relates to the assertion by the 7th & 8th defendants during
submission that they should not be made responsible for the acts of their
independent contractors. According to the 7th defendant, they have granted
an exclusive power of attorney to one Dato' Loy to develop the Metrolux
Land, and Dato' Loy in turn gave a power of attorney to the 8th defendant to
manage the development. Instead of handling the development themselves, the
8th defendants declares that, by a power of attorney, they appointed a firm
of contractors known as MBf Construction Sdn Bhd to carry out this job. Thus
by these series of appointments, these two defendants argue that: they were
not in possession of the land and they are not liable for the acts of their
independent contractors.
Obviously, this approach is an after thought for it was never pleaded in
the statement of defence of these two defendants. In fact, on the contrary,
as pointed out by plaintiffs' counsel, these defendants in para. 10 of their
statement of defence admitted to have conducted ordinary building works on
the said land. With such an admission, I do not think they can raise this
issue of exemption of liability for the work done by independent contractors
at this stage. To support this is my decision in Metroplex Development
Sdn Bhd v. Mohd Mustana bin Makuddas [1995] 2 MLJ 276 citing the oft
quoted judgment of Shama J in Janagi V. Ong Boon Kiat [1971] 1 LNS 42,
which is:
The court is not entitled to decide a suit on a matter which no issue
has been raised by the parties. It is not the duty of the court to make a
case for one of the parties when the party concerned does not raised or wish
to raise the point. In disposing of a suit or matter involving a disputed
question of fact, it is not proper for the court to displace the case made
by a party in its pleadings and give effect to an entirely new case which
the party had not made out in its own pleadings.
The trial suit should be confined to the pleas on which the parties are
at variance.
Further, even if this issue is allowed to be raised, I am not convinced
that these defendants can be exempted from the liability for the acts of
their independent contractors. As a general rule, it is true that an
employer of an independent contractor is not liable for the fault or
negligence of such a contractor. But there are exceptions. One such
exception relates non-delegable duty. This covers "all cases involving extra
hazardous acts or omissions, or situations created by them, which all
involve special danger to others" - Supreme Court decision in Datuk
Bandar Dewan Bandaraya v. Ong Kok Peng & Anor. [1993] 2 MLJ 234 at 239.
It is my view that to carry out development work on any land for that matter
is normal and not hazardous, but when the land to be developed is perched
high on a hill with a populated community below, then the situation is
different - an extra hazardous situation will be created if such
development work is carried out. This is even more serious if the hill is to
be stripped bare of vegetation and its natural water courses unattended.
Worse, if there is to be a diversion of watercourses downhill. The extra
hazard here is the surcharge of water and silt deposits to cause drains to
clog resulting in overflow that may consequent in slope failure downhill to
affect lives and properties. The factual situation in our present case is
the very case in point. Thus, under such circumstances, these defendants are
not exempted from the liabilities for the acts of their independent
contractors.
This proposition is not limited to a claim of negligence. It similarly
applies to nuisance as is noted in the case of Matania v. The National
Provisional Bank Ltd & Anor. [1936] 2 All ER 633. In this case the
complaint by the plaintiff was dust and noise caused by the building
operations of the defendants. The court decided that although one of the
defendants had employed an independent contractor, this defendant is still
liable in damages for nuisance caused because the very nature of the work
carried out involved a risk of damage to the plaintiff.
The next issue is the argument by Dato' Sethu, leading counsel for these
two defendants, that the plaintiffs have no right to bring this action for
negligence against these defendants because the plaintiffs are not persons
who were the proprietors or in possession of property that was damaged ie,
Block 1. In short, what he meant is that a plaintiff cannot sue for
negligence if the act or omission of the defendant did not directly injure
the plaintiff's person or property - but only caused consequential loss. In
such situation, according to him, there is no duty owed by these defendants
to the plaintiffs. In support of this proposition, he cited a number of
cases, all of which, adhered to the principle originated from the case of
Cattle v. Stockton Waterworks Co [1875] LR 10 QB 453. This principle is
best explained by Scrutton LJ in Elliott Steam Tug Co Ltd v. Shipping
Controller [1922] 1 KB 127 at 139 as follows:
In common law there is no doubt about the position. In a case of a wrong
done to a chattel the common law does not recognise a person whose only
right are a contractual right to have the use of services of the chattel for
purpose of making profits or gains without permission of or property in the
chattel. Such a person cannot claim for injury done to his contractual
right.
Looking at this closely, this proposition concerns pure economic loss of
which I need not, as expressed in the earlier part of this judgment,
elaborate since I am reaffirming my views stated in the case of Dr. Abdul
Hamid Abdul Rashid v. Jurusan Malaysia Consultants (supra). However, as
this argument of Dato' Sethu touches on another aspect of the concept of
pure economic loss, I shall proceed to analysis it, though the ultimate
result is similar to what I have stated in Dr. Abdul Hamid Abdul Rashid.
Pure economic loss, as can be deducted from the dictum of the cases
above, refers to financial loss suffered by a plaintiff which is unconnected
with, and does not flow from damage to his own person or property. The
learned authors in Clarke & Lindsell on Tort, 17th edn, have
classified four different ways in causing such loss. The first is where the
loss to the plaintiff follows physical damage to property in which he has no
proprietary interest at the time of the damage but to which he has some
relationship. The second is where causation is through the negligent
provision of services. The third is causation through reliance by the
plaintiff on a statement (as is the Hedley Byrne type of situation).
And the final category involves defective products or buildings with which
the plaintiff has expended money on repairs or replacement. Dr. Abdul
Hamid Abdul Rashid's case falls within the second group and going by the
facts presented our present case should be in the first classification.
The rational behind this restriction and leading to the creation of this
terminology of "pure economic loss" is the fear of opening "an exceeding
wide field of claims", or creating "endless indeterminate liability", or
"the overkill may present it own disadvantages". A summary of all this is
classically expounded by Cardozo CJ in the American case of Utramares v.
Touche [1931] 255 NY 170 - to prevent a floodgate and avoid the creation
of liability "for an indeterminate amount for an indeterminate time to an
indeterminate class". A factual hypothesis of this is best illustrated in a
passage of the judgment of Lord Penzance in Simpson & Co v. Thomson
[1877] 3 App Cas 279 where he disclosed that:
205 if, by negligence of a wrongdoer, goods are destroyed which the owner of
them had bound himself by contract to supply to a third person, this person
as well as the owner has a right of action for any loss inflicted on him by
their destruction. But if this be true as to injuries done to chattels, it
would seem equally so as to injuries to the person. An individual injured by
a negligently driven carriage has an action against the owner of it. Would a
doctor, it may be asked, who had contracted to attend to him and provide
medicines to him for a fixed sum by the year, also have a right of action in
respect of the additional cost of attendance and medicine cast upon him by
that accident? And yet it cannot be denied that the doctor had an interest
in this patient's safety. In like manner an actor or singer bound for a term
to a manager of a theatre is disable by a wrongful act of a third person to
the serious to the manager.
Can the manager recover loss from the wrongdoer? Such instances might be
indefinitely multiplied, giving rise to rights of action which in modern
communities, where every complexities of mutual relation is daily created by
contract, may be both numerous and novel.
But his principle often produced unfair results. A case in point relating
to pure economic loss in a physical damage to property situation is
Candlewood Navigation Corporation Ltd v. Mitsui O.S.K. Lines Ltd [1986]
AC 1. Here the 1st plaintiff is the owner of a vessel known as 'The Ibaraki
Maru' which was let out on a 'bareboat charter' to the 2nd plaintiff.
Effectively this puts the 2nd plaintiff in possession of the boat. The 2nd
plaintiff then re-lets the vessel to the 1st plaintiff on time charter,
which does not confer possession. In an accident the vessel was damaged by
the defendant's ship. While the 2nd plaintiff can recover the cost of repair
from the defendant, who was found negligent for the accident, the claims by
the 1st plaintiff for the hire charges paid by the 1st plaintiff, even when
the vessel was out of action, and for revenue which the 1st plaintiff lost
for being unable to use the vessel were rejected. All this was due to the
fact that the 1st plaintiff, in law, was not in possession (or for that
matter not the owner) of the vessel. Before the Privy Council on appeal it
was argued that the 1st plaintiff was indeed the owner, but this contention
was rejected on ground that for the two items claimed, the loss suffered by
the 1st plaintiff was in its capacity as charter, not as owner.
This approach has caused grave concern to some Commonwealth law
practicing countries. Though having provided "a mechanical and fairly easily
applied test for the resolution of disputes (and hence for the avoidance of
prolong litigation)" as eloquently pointed out by Mr. WH Roger, the author
of Winfield & Jolowicz, 15th edn, this strict rule had produced
unjust results. For this, the Canadian Supreme Court in the case of
Canadian National Rly Co v. Norsk Pacific S.S. Co Ltd [1992] 91 DLR
(4th) 289, in a factual situation similar to this category of classification
of pure economic loss, announced that liability should be imposed based on
the test of foreseeability of loss to an identifiable plaintiff and
'proximity'. McLachlin J announced this approach in this manner:
comprehensive 205 consideration of proximity requires that the court
review all the factors connecting the negligent act with the loss; this
includes not only the relationship between the parties but all forms of
proximity - physical, circumstantial, casual or assumed indicators of
closeness.
While it is impossible to define comprehensively what will satisfy the
requirement of proximity or directness, precision may be found as types of
relationships or situations are defined in which the necessary closeness
between negligence and loss exists.
I am of the view that this approach is fair and equitable and should be
adopted. I have in Dr. Abdul Hamid Abdul Rashid case furnished my
reasons to rally against the fear of the creating "endless indeterminate
liability". I shall not repeat all of it here but for those readers who wish
to be acquainted with it, reference can be made to the said case. All that
is required of me now is to reproduce only a small passage from the said
judgment of my views on this subject (which has not changed, but instead
strengthened) for application to the facts of this case. It is:
With these arguments, one wonders why there is such limitation imposed upon
a claim for pure economic loss, for after all the entire concept of
negligence is to extend liability beyond the borders of privity.
To impose such a restriction is highly inequitable particularly in cases
where the duty of care and the breach of such duty are found to be
substantiated.
With this, I do not agree with this contention of Dato' Sethu and shall
resort to determine liability of the 7th & 8th defendants based on
foreseeability and proximity to ascertain whether these defendants owe a
duty of care to the plaintiffs, to be followed by whether this duty was
breached resulting in damages.
Analysis - Negligence
On the factor of foreseeability, this court is required to decide whether
the 7th & 8th defendants did reasonably foresee that their acts would cause
damage to the plaintiffs. After examining all the evidence adduced, my
answer is in the positive. As property developer and/or manager of
development projects on a hill, these defendants must have known or ought to
have known that by diverting watercourses on their land to the East Stream
they would increase the volume of discharge to this outlet. With an
extensive area of their land denuded of trees, they must have foreseen that
water flowing over this area would carry with it eroded soil and silt which
would be deposited down stream. And as proved, these caused or contributed
to the failure of the drainage system resulting in the collapse of Block 1
and forced evacuation of Block 2 & 3.
As to the question of proximity, Dato' Sethu alludes that there was
insufficient proximity between the plaintiffs and the defendants to create
such a duty of care. He says there was no immediate physical closeness
between the Metrolux Land with Arab Malaysian Land and Block 2 & 3.
The Metrolux Land, he stresses, was some distance away from both the Arab
Malaysian Land and the Highland Towers Site. In
fact, from the layout plan, various intervening lots belonging to other
individuals separated them.
Though this is true but under the principle of Donoghue v. Stevenson
proximity is not confined to physical proximity. In the words of Lord
Aitkin:
(it) extend(s) to close and direct relations that the act complained of
directly affects a person whom the person alleged to be bound to take care
would know would be directly affected by his careless act.
The act complained of was the division of water and silts from the
Metrolux Land into the East Stream which caused the water to overflow onto
the slope of the Arab Malaysian Land resulting in the failure of the
retaining wall that triggered off a landslide which eventually brought down
Block 1 and forced the plaintiffs to evacuate Block 2 & 3. Though the
location of the originating cause was some distance away from the ultimate
effect of the cause, these two were closely and directly related. In this
instance, we are concerned with the element of water that traversed lands
that caused no loss to the immediate physical neighbours but drastically to
those some distance away. But when one retraces the origin of this effect it
relates to the acts of these defendants as the cause. With such close and
direct connection between cause and effect, I am satisfied that the
plaintiffs have proved proximity to both the acts complained of and the
parties concerned.
Dato' Sethu's next submission relates to the common law rule that an
occupier of land situated at lower stream has no ground of complaint, or
cause of action, against an occupier whose land is at the upper section for
permitting water that has come naturally onto his land to pass it onto his
neighbour's land downstream. The case of Smith v. Kenrick [1843- 60]
All ER Rep 273 is cited in support. But this rule, by established
authorities, only applies when there is no artificial barrier built and
diversion affected to the water. As succinctly put by Mr. Piers Ashworth QC,
sitting as a deputy judge of the High Court, in Home Brewery plc v.
William Davis & Co (Loughborough) Ltd [1987] 1 All ER 637:
There can be no doubt that an occupier of land has no right to discharge
onto his neighbour's land water that he has artificially brought onto his
land (Baird v. Williamson [1863] 143 ER 83) or water that has come
naturally onto his land but which he has artificially, or even
unintentionally, accumulated there (Whalley v. Lanchashire & Yorkshire
Rly Co [1884] 13 QBD 131) or which by artificial erection on his land he
has cause to flow onto his neignbour's land in a manner in which it would
not, but for such erection, have done (Hurdman v. North Eastern Rly.
[1874-80] All ER Rep 735). If an occupier does any of these things he is
liable to an action at the suit of his neighbour.
Furthermore if he brings water onto his land and accumulates it on his land
he may well be liable to his neighbour if that water escapes, even though he
has no wish to discharge it and has taken every precaution against
discharging it (Rylands v. Fletcher [1868] LR 3 HL 330).
In the factual matrix of our case, the water at the Metrolux Site was
naturally on the land but these defendants had artificially erected barriers
on their land to redirect its natural flow path into the East Stream which
consequently caused the damage suffered by the plaintiffs. Such acts of
these defendants are closely and directly connected to the damage and for
this, the 7th & 8th defendant must be liable to the plaintiffs.
Proceeding further, Dato' Sethu submits that the plaintiffs, not being
riparian owners of the East Stream, cannot complain of the flow of water on
the East Stream or of any diversion caused. For this, he cited the case of
Pride of Derby & Derbyshire Angling Association Ltd v. British Celanese
Ltd [1952] 1 All ER 1326 which decided that a:
riparian right is a claim by a riparian proprietor of land to the enjoyment
of a natural stream flowing through his land.
If water is polluted and his enjoyment in the natural flow of the stream is
affected thereby, he may have a course of action against the polluters.
I find this proposition of Dato' Sethu is of no relevance to the present
claim of the plaintiffs. I wish to emphasise that we are not discussing
about a claim by the plaintiffs as riparian owner of the East Stream against
the defendants for polluting this stream. The plaintiffs' claim against
these defendants is for negligently creating a danger which they could
reasonably foresee would cause damage to the plaintiffs.
By my aforesaid reasoning, I find the 7th & 8th defendants owe a duty of
care to the plaintiffs. Having decided on this, I shall proceed to determine
whether this duty of care was breached.
The acts of the 7th & 8th defendants have been extensively discussed and
elaborated warranting no necessity for repetition. From them I am of the
view that these defendants have breached this duty of care they owe to the
plaintiffs. My reasons are contained in my deliberation of the many issues
raised by these defendants and again repetition is not necessary. As damages
have resulted due to the acts of these defendants, I find negligence proved
against the 7th & 8th defendants.
Analysis - Nuisance
Towards the claim of nuisance, the 7th & 8th defendants insist that they
are natural users of their land within the meaning as explained in the
beginning section of this judgment. To support this, they highlighted the
fact that the plaintiffs, as downstream user of the East Stream, have no
right to complain against the act of an owner living upstream. The case of
Palmer v. Bowman [2000] 1 All ER 22 is cited to justify this
contention. Generally, as I have expressed earlier on this aspect of the
law, this is not incorrect. But by artificial changes to the source of the
stream which affected the nature flow of water then going by the principle
as detailed by Mr. Piers Ashworth QC in Home Brewery plc v. William Davis
& Co (Loughborough) Ltd (supra) (which was cited with approval in
Palmer v. Bowman), the defendants are not exempted from causing
nuisance. In this case, the erection of the East West Bund by the 7th & 8th
defendants had diverted more water to flow into the East Stream and carried
with it eroded soil to created a series of consequences that lead to the
collapse of Block 1 and the forced abandonment of Block 2 & 3. By this very
act, I find the 7th & 8th defendants are not reasonable users of their land.
On the foreseeability factor required to constitute actionable nuisance,
the 7th & 8th defendants avert that they could not have reasonably foreseen
during the course of their act that their act would result in damages the
plaintiffs. Since the test on foreseeability is similar to that in
negligence, and that I have already scrutinised it against the facts of this
case, there is no requirement for me to restate except to reconfirm my
finding that these defendants did or ought to have foreseen that their acts
would cause damage to the plaintiffs.
Having found the 7th & 8th defendants being unreasonable users of their
land, as well as they being able to foresee that their act would injure
their neighbour - the plaintiffs, these defendants are liable to the
plaintiffs for nuisance.
9th & 10th Defendants
The Plaintiffs Claim
The plaintiffs' claim against the 9th and 10th defendants for both
negligence and nuisance is based on the following: Firstly, these defendants
are and, at all material time, were the owners of the East Stream and
responsible for the care and management of this watercourse as well the
drainage system in the Highland Towers Site,
Arab Malaysian Land and the surrounding areas. Secondly, JPS, as a
department of the 9th defendant in charge of drainage and irrigation, had
involved itself in the drainage problems of the
Highland Towers Project since inception. Thirdly, by the acts and/or
omissions of JPS, as disclosed from the chronology of events concerning the
development of the Highland Towers Project,
these defendants in allowing the 1st, 2nd and 3rd defendants to proceed with
the building of Highland Towers and consenting
to the issuance of CF for Block 1 & 2 before the drainage issue in the area
was settled committed negligence and nuisance resulting in damages to the
plaintiffs.
Further, the plaintiffs insist that these defendants as owners and/or
occupiers of certain portion of the Arab Malaysian Land had committed the
same negligence and nuisance as described above. This allegation is deducted
from the following. According to Mr. Navaratnam, when the lands on
Highland Towers Site and the Arab Malaysian Land
were sub-divided on the application of the 1st defendant, there were areas
required for road reserves. Such reserves, upon issue of the individual
documents of title subsequent to the sub-division, were deemed to have been
surrendered to the State Authority under s. 136(2)(a)(ii) of the NLC. And
since the State Authority owns the surrendered lands, the plaintiffs insist
that the 9th defendant, representing the State Authority, should have taken
reasonable care to ensure that drains and retaining walls thereon would not
cause damage to its neighbours. This they have failed resulting in damages
to the plaintiffs.
Preliminary Points Raised By The 9th & 10th Defendants
Wrong Party Named
There are a number of preliminary points raised by the 9th & 10th
defendants which should be disposed off before this court ventures into a
discussion of the substantive matter. If they are valid, then there is no
necessity to proceed further.
The first concerns the citation of the wrong party. Dato' Mohd. Zawawi,
State Legal Advisor of Selangor, representing the 9th and 10th defendants,
contends that there is a difference between the entities: "Government of the
State of Selangor" (9th defendant), the "Ruler of the State" and the "State
Authority". He supports it with these provisions:
Section 3 of the Water Act reads:
Subject to the terms of any express grant made by or on behalf of the Ruler
of a State, the entire property in and control of all rivers in any State is
and shall be vested solely in the Ruler of such State; provided that in the
case of lands held by the Government under grant or lease or reserved for a
public purpose and maintained by a Government Department, such control may
be exercised by the Head of such Department, under the direction of the
State Authority (emphasis added).
This is fortified by s. 49 NLC which states:
Where the shore-line or the bed of any river advances so as to encroach on
any alienated land, the area affected by the encroachment shall thereupon
cease to form part of that land, and shall become State land; but the
boundaries of alienated land shall not (except in circumstances mentioned in
paragraph (ii) of the proviso to sub-section 2 of section 353) be affected
by any retreat of the shore-line or of the bed of any river (emphasis
added).
Then by virtue of s. 16(2) of the NLC:
Any action suit or proceedings relating to land in which it is sought to
establish any liability on the part of the State Authority shall be brought
against the State Director in the name of his office (emphasis added).
By these provisions, Dato' Zawawi argues that all rivers (which by
definition under the National Land Code includes streams and watercourses)
are vested in the Ruler of the State, and the control of them is under the
direction of the State Authority, and if any action is to commence against
any party in respect of them it should be the State Director. To support
this, the case of Stamford Holdings Sdn Bhd V. Kerajaan Negeri Johor &
Ors [1998] 1 CLJ 960 is cited. In that case Mohd Ghazali J disagrees
that a "State Government" is synonymous to a "State Authority". Thus when a
State Authority is the responsible party in an action, the correct person to
be named as the defendant is the State Director.
I believe that this is the correct approach. But for the purpose of this
case, in respect of claims arising out of rivers, streams or watercourses,
very little difference is made since the State Director, who is the 10th
defendant, is already a party in this action. However concerning matters
arising out of the ownership and/or occupier of the surrendered lands, the
situation is different. The plaintiffs have not in their pleadings alleged
that the 10th defendant is the person being sued for this particular aspect
of the claim. The plaintiffs' statement of claim repeatedly and
distinctively asserts that the 10th defendant is brought in as a party to
this suit "by virtue of the fact that the property in stream and
watercourses on Arab Malaysian Land and its surroundings is vested in the
State Authority of Selangor"; never as a State Director to the surrendered
lands.
Thus, based on the aforesaid principle, the claim of the plaintiffs
against the 9th defendant must fail in respect of drainage matters but
maintainable against the 10th defendant. But for the surrendered lands, the
plaintiffs' claim must fail against both these defendants.
Particular Officer Or Officers Not Named
The second attack mounted by Dato' Mohd. Zawawi is that by the provisions
of ss. 5,6(1), 6(4), and 18 of the Government Proceedings Act (GPA) the
particular officer or officers in the Government who committed the tortuous
wrong must be identified otherwise the claim against the 10th defendant must
fail. To comprehend this, pertinent parts of the sections mentioned must be
highlighted.
Beginning with, s. 5 of the GPA (which provision has been produced
earlier but reproduced once more to facilitate easy and quick understanding)
states:
Subject to the provisions of this Ordinance, the Government shall be liable
for any wrongful act done or any neglect or default committed by any public
officer in the same manner and to the same extent as that in which a
principal, being a private person, is liable for any wrongful act done, or
any neglect or default committed by his agent, and for the purposes of this
section and without prejudice to the generality thereof, any public officer
acting or purporting in good faith to be acting in pursuance of a duty
imposed by law shall be deemed to be the agent of and to be acting under the
instructions of the Government (emphasis added).
Section 6(1) GPA is as follows:
No proceeding shall lie against the Government by virtue of section 5 in
respect of any act, neglect or default of any public officer, unless
proceedings for damages in respect of such act, neglect or default would
have lain against such officer personally (emphasis added).
Section 6(4) GPA requires that:
No proceedings shall lie against the Government by virtue of section 5 in
respect of any act, neglect or default of any public officer, unless that
officer was at the material time employed by the Government 205 (emphasis
added).
Section 18 GPA says:
Subject to this Act, the written law relating to procedure shall apply to
civil proceedings by or against the Government in the same way as to suits
between subject and subject.
To strengthen his argument, Dato' Mohd. Zawawi cited the case of Haji
Abdul Rahman V. Government Of Malaysia & Anor. [1966] 1 LNS 60 at 175,
where Abdul Aziz J (as he then was) ruled that ss. 5, 6(1), 6(4) of the GPA,
"contemplate(s) that the identity of the officer must be ascertained and the
liability of the officer must be established before the Government can be
made liable".
Mr. Navaratnam refusing to concede brought to my attention the judgment
of Chang Min Tat J. (as he then was) in the case of Lai Seng & Co. V.
Government Of Malaysia & Ors. [1973] 1 LNS 70 at 38 where, while not
disagreeing the need to name the officer involved offers this:
Section 5 renders the government liable for tort by any public officer.
Section 6(1) limits the action to those torts which "would have lain against
such officer personally," while section 6(4) defines such public officer as
someone employed at the material time by the government and paid out of
revenues or appropriate funds. With every respect, it does not seem that on
a proper reading, these sections can be construed as laying down strict rule
of practice of proceedings against the government, failure to observe which
would incapacitate the action.
It is correct, I concede, that in an action for tort, the proper defendant
is the wrong doer but the person for the acts of the wrong-doer or to whom
the liability for injury has passed is also a proper defendant, and for
myself, I would adopt the attitude of Viscount Simon, "the courts before
whom such a case as this comes have to decide it as between the parties
before them." in Adams v. Naylor which is a case for damages for
negligence but which must be read subject to the qualification that since
then the Crown Proceedings Act 1947 has come into force.
With the greatest of respect, I cannot quite appreciate the rational
behind Justice Chang's view in the aforesaid case, particularly in adopting
a single phase of "just between the parties before them", by Viscount Simon
in Adam v. Naylor [1946] AC 543 to imply, somewhat, that it is
permissible to sue the government without any particular officer of the
Government being specified. On the contrary, the emphasis by Viscount Simon
was on the need to determine the liability of the government officer
involved in the negligent act. When this is the requirement then it weights
heavily on the need to name the officer or officers involved in the alleged
tortuous act before liability can be attributed to the government. This was
the approach adopted by Justice Aziz in Haji Abdul Rahman. Viscount
Simon best explains the rational behind this in Adam v. Naylor at p.
550 in the following manner:
The question whether he is personally liable is of course a question for the
court on evidence. But it is to me somewhat surprising and, I think,
misleading, to refer him, as the evidence does, as the "nominal" or
"nominated" defendant. Such language seems to suggest that the issues at
trial are really issues between the plaintiffs and the Crown and the
defendant mentioned as a party merely as a matter of convenience. That is
not the true position. The court before whom such a case as this comes have
to decide it as between the parties before them and have nothing to do with
the fact that the Crown stands behind the defendant. For the plaintiff to
succeed, apart from the statute, they must prove that the defendant himself
owed a duty of care to the plaintiffs and has failed in discharging that
duty.
Whether the plaintiff in the present case would succeed in doing this it is
superfluous to inquire, since the decision goes against them on other
grounds; but it may be useful to put on record, in passing, that the success
of the plaintiffs would depend on establishing a personable liability of the
defendant to them, as the Crown is not is any sense a party to the action.
When there is a necessity to first decide whether a particular officer or
officers, as the case may be, is negligent or has committed a tortuous
wrong, before the Government can be held liable, then it is absolutely
necessary and essential to identify and name the particular officer or
officers whom the plaintiff alleged committed the negligence or tortuous
wrong. If he is not liable then the government is also exempted from
liability. This is the concept of vicarious liability under common law. In
this situation we have even statutory provisions to affirm this approach
where they continuously assert and declare the need to determine fault of
the particular officer before the government can be held liable. This
clearly implies a need to identify and distinguish the officer or officers
concerned before the plaintiffs can proceed with attributing liability to
the government. In the situation at hand, only the drainage and irrigation
department was named in respect of matters related to drainage. This is a
department operated by officers. Who then was the officer or officers who
committed the act or omission? Without him being specified and singled out
how could liability against him be ascertained, Without the determination of
his liability how could the 10th defendant be found liable. Similarly in
respect of other acts or omissions involving the surrendered lands no
individual was specified or mentioned, not even the particular department of
state's machinery. Such defects, in my opinion are too serious and
fundamental for such proceedings against the Government to succeed; it must
fail for non-compliance of the legislative provisions laid down for such
action against a State Government.
By the reasons above, I hereby rule that the plaintiffs' claim against
the 9th and 10th defendants must fail. With this, there is no compulsion for
me to proceed into the field of the substantive issues.
Apportion Of Liability & Contribution
When damage is caused as the result of torts committed by two or more
tortfeasors, the tortfeasors my be jointly and severally liable for causing
the same damage - see para. 4-54 of Clerke & Lindsell on Tort, 17th
edn. Dato' Sethu, arguing for and on behalf of the 8th & 9th defendants,
raises two points in respect of this subject. The first relates to the
distinction between contribution and apportionment; the second concerns the
requirement of each defendant to make specific claim against each other for
contribution.
For the first, Dato' Sethu insists that this court must determine whether
the tortuous acts of the defendants relate to the same damage or different
damages. If they are for different damages then contribution cannot apply
since s. 10(1)(c) of the Civil Law Act confines to only the same damage.
Section 10(1)(c) of the Civil Law Act provides as follows:
Where damages is suffered by any person as a result of a tort (whether a
crime or not) - any tortfeasor liable in respect of that damage may recover
contribution from any other tortfeasor who is, or would if sued have been,
liable in respect of the same damage, whether as a joint tortfeasor or
otherwise, so, however, that no person shall be entitled to recover
contribution under this section from any person entitles to be indemnified
by him in respect of the liability in respect of which the contribution is
sought (emphasis added).
From the evidence tendered, I am without doubt that all the defendants,
except number 6, 9 & 10, are joint tortfeasors in causing the same damage to
the plaintiffs. For this, contribution can be recovered from each other.
As regards to the second issue raised, I note that throughout the hearing
of this suit in respect of liability, each of the defendants who appeared
had accused the other defendants (except when they are closely associated
with each other, like the 7th and 8th defendants, and the 9th and 10th
defendants respectively) of negligence and/or nuisance. This was taken
during crossexamination and submission. By this, I am satisfied that this
constituted demands for contribution from each other under s. 10(1)(c) of
the Civil Law Act.
And by the powers conferred upon me under s. 10(2) of the same Act which
reads as:
In any proceedings for contribution under this section the amount for the
contribution recoverable from any person shall be such as may be found by
the Court to be just and equitable having regard to the extend of that
person's responsibility for the damage, and the Court shall have power to
exemption any person from liability to make contribution, or to direct that
the contribution to be recovered from any person shall amount to a complete
indemnity.
I hereby announce the following apportionment of contribution after
taking into consideration of the factors stated in this provision.
1st defendant: 15%
2nd defendant:10%
3rd defendant:10%
4th defendant: 15%
5th defendant: 30%
7th & 8th defendant: 20%
There shall also be cost to the plaintiffs to be paid by all defendants
except the 6th, 9th and 10th defendants where, for the latter two defendants
cost shall be paid to them by the plaintiffs.
Conclusion
With this I conclude the issue of liability between the parties.
Assessment of damages can now proceed.
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