Kuala Lumpur High Court judge Azlan Sulaiman said Elite Park Development Sdn Bhd failed to establish that the cracks were caused by negligent structural design or defective construction, or that the demolition of the buildings, rather than rectification, was justified. KUALA LUMPUR: The High Court here has dismissed a RM40.67 million lawsuit brought by a Mah Sing Group subsidiary against its structural engineer, contractor and insurer over defects discovered in a 10-storey residential building and adjoining multi-storey car park. Justice Azlan Sulaiman said Elite Park Development Sdn Bhd failed to establish that the cracks were caused by negligent structural design or defective construction, or that the demolition of the buildings, rather than rectification, was justified.
In his broad grounds of judgment delivered on Friday, he also found that the insurance policy did not cover the losses claimed. Elite Park sued structural engineer Zulhkiple Abu Bakar and main contractor Pembinaan Infrastruktur OKH Sdn Bhd, seeking more than RM40 million in damages, and filed a separate claim against insurer Lonpac Insurance Bhd. The dispute arose from the construction of a 10-storey residential apartment block (Block A) and an adjoining multi-storey car park at the M Residence 2 township in Bandar Kundang, Rawang, Selangor, developed by Elite Park.
Following construction, cracks appeared in the transfer beams of both structures. Instead of carrying out rectification works, the developer demolished the entire car park and between 85% and 90% of Block A before suing the defendants to recover the costs of demolition and reconstruction. Elite Park alleged that the engineer's negligent design and the contractor's use of substandard materials caused the structural defects.
It also claimed that Lonpac wrongfully rejected its claim under the construction insurance policy. Defects did not warrant demolition In dismissing the claim against Zulhkiple, Azlan said the plaintiff failed to discharge the burden of proving that the defects warranted demolition. He also noted that when the decision to demolish was made, the only expert report available to the developer was prepared by an engineer who consistently recommended rectification rather than demolition.
The judge said Elite Park failed to call its CEO or any board member to explain how and why the decision to demolish structures …
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