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By R. Jayabalan
The Ang Ming Lee Saga Ends.
Re late delivery LAD claims by house purchasers against housing developers.
Ever since the Federal Court decision in Ang Ming Lee in 2020, the issue that kept repeating itself was whether the decision was to be of prospective or retrospective effect.
The primary view, and followed by the courts, was that any court decision is of retrospective effect unless directed otherwise viz. expressly directed to be of prospective effect only. In Ang Ming Lee the Federal Court did not make such specific direction of prospective effect, hence the decision was treated as of retrospective effect – following the general law.
This then opened the door for purchasers whose SPA and LAD claim accrued before Ang Ming Lee to also take advantage of the Ang Ming Lee decision. Many of them did, and successfully.
The complaint that followed was that Ang Ming Lee, with retrospective effect, allowed purchasers to attempt and receive a windfall in terms of LAD, hence grossly unfair to developers who had followed the law as it was at the time of the SPA, and as such the decision with retrospective effect badly affected the housing industry.
Well, everything good must come to an end.
The Federal Court has now decided that Ang Ming Lee in view of it’s special circumstances, effect and statutory implications ought not be read as of retrospective effect, and must be applied as of prospective effect.
In short, LAD claims accruing before Ang Ming Lee cannot take advantage of the Ang Ming Lee effect. Done. Dusted.
The Court also answered several other questions in respect HDA and late delivery claims including the limitation issue in such late delivery claims.
R. Jayabalan
MESSRS R. JAYABALAN
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