Liquidated Damages – Second Bite Of The Cherry?

It is not always the case that purchasers can claim for liquidated damages against developers if the latter fail to deliver vacant possession. Our Tan Min Lee and Tan Lay Keng discuss this further with a reference to the case of Chin Kok Woo & Others v Sky Park Properties Sdn Bhd & Others.

Introduction

The Federal Court's decisions in Ang Ming Lee & Others v Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan & Another and Other Appeals¹ and PJD Regency Sdn Bhd v Tribunal Tuntutan Pembeli Rumah & Another² appear to have given hope to purchasers in their attempts to claim liquidated damages against developers if the latter fail to deliver vacant possession within the timeline stipulated in the sale and purchase agreement (SPA). However, purchasers ought to consider circumstances such as res judicata (ie, whether the claim has previously been made with the housing tribunal) before they pursue such claims.