PUTRAJAYA (Sept 21): 1Malaysia Development Bhd (1MDB) is seeking leave to appeal against the appellate court’s ruling that the High Court has no jurisdiction to hear its suit against a UK law firm.
Lawyer Lim Zhi Ying, one of the lawyers representing 1MDB, confirmed the notice of motion was filed on Aug 28 and that the Federal Court had fixed Oct 12 to hear the application.
1MDB has put forward 24 questions of law to the Federal Court concerning jurisdiction and consolidation of its suit.
Among the questions is whether, in determining the appropriate forum for a claim of conspiracy across multiple jurisdictions, the connecting factors to be assessed by reference to the alleged conspiracy as a whole, including the places where the other alleged conspirators and material witnesses are located, and not by reference to the circumstances and location of the particular foreign defendant challenging jurisdiction.
On Aug 20, this year, a three-member bench comprising justices Datuk Alwi Abdul Wahab, K. Muniandy and Datuk Aliza Sulaiman, allowed White and Case LLB’s appeal that the Kuala Lumpur High Court lacked the jurisdiction to hear 1MDB’s suit against the firm.
Justice Muniandy, who delivered the unanimous decision, held that the requirements under the Courts of Judicature Act 1964 and the Rules of Court 2012 for the service of proceedings outside Malaysia had not been satisfied.
He said 1MDB failed to prove that Malaysia is the forum convenient to hear this suit, adding that Patrick Mahony, a director of PetroSaudi International Ltd, is a foreign national residing outside Malaysia and, therefore, could not serve as a proper “anchor defendant” to justify the service of proceedings out of jurisdiction.
The panel also set aside the High Court’s decision to consolidate 1MDB’s suit against White & Case with a separate suit against other defendants, including Deutsche Bank and PetroSaudi International.
1MDB filed the suit in the Kuala Lumpur High Court in 2024, seeking US$1.83 billion and US$33 million in losses from White & Case and Mahony. The fund alleged that White & Case assisted PetroSaudi in committing fraud and conspired to harm 1MDB while acting as its legal counsel.
The alleged misconduct relates to two corporate transactions: the 2009 joint venture with PetroSaudi International, known as the Good Star phase, and the 2010 restructuring of 1MDB’s stake in the joint venture, which 1MDB claims resulted in significant financial losses.
The writ of summons was served out of jurisdiction on White & Case at their UK offices, and the firm subsequently applied to set aside the service, seeking a declaration that the Malaysian court had no jurisdiction to hear the suit.
Last year, the High Court rejected White & Case’s challenge, ruling that it could hear the lawsuit because the trial witnesses are located in Malaysia.
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