KUALA LUMPUR: The Sessions Court has ordered a former lawyer to pay RM415,000 to a 73-year-old woman after finding that he had misappropriated funds in relation to proceeds from a property sale transaction involving a Cheras condominium.
Judge Effandi Nazila Abdullah said Na Wee Jern, who ran the law firm Wee Jern & Partners, failed to remit the sale proceeds to the plaintiff despite receiving the sale proceeds of the apartment.
The court was told that the buyer had deposited about RM415,000 into the law firm's account as payment for the purchase of the Cheras property. However, Tan did not receive any of the money.
Instead, the judge said that the defendant gave inconsistent explanations and made false representations regarding key transaction timelines in an attempt to justify the delay in payment.
In written grounds of judgment, Effandi said: "On the balance of probabilities, this court allows the plaintiff's claim."
"The court agrees with the plaintiff's submission that the defendant as the appointed solicitor, has breached fiduciary responsibility toward the plaintiff when the defendant failed to release 90 per cent of the sale proceeds to the plaintiff according to the terms of the said SPA," the judge said.
The judge said the defendant had a fiduciary responsibility toward the plaintiff (Tan) because the defendant (Na) acted as the sole trustee who received and kept any sale proceeds on behalf of the Plaintiff in the sale and purchase transaction of the said Property.
The court added that Tan had suffered financial loss as a result of the defendant's failure to remit the sale proceeds and allowed the claim with costs. - NST
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