Court ruling prompts worry over parking charges

 

Car park operators could end up passing additional costs to drivers.

PETALING JAYA: A retail organisation has warned of the likelihood of rises in parking charges following a court decision in which a car park operator was punished over the theft of a vehicle.

Malaysia Shopping Malls Association president Teo Chiang Kok told FMT the decision would have “severe implications” on the provision and management of parking facilities.

“If the car park operator is now responsible for the theft of vehicles,” he said, “then the parking charges would have to be adjusted to include, at the very least, an insurance premium plus additional costs for enhanced surveillance, CCTVs and patrol staff.

“The costs will be passed on to the vehicle owners.”

Teo Chiang Kok.

The Court of Appeals recently upheld a 2017 lower court ruling that the management of Sunway Parking Services was liable for negligence in the case of a stolen car. It ordered damages amounting to about RM117,000.

According to Teo, car park charges are typically set as low as possible since a parking facility would often help a commercial establishment to stay viable.

He said the charges might now increase since park managers must prepare for possible theft liability cases even though most break-ins and thefts could be attributed to driver negligence, such as leaving car doors unlocked.

He also foresees a possible increase in cases of fraud, with people capitalising on the precedent by faking a car theft to profit from the legal compensation.

Yap Lip Seng.

Yap Lip Seng, CEO of the Malaysian Association of Hotels, said the decision could spur car park operators to reassess their facilities.

“I believe that car park operators and building owners would improve on their systems as well as the terms of use,” he said.

However, he expressed less concern than Teo, saying each case of theft would likely need to be looked at individually to assign liability.

“We believe that such rulings will not solely reference precedence, but rather specific elements leading to the event, including factors beyond the building owners’ control and the systems used in a specific property.” - FMT