Ann Joo Resources Faces Court Ruling in Supply Contract Dispute with Amsteel
In a significant legal battle, Ann Joo Resources, a prominent Malaysian steelmaker, has been ordered by the High Court of Malaysia to pay MYR 11.98 million (approximately $2.7 million) in general damages to Amsteel Mills, a subsidiary of Lion Corp, following a supply contract dispute. The case revolves around an alleged wrongful termination of a supply contract and its associated addendum by Ann Joo's unit, Ann Joo Steel.
Details of the Dispute
The lawsuit was filed by Amsteel Mills against Ann Joo Steel, accusing the unit of improperly terminating a supply contract. This move was said to have caused financial damage to Amsteel, leading to the court's judgment in favor of the plaintiff. As per the court's ruling, Ann Joo Resources is required to pay the damages specified above.
In addition to the general damages, Amsteel had initially sought further compensation, including MYR 14.87 million for loss of profit and MYR 885,200 in alternative damages. However, the court rejected these additional claims, focusing only on the general damages related to the termination of the supply contract.
Ann Joo's Response and Next Steps
Ann Joo Resources has expressed its intention to appeal the High Court's decision. According to a bourse filing by the company, Ann Joo Steel is awaiting the written grounds for judgment, which the High Court has yet to provide. The company’s legal team intends to review these grounds before deciding on the next steps. Ann Joo Steel has already filed an appeal with the Court of Appeal to challenge the ruling, seeking a reversal of the decision.
In parallel, Amsteel Mills has also filed an appeal, contesting the High Court's dismissal of its claims for unjust enrichment and loss of profits. Amsteel is pushing for a reconsideration of these aspects, arguing that they are entitled to additional compensation beyond the damages awarded.
