Hiap Teck, units seek legal action against 14 former employees

  • Business
  • Wednesday, 03 Apr 2013

KUALA LUMPUR: A pipemaking company and its two wholly-owned subsidiaries are suing 14 of its former employees, including directors and officers, for breach of contract and duty including “enticing away” its business partners and customers.

Hiap Teck Venture Bhd, Alpine Pipe Manufacturing Sdn Bhd and Hiap Teck Hardware Sdn Bhd have named Kua Hock Lai, Xinsteel Sdn Bhd, Kua Swee Leong, Kua Swee Kiat and Kua Siu Hui as defendants.

Also sued were Chan Chee Wee, Loi Hui Chin, Loi Hui Ling, Lim Mui Ying, Tan Chui Hong, Loh Lay Hoon, Choo Wai Hoong @ Cho Wai Hoong, Kukanes Raj A/L Raju, Lim Chuan Sui and Teo Phaik Hoon.

The writ of summons and statement of claim, dated March 21, were filed at the Shah Alam court.

According to the court documents made available via Bursa Malaysia yesterday, Xinsteel was incorporated on April 20, 2011, and the defendants joined Xinsteel as directors, employees and/or shareholders respectively.

Hiap Teck claimed that Hock Lai, who was its director, managing director and founder, had dishonestly and fraudulently breached his contractual duties owed to the company.

It claimed he had assisted or caused the setting up of Xinsteel to entice away the plaintiffs' suppliers, principals, agents, business partners, customers and/or transact business in competition with the plaintiffs' companies.

This, the plaintiffs pointed out, was to the detriment to their business or goodwill.

They are seeking, among others, an order for Hock Lai to pay RM2.42mil for his breaches of the service agreement or other contractual, statutory, fiduciary or common law duties.

Apart from damages, they are also seeking an inquiry to assess damages for and an account of all profits made by the defendants and an order for payment from the defendants of all sums due to them after the inquiry.

The High Court has fixed Friday for the case management of the suit.

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Courts & Crime , biz


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