1Malaysia Development Bhd (1MDB) has filed an application for leave to appeal against a Court of Appeal ruling that the Kuala Lumpur High Court lacked jurisdiction to hear its lawsuit against UK-based law firm White & Case LLP.
Lawyer Lim Zhi Ying, who represents 1MDB, confirmed that the notice of motion was filed on Aug 28, with the Federal Court set to hear the application on Oct 12.
The fund is seeking leave to raise 24 questions of law before the apex court, arguing that they involve important questions of general principles that have not previously been decided by the Federal Court.
Among the questions concerns the appropriate forum for a conspiracy claim involving alleged conspirators across multiple jurisdictions, including whether connecting factors should be assessed based on the alleged conspiracy as a whole rather than the circumstances and location of the particular foreign defendant challenging the Malaysian court’s jurisdiction.
The application follows the Court of Appeal’s unanimous decision on Aug 20 to allow White & Case’s appeal and set aside the High Court’s ruling.
A three-member bench comprising Justice Datuk Alwi Abdul Wahab, Justice K. Muniandy and Justice Datuk Aliza Sulaiman also set aside the High Court’s order consolidating 1MDB’s suit against White & Case with a separate suit involving other defendants, including Deutsche Bank and PetroSaudi International.
Justice Muniandy, who delivered the judgment, said the requirements under the Courts of Judicature Act 1964 and Rules of Court 2012 for serving proceedings outside Malaysia had not been met.
He also said 1MDB had failed to establish that Malaysia was clearly the appropriate forum to hear the suit, noting that Patrick Mahony, a director of PetroSaudi International Ltd, was a foreign national living outside Malaysia and could not serve as an “anchor defendant” to justify service outside the jurisdiction.
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 the law firm, which acted as its legal counsel, had assisted PetroSaudi in committing fraud and conspired to cause losses to 1MDB.
The claims relate to the 2009 joint venture between 1MDB and PetroSaudi International, known as the Good Star phase, as well as the restructuring of 1MDB’s stake in the joint venture in 2010.
1MDB alleged that the transactions resulted in significant financial losses.
The writ of summons was served on White & Case at its UK offices. The firm subsequently challenged the service and sought a declaration that the Malaysian courts had no jurisdiction to hear the suit.
The High Court rejected the challenge last year, ruling that the case could be heard in Malaysia, among other reasons because trial witnesses were located in the country.
