UEM Sunrise's Canadian unit sued for defects in building

TheEdge Thu, Nov 30, 2023 12:47am - 2 months View Original

KUALA LUMPUR (Nov 29): UEM Sunrise Bhd said its former Canadian unit has been sued for defects in one of its buildings in the mixed residential and commercial use complex located in the province of British Columbia, known as Quintet Tower D.

In a filing with Bursa Malaysia, UEM Sunrise said Canada Sunrise Development Corp has been served with a notice of civil claim by Strata Corp, representing the owners of the strata lots in Quintet D.

Strata Corp claims Canada Sunrise had breached its duties as the developer and builder of Quintet D, giving rise to losses and damages to the strata owners.

Strata Corp is seeking a declaration that Travelers Insurance Company of Canada, which provided a new home warranty, is obligated to pay and make good the loss and damage suffered by the strata owners.

UEM Sunrise said Canada Sunrise is seeking advice from its solicitors and will vigorously defend the claim.

Canada Sunrise was an indirect wholly-owned subsidiary of UEM Sunrise and was dissolved by way of voluntary dissolution under the Business Corporations Act (British Columbia) on Nov 9, 2023.

Under the act, despite the dissolution of Canada Sunrise, a legal proceeding may be brought against the company within two years after its dissolution as if it had not been dissolved.

UEM Sunrise said the claim has no material financial and operational impact on the group.

This is not the first time that UEM Sunrise had to face a suit for its projects in Canada. In 2016, UEM Sunrise's two indirect subsidiaries, UEM Sunrise (Canada) Development Ltd and UEM Sunrise (Canada) Alderbridge Ltd, faced a breach of agreement lawsuit from a property marketing agent.

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