Warisan can sue defectors RM10mil but may not get full amount, says lawyer
Datuk Roger Chin said while the party can sue if they choose, any chance of success would depend on contractual validity and whether the RM10mil penalty is considered "reasonable."
He said the case involving former PKR vice-president Zuraida Kamaruddin sets the legal precedent.
In the case, the KL High Court ruled that Zuraida had signed a legally binding bond promising RM10mil if she defected and ordered her to pay the party that amount.
However, the Court of Appeal deemed the sum as "unreasonable and extravagant" under Section 75 of the Contract Act, and reduced it to RM100,000 (minus costs).
"This ruling confirms that while bonding candidates is legally permissible, courts will significantly reduce penalties considered punitive or out of proportion," said Chin, who is also former Sabah Law Society president.
He said Warisan president Datuk Seri Mohd Shafie Apdal's recent statement that party candidates would be asked to sign a loyalty pledge and defectors would be sued RM10mil is a mirror of the PKR bond
He said courts would evaluate two key criteria – the validity of the contract (i.e. the bond must be properly signed, with informed consent) and the reasonableness of the sum, which the court would compare to actual losses incurred.
"Based on the Zuraida precedent, RM10mil would almost certainly be deemed excessive," Chin said.
On Tuesday (June 17), Shafie warned that Warisan candidates contesting in the upcoming Sabah state election who act against the party would face a RM10mil penalty.
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