KUALA LUMPUR (Oct 28): Construction and manufacturing outfit MTD ACPI Engineering Bhd announced that the Federal Court had on Oct 27 dismissed its appeal against the decision made by the Court of Appeal in May last year that reduces AXA Affin Assurance Bhd’s liability to 50% of the losses payable to MTD Construction.

MTD said the apex court upheld the decision by the Court of Appeal in limiting AXA Affin Assurance’s liability only to losses arising from incidents that occurred after May 11, 2001.

To recap, MTD’s wholly owned subsidiary MTD Construction Sdn Bhd originally filed a suit in 2005 against AXA Affin Assurance, claiming for RM38.59 million as cost for repairs done on the landslips which occurred on its road construction project that spans between Simpang Pulai in Perak and Kampung Raja in Pahang.

The slope failures or landslips occurred between June 1998 and March 2001.

The Federal Court had dismissed its appeal on grounds that the issues submitted were essentially “issues of fact”, hence making the leave application “incompetent” and ordered MTD Construction to pay RM10,000 as costs to AXA Affin Assurance.

“As no leave has been granted, the grounds of judgment from the Court of Appeal as announced on May 31, 2013 stands.

“In view of the above, MTD Construction has no claims against AXA Affin Assurance for the costs of rectification works for the slope failures or landslips, as all landslips occurred between June 1998 to March 2001,” the group said in a statement to Bursa Malaysia this evening.