Sumatra Partners and ABNR Dispute Put to Bed for Now

 
Happy Rayna Stephany, Andin Aditya Rahman
 
The South Jakarta District Court yesterday finally handed down its decision on the disputebetween Sumatra Partners LLC (Sumatra), an American financing company, and Indonesian law firm Ali Budiarjo Nugroho Reksodiputro (ABNR).
 
The panel of judges decided to reject the USD 4 million damages requested by Sumatra on the basis that it failed to include a claim against two critical parties to the case, PT Bangun Karya Pratama Lestari (BKPL) and the public notary who made the fiducia deed over the 12 trucks that were leased by BKPL.
 
“The decision is as simple as that, namely that it cannot be accepted as it does not include BKPL or the notary as defendants or co-defendants,” stated Frederik J. Pinakunary, Sumatra’s attorney.
 
Despite a previous court decision regarding the right of the plaintiff to determine the defendants and co-defendants to the lawsuit, the panel was of the opinion that BKPL and the notary must also be involved in the lawsuit as they played a critical role in the matter.
 
Mr. Pinakunary explained that Sumatra and BKPL have jointly consented to bring their dispute to arbitration proceedings as provided for under an agreement between them prior to the case.
 
“We have intentionally not implicated them as a party. Because if we do so, it is possible for our lawsuit to be [put forth in a] demurrer based on absolute authority due to the arbitration agreement,” said Mr Pinakunary.
 
The object of the dispute, he continued, is also different. The object of the dispute between Sumatra and ABNR is the alleged false legal opinionprovided by the law firm giant rather than a breach of contract by BKPL.
 
In its legal opinion, ABNR suggested Sumatra provide a USD 2 million loan for BKPL to purchase 12 CAT 773E series trucks instead of directly purchasing them. The trucks could then be collateralized under a fiducia which could be enforced should BKPL default on the loan.
 
In regard to the notary who drafted the fiducia deed for the trucks, Mr. Pinakunary argued that there is no legal relationship between Sumatra and the notary. Therefore, the notary was not sued as a co-defendant along with ABNR.
 
“According to us, that is not necessary. This can also be [put forth in a] demurrer based on error in persona,” commented Mr. Pinakunary.
 
When asked whether or not Sumatra will take further legal action against this decision, Mr. Pinakunary said that he will first discuss the matter with his client.
 
“We will see later within the next 14 days,” he said.
 
Relieved
Jimmy Z. Ginting, ABNR’s Communications Officer, stated that ABNR will respect the decision and is relieved that the Court has thoroughly considered the evidence and legal arguments put forth by ABNR.
 
Mr. Ginting also asserted that ABNR will respect any decision by Sumatra to take further legal action against the decision.
 
“We also respect the parties from Sumatra,” said Jimmy when contacted by Hukumonline on Monday.
 
Commenting on whether or not the decision by the judges is in accordance with the facts of the case, Mr. Ginting asserted that he is not at liberty to comment on such matters.
 
“We can’t say that this is not appropriate, but this is a legal process. So we must respect this legal process and we are also still waiting, observing and discussing with our team about the next steps,” he concluded.
 
(hot/kc)
 
Happy Rayna Stephany, Andin Aditya Rahman
 
The South Jakarta District Court yesterday finally handed down its decision on the disputebetween Sumatra Partners LLC (Sumatra), an American financing company, and Indonesian law firm Ali Budiarjo Nugroho Reksodiputro (ABNR).
 
The panel of judges decided to reject the USD 4 million damages requested by Sumatra on the basis that it failed to include a claim against two critical parties to the case, PT Bangun Karya Pratama Lestari (BKPL) and the public notary who made the fiducia deed over the 12 trucks that were leased by BKPL.
 
“The decision is as simple as that, namely that it cannot be accepted as it does not include BKPL or the notary as defendants or co-defendants,” stated Frederik J. Pinakunary, Sumatra’s attorney.
 
Despite a previous court decision regarding the right of the plaintiff to determine the defendants and co-defendants to the lawsuit, the panel was of the opinion that BKPL and the notary must also be involved in the lawsuit as they played a critical role in the matter.
 
Mr. Pinakunary explained that Sumatra and BKPL have jointly consented to bring their dispute to arbitration proceedings as provided for under an agreement between them prior to the case.
 
“We have intentionally not implicated them as a party. Because if we do so, it is possible for our lawsuit to be [put forth in a] demurrer based on absolute authority due to the arbitration agreement,” said Mr Pinakunary.
 
The object of the dispute, he continued, is also different. The object of the dispute between Sumatra and ABNR is the alleged false legal opinionprovided by the law firm giant rather than a breach of contract by BKPL.
 
In its legal opinion, ABNR suggested Sumatra provide a USD 2 million loan for BKPL to purchase 12 CAT 773E series trucks instead of directly purchasing them. The trucks could then be collateralized under a fiducia which could be enforced should BKPL default on the loan.
 
In regard to the notary who drafted the fiducia deed for the trucks, Mr. Pinakunary argued that there is no legal relationship between Sumatra and the notary. Therefore, the notary was not sued as a co-defendant along with ABNR.
 
“According to us, that is not necessary. This can also be [put forth in a] demurrer based on error in persona,” commented Mr. Pinakunary.
 
When asked whether or not Sumatra will take further legal action against this decision, Mr. Pinakunary said that he will first discuss the matter with his client.
 
“We will see later within the next 14 days,” he said.
 
Relieved
Jimmy Z. Ginting, ABNR’s Communications Officer, stated that ABNR will respect the decision and is relieved that the Court has thoroughly considered the evidence and legal arguments put forth by ABNR.
 
Mr. Ginting also asserted that ABNR will respect any decision by Sumatra to take further legal action against the decision.
 
“We also respect the parties from Sumatra,” said Jimmy when contacted by Hukumonline on Monday.
 
Commenting on whether or not the decision by the judges is in accordance with the facts of the case, Mr. Ginting asserted that he is not at liberty to comment on such matters.
 
“We can’t say that this is not appropriate, but this is a legal process. So we must respect this legal process and we are also still waiting, observing and discussing with our team about the next steps,” he concluded.
 
(hot/kc)
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