Swatch sues Malaysian govt over seizures of Pride watches worth RM64,000
Swatch said it was not given prior notice of any complaints or intended action against the watches, and was not given an opportunity to be heard before the seizures. — Picture by Yusof Mat Isa
Monday, 17 Jul 2023 7:00 AM MYT
KUALA LUMPUR, July 17 — Swiss watchmaker Swatch has filed a lawsuit against the Malaysian government and Home Ministry officials to seek compensation and the return of 172 seized watches which were allegedly linked to Pride, otherwise known as the lesbian, gay, bisexual and transgender (LGBT) rights movement.
In its lawsuit, Swatch wants the High Court to issue an order to quash the Home Ministry’s seizure notices in May for the 172 watches worth RM64,795, and a court order for all the seized watches to be returned within five days of the order.
The company is also seeking a court order for compensation, including in the form of aggravated and exemplary damages.
The Swatch Group (Malaysia) Sdn Bhd had on June 24 filed the lawsuit via a judicial review application at the High Court in Kuala Lumpur. It named the four respondents as the Home Ministry chief secretary, the Home Ministry’s enforcement division’s secretary, the home minister and the government of Malaysia.
A judicial review is usually filed to challenge the actions or decisions of the government and public bodies, and is where those filing the lawsuit ask the courts to review those government decisions.
Based on court documents sighted by Malay Mail, Swatch had filed the lawsuit as it claimed that the Home Ministry’s officers had acted illegally, irrationally, with procedural impropriety and that their actions were allegedly disproportionate and for an improper purpose.
According to Swatch, it had been selling its watches since 1995 in Malaysia via its stores which mostly employ Malaysians and through authorised resellers.
Monday, 17 Jul 2023 7:00 AM MYT
KUALA LUMPUR, July 17 — Swiss watchmaker Swatch has filed a lawsuit against the Malaysian government and Home Ministry officials to seek compensation and the return of 172 seized watches which were allegedly linked to Pride, otherwise known as the lesbian, gay, bisexual and transgender (LGBT) rights movement.
In its lawsuit, Swatch wants the High Court to issue an order to quash the Home Ministry’s seizure notices in May for the 172 watches worth RM64,795, and a court order for all the seized watches to be returned within five days of the order.
The company is also seeking a court order for compensation, including in the form of aggravated and exemplary damages.
The Swatch Group (Malaysia) Sdn Bhd had on June 24 filed the lawsuit via a judicial review application at the High Court in Kuala Lumpur. It named the four respondents as the Home Ministry chief secretary, the Home Ministry’s enforcement division’s secretary, the home minister and the government of Malaysia.
A judicial review is usually filed to challenge the actions or decisions of the government and public bodies, and is where those filing the lawsuit ask the courts to review those government decisions.
Based on court documents sighted by Malay Mail, Swatch had filed the lawsuit as it claimed that the Home Ministry’s officers had acted illegally, irrationally, with procedural impropriety and that their actions were allegedly disproportionate and for an improper purpose.
According to Swatch, it had been selling its watches since 1995 in Malaysia via its stores which mostly employ Malaysians and through authorised resellers.
Watches are displayed for sale at a Swatch store at Setia City Mall in Shah Alam May 25, 2023. — Picture by Yusof Mat Isa
Swatch said it was not given prior notice of any complaints or intended action against the watches, and was not given an opportunity to be heard before the seizures.
Swatch also argued that the seized watches did not cause any disruption to public order or morality or any violations of the law, saying that there has been no incidents or disruptions since the older designs were made available in Malaysia from June 2022.
Before filing the lawsuit, Swatch had through its lawyers sent a June 9 letter to the Home Ministry to demand the return of the seized watches, but said it has yet to receive a response.
Swatch said the refusal to return the watches had breached its constitutional rights to livelihood and property under the Federal Constitution's Articles 5, 8 and 13.
In an affidavit filed to support the lawsuit, Swatch Malaysia’s country manager said the company has suffered loss and damage in the form of damage to its trading reputation due to the seizures of the 172 watches with a total retail value of RM64,795, and that its “ability to do business freely is greatly jeopardised”. The company also said that its business and trading figures suffered in the immediate aftermath of the seizures for some time.
The case is scheduled to come up in the High Court on July 20, with Swatch’s application for leave for judicial review to be heard by High Court judge Datuk Amarjeet Singh Serjit Singh.
For judicial review applications, the High Court’s leave or permission has to be obtained first, before the actual lawsuit can proceed to be heard. The High Court would hear such a lawsuit if leave is granted, but will not hear the lawsuit if it does not grant leave.
Swatch said it was not given prior notice of any complaints or intended action against the watches, and was not given an opportunity to be heard before the seizures.
Swatch also argued that the seized watches did not cause any disruption to public order or morality or any violations of the law, saying that there has been no incidents or disruptions since the older designs were made available in Malaysia from June 2022.
Before filing the lawsuit, Swatch had through its lawyers sent a June 9 letter to the Home Ministry to demand the return of the seized watches, but said it has yet to receive a response.
Swatch said the refusal to return the watches had breached its constitutional rights to livelihood and property under the Federal Constitution's Articles 5, 8 and 13.
In an affidavit filed to support the lawsuit, Swatch Malaysia’s country manager said the company has suffered loss and damage in the form of damage to its trading reputation due to the seizures of the 172 watches with a total retail value of RM64,795, and that its “ability to do business freely is greatly jeopardised”. The company also said that its business and trading figures suffered in the immediate aftermath of the seizures for some time.
The case is scheduled to come up in the High Court on July 20, with Swatch’s application for leave for judicial review to be heard by High Court judge Datuk Amarjeet Singh Serjit Singh.
For judicial review applications, the High Court’s leave or permission has to be obtained first, before the actual lawsuit can proceed to be heard. The High Court would hear such a lawsuit if leave is granted, but will not hear the lawsuit if it does not grant leave.
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