The long-running dispute involving the owners of a luxury condominium in Bangkok, known as The Sukhothai Residences, has taken a step forward with a ruling from the Supreme Court.
The court ruled against the condo's developer known as Grace Ivory and its sister company, Sathorn Park, the owner of The Sukhothai Bangkok Hotel, according to the Committee of the Sukhothai Residences.
In dismissing their final appeal in a far-reaching ruling delivered on June 28, the court brings the substantive dispute to an end.
Both Grace Ivory and Sathorn Park are controlled by a Hong Kong publicly-listed developer known as HK Resorts International, or HKRI.
The dispute with the residents of the Sukhothai Residences, which first began in early 2015, focused on the legality of several licence agreements which were signed in April 2012.
The agreements imposed an obligation on the condo owners to allow, inter alia, construction vehicles and workmen belonging to Grace Ivory and/or Sathorn Park unrestricted and perpetual access through the grounds of the Sukhothai Residences to carry out the construction of future development projects on the hotel's adjoining grounds.
At the time, there were proposals by Grace Ivory and/or Sathorn Park to build a 47-storey condo and a 37-storey hotel extension on the grounds adjacent to the hotel.
Objections were lodged, not just from the owners of the Sukhothai Residences but also by neighbouring property owners including the German and Austrian embassies, according residents involved in the dispute.
The Court of First Instance ruled in August 2018 that both Grace Ivory and Sathorn Park had not acted in good faith when executing the licence agreements and the agreements had not been lawfully entered into.
The Court of Appeal agreed with the findings of the Court of First Instance in all material aspects in December 2019.
In its latest ruling the Supreme Court backed the findings of both the Court of First Instance and the Court of Appeal.
This Supreme Court ruling reinforces the belief by property purchasers that their grievances concerning the conduct of developers will get a fair hearing, residents said.
Residents of the Sukhothai Residences were overjoyed with the verdict but nevertheless expressed regret that a compromise could not be found and that the situation had to be settled in a court of law.
Numerous attempts by the owners to find an amicable solution with both Grace Ivory and Sathorn Park proved unsuccessful.
At the time of this report, residents of the Sukhothai Residences are seeking legal advice concerning a number of other issues concerning the developers as well as HKRI.
One involves the recent publication on the website of HKRI the news that Sukhothai Residences has been renamed the Grace Ivory Residences.
Residents of the Sukhothai Residences claim this remark is false and is intended to cause public confusion.
There is a current dispute concerning the use of the words "The Sukhothai Residences" in respect of which there is no exclusive ownership to the words.
Until May, the hotel also allowed the owners of The Sukhothai Residences unrestricted access to facilities in the hotel as well as other benefits such as discounts.
All such benefits and access were withdrawn by the hotel when the owners decided not to renew the facilities management contract of their affiliate, Hong Kong Resorts Facilities Management Company.
Legal advice is being sought concerning the reinstatement of all such access, benefits and privileges, which residents say they have enjoyed since 2012.
