Veteran journalist awarded six-figure payout in WhatsApp contract dispute
KUALA LUMPUR : The sessions court has ordered Siva Kumar Ganapathy, who claimed a Sarawak government mandate to launch a state election news portal in 2021, to pay journalist Frankie D'Cruz over RM200,000 for failure to honour promised editor's income and unpaid retainers.
This sum, in compensation for four months' lost editor's income and unpaid retainers, underscores the binding force of their WhatsApp‑formed employment contract.
Judge Halilah Suboh handed down the judgment on July 17, allowing all claims on the basis of the balance of probabilities.
The judge accepted that a valid contract was formed via WhatsApp between Siva Kumar, purporting to head Sarawakmirror.com, and D'Cruz for the editor position ahead of the 2021 Sarawak state elections.
She noted that D'Cruz had turned down a competing offer from a Canadian media company in reliance on the defendant's assurances.
The court also found that Siva Kumar expressly conditioned D'Cruz's appointment as Sarawakmirror.com editor upon acquiring a 3% equity stake in Double Solaris Sdn. Bhd.
Relying on these assurances, D'Cruz paid RM39,585 to secure that shareholding, only to have the defendant subsequently renege on both the equity arrangement and the promised editorial role.
Siva Kumar also appointed D'Cruz as a project consultant under his company, Asia PR Sdn Bhd, by letter dated August 22, 2019.
The court directed Siva Kumar to remit RM129,640 to compensate for four months of lost editor's income (calculated at RM32,410 per month from February to May 2020), as well as RM21,000 in outstanding retainer fees for work performed between October 2019 and January 2020.
In addition, the judgment provides for interest at 5% per annum from the date the suit was filed until full settlement, award of RM20,000 toward D'Cruz's legal costs, and payment of all court costs according to scale and practice.
D'Cruz's counsel Haaziq Pillay hailed the decision as an affirmation that media professionals will not be left uncompensated for work and commitments made in good faith.
He said the successful claim emphasises the enforceability of digital communications in forming binding contracts under Section 10(1) of the Contracts Act 1950.
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