White & Case wins jurisdiction challenge to Malaysian 1MDB lawsuit

In 2024, 1MDB filed the suit in the Kuala Lumpur High Court. It seeks approximately US$1.83 billion plus US$33 million in losses from White & Case and Mahony.

On 12 August 2026, the Court of Appeal in Putrajaya unanimously held that the Kuala Lumpur High Court has no jurisdiction to hear 1Malaysia Development Berhad’s (1MDB) lawsuit against UK law firm White & Case LLP.

London was described as the proper forum, given the express English choice of law and the foreign process involved.

Background to the claim

• 1MDB filed the suit in the Kuala Lumpur High Court in 2024. It seeks approximately US$1.83 billion plus US$33 million in losses from White & Case and Mahony.
• The allegations centre on dishonest assistance and conspiracy to injure by unlawful means. 1MDB claims White & Case, while acting as legal counsel for PetroSaudi, assisted in transactions linked to the 2009 joint venture (the “Good Star” phase) and a 2010 restructuring that allegedly facilitated and helped conceal the diversion of funds from the Malaysian sovereign wealth fund.
• White & Case has maintained it is not seeking to avoid the claim but that the proper venue is London, where the relevant cause of action is said to have arisen.
• The High Court had previously rejected White & Case’s jurisdictional challenge, describing Malaysia as the “centre of gravity” of the dispute given 1MDB’s incorporation and ownership, the location of losses, and the involvement of Malaysian individuals.
• That decision has now been reversed on appeal.
• 1MDB’s counsel, Datuk Lim Chee Wee, informed the Court of Appeal that instructions had been received to seek leave to appeal the decision to the Federal Court.
• Some contemporaneous reporting also noted that the 2024 claim appeared time-barred under the Limitation Act 1953, given public disclosures of the relevant matters in 2015–2016 (the six-year limitation period).

Malaysian Court of Appeal rules:

• Malaysian Court of Appeal rules local courts lack jurisdiction over claim against the UK law firm’s London office; 1MDB liquidators/representatives indicate they will seek to challenge the ruling further.
• The three-judge panel was chaired by Justice Datuk Alwi Abdul Wahab and included Justices K. Muniandy and Datuk Aliza Sulaiman.
• The court found that the requirements under the Courts of Judicature Act 1964 and the Rules of Court 2012 for service of proceedings outside Malaysia had not been satisfied. Justice Muniandy stated that 1MDB “failed to prove that Malaysia is clearly the forum convenient to hear this suit.”
• The panel also noted that Patrick Mahony (a director of PetroSaudi International Ltd and a co-defendant), a foreign national residing outside Malaysia, could not serve as a proper “anchor defendant.”
• The Court of Appeal set aside the High Court papers served on White & Case in 2024 and overturned the earlier High Court decision (by Judge Leong Wai Hong) that had allowed the claim to proceed in Malaysia and permitted consolidation with a separate 1MDB suit involving other defendants (including Deutsche Bank and PetroSaudi entities). The consolidation application was characterised as a tactical manoeuvre. 1MDB was ordered to pay RM130,000 in costs to White & Case.

Comsure note:

• This is a pure jurisdictional and forum decision. It does not determine the underlying merits of the allegations against White & Case or any other party.

• Jurisdiction and forum challenges remain a recurring feature in cross-border financial-crime recovery litigation. Parties and their advisers should continue to assess service-out requirements, choice-of-law clauses, limitation periods, and the practical realities of “forum conveniens” arguments at the earliest stage.

Primary sources (full URLs for verification)

• Malay Mail: https://www.malaymail.com/news/malaysia/2026/08/12/court-of-appeal-says-malaysia-is-not-the-right-forum-for-1mdb-suit-against-uk-law-firm-white-case/231089
• The Edge Malaysia: https://theedgemalaysia.com/node/814241
• The Sun (Bernama): https://thesun.my/news/malaysia-news/courts/court-uk-law-firm-1mdb-ruling/
• Law.com (headline coverage): https://www.law.com/international-edition/2026/08/13/white--case-wins-jurisdiction-challenge-to-malaysian-1mdb-lawsuit/

Earlier High Court background (for context):

• The Edge Malaysia (High Court jurisdiction ruling): https://theedgemalaysia.com/node/793094