Dato' Dr. Abd. Wahab Bin Abd Ghani 1. ) Mohd Rashid Bin Mohd Noor 2. ) Dr Arul Balasingam 3. ) Ampang Puteri Specialist Hospital Sdn Bhd

Parties

Procedural Posture

Civil Suit (medical Negligence / Enforcement of Settlement) / Judgment

Legal Issues

1. 1 Whether the settlement sum of RM200,000 must be paid directly to the claimant or may be paid into the claimant's solicitors' client account
2. 2 Whether Bank Negara Malaysia (BNM) Guidelines on Claims Settlement Practices are legally binding and prevail over parties' agreed payment mechanism
3. 3 Whether solicitors have a right to receive settlement funds into client account and retain fees (lien)

Ratio Decidendi

The court held the written settlement (offer and acceptance) was binding and the settlement sum could lawfully be paid into the claimant's solicitors' client account; BNM Guidelines are non‑binding and do not displace the parties' agreed payment mechanism or established solicitor/client practice; accordingly the RM200,000 settlement was to be paid by insurers into the P.S. Ranjan & Co. client's account for the defendant/claimant, interest at 5% on RM200,000 was awarded from date of judgment to date of settlement, and costs were ordered against the plaintiff as quantified.

Court Disposition

Judgment enforcing the settlement agreement in part in favour of the defendants; payment to be made into claimant's solicitors' client account; counterclaim for interest allowed; costs awarded to defendants.

Orders

• Settlement sum of RM200,000.00 to be paid by insurers into the client account of P.S. Ranjan & Co for the Defendant First
• Counterclaim of Defendant First allowed in part: interest at 5% per annum on RM200,000.00 from date of judgment until date of settlement