Sep 15, 2007
FROM $188 MOTOR ACCIDENT AWARD TO THOUSANDS IN COSTS
NTUC Income waives teacher's $45k legal bill
Insurer asks lawyers to lift freeze on assets and offers $25k for legal fees By K.C. Vijayan
NTUC Income has come to the rescue of teacher Jonathan Lock over the $45,000 legal bill he ended up with after an accident case he had won.
Its chief executive officer Tan Suee Chieh met Mr Lock and his wife yesterday and waived the bill that was in favour of the insurer.
Mr Tan also asked his lawyers to arrange for the lifting of the freeze on the items in Mr Lock's flat.
Mr Lock will withdraw legal action against the insurer.
The case began with a hearing in the Primary Dispute Resolution Centre in March last year. It was to settle the November 2004 accident between Mr Lock's motorcycle and a car driven by Ms Jessiline Goh.
He received $188 and she was asked to pay $1,200 in costs. After getting a cheque for that amount, he thought the matter closed.
But the lawyer then representing him extracted a court order and took out a writ of seizure against Ms Goh to enforce payment of the $1,200.
This move set in motion a series of events that led to High Court judge Lai Siu Chiu agreeing, in May, with Income's appeal that Mr Lock should be liable for the total costs of the case.
The $65,000 bill was cut to $45,000 after a review.
With Income's latest move, the issue is settled.
But Mr Lock, 35, who switched lawyers in July, may have yet another legal battle on his hands. His former lawyer has secured an Oct 4 High Court date to assess the legal fees Mr Lock owes him for work done, a claim that comes to $80,000.
Mr Lock is counter-suing for allegedly inadequate legal services.
But Income intends to help him with the legal bills, offering some $25,000.
'This is our way of helping a policyholder who has found himself caught in the middle of a protracted and unnecessary legal process,' said Mr Tan.
'It is important for the people of Singapore to know that Income places people above process, and that we seek to conduct our business with fairness and for the benefit of the people who are most important to us, namely our customers,' he added.
The case was of great concern to him as it was a 'misapplication of the rules and processes without having regard to the purposes for which they were created'.
Mr Tan added that there had been a 'lapse of our own internal processes of management' and 'corrective actions' will be put in place to prevent this from happening again.
He said the insurer and its lawyers may have been overzealous in pursuing the legal process 'without regard to practical business and personal considerations'.
'The consequences have been totally disproportionate and unintended by NTUC Income,' he added.
While Income's actions had been justified by the court, 'this does not mean that the interest of our enterprise and customers have been best served'.
Mr Lock and his wife were overjoyed. He said: 'When NTUC Income called me on Thursday about the waiver, I was really taken aback. I thought it was going to play hardball with me and demand part payment.'
Said his wife Shane, 33, who is expecting their first child: 'It all happened too fast. I thought it was a prank by someone.' But there is more to go as the couple still faces the lawyer's bill.
'We hope to settle out of court quickly, if possible,' said Mr Lock.
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