Allianz wins appeal to set aside libel judgment favouring lawyer

 

The Court of Appeal ordered lawyer S Siva Subramaniam to refund more than RM423,000 paid to him under a judgment issued by the Penang High Court two years ago and also held him liable for RM80,000 in costs.

PUTRAJAYA: 

The Court of Appeal has set aside judgment entered by the Penang High Court in favour of a lawyer, after holding that an email sent out by Allianz General Insurance to multiple parties seven years ago did not defame him.

Justice S Nantha Balan said that although the email singled out plaintiff S Siva Subramaniam for mention, the impugned words used were justified as they were true.

The court accordingly dismissed the plaintiff’s claim that the contents of the email implied that he was a confidence trickster and had damaged his reputation.

“What is important is whether what was conveyed can reasonably be construed in a libellous sense. We do not think so.

“Alternatively, in the event the impugned email is defamatory, we hold that the words contained therein are true in substance, and the defence of justification succeeds,” Nantha Balan said in his 70-page judgment.

In the impugned email, Allianz’s senior claims manager, Frances Joycelyn Nathan, had said: “The above lawyer (Siva) is assessing claims without the defendant’s lawyer appointed.”

Frances, who worked under the head of Allianz’s claims division at the time, Jayapragash Amblavanar, had sent out the email dated Dec 15, 2017 to the insurance company’s own employees and to its panel of lawyers handling accident cases.

The appeals court also ruled that the impugned email was issued by the defendants on an occasion of qualified privilege.

The judge said Frances was under a duty to disclose the information to the insurance company’s claims examiners and its panel of solicitors.

“Looking at the evidence as a whole, any reasonable tribunal would have concluded that Frances’s sole and only reason for issuing the impugned email was to protect the insurance company’s interest by risk managing the situation,” said Nantha Balan.

This, he said, was particularly necessary given the plaintiff’s “tendency to serve (cause papers in a running down case) directly on the insured”.

“Hence the impugned email was in line with (Allianz’s) instructions to their panel lawyers to protect their interests.”

Citing “appealable errors” made by the High Court which warranted intervention, the Court of Appeal unanimously set aside judgment entered in Siva’s favour two years ago and ordered him to pay the defendants RM80,000 in costs.

The Court of Appeal also ordered Siva to refund to the defendants RM371,424.66 and costs of RM52,000 previously paid to him under the High Court’s judgment.

Also on the bench which heard the appeal were Justices Nazlan Ghazali and Choo Kah Sing.

Lawyers Terence Chan and Yeap Xi Jin represented the defendants.

Siva, who appeared in person, is presently seeking leave to appeal the decision to the Federal Court. - FMT