Court approves settlement after safeguards put in place for brain-injured victim

The High Court in Melaka has approved a road accident settlement it had previously declined to record, after evidence was presented to justify the compromise, and safeguards were put in place to protect the interests of a severely brain-injured victim.

Judicial commissioner K Raja Segaran entered the consent judgment yesterday following an application by Sharifah Nizamuddin, the wife and litigation representative of accident victim Sultan Nur Mohamad.

FMT previously reported that the parties had proposed a settlement of RM1.7 million, with a further RM170,000 in costs. The amounts were omitted from the publicly released supplementary grounds to safeguard Sultan’s interests.

The approval hearing, originally fixed for tomorrow, was brought forward after the parties filed complete papers on Monday and confirmed that neither side required further time.

Raja Segaran earlier declined to record the settlement based solely on the parties’ consent, saying court approval was required under Order 76 Rule 10 of the Rules of Court 2012 because the settlement involved a person who lacked capacity.

In his supplementary grounds, the judge said the additional evidence established both the value of Sultan’s claims being compromised and why the settlement was reasonable.

He said the compromise represented a reduction of about 14.07% in damages and interest when measured against the payment deadline of Oct 15, or 7.38% of Sultan’s total entitlement including costs.

He noted that the appellants had a real prospect of succeeding on at least some of their 23 grounds of appeal, which challenged both liability and the amount awarded.

A finding that Sultan was partly responsible for the accident could itself result in a reduction greater than the discount agreed under the settlement, he said.

Raja Segaran also considered the benefit of making the money available within weeks to Sultan’s family, which had been bearing the cost of his care since March 2024, against the delay, uncertainty and expense of further litigation.

Sultan suffered severe traumatic brain injuries in a collision involving two motorcycles on March 2, 2024.

The Melaka sessions court found rider Nafie Iman Hanafi Zainuddin and registered owner Shar Kawi Hazim Shafie liable on June 30. Both appealed.

Approved terms

Under the approved arrangements, the money retained for Sultan will be held by his solicitors for his medical treatment, care and maintenance. Any money not required within 12 months is to be placed in a fixed deposit, with the interest accruing to Sultan’s fund.

The court also approved separate payments to Sharifah to cover her personal claim, past nursing care, as well as expenses and maintenance she had provided.

It also examined and approved the bill supporting deductions for legal costs and expenses.

Raja Segaran also rejected a proposed requirement for court approval of care-related withdrawals exceeding an annual ceiling.

He said Sultan’s needs for medication, psychiatric care, therapy and nursing could exceed the proposed limit in a particular year. Requiring a further court application would add unnecessary cost and delay to expenditure for which the fund was intended.

However, the fund remains under the court’s control and the court may require an account to be furnished at any time.

Payment is due by Oct 15. The appeal will be withdrawn, while the sessions court judgment remains as security pending payment, subject to the agreed provisions governing default.

Raja Segaran also praised lawyers Surendran Chelvarajah, who represented Sultan and Sharifah, and Leandra Abigail De Costa, who represented Nafie Iman and Shar Kawi, for their prompt and professional response to the court’s directions.

He said both lawyers complied with the court’s demanding directions within three days, enabling the settlement to be approved and the consent judgment entered without further delay.

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