Lam Hwa Engineering v Yang Qiang: Recovery of Travel Expenses as Disbursements in Personal Injury Claim

In Lam Hwa Engineering & Trading Pte Ltd v Yang Qiang, the Court of Appeal of Singapore addressed the issue of whether travel expenses amounting to $1,208 were properly claimable by the respondent, Yang Qiang, as disbursements in a personal injury claim against the appellant, Lam Hwa Engineering & Trading Pte Ltd. The respondent, a foreign national, had been injured at work and repatriated, later returning to Singapore for trial. The case was settled on the first day of trial, with the appellant agreeing to pay 80% of the respondent’s claim plus costs and disbursements. The court dismissed the appeal, finding it wholly unmeritorious and emphasizing the importance of proportionality and the ethical responsibilities of legal counsel to avoid unnecessary costs.

1. Case Overview

1.1 Court

Court of Appeal

1.2 Outcome

Appeal Dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The Court of Appeal addressed whether travel expenses were claimable as disbursements in a settled personal injury claim. The court dismissed the appeal, emphasizing proportionality and ethical responsibilities.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Lam Hwa Engineering & Trading Pte LtdAppellantCorporationAppeal DismissedLostNiru Pillai, Priya Dharshini Pillay
Yang QiangRespondentIndividualAppeal UpheldWonN Srinivasan, Belinder Kaur Nijar

3. Judges

Judge NameTitleDelivered Judgment
Sundaresh MenonChief JusticeYes
Andrew Phang Boon LeongJustice of the Court of AppealNo
V K RajahJustice of the Court of AppealNo

4. Counsels

Counsel NameOrganization
Niru PillaiGlobal Law Alliance LLC
Priya Dharshini PillayGlobal Law Alliance LLC
N SrinivasanHoh Law Corporation
Belinder Kaur NijarHoh Law Corporation

4. Facts

  1. The respondent, a foreign worker, was injured in the course of his work.
  2. The respondent commenced an action against the appellant seeking compensation.
  3. The respondent returned to China as he was unable to maintain his Singapore work pass.
  4. The respondent flew back to Singapore to attend and give evidence at the trial.
  5. The parties reached a settlement on the first day of the trial, with the appellant agreeing to bear 80% liability.
  6. The appellant disputed the respondent’s claim for travel expenses of $1,208.
  7. The Deputy Registrar initially held that the travel expenses were not claimable.

5. Formal Citations

  1. Lam Hwa Engineering & Trading Pte Ltd v Yang Qiang, Civil Appeal No 73 of 2013, [2014] SGCA 3
  2. Lam Hwa Engineering & Trading Pte Ltd v Yang Qiang, , [2013] 2 SLR 524
  3. Yang Qiang v Lam Hwa Engineering & Trading Pte Ltd, , [2012] SGDC 31

6. Timeline

DateEvent
Respondent injured in the course of work.
Respondent commenced an action against the appellant seeking compensation.
Respondent flew back to Singapore for the purpose of attending and giving evidence at the trial.
Parties reached a settlement; appellant agreed to bear 80% liability.
District Court allowed the respondent’s appeal.
High Court dismissed the appellant’s appeal.
Court of Appeal dismissed the appeal.

7. Legal Issues

  1. Recovery of Travel Expenses as Disbursements
    • Outcome: The court held that the travel expenses were recoverable as disbursements, emphasizing the importance of reasonableness and proportionality.
    • Category: Substantive
    • Sub-Issues:
      • Reasonableness of expenses
      • Proportionality of costs
    • Related Cases:
      • [1998] 2 SLR(R) 576
      • (1884) 13 QBD 872
      • [2011] 3 SLR 1052
  2. Proportionality of Costs
    • Outcome: The court clarified that proportionality should be considered on an item-by-item and global basis, and that it does not envisage an exact ratio or apportionment.
    • Category: Procedural
    • Sub-Issues:
      • Assessment of costs
      • Relationship between costs and claim amount
    • Related Cases:
      • [2011] 3 SLR 1052
  3. Ethical Responsibilities of Legal Counsel
    • Outcome: The court emphasized the ethical responsibilities of legal counsel to conduct a proper risk-benefit evaluation, avoid unnecessary costs, and assist the court in the administration of justice.
    • Category: Procedural
    • Sub-Issues:
      • Duty to conduct risk-benefit evaluation
      • Duty to avoid unnecessary costs
      • Duty to the court
    • Related Cases:
      • [2008] 2 SLR(R) 455

8. Remedies Sought

  1. Monetary Damages
  2. Costs
  3. Disbursements

9. Cause of Actions

  • Negligence
  • Personal Injury

10. Practice Areas

  • Litigation
  • Taxation of Costs

11. Industries

  • Legal Services

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Rajabali Jumabhoy and others v Ameerali R Jumabhoy and othersCourt of AppealYes[1998] 2 SLR(R) 576SingaporeCited and distinguished regarding the entitlement of costs for attendance in court, clarifying that it does not preclude claiming travel expenses.
The London Scottish Benefit Society v Chorley, Crawford and ChesterQueen's Bench DivisionYes(1884) 13 QBD 872EnglandCited and distinguished regarding the recovery of travel expenses, suggesting the reference to 'travel' may have been a transcription error and should have been 'trouble'.
Lin Jian Wei and another v Lim Eng Hock PeterCourt of AppealYes[2011] 3 SLR 1052SingaporeCited for the analysis of Order 59 rule 27(2) and paragraph 1(2) of Appendix 1 of the Rules of Court, emphasizing the principle of proportionality in assessing costs.
Lock Han Chng Jonathan (Jonathan Luo Hancheng) v Goh JessilineHigh CourtYes[2008] 2 SLR(R) 455SingaporeCited regarding the duty of an advocate and solicitor to evaluate with a client whether the consequence of a matter justifies the expense or the risk involved.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Rules of Court (Cap 322, R 5, 2006 Rev Ed) Order 59 rule 2(2)Singapore
Rules of Court (Cap 322, R 5, 2006 Rev Ed) Order 59 rule 1(1)Singapore
Rules of Court (Cap 322, R 5, 2006 Rev Ed) Order 59 rule 27(2)Singapore
Rules of Court (Cap 322, R 5, 2006 Rev Ed) Order 35 r 1Singapore
Rules of Court (Cap 322, R 5, 2006 Rev Ed) Order 38 r 22Singapore
Legal Profession (Professional Conduct) Rules (Cap 161, R1, 2010 Rev Ed) Rule 40Singapore
Legal Profession (Professional Conduct) Rules (Cap 161, R1, 2010 Rev Ed) Rule 55Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Disbursements
  • Travel Expenses
  • Proportionality
  • Costs
  • Taxation
  • Reasonableness
  • Ethical Responsibilities
  • Risk-Benefit Evaluation

15.2 Keywords

  • disbursements
  • travel expenses
  • proportionality
  • costs
  • legal ethics
  • Singapore
  • personal injury

16. Subjects

  • Civil Litigation
  • Costs and Disbursements
  • Professional Conduct

17. Areas of Law

  • Civil Procedure
  • Costs
  • Personal Injury Law