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NRMA may contest Whitlam decision

NSW roads and motoring organisation NRMA has been ordered to assist former President Nick Whitlam by paying his legal costs from his defamation action against the Nine Network.

NSW Supreme Court Justice Patricia Bergin found NRMA is obliged to indemnify Mr Whitlam even though indemnity is usually for directors sued in the course of their duties.

However, NRMA said on Friday that it’s considering appealing against the court ruling.

Mr Whitlam incurred $207,000 in legal costs in his action against Channel Nine in relation to an interview with him on its Sunday program in 2001.

He resigned as President of NRMA in July 2002 and quit as a director in September the same year.

In August 2002 Mr Whitlam was barred from being a director of a company for five years and fined $20,000 after a NSW Supreme Court judge found he had contravened the Corporations Act.