Another Two cases from Singapore

These are my write-ups of another two cases from Singapore, which first appeared on the Asia Pacific Institute of Experts LinkedIn page:


Expert’s fees re-instated on appeal

Background

A fortnight after rejecting a settlement offer of SGD330,000, the Plaintiffs in a legal action terminated the engagement of their lawyers – and then agreed to settle their claim for the amount rejected a fortnight earlier.

Shortly afterwards the lawyers commenced proceedings, asking the Singapore High Court to declare that the relevant engagement letters for appointment were “contentious business agreements” (“CBAs”) – which would compel the Plaintiffs to pay their fees without any assessment of costs.

The fees claimed were SGD399,000, with additional disbursements including expert fees of £12,300 for an expert based in the UK.

The letters of engagement notably included an indicative fee estimate inclusive of a two-day trial of SGD150,000 which stated “If the matter is settled before trial, as happens in many litigious matters, our professional fees will be correspondingly lower.

Original Decision

At first instance the Court held that the engagement letters were not CBAs. It held that a reasonable lawyer would have charged about SGD60,000 up to the trial, and correspondingly, that the claimed fees were excessive.

The Court held the expert’s fee was also excessive given that she did not have to attend Court, and determined that the clients should only pay SGD9,000 – a little less than half of her invoice.

On appeal

In Arbiters Inc Law Corp v Arokiasamy Steven Joseph & Anor [2024] SGHC(A) 37 the Court held that:

  • The engagement letters were CBAs, but that the terms of those letters were so unreasonable that they should be declared void and unenforceable.
  • The claimed legal fees “were plainly excessive” – but it did agree to an uplift of SGD27,000.
  • Noting that the clients had already said that they would pay the expert’s fees in full, it should be “slow to substitute its view for what [the clients] had unequivocally stated they were agreeable to,” and also rejected the view that her fee was “unreasonable” for an expert report of 57 pages.

Further consequences

The Court referral of the solicitor to the Law Society of Singapore “to inquire whether [the solicitor] had acted in the interest of [his clients]…and whether [the solicitor] had attempted to mislead the court,” and it ruled that costs should not follow the event having regard to the law firm’s limited success and the solicitor’s “highly unsatisfactory conduct.”

Comment – For experts, this case highlights the importance of contractual arrangements which ensure that their fees are payable regardless of the outcome of any cost assessment, although it is worth noting that many experts would require payment in advance before undertaking an engagement outside their home jurisdiction.


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