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On phone with lawyer? That will go into billSource: Straits TimesArticle Date: 08 Sep 2019 Author: Calvin Yang

Fees for top lawyers among highest in the world but Law Society says gross overcharging is rare.

Lawyers disciplined for gross overcharging are uncommon, says the Law Society, with the number of

such complaints numbering just two a year on average.

This is even though the hourly rates of exceptional lawyers in Singapore are among the highest in the

world, according to a recent study.

For instance, an hour with a senior counsel can start at $1,000.

Runaway legal fees, note observers, will undermine the legal profession.

Said Singapore Management University law don Eugene Tan: "The real concern is with indigent clients

who are price-takers, rather than price-makers, and that could result in their being priced out in their

quest for justice. This lack of access to justice will undercut the rule of law." He added that there is

"obviously room for improvement where legal fees are concerned".

But practising lawyers defend the way legal fees are calculated in Singapore, saying that various factors

add to the he�y bill. These include the seniority of the lawyer and the complexity of the matter. The fees

can also reflect the risk to a law firm's reputation if it takes up a controversial case.

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The issue became a talking point a�er a disciplinary tribunal earlier this year dismissed a complaint of

alleged overcharging against Senior Counsel Alvin Yeo, which he had denied.

It involved a bill of $7.56 million for work done over a period of 41/2 years from November 2010, and a

subsequent discounted sum. Mr Yeo had represented an unnamed widow, who is in her 80s, to challenge

an application by her two sisters to become her deputies.

In June, the Attorney-General and the Law Society separately applied for the High Court to review the

tribunal's decision.

NO FEE GUIDELINES, BUT A "MARKET RATE"

The Law Society receives about 100 complaints annually. On average, 2 per cent of these are over gross

overcharging.

It takes disciplinary action when there is "gross overcharge", in which the amount billed is flagrantly

disproportionate to the work done. The society did not say how many of such cases there have been.

"By and large, Singapore lawyers have a good reputation for providing value for money," it told The

Sunday Times. "It is rare for our members to be found to be overcharging, because - in the long run -

lawyers want to build lasting relationships with their clients."

There are currently no recommended guidelines for legal fees. This is in line with competition law.

That said, some lawyers argued that there is a "market rate of sorts" widely quoted by most lawyers or

law firms for a particular kind of work. Junior lawyers would sometimes go below that rate to get cases,

while senior counsels with "branding" would quote at least three times the market rate.

Mr Abraham Vergis from Providence Law Asia said lawyers usually give pre-estimates, so a diligent client

who looks around "will get a sense of the price range and will be able to call out the outliers".

"As Singapore's litigation market is highly competitive and quite transparent, litigation outfits of similar

stature tend to charge rates that are generally comparable," he added. "In that sense, there is a measure

of self-regulation in a free market and price discovery is quite straightforward."

On how fees are calculated, a veteran lawyer here said some lawyers work backwards, deciding that

given their seniority, "they should make say, $20,000 a month". They then add overheads like rent and

sta� salaries. "They then divide that by the working hours in a month and reach a certain hourly rate.

Hence when they negotiate the fees, they will have this hourly rate at the back of their mind as a guide."

There have been attempts to introduce more fee predictability.

A proposal by the Civil Justice Commission, appointed by Chief Justice Sundaresh Menon, to introduce

scale costs - or fixed legal fees - in civil suits was withdrawn late last year.

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In a letter to The Straits Times then, Law Society president Gregory Vijayendran said that scale fees were

"neither in the interest of the public nor the profession".

"For instance, the scale fees model, if it did happen, would entail a client paying his or her lawyer the full

amount of scale fees even if the litigation dispute settles early," he added.

The Ministry of Law has said it may revisit the proposal in a few years, a�er other civil justice reform

proposals are implemented.

Currently, lawyers charge a fixed fee - regardless of the time put in - only for fairly predictable work to be

done. Ms Gloria James-Civetta, head lawyer at Gloria James-Civetta & Co, said: "This manner of charging

clients is usually for matters which are not contentious, such as uncontested divorces and dra�ing of

simple wills."

However, for other cases, most lawyers charge by the hour.

This would include the time spent on research, court hearings, meetings, dra�ing documents, and

exchange of correspondences such as phone calls, said Mr Loh Kia Meng, senior partner and chief

operating o�icer at Dentons Rodyk.

Partners in big law firms and mid-sized ones can charge an hourly rate of more than $700 per hour, while

their junior lawyers can charge at least $300 per hour, according to legal information platform

SingaporeLegalAdvice.com. Smaller law outfits usually have lower hourly rates.

Legal market research firm Acritas told The Sunday Times the hourly rates of the best legal minds here

are among the highest in the world.

Acritas said in both Singapore and Hong Kong, clients are, on average, paying in excess of US$750

(S$1,035) per hour, for top lawyers.

In comparison, the average rate paid for a standout lawyer in the United States is around US$700 an hour,

and in the United Kingdom, US$650 per hour.

Mr David Johnson, account director at Acritas, said its data looks at the average hourly rates that clients

"pay for the lawyers who they identify as standing out for exceptional service... So while it may not be

reflective of the overall market, it gives us a sense of what firms are paying for individuals they consider

to be standout performers".

However, lawyers said bills here may still end up being less than in some countries.

Ms James-Civetta said in places like Britain, clients may have to pay at least two sets of costs - for the

barrister, who mainly works in court, and for the solicitor, who largely works outside court.

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Lawyers here also o�er an estimated fee range before taking on a case. Mr Joel Loh of law firm Chiu

Cheong LLC, said this allows their clients to weigh their options.

Under the Legal Profession (Professional Conduct) Rules, lawyers are obliged to inform their clients the

basis on which fees will be charged and ensure actual amounts do not vary substantially from the

estimates given, among other things.

While some observers suggest having lawyers list their fee guidelines online for greater transparency,

others are wary of doing so, arguing that no two cases are alike.

Veteran lawyer Amolat Singh said a case may appear straightforward but with the opposing side's

responses, it may turn into a long-drawn one. "In this regard, a fee guideline may produce more

unhappiness than clarity. The client may feel that he was induced to engage a particular lawyer because

of the guideline but there was a cost overrun in the end," he said.

Like some lawyers interviewed, he believes it is best le� to the lawyer and client to work out the fees

together and "for clarity, the lawyer should put the estimate in writing".

RESOLVING FEE DISPUTES

When fee disputes arise, a client can request an itemised bill with a breakdown of the charges.

The parties can also seek possible recourse such as mediation or taxation, where the courts decide if the

bill of costs should be allowed in full or taxed down.

Lawyer Lim Chong Boon of PKWA Law Practice, said: "Your lawyer can also ask the court to tax the bill to

ask for a higher amount."

The Singapore judiciary's annual report showed that there were 106 taxation cases handled by the State

Courts last year. Such cases are also heard at the Supreme Court, which said that 240 bills of costs were

filed last year.

But even if a bill has been significantly taxed down, "it does not necessarily mean the lawyer is guilty of

overcharging that is punishable under our legal professional rules", said Mr Suang Wijaya from law firm

Eugene Thuraisingam LLP.

"There have been cases where costs were taxed down to half or even less, and such costs were still found

not to be overcharging amounting to misconduct," he said.

Those found guilty could be suspended or struck o� the rolls.

Meanwhile, lawyers here said they have had their fair share of unpleasant clients who object to their final

bills in order to gain benefits.

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Veteran family lawyer Rajan Chettiar cited one case where a client disputed his bills "for personal and

emotional reasons".

"We went for mediation and we settled it with me accepting a sum much lower than the original sum," he

said. "I did it for the sake of closure and not to spend more time to recover payment."

Criminal lawyer Josephus Tan, managing director of Invictus Law Corporation, said: "It is always a good

habit (for clients) to regularly check with their lawyers not only on the status of their matters but also on

the status of their bills".

RELATIONSHIPS COUNT

By and large, Singapore lawyers have a good reputation for providing value for money. It is rare for our

members to be found to be overcharging, because - in the long run - lawyers want to build lasting

relationships with their clients.

THE LAW SOCIETY, which said it receives about 100 complaints a year, of which only 2 per cent are over

gross overcharging.

ST ILLUSTRATION : CEL GULAPA

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