[2013] SGHC 135 - Singapore Law Watch

Law Society of Singapore v Kurubalan s/o Manickam Rengaraju [2013] SGHC 135
impecunious client in the knowledge that he would likely only be able to
recover his appropriate fees or disbursements if the client were successful in
the claim and could pay him out of those proceeds or if there was a costs order
obtained against the other side.
83 In our view such an arrangement would not be caught by s 107 of the
Act or r 37 of the Professional Conduct Rules because it would not amount to
acquiring an interest in the fruits of litigation. In such a case, in truth, the
Advocate and Solicitor is putting aside his usual desire to be assured that he
will be paid his fees in the interests of ensuring that the client is not denied the
opportunity to seek justice. An Advocate and Solicitor’s entitlement to
payment arises on the presentation of his bill, whether or not the claim is
successful. But there can be no wrong in an Advocate and Solicitor taking on a
matter even if, as a practical matter, he knows that the client is unlikely to be
able to afford to pay his bill unless the claim is successful or a costs order is
obtained.
84 In our view there is good law that arrangements of this type are not
champertous. In Ladd v London Road Car Co (1900) 110 L. T. 80 (“Ladd”)
Lord Russell of Killowen said:
In reference to the subject of speculative actions generally, I
think it right to say, on the part of the Profession and the
class of persons who were litigants in such cases, that it was
perfectly consistent with the highest honour to take up a
speculative action in this sense – viz., that if a solicitor heard
of an injury to a client and honestly took pains to inform
himself whether there was a bona fide cause of action, it was
consistent with the honour of the profession that the solicitor
should take up the action. It would be an evil thing if there
were no solicitors to take up such cases, because there was in
this country no machinery by which the wrongs of the
humbler classes could be vindicated. Law was an expensive
luxury, and justice would very often not be done if there were
no professional men to take up their cases and take the
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