Appellate court slashes lawyer’s bill, estate to pay ‘reasonable’ RM350,000

The Court of Appeal rules that the original legal fees of RM735,166.72 approved by the High Court are excessive.

The Court of Appeal overturned a High Court decision to approve the full amount of a solicitor’s bill for work carried out for a businessman and his estate over a seven-year period.

PUTRAJAYA:

 The Court of Appeal today allowed a businessman’s estate to pay RM350,000 in legal fees to a Penang-based solicitor for work carried out between 2014 and 2020 instead of the original RM735,166.72 bill.

A three-member bench chaired by Justice Azhahari Kamal Ramli ruled that the original bill approved by the High Court was excessive.

“We are reducing it and allowing a global sum of RM350,000, which is reasonable,” said Azhahari, who also ordered the parties to bear their own costs.

The judge pointed out that under Section 114 of the Legal Profession Act (LPA) 1976, there must be a written agreement between the client and the solicitors.

“However, the court can still look at the nature of work done by a solicitor pursuant to Section 117 of the Act and award a reasonable sum,” he said.

Justices Shahnaz Sulaiman and Evrol Mariette Peters were the other two judges hearing the appeal.

In this case, solicitor Lim Seang Lee of Lim Seang Lee & Associates handled legal work for the late Saw Woei Chin during his lifetime, as well as for his estate, over a seven-year period.

The deceased’s son, Saw Chin Huat, was later appointed as the administrator of the estate.

The solicitor had submitted a bill for RM735,166.72, which the executor disputed, citing the lack of a cost breakdown and claiming the amount was exorbitant.

A taxation of the bill was filed in the High Court in 2022, and a senior registrar awarded only RM116,600.

Lim then filed an appeal, and a High Court judge increased the award to RM735,166.72, with 5% interest accruing from April 7, 2023, until the judgment sum is fully paid.

The judge also ordered another payment of RM44,100 in sales and service tax and costs of RM5,000.

The executor then filed an appeal with the Court of Appeal.

Lawyers V Amareson, CP Yeap and Wendy How appeared for the executor, while Charles Surendra Rajah represented Lim. - FMT