Application of this Part
Open ↗106A. This Part applies —(a)
to all remuneration and costs received by a Singapore law practice or a solicitor practising in a Singapore law practice, including any such remuneration or costs received in respect of the practice of foreign law; and
(b)
with the necessary modifications, to all remuneration and costs received in respect of the practice of Singapore law by —(i)
a Joint Law Venture or its constituent foreign law practice, a Qualifying Foreign Law Practice or a licensed foreign law practice;
(ii)
a foreign lawyer registered under section 36B; or
(iii)
a solicitor registered under section 36E.[40/2014]
Prohibition of certain stipulations
Open ↗107.—(1) A solicitor must not —(a)
purchase or agree to purchase the interest or any part of the interest of his or her client or of any party in any suit, action or other contentious proceeding brought or to be brought or maintained; or
(b)
enter into any agreement by which he or she is retained or employed to prosecute any suit or action or other contentious proceeding which stipulates for or contemplates payment only in the event of success in that suit, action or proceeding.
(2) Nothing in this Act is to be construed to give validity to any purchase or agreement prohibited by subsection (1) or to any disposition, contract, settlement, conveyance, delivery, dealing or transfer which is void or invalid against —(a)
the Official Assignee under the law relating to bankruptcy;
(b)
a liquidator or receiver under the law relating to the winding up of companies or limited liability partnerships; or
(c)
a creditor in any composition.
(3) A solicitor is, despite any provision of this Act, subject to the law of maintenance and champerty like any other person.
(3A) To avoid doubt, this section does not prevent a solicitor from —(a)
introducing or referring a Third‑Party Funder to the solicitor’s client, so long as the solicitor does not receive any direct financial benefit from the introduction or referral;
(b)
advising on or drafting a third‑party funding contract for the solicitor’s client or negotiating the contract on behalf of the client; and
(c)
acting on behalf of the solicitor’s client in any dispute arising out of the third‑party funding contract.[2/2017]
(3AA) This section does not prevent a solicitor from entering into a conditional fee agreement that complies with Part 8A.[Act 8 of 2022 wef 04/05/2022]
(3B) In subsection (3A) —“direct financial benefit” does not include any fee, disbursement or expense payable by the solicitor’s client for the provision of legal services by the solicitor to the client;
“Third‑Party Funder” and “third‑party funding contract” have the meanings given by section 5B of the Civil Law Act 1909.[2/2017]
(4) This section applies, with the necessary modifications, to a law corporation or a limited liability law partnership.
Orders as to remuneration of solicitors, law corporations or limited liability law partnerships for non-contentious business
Open ↗108.—(1) For the purposes of this section, there is to be a committee consisting of the following persons:(a)
the Chief Justice;
(b)
the Attorney-General;
(c)
the president of the Society; and
(d)
2 solicitors nominated by the Council.
(2) The committee or any 4 of the members thereof (the Chief Justice being one) may make general orders prescribing and regulating in such manner as they think fit the remuneration of solicitors or law corporations or limited liability law partnerships in respect of non‑contentious business; and any order made under this section may revoke or alter any previous order so made.
(3) An order made under this section may, as regards the mode of remuneration, prescribe that it is according to a scale of rates of commission or percentage, varying or not in different classes of business, or by a gross sum, or by a fixed sum for each document prepared or perused, without regard to length, or in any other mode, or partly in one mode and partly in another, and may regulate the amount of remuneration with reference to all or any of the following, among other, considerations:(a)
the position of the party for whom the solicitor or law corporation or limited liability law partnership is concerned in the business, that is, whether as vendor or purchaser, lessor or lessee, mortgagor or mortgagee, and the like;
(b)
the place where, and the circumstances in which, the business or any part thereof is transacted;
(c)
the amount of the capital money or rent to which the business relates;
(d)
the skill, labour and responsibility involved therein on the part of the solicitor or law corporation or limited liability law partnership; and
(e)
the number and importance of the documents prepared or perused, without regard to length.
(4) An order made under this section may authorise and regulate —(a)
the taking by a solicitor, law corporation or limited liability law partnership from a client of security for payment of any remuneration, to be ascertained by assessment or otherwise, which may become due to the solicitor, law corporation or limited liability law partnership under any such order; and[Act 25 of 2021 wef 01/04/2022]
(b)
the allowance of interest.
(5) So long as an order made under this section is in operation, assessment of bills of costs of solicitors or law corporations or limited liability law partnerships in respect of non‑contentious business must, subject to section 109, be regulated by that order.[Act 25 of 2021 wef 01/04/2022]
(6) Every order made under this section must be presented to Parliament as soon as possible after publication in the Gazette.[40/2014]
Agreements with respect to remuneration for non-contentious business
Open ↗109.—(1) Whether or not any order is in force under section 108, a solicitor and his or her client may, either before or after or in the course of the transaction of any non‑contentious business by the solicitor, make an agreement as to the remuneration of the solicitor or law corporation or limited liability law partnership in respect thereof.
(2) An agreement under subsection (1) must not provide for costs at a scale lower than that provided by any order made under section 108.
(3) The agreement may provide for the remuneration of the solicitor or law corporation or limited liability law partnership by a gross sum, or by commission or percentage, or by salary, or otherwise, and it may be made on the terms that the amount of the remuneration therein stipulated for either includes or does not include all or any disbursements made by the solicitor or law corporation or limited liability law partnership in respect of searches, plans, travelling, stamps, fees or other matters.
(4) The agreement must be in writing and signed by the person to be bound thereby or the person’s agent in that behalf.
(5) The agreement may be sued and recovered on or set aside in the like manner and on the like grounds as an agreement not relating to the remuneration of a solicitor or law corporation or limited liability law partnership.
(6) If on any assessment of costs the agreement is relied on by the solicitor or law corporation or limited liability law partnership and objected to by the client as unfair or unreasonable, the assessing officer may enquire into the facts and certify them to the court, and if on that certificate it appears just to the court that the agreement should be cancelled, or the amount payable thereunder reduced, the court may order the agreement to be cancelled, or the amount payable thereunder to be reduced, and may give such consequential directions as the court thinks fit.[Act 25 of 2021 wef 01/04/2022]
Remuneration of solicitor who is mortgagee
Open ↗110.—(1) If a mortgage is made to a solicitor, either alone or jointly with any other person, the solicitor or the firm of which he or she is a member, or the law corporation of which he or she is a member, director or employee, or the limited liability law partnership of which he or she is a partner or employee, is entitled to recover from the mortgagor in respect of all business transacted and acts done in negotiating the loan, deducing and investigating the title to the property, and preparing and completing the mortgage, such usual costs as the solicitor, firm, law corporation or limited liability law partnership would have been entitled to receive if the mortgage had been made to a person who was not a solicitor and that person had retained and employed him, her or it to transact that business and do those acts.
(2) If a mortgage has been made to, or has become vested by transfer or transmission in, a solicitor, either alone or jointly with any other person, and any business is transacted or acts are done by that solicitor, or by the firm of which he or she is a member, or by the law corporation of which he or she is a member, director or employee, or by the limited liability law partnership of which he or she is a partner or employee, in relation to that mortgage or the security thereby created or the property comprised thereunder, then the solicitor, firm, law corporation or limited liability law partnership is entitled to recover from the person on whose behalf the business was transacted or the acts were done, and to charge against the security, such usual costs as he, she or it would have been entitled to receive if the mortgage had been made to and had remained vested in a person who was not a solicitor and that person had retained and employed him, her or it to transact that business and do those acts.
(3) In this section, “mortgage” includes any charge on any property for securing money or money’s worth.
Agreement as to costs for contentious business
Open ↗111.—(1) Subject to the provisions of any other written law, a solicitor or law corporation or limited liability law partnership may make an agreement in writing with any client respecting the amount and manner of payment for the whole or any part of his, her or its costs in respect of contentious business done or to be done by the solicitor or law corporation or limited liability law partnership, either by a gross sum or otherwise, and at either the same rate as or a greater or a lesser rate than that at which the solicitor or the law corporation or limited liability law partnership would otherwise be entitled to be remunerated.
(2) Every such agreement must be signed by the client and is subject to the provisions and conditions contained in this Part.
(3) This section does not apply to an agreement which is a conditional fee agreement that complies with Part 8A.[Act 8 of 2022 wef 04/05/2022]
Effect of agreements with respect to contentious business
Open ↗112.—(1) Such an agreement as is mentioned in section 111 does not affect the amount of, or any rights or remedies for the recovery of, any costs recoverable from the client by, or payable to the client by, any other person, and that person may, unless that person has otherwise agreed, require any costs payable or recoverable by that person to or from the client to be assessed according to the rules for the time being in force for the assessment of those costs.[Act 25 of 2021 wef 01/04/2022]
(2) Despite subsection (1), the client is not entitled to recover from any other person, under any order for the payment of any costs which are the subject of the agreement, more than the amount payable by the client to the client’s own solicitor or law corporation or limited liability law partnership under the agreement.
(3) Such an agreement is deemed to exclude any further claim of the solicitor or law corporation or limited liability law partnership beyond the terms of agreement in respect of any services, fees, charges or disbursements in relation to the conduct and completion of the business in reference to which the agreement is made, except such services, fees, charges or disbursements (if any) as are expressly excepted by the agreement.
(4) Subject to the provisions of this Part, the costs of a solicitor or law corporation or limited liability law partnership, in any case where there is such an agreement as is mentioned in section 111, are not subject to assessment nor to the provisions of section 118.[Act 25 of 2021 wef 01/04/2022]
(5) A provision in any such agreement that the solicitor or law corporation or limited liability law partnership —(a)
is not liable for negligence; or
(b)
is relieved from any responsibility to which the solicitor or the law corporation or the limited liability law partnership would otherwise be subject as a solicitor or a law corporation or a limited liability law partnership,
is wholly void.
Enforcement of agreements
Open ↗113.—(1) No action or suit may be brought or instituted upon any such agreement as is mentioned in section 111.
(2) Every question respecting the validity or effect of the agreement may be examined and determined, and the agreement may be enforced or set aside without suit or action on the application by originating application of any person or the representatives of any person, party to the agreement, or being or alleged to be liable to pay, or being or claiming to be entitled to be paid the costs, fees, charges or disbursements in respect of which the agreement is made, by the court in which the business or any part thereof was done or a Judge thereof, or, if the business was not done in any court, then by the General Division of the High Court.[40/2019]
[Act 25 of 2021 wef 01/04/2022]
(3) Upon any such application, if it appears to the court or Judge that the agreement is in all respects fair and reasonable between the parties, it may be enforced by the court or Judge by rule or order, in such manner and subject to such conditions (if any) as to the costs of the application as the court or Judge thinks fit.
(4) If the terms of the agreement are deemed by the court or Judge to be unfair or unreasonable, the agreement may be declared void.
(5) The court or Judge may thereupon order the agreement to be given up to be cancelled, and may direct the costs, fees, charges and disbursements incurred or chargeable in respect of the matters included therein to be assessed, in the same manner and according to the same rules as if the agreement had not been made.[Act 25 of 2021 wef 01/04/2022]
(6) The court or Judge may also make such order as to the costs of and relating to the application and the proceedings thereon as the court or Judge thinks fit.
(7) On the application (within 12 months after the amount agreed under the agreement has been paid by or on behalf of the client or by any person chargeable with or entitled to pay it) of the person who has paid the amount, any court or Judge having jurisdiction to examine and enforce the agreement may, if it appears to the court or Judge that the special circumstances of the case require it —(a)
reopen the agreement;
(b)
order the costs, fees, charges and disbursements to be assessed; and[Act 25 of 2021 wef 01/04/2022]
(c)
order the whole or any portion of the amount received by the solicitor or law corporation or limited liability law partnership to be repaid by the solicitor, law corporation or limited liability law partnership, on such terms and conditions as to the court or Judge seem just.
(8) Where any such agreement is made by the client in the capacity of trustee under a deed or will, or of guardian or donee or deputy (as defined in section 2(1) of the Mental Capacity Act 2008) of a person who lacks capacity, and the estate or the property of the beneficiary or person will be chargeable with the amount payable under the agreement or with any part of that amount, the agreement must before payment be laid before the Registrar, who is to examine it and disallow any part thereof, or may require the direction of the court or a Judge to be taken thereon.[Act 8 of 2022 wef 04/05/2022]
(9) If in any such case the client pays the whole or any part of the amount payable under the agreement without the previous allowance of the Registrar or court or Judge as aforesaid, the client is liable at any time to account to the person whose estate or property is charged with the amount paid, or with any part thereof, for the amount so charged.
(10) The solicitor or law corporation or limited liability law partnership who accepts the payment may be ordered by any court which would have had jurisdiction to enforce the agreement, if it thinks fit, to refund the amount received by him or her or the law corporation or limited liability law partnership.
Death or incapability of solicitor after agreement
Open ↗114.—(1) Where a solicitor has made an agreement with his or her client under section 111 and anything has been done by the solicitor under the agreement, and, before the agreement has been completely performed by him or her, the solicitor dies or becomes incapable to act, an application may be made to the court by any party thereto or by the representatives of that party.
(2) Where a law corporation has made an agreement with its client under section 111 and anything has been done by the law corporation or any of its directors or employees under the agreement, and, before the agreement has been completely performed by the law corporation or any of its directors or employees, the law corporation is wound up, an application may be made to the court by any party thereto or by the representatives of that party.
(2A) Where a limited liability law partnership has made an agreement with its client under section 111 and anything has been done by the limited liability law partnership or any of its partners or employees under the agreement, and, before the agreement has been completely performed by the limited liability law partnership or any of its partners or employees, the limited liability law partnership is wound up, an application may be made to the court by any party thereto or by the representatives of that party.
(3) The court then has the same power to enforce or set aside the agreement, so far as it may have been acted upon, as if the death or incapacity had not happened.
(4) The court may, even if it thinks the agreement to be in all respects fair and reasonable, order the amount due in respect of the business done thereunder to be ascertained by assessment.[Act 25 of 2021 wef 01/04/2022]
(5) The Registrar in ascertaining that amount must have regard, so far as may be, to the terms of the agreement.
(6) Payment of the amount found to be due may be enforced in the same manner as if the agreement had been completely performed by the solicitor.
Change of solicitor after agreement
Open ↗115.—(1) If, after an agreement under section 111 has been made, the client changes the client’s solicitor before the conclusion of the business to which the agreement relates (which the client may do despite the agreement) the solicitor who is a party to the agreement is deemed to have become incapable to act under it within the meaning of section 114.
(2) Upon any order being made for assessment of the amount due to that solicitor in respect of business done under the agreement, the court is to direct the Registrar to have regard to the circumstances under which the change of solicitor has taken place.[Act 25 of 2021 wef 01/04/2022]
(3) Upon such assessment, the solicitor is not to be deemed to be entitled to the full amount of the remuneration agreed to be paid to him or her unless it appears that there has been no default, negligence, improper delay or other conduct on his or her part affording reasonable ground to the client for the client’s change of solicitor.[Act 25 of 2021 wef 01/04/2022]
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
