Part of a comprehensive analysis of the Legal Profession Act 1966
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- PART 3
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- PART 6
- PART 7
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- Part 5
- PART 8 (this article)
- PART 8
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- Part 1
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Key Provisions Governing Solicitors’ Remuneration and Their Purpose
The Legal Profession Act 1966 (the “Act”) sets out a comprehensive framework regulating the remuneration and costs received by solicitors and law practices in Singapore. This framework is primarily contained in Part IXA of the Act, which addresses both contentious and non-contentious business, prohibits unethical agreements, and establishes mechanisms for enforcement and assessment of costs. The key provisions and their purposes are as follows.
"This Part applies — (a) to all remuneration and costs received by a Singapore law practice or a solicitor practising in a Singapore law practice...; 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." — Section 106A, Legal Profession Act 1966
Section 106A establishes the scope of Part IXA, ensuring that all remuneration and costs received by Singapore law practices, solicitors, and certain foreign law practices are regulated under this Part. This provision exists to create a uniform regulatory regime applicable to all legal practitioners engaged in Singapore law, thereby maintaining consistent professional standards.
"A solicitor must not — (a) purchase or agree to purchase the interest or any part of the interest of his or her client...; or (b) enter into any agreement... which stipulates for or contemplates payment only in the event of success..." — Section 107(1), Legal Profession Act 1966
Section 107 prohibits solicitors from purchasing client interests or entering into contingency fee agreements (payment only on success), subject to specified exceptions. This provision safeguards clients from potential conflicts of interest and exploitation, preserving the solicitor’s duty of loyalty and professional integrity.
"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." — Section 108(1), Legal Profession Act 1966
Verify Section 108 in source document →
Section 108 mandates the establishment of a committee to regulate remuneration for non-contentious business. The composition of this committee ensures representation from the judiciary, the Attorney-General’s Chambers, the Law Society, and practising solicitors. This committee’s role is to make orders that standardise and regulate fees, promoting transparency and fairness in non-contentious legal services.
"Whether or not any order is in force under section 108, a solicitor and his or her client may... make an agreement as to the remuneration..." — Section 109(1), Legal Profession Act 1966
Verify Section 109 in source document →
Section 109 permits solicitors and clients to agree on remuneration for non-contentious business, regardless of whether the committee has issued an order. This provision recognises the autonomy of parties to negotiate fees while still subjecting such agreements to the regulatory framework, balancing flexibility with oversight.
"If a mortgage is made to a solicitor... the solicitor... is entitled to recover... such usual costs as the solicitor... would have been entitled to receive if the mortgage had been made to a person who was not a solicitor..." — Section 110(1), Legal Profession Act 1966
Verify Section 110 in source document →
Section 110 clarifies the remuneration rights of solicitors who act as mortgagees, ensuring they are entitled to usual costs as if the mortgage were granted to a non-solicitor. This provision exists to prevent any disadvantage or conflict arising from a solicitor’s dual role as mortgagee and legal adviser.
"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... contentious business..." — Section 111(1), Legal Profession Act 1966
Verify Section 111 in source document →
Section 111 allows solicitors to enter into written agreements with clients regarding fees for contentious business. This provision facilitates clarity and certainty in fee arrangements for litigation or dispute resolution services.
"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... any other person..." — Section 112(1), Legal Profession Act 1966
Verify Section 112 in source document →
Section 112 ensures that agreements on contentious business fees do not prejudice other parties’ rights to recover costs from the client. This preserves the client’s obligations to other legal representatives or third parties, maintaining fairness in cost recovery.
"No action or suit may be brought or instituted upon any such agreement as is mentioned in section 111." — Section 113(1), Legal Profession Act 1966
Verify Section 113 in source document →
Section 113 prohibits legal action to enforce contentious business fee agreements directly, instead providing for court assessment and enforcement mechanisms. This provision protects clients from potentially unfair or unreasonable fee agreements by subjecting them to judicial scrutiny.
"Where a solicitor has made an agreement... and... before the agreement has been completely performed... the solicitor dies or becomes incapable to act, an application may be made to the court..." — Section 114(1), Legal Profession Act 1966
Verify Section 114 in source document →
Section 114 provides for court intervention where a solicitor dies or becomes incapable after entering into a fee agreement but before completion of the work. This ensures that remuneration matters are resolved fairly and that clients are not left in uncertainty.
"If, after an agreement under section 111 has been made, the client changes the client’s solicitor before the conclusion of the business... the solicitor who is a party to the agreement is deemed to have become incapable to act under it..." — Section 115(1), Legal Profession Act 1966
Verify Section 115 in source document →
Section 115 addresses situations where a client changes solicitors after a fee agreement is made, deeming the original solicitor incapable to act under the agreement. This provision protects clients’ rights to change representation without being bound by prior fee arrangements unfairly.
Definitions in Part IXA and Their Significance
Precise definitions are critical for the effective application of the remuneration provisions. Part IXA defines key terms to avoid ambiguity and ensure clarity in interpretation.
"In subsection (3B) — '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." — Section 107(3B), Legal Profession Act 1966
The definition of “direct financial benefit” excludes fees and expenses payable by clients for legal services, clarifying that such payments are not considered improper financial benefits under the Act. The terms “Third-Party Funder” and “third-party funding contract” are cross-referenced to section 5B of the Civil Law Act 1909, linking the regulation of third-party funding in litigation to the broader legal framework. This ensures consistency and clarity in the treatment of third-party funding arrangements.
"In this section, 'mortgage' includes any charge on any property for securing money or money’s worth." — Section 110(3), Legal Profession Act 1966
Verify Section 110 in source document →
The broad definition of “mortgage” to include any charge on property secures money or money’s worth, ensuring that the provisions relating to solicitors acting as mortgagees apply comprehensively. This prevents loopholes that could arise from narrow interpretations.
Penalties and Enforcement Mechanisms for Non-Compliance
While Part IXA does not prescribe explicit penalties such as fines or imprisonment for non-compliance with remuneration provisions, it establishes robust enforcement and remedial mechanisms to protect clients and uphold professional standards.
"No action or suit may be brought or instituted upon any such agreement as is mentioned in section 111." — Section 113(1), Legal Profession Act 1966
Verify Section 113 in source document →
This provision bars direct legal action to enforce contentious business fee agreements, preventing unscrupulous enforcement of potentially unfair contracts.
"If the terms of the agreement are deemed by the court or Judge to be unfair or unreasonable, the agreement may be declared void." — Section 113(4), Legal Profession Act 1966
Verify Section 113 in source document →
The court has the power to declare fee agreements void if they are unfair or unreasonable, providing a judicial safeguard against exploitation.
"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..." — Section 113(5), Legal Profession Act 1966
Verify Section 113 in source document →
The court may order cancellation of the agreement and assess costs, ensuring that remuneration is fair and transparent.
"The solicitor or law corporation or limited liability law partnership who accepts the payment may be ordered by any court... to refund the amount received..." — Section 113(10), Legal Profession Act 1966
Verify Section 113 in source document →
Courts may order refunds of payments received under unfair agreements, protecting clients from financial loss and reinforcing solicitor accountability.
Cross-References to Other Legislation
Part IXA incorporates definitions and references to other statutes to ensure coherence within Singapore’s legal framework.
"'Third‑Party Funder' and 'third‑party funding contract' have the meanings given by section 5B of the Civil Law Act 1909." — Section 107(3B), Legal Profession Act 1966
Verify Section 107 in source document →
This cross-reference aligns the regulation of third-party funding in legal practice with the Civil Law Act 1909, integrating funding arrangements into the broader civil litigation context.
"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." — Section 107(2), Legal Profession Act 1966
Verify Section 107 in source document →
This provision ensures that prohibited agreements or transactions do not override the rights of insolvency officers or creditors under bankruptcy and winding-up laws, preserving the integrity of insolvency processes.
"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)..." — Section 113(8), Legal Profession Act 1966
Verify Section 113 in source document →
This reference to the Mental Capacity Act 2008 clarifies the application of remuneration provisions where clients act in fiduciary or protective capacities, ensuring appropriate safeguards for vulnerable clients.
Conclusion
The Legal Profession Act 1966, through Part IXA, establishes a detailed and principled regime governing solicitors’ remuneration and costs. Its provisions serve to protect clients from unethical practices, promote transparency and fairness in fee arrangements, and provide mechanisms for judicial oversight and enforcement. By incorporating precise definitions and cross-referencing other relevant legislation, the Act ensures a coherent and comprehensive regulatory framework that upholds the integrity of the legal profession in Singapore.
Sections Covered in This Analysis
- Section 106A
- Section 107
- Section 108
- Section 109
- Section 110
- Section 111
- Section 112
- Section 113
- Section 114
- Section 115
Source Documents
For the authoritative text, consult SSO.