Law Society of Singapore v Lee Cheong Hoh: Disciplinary Action for Fee Sharing with Unqualified Person

In The Law Society of Singapore v Lee Cheong Hoh, the High Court of Singapore addressed an application by the Law Society to make absolute an order requiring Lee Cheong Hoh to show cause for disciplinary action under the Legal Profession Act. The misconduct involved Lee sharing professional fees with an unqualified person. The court ordered a three-year suspension from practice, finding that Lee's payments to an employee constituted a commission or gratification for procuring business, violating the Act.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Order absolute and determined that he should be punished with a penalty of suspension from practice for three years.

1.3 Case Type

Regulatory

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Solicitor Lee Cheong Hoh faced disciplinary action for sharing fees with an unqualified person, violating the Legal Profession Act. The court imposed a three-year suspension.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
The Law Society of SingaporeApplicantStatutory BoardWonWon
Lee Cheong HohRespondentIndividualSuspension from practice for three yearsLost

3. Judges

Judge NameTitleDelivered Judgment
Chao Hick TinJustice of the Court of AppealYes
L P TheanJustice of the Court of AppealNo
Yong Pung HowChief JusticeNo

4. Counsels

4. Facts

  1. Lee Cheong Hoh, a solicitor, engaged Raymond Mark, previously a clerk, to join his firm.
  2. Mark's employment terms included a 10% payment of fees collected on third-party claims.
  3. Mark brought approximately 50 clients and 200 pending files from his previous employer.
  4. The firm's billings on third-party claims significantly increased after Mark joined.
  5. Mark was paid more than other professional staff in the firm.
  6. Upon Mark's departure, the firm lost about 50% of its workshop clients and files.
  7. Mark was later convicted of corruption, forgery, and cheating.

5. Formal Citations

  1. The Law Society of Singapore v Lee Cheong Hoh, OS 1621/2000, [2001] SGHC 23

6. Timeline

DateEvent
Lee Cheong Hoh went into private practice.
Lee Cheong Hoh met Raymond Mark.
Raymond Mark joined Cheong Hoh & Associates.
Mark made his first claim for the 10% payment.
Mark gave notice of resignation.
Mark made a complaint to the Law Society.
Case filed: OS 1621/2000
Decision Date

7. Legal Issues

  1. Sharing of professional fees with unqualified person
    • Outcome: The court found that the solicitor's payments to an employee constituted a commission or gratification for procuring business, violating the Legal Profession Act.
    • Category: Substantive
    • Sub-Issues:
      • Payment constituting gratification or commission
      • Procuring employment of legal business

8. Remedies Sought

  1. Disciplinary action against the solicitor
  2. Suspension from practice

9. Cause of Actions

  • Breach of Legal Profession Act

10. Practice Areas

  • Professional Conduct
  • Disciplinary Proceedings

11. Industries

  • Legal Services

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Law Society of Singapore v Ravindra SamuelHigh CourtYes[1999] 1 SLR 696SingaporeCited for the objectives of imposing penalties against errant advocates and solicitors.
Re an Advocate & SolicitorCourt of Three JudgesYes[1978-1979] SLR 240SingaporeCited to highlight the seriousness of a charge under section 83(2)(e) of the Legal Profession Act.
Re an Advocate & SolicitorCourt of Three JudgesYes[1978] 2 MLJ 7SingaporeCited to highlight the seriousness of a charge under section 83(2)(e) of the Legal Profession Act.
Law Society of Singapore v Lau See-Jin JeffreyHigh CourtYes[1999] 2 SLR 215SingaporeCited as a case dealing with similar misconduct of paying a commission for procuring legal work, and to determine the appropriate penalty.
Galloway v Corporation of LondonCourt of EquityYes[1867] LR 4 Eq 90EnglandCited by the defense to argue that an agreement to remunerate staff based on the amount of work done does not contravene the Legal Profession Act, but distinguished by the court.
Harper v EyjolfssonKing's Bench DivisionYes[1914] 2 KB 411EnglandCited by the defense to argue that an agreement to remunerate staff based on the amount of work done does not contravene the Legal Profession Act, but distinguished by the court.
Lake v Bartlett & GlucksteinHigh CourtYes[1921] 37 TLR 316EnglandCited by the defense to argue that an agreement to remunerate staff based on the amount of work done does not contravene the Legal Profession Act, but distinguished by the court.

13. Applicable Rules

Rule Name
Rule 39 of the Legal Profession (Professional Conduct) Rules

14. Applicable Statutes

Statute NameJurisdiction
Legal Profession Act (Cap 161, 1997 Ed)Singapore
s 83(2)(d) Legal Profession Act (Cap 161, 1997 Ed)Singapore
s 83(2)(e) Legal Profession Act (Cap 161, 1997 Ed)Singapore
s 98 of the Legal Profession Act (Cap 161, 1997 Ed)Singapore
s 83(1)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Professional fees
  • Gratification
  • Commission
  • Unqualified person
  • Touting
  • Disciplinary action
  • Show cause
  • Legal Profession Act

15.2 Keywords

  • Legal Profession
  • Fee Sharing
  • Disciplinary Action
  • Solicitor
  • Singapore

17. Areas of Law

16. Subjects

  • Legal Ethics
  • Professional Misconduct