Law Society of Singapore v Vardan Vasantha Lakshmi: Conflict of Interest in Property Sale
In Law Society of Singapore v Vardan Vasantha Lakshmi, the High Court of Singapore addressed a case where Vardan Vasantha Lakshmi, an advocate and solicitor, was found to have breached the Legal Profession (Professional Conduct) Rules by placing herself in a conflict of interest. Lakshmi acted for both homeowners (Ibrahim bin Hassan and Zaharah binte Ibrahim) and a housing agent (Shaik Raheem) in a property sale transaction. The court found that Lakshmi prioritized Shaik's interests over the homeowners, failing to adequately explain the implications of the documents they signed. The court ordered that the respondent be suspended from practice for two years and that she bear the costs of the proceedings.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Respondent suspended from practice for two years and ordered to bear the costs of the proceedings.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Law Society v Vardan: Advocate breached conduct rules by acting for homeowners and agent in flat sale, creating a conflict of interest.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Law Society of Singapore | Applicant | Statutory Board | Won | Won | Tan Tee Jim, Jiang Ke Yue |
| Vardan Vasantha Lakshmi | Respondent | Individual | Suspension from practice | Lost | C R Rajah, Thangavelu, David Nayar |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Andrew Phang Boon Leong | Justice of the Court of Appeal | Yes |
| Andrew Ang | Judge | No |
| Chan Sek Keong | Chief Justice | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Tan Tee Jim | Lee & Lee |
| Jiang Ke Yue | Lee & Lee |
| C R Rajah | Tan Rajah & Cheah |
| Thangavelu | Rajah Velu & Co |
| David Nayar | David Nayar and Vardan |
4. Facts
- Vasantha Lakshmi Vardan was an advocate and solicitor.
- Vasantha Lakshmi Vardan was introduced to Shaik Raheem by her father.
- Shaik Raheem often recommended Vasantha Lakshmi Vardan’s legal services to his clients.
- Ibrahim and Zaharah sought to sell their flat and purchase another.
- Abu Baker introduced Shaik to Ibrahim and Zaharah.
- Ibrahim and Zaharah obtained loans from Shaik in return for appointing Shaik as their exclusive housing agent.
- Vasantha Lakshmi Vardan prepared documents that protected Shaik’s interests.
5. Formal Citations
- Law Society of Singapore v Vardan Vasantha Lakshmi, OS 660/2006, SUM 2323/2006, [2006] SGHC 185
6. Timeline
| Date | Event |
|---|---|
| Vasantha Lakshmi Vardan called to the Singapore Bar. | |
| Vasantha Lakshmi Vardan introduced to Shaik Raheem. | |
| Ibrahim and Zaharah sought to sell their flat and purchase another. | |
| Ibrahim and Zaharah signed documents at Vasantha Lakshmi Vardan’s office. | |
| Ibrahim and Zaharah signed a Statutory Declaration. | |
| Ibrahim and Zaharah invited to Vasantha Lakshmi Vardan’s office to close the completion account. | |
| Ibrahim made a police report that Shaik had swindled him of money. | |
| Ibrahim and Zaharah lodged a complaint against Vasantha Lakshmi Vardan to the Law Society. | |
| Shaik was convicted on four charges of cheating under s 420 of the Penal Code. | |
| Judgment reserved. |
7. Legal Issues
- Conflict of Interest
- Outcome: The court found that the respondent had placed herself in a situation of conflict of interests by acting for both the homeowners and the housing agent.
- Category: Substantive
- Sub-Issues:
- Failure to advance client's interests
- Acting in the interest of another party
- Breach of Professional Conduct Rules
- Outcome: The court found that the respondent's actions constituted a breach of the Legal Profession (Professional Conduct) Rules.
- Category: Substantive
- Sub-Issues:
- Improper conduct
- Misconduct unbefitting an advocate and solicitor
- Duty to Client
- Outcome: The court held that the respondent failed to adequately explain the documents to the complainants and protect their interests.
- Category: Substantive
- Sub-Issues:
- Failure to adequately explain documents
- Failure to protect client's interests
8. Remedies Sought
- Disciplinary Action
- Suspension from Practice
9. Cause of Actions
- Breach of Legal Profession (Professional Conduct) Rules
- Professional Negligence
10. Practice Areas
- Professional Responsibility
- Conveyancing
11. Industries
- Legal Services
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Law Society of Singapore v Ahmad Khalis bin Abdul Ghani | High Court | Yes | [2006] 4 SLR 308 | Singapore | Cited for the principle that lawyers must convey the precise legal situation with limpid clarity, especially when clients are vulnerable. |
| PP v Shaik Raheem s/o Abdul Shaik Shaikh Dawood | District Court | Yes | [2006] SGDC 86 | Singapore | Cited to show that Shaik was charged and convicted on four charges of cheating under s 420 of the Penal Code (Cap 224, 1985 Rev Ed) in relation to various loans, including that which was extended to the complainants. |
| Law Society of Singapore v Quan Chee Seng Michael | High Court | Yes | [2003] SGHC 140 | Singapore | Cited as an example of a case where an advocate and solicitor was struck off the roll due to dishonesty. |
| Bolton v Law Society | English Court | Yes | [1994] 1 WLR 512 | England | Cited for the principle that any solicitor who is shown to have discharged his professional duties with anything less than complete integrity, probity and trustworthiness must expect severe sanctions to be imposed upon him. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Legal Profession (Professional Conduct) Rules | Singapore |
| Legal Profession Act (Cap 161, 2001 Rev Ed) | Singapore |
| Penal Code (Cap 224, 1985 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Conflict of Interest
- Professional Conduct
- Legal Profession
- Advocate and Solicitor
- Housing Agent
- Statutory Declaration
- Undertaking
- Breach of Duty
15.2 Keywords
- Law Society
- Singapore
- Advocate
- Solicitor
- Conflict of Interest
- Professional Misconduct
- Property Transaction
16. Subjects
- Legal Ethics
- Professional Responsibility
- Real Estate Law
17. Areas of Law
- Legal Profession
- Professional Conduct
- Conflict of Interest