Law Society of Singapore v Tan Chwee Wan Allan: Breach of Legal Profession Rules and Supervision of Staff

In Law Society of Singapore v Tan Chwee Wan Allan, the High Court of Singapore addressed an application by the Law Society for Mr. Allan Tan Chwee Wan to show cause for breaches of the Legal Profession (Solicitors’ Accounts) Rules. The breaches involved the erroneous deposit of a client's money into the office account and subsequent improper withdrawal of other clients' money from the client account. The court found that Mr. Tan had been lax in supervising his staff and maintaining the accounts, leading to the breaches. Ultimately, the court censured Mr. Tan for his mistakes.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

The Law Society’s application was granted, and the respondent was censured for breaches of the Legal Profession (Solicitors’ Accounts) Rules.

1.3 Case Type

Regulatory

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Allan Tan Chwee Wan faced disciplinary action for breaches of Legal Profession Rules due to inadequate supervision of staff, resulting in improper handling of client funds.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Law Society of SingaporeApplicantStatutory BoardApplication GrantedWon
Tan Chwee Wan AllanRespondentIndividualCensureLost

3. Judges

Judge NameTitleDelivered Judgment
Chan Sek KeongChief JusticeNo
Andrew Phang Boon LeongJustice of the Court of AppealNo
V K RajahJustice of the Court of AppealYes

4. Counsels

Counsel NameOrganization
Pavan Kumar RattyP K Ratty & Partners
Chandra Mohan K NairTan Rajah & Cheah

4. Facts

  1. The respondent was a director at JHT Law Corporation.
  2. A secretary erroneously deposited client's money into the office account instead of the client account.
  3. The respondent caused a withdrawal from the Client Account of clients’ moneys belonging to other clients.
  4. The bookkeeper discovered the error and instructed the secretary to deposit the client’s moneys into the Client Account.
  5. The rectification cheque was not presented for payment.
  6. The directors queried the respondent about the wrongful deposit and withdrawal of clients’ moneys.
  7. The respondent refunded the sum of $33,190 to the Client Account the next day.

5. Formal Citations

  1. Law Society of Singapore v Tan Chwee Wan Allan, OS 630/2007, [2007] SGHC 156

6. Timeline

DateEvent
Respondent was called to the Singapore Bar
Respondent joined JHT Law Corporation as a director
Respondent received a cheque for $33,190 from client
Respondent caused $30,920 to be drawn from the Client Account
Mr Teo discovered the error in the accounts
Reversal book entry made to transfer $33,190 from the Office Account to the Client Account
Directors' meeting where the respondent was queried about the wrongful deposit and withdrawal of clients’ moneys
Respondent refunded $33,190 to the Client Account
Firm sent a letter to the Law Society informing them of the respondent’s breaches of the SA Rules
Respondent voluntarily ceased practice
Decision Date

7. Legal Issues

  1. Breach of Legal Profession (Solicitors’ Accounts) Rules
    • Outcome: The court found that the respondent had breached the Legal Profession (Solicitors’ Accounts) Rules.
    • Category: Substantive
    • Sub-Issues:
      • Wrongful deposit of client's money into office account
      • Improper withdrawal of clients’ moneys from client account
  2. Failure to Properly Supervise Employees and Staff
    • Outcome: The court found that the respondent had been lax, careless and cavalier about staff supervision.
    • Category: Substantive
    • Sub-Issues:
      • Delegation of files and administrative matters without adequate supervision

8. Remedies Sought

  1. Order to show cause
  2. Disciplinary action

9. Cause of Actions

  • Breach of Legal Profession (Solicitors’ Accounts) Rules
  • Failure to Supervise Employees

10. Practice Areas

  • Disciplinary Proceedings
  • Professional Conduct
  • Solicitors' Accounts

11. Industries

  • Legal Services

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Law Society of Singapore v Prem SinghHigh CourtYes[1999] 4 SLR 157SingaporeCited as a precedent for disciplinary action against a solicitor who failed to deposit client's moneys into a client account and failed to keep proper written accounts.
Law Society of Singapore v Chiong Chin May SelenaHigh CourtYes[2005] 4 SLR 320SingaporeCited as a case where a solicitor suffering from manic-depressive psychosis was suspended for failing to prepare and maintain financial records, but there was no dishonesty or loss to clients.
Law Society of Singapore v Tan Sok LingHigh CourtYes[2007] 2 SLR 945SingaporeCited as a case where a solicitor was suspended for breaches of the Solicitors’ Accounts Rules due to incompetence and gross inefficiency, but there was no evidence of dishonesty.
Law Society of Singapore v Tay Eng Kwee EdwinHigh CourtYes[2007] SGHC 114SingaporeCited as a case where a solicitor was struck off the roll for failing to maintain books of accounts and concealing transgressions, with the court distinguishing it from Selena Chiong and Tan Sok Ling.
Law Society of New South Wales v ForemanCourt of Appeal of the Supreme Court of New South WalesYes(1991) 24 NSWLR 238New South WalesCited for the principle that a failure by a solicitor to supervise the activities of an unqualified clerk in his employ can constitute professional misconduct.
Legal Services Commissioner v Michael Vincent BakerLegal Practice TribunalYes[2005] LPT 002QueenslandCited for the principle that a practitioner should properly supervise all legal professional work carried out on their behalf.

13. Applicable Rules

Rule Name
Legal Profession (Solicitors’ Accounts) Rules r 3(1)
Legal Profession (Solicitors’ Accounts) Rules r 7(1)(a)
Legal Profession (Professional Conduct) Rules r 8

14. Applicable Statutes

Statute NameJurisdiction
Legal Profession Act (Cap 161, 2001 Rev Ed)Singapore
Legal Profession (Solicitors’ Accounts) Rules (Cap 161, R 8, 1999 Rev Ed)Singapore
Legal Profession (Professional Conduct) Rules (Cap 161, R 1, 2000 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Solicitors’ Accounts Rules
  • Client account
  • Office account
  • Supervision of employees
  • Breach of professional conduct
  • Disciplinary action
  • Censure
  • Legal Profession Act
  • Client’s moneys
  • Rectification cheque

15.2 Keywords

  • Legal Profession
  • Solicitors’ Accounts Rules
  • Supervision
  • Disciplinary Action
  • Singapore

17. Areas of Law

Area NameRelevance Score
Solicitors' Accounts Rules95
Legal Ethics and Professional Responsibility90
Legal Profession Act90
Professional Conduct Rules85
Professional Ethics80
Duties of Legal Profession70
Supervision of employees and staff60
Fiduciary Duties50
Company Law30
Administrative Law20

16. Subjects

  • Legal Ethics
  • Professional Misconduct
  • Lawyer Discipline