Riaz LLC v Sharil bin Abbas: Mental Capacity Act & Solicitor's Costs Dispute
In Riaz LLC v Sharil bin Abbas, the High Court of Singapore addressed a dispute over solicitor-client costs. The court, presided over by AR Sngeeta Devi, denied Riaz LLC's claim for costs, finding that the contract between the solicitor and client, Sharil bin Abbas, was voidable due to Sharil's lack of mental capacity at the time of the agreement. The court determined that the solicitor was aware of Sharil's condition, making the contract unenforceable. The decision was made during taxation proceedings for Bill of Costs No 193 of 2012.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Costs not allowed to the applicant.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Solicitor's claim for costs denied due to client's lack of mental capacity when contract was formed. Contract deemed voidable under Mental Capacity Act.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Riaz LLC | Applicant | Corporation | Costs Not Allowed | Lost | Ezekiel Peter Latimer |
| Sharil bin Abbas (through his deputy and litigation representative, Salbeah bte Paye) | Respondent | Individual | Costs Claim Dismissed | Won | Raj Singh Shergill |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Sngeeta Devi | Assistant Registrar | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Ezekiel Peter Latimer | Peter Ezekiel & Co |
| Raj Singh Shergill | Lee Shergill LLP |
4. Facts
- Sharil suffered severe brain injury in a traffic accident on 11 December 2007.
- Messrs Riaz LLC filed Suit 539 on 22 June 2009 on behalf of Sharil.
- Sharil's mother was appointed as his Deputy on 11 November 2010.
- Dr. Ho opined that Sharil's cognitive deficits meant he could not handle his own affairs.
- Mr. Riaz was informed that Sharil was making a good recovery from his serious head injury.
- Mr. Riaz stated Sharil was emotional and prone to outbursts of emotion.
- Mr. Riaz obtained instructions to act from Sharil and his mother.
5. Formal Citations
- Riaz LLC v Sharil bin Abbas, Bill of Costs No 193 of 2012, [2013] SGHCR 18
6. Timeline
| Date | Event |
|---|---|
| Traffic accident involving Sharil bin Abbas | |
| Messrs Riaz LLC informed Traffic Police that Sharil was seriously injured and brain damaged. | |
| Suit No 539 filed by Messrs Riaz LLC on behalf of Sharil | |
| Notice of change of solicitors filed; Messrs Lee Shergill LLP took over Suit 539 | |
| Pre-trial Conference; Mr. Singh raised doubts over Sharil's mental capacity | |
| District Judge declared Sharil unable to make decisions and appointed his mother as Deputy | |
| Interlocutory judgment by consent recorded for Suit 539 | |
| Assistant Registrar approved settlement sum and recorded consent judgment | |
| Mr. Singh informed Messrs Riaz LLC that Sharil’s mother had decided to treat the contract between the applicant and Sharil as void. | |
| Mr. Singh requested a copy of warrant to act from Messrs Riaz LLC | |
| Bill of Costs No 182 of 2012 filed by Mr Singh | |
| Messrs Riaz LLC filed bill of costs | |
| Notice of Dispute filed by the respondent | |
| Public Trustee’s Office informed Mr Singh that the Public Trustee will not make any recommendations on the costs where previous solicitors are involved | |
| Affidavit filed by Sharil’s mother | |
| Affidavit filed by Mr Riaz | |
| Decision Date |
7. Legal Issues
- Mental Capacity to Contract
- Outcome: The court found that Sharil lacked the mental capacity to understand the contract with the applicant at the time of execution.
- Category: Substantive
- Sub-Issues:
- Understanding of contractual terms
- Awareness of obligations
- Ability to give instructions
- Voidable Contract
- Outcome: The court held that the contract was voidable at the option of the client because the solicitor knew or ought to have known about the client's lack of mental capacity.
- Category: Substantive
- Sub-Issues:
- Knowledge of incapacity
- Obligation to ascertain capacity
- Taxation of Costs
- Outcome: The court affirmed the Registrar's power to determine the validity of the contract and the court's authority to depart from agreements on costs to ensure fairness.
- Category: Procedural
- Sub-Issues:
- Registrar's power to determine contract validity
- Court's authority to depart from cost agreements
8. Remedies Sought
- Monetary compensation for damages
9. Cause of Actions
- Claim for damages due to traffic accident injuries
10. Practice Areas
- Commercial Litigation
- Solicitor-Client Disputes
11. Industries
- Legal Services
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Che Som bte Yip and others v Maha Pte Ltd and others | High Court of Singapore | Yes | [1989] 2 SLR (R) 60 | Singapore | Cited for the test of whether a person lacked capacity to enter into a transaction, requiring understanding of the transaction. |
| Wong Meng Cheong and another v Ling Ai Wah and another | High Court of Singapore | Yes | [2012] 1 SLR 549 | Singapore | Cited to support that the statutory test under the Mental Capacity Act is consistent with common law definitions of mental capacity. |
| Wong Foong Chai v Lin Kuo Hao | High Court of Singapore | Yes | [2005] 3 SLR(R) 74 | Singapore | Cited for the principle that Section 18 of the Motor Vehicles (Third-Party Risks and Compensation) Act is an overriding provision and cannot be constrained by any prior agreement as to costs between client and solicitor. |
| Giannarelli v Wraith (No 2) | High Court of Australia | Yes | [1991] 171 CLR 592 | Australia | Cited for the principle that a taxing officer has the power to examine witnesses and make determinations on factual issues relevant to the taxation proceeding. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 322, R5, 2006 Rev Ed) O 59 r 29 |
| Rules of Court O 59 r 13 |
| Rules of Court O 92 r 4 |
| Rules of Court O 32 r 9 (1) |
| Rules of Court O 5 r 2 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Motor Vehicles (Third-Party Risks and Compensation) Act (Cap 189, 2000 Rev Ed) | Singapore |
| Mental Capacity Act (Cap 177A, 2010 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Mental capacity
- Voidable contract
- Taxation of costs
- Deputy
- Litigation representative
- Warrant to act
- Organic brain syndrome
- Solicitor-client costs
- Public Trustee
- Motor Vehicles (Third-Party Risks and Compensation) Act
15.2 Keywords
- Mental capacity
- Solicitor
- Costs
- Contract
- Voidable
- Taxation
- Brain injury
16. Subjects
- Civil Procedure
- Contract Law
- Mental Capacity
- Solicitor-Client Relationship
- Taxation of Costs
17. Areas of Law
- Civil Procedure
- Contract Law
- Mental Capacity Law
- Legal Costs