Law Society v Yap Bock Heng: Disciplinary Proceedings for Improper Loan & Accounting Violations
The Law Society of Singapore brought two originating summonses against Yap Bock Heng Christopher for disciplinary action under the Legal Profession Act. OS 1149/2013 concerned an improper loan obtained from a client, and OS 157/2014 concerned the failure to maintain proper accounting records. The Court of Three Judges found cause for disciplinary action and imposed a consecutive suspension of five years.
1. Case Overview
1.1 Court
Court of Three Judges1.2 Outcome
Respondent suspended from practice for a total of five years.
1.3 Case Type
Regulatory
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The Law Society initiated disciplinary proceedings against Yap Bock Heng for improperly obtaining a loan from a client and failing to maintain proper accounting records.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Law Society of Singapore | Plaintiff | Statutory Board | Judgment for Plaintiff | Won | |
| Yap Bock Heng Christopher | Respondent | Individual | Suspension from practice | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Sundaresh Menon | Chief Justice | No |
| Chao Hick Tin | Justice of the Court of Appeal | Yes |
| Andrew Phang Boon Leong | Justice of the Court of Appeal | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Pradeep Pillai | Shook Lin & Bok LLP |
| Simren Kaur Sandhu | Shook Lin & Bok LLP |
4. Facts
- The Respondent, a lawyer, obtained a $34,000 loan from his client in April 2009.
- The Respondent did not advise the client to obtain independent legal advice before giving the loan.
- The Respondent failed to repay the loan as promised and avoided contact with the client.
- The Respondent issued inflated bills totaling $118,000 to the client after being asked to repay the loan.
- The Respondent admitted to not adhering to accounting rules to save costs.
- The Respondent failed to produce accounting documents despite multiple requests from the Law Society.
- The Respondent had only repaid $700 of the $34,000 loan as of the date of the hearing.
5. Formal Citations
- Law Society of Singapore v Yap Bock Heng Christopher, Originating Summons No 1149 of 2013 and 157 of 2014, [2014] SGHC 188
6. Timeline
| Date | Event |
|---|---|
| Respondent admitted to the Roll of Advocates and Solicitors | |
| Complainant detained by Indonesian police | |
| Respondent requested a $34,000 loan from the complainant | |
| Respondent sent an email regarding the loan repayment | |
| Complaint filed by Yap Kok Yong Karlson | |
| Law Society requested accounting documents from the Respondent | |
| Law Society resolved to intervene in the Respondent’s firm’s client account | |
| Respondent requested more time to comply with the Law Society’s request | |
| Respondent emailed the Law Society regarding compliance | |
| Oral hearing before the disciplinary tribunal for OS 1149/2013 | |
| Oral hearing before the disciplinary tribunal for OS 157/2014 | |
| Decision Date |
7. Legal Issues
- Breach of Legal Profession (Professional Conduct) Rules
- Outcome: The court found the respondent in breach of the Legal Profession (Professional Conduct) Rules for entering into a prohibited borrowing transaction with a client.
- Category: Substantive
- Sub-Issues:
- Prohibited borrowing transaction
- Failure to advise client to obtain independent legal advice
- Breach of Legal Profession (Solicitors’ Accounts) Rules
- Outcome: The court found the respondent in breach of the Legal Profession (Solicitors’ Accounts) Rules for failing to produce accounting documents and maintain proper accounting records.
- Category: Substantive
- Sub-Issues:
- Failure to produce accounting documents
- Failure to maintain proper accounting records
- Failure to conduct monthly reconciliation of client cash books with bank statements
- Appropriateness of Monetary Penalty vs. Suspension
- Outcome: The court determined that a suspension was more appropriate than a monetary penalty given the gravity of the misconduct.
- Category: Procedural
- Power of Court to Impose Consecutive Suspensions
- Outcome: The court held that it had the power to impose consecutive periods of suspension, but the total period could not exceed five years.
- Category: Jurisdictional
8. Remedies Sought
- Disciplinary action under the Legal Profession Act
- Suspension from practice
- Monetary penalty
9. Cause of Actions
- Breach of Legal Profession (Professional Conduct) Rules
- Breach of Legal Profession (Solicitors’ Accounts) Rules
10. Practice Areas
- Regulatory Law
- Professional Responsibility
- Disciplinary Actions
11. Industries
- Legal Services
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Re Shan Rajagopal | High Court | Yes | [1994] 2 SLR(R) 60 | Singapore | Cited for the principle that client suffering no loss is irrelevant in a prohibited borrowing transaction. |
| Law Society of Singapore v Lee Yee Kai | High Court | Yes | [2001] 1 SLR(R) 30 | Singapore | Cited for the principle that a solicitor will be struck off the roll where he has acted dishonestly. |
| Bolton v Law Society | England and Wales Court of Appeal (Civil Division) | Yes | [1994] 1 WLR 512 | England and Wales | Cited for the principle that failure to maintain requisite accounting records inevitably results in a finding of professional misconduct. |
| Law Society of Singapore v Tay Eng Kwee Edwin | High Court | Yes | [2007] 4 SLR(R) 171 | Singapore | Cited for the principle that proof of wilful conduct is not necessary to establish a breach of the Solicitors’ Accounts Rules. |
| Law Society of Singapore v Andre Ravindran Saravanapavan Arul | High Court | Yes | [2011] 4 SLR 1184 | Singapore | Cited for the reason for the amendment to s 83 of the LPA to grant the Court of Three Judges the power to impose a monetary penalty. |
| Law Society of Singapore v Tay Choon Leng John | High Court | Yes | [2012] 3 SLR 150 | Singapore | Cited for the opinion that the 2008 amendments were designed to bridge the cavernous gulf between a censure and suspension. |
| Law Society of Singapore v Chiong Chin May Selena | High Court | Yes | [2013] SGHC 5 | Singapore | Cited for the principle that monetary penalties were not necessarily sufficient and that much would depend on the overall circumstances. |
| Law Society of Singapore v Devadas Naidu | High Court | Yes | [2001] 1 SLR(R) 65 | Singapore | Cited for the rationale for prohibiting solicitors from borrowing from their clients. |
| Law Society of New South Wales v Moulton | Supreme Court of New South Wales | Yes | [1981] 2 NSWLR | Australia | Cited for the rationale for prohibiting solicitors from borrowing from their clients. |
| Ng Eng Ghee and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and another appeal | Court of Appeal | Yes | [2009] 3 SLR(R) 109 | Singapore | Cited for the principle that a solicitor stands in a fiduciary relationship to his client. |
| Law Society of Singapore v Uthayasurian Sidambaram | High Court | Yes | [2009] 4 SLR(R) 674 | Singapore | Cited for the purpose of the disciplinary process is to uphold norms of fiduciary conduct. |
| Rex v John Wilkes, Esq | House of Lords | Yes | (1770) 4 Burr 2527 | England and Wales | Cited for the principle that consecutive sentences have always been permitted for criminal matters. |
| Rex v Albury | English Court of Criminal Appeal | Yes | [1951] 1 KB 680 | England and Wales | Cited for the principle that consecutive sentences have always been permitted for criminal matters. |
| Re Nalpon Zero Geraldo Mario | Court of Appeal | Yes | [2013] 3 SLR 258 | Singapore | Cited for the principle that the Court of Three Judges is a specially constituted court exercising a unique disciplinary jurisdiction under the LPA. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Legal Profession Act (Cap 161, 2009 Rev Ed) | Singapore |
| Legal Profession (Professional Conduct) Rules (Cap 161, R 1, 2010 Rev Ed) | Singapore |
| Legal Profession (Solicitors’ Accounts) Rules (Cap 161, R 8, 1999 Rev Ed) | Singapore |
| Legal Profession (Amendment) Act 2008 (Act 19 of 2008) | Singapore |
| Criminal Procedure Code (Cap 68, 2012 Rev Ed) | Singapore |
| Supreme Court of Judicature Act (Cap 322, 2007 Rev Ed) | Singapore |
| Legal Profession (Practising Certificate) Rules (Cap 161, R 6, 2010 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Prohibited borrowing transaction
- Accounting records
- Disciplinary tribunal
- Solicitor-client relationship
- Fiduciary duty
- Professional misconduct
- Suspension from practice
- Legal Profession Act
- Legal Profession (Professional Conduct) Rules
- Legal Profession (Solicitors’ Accounts) Rules
15.2 Keywords
- Legal Profession
- Disciplinary Proceedings
- Solicitor
- Accounting Rules
- Borrowing Transaction
17. Areas of Law
16. Subjects
- Legal Ethics
- Professional Discipline
- Accounting Compliance