Law Society v Chan Chun Hwee Allan: Disciplinary Proceedings for Breach of Professional Conduct Rules
In Law Society of Singapore v Chan Chun Hwee Allan, the Court of Three Judges addressed an application by the Law Society for sanctions against Mr. Chan under the Legal Profession Act. The Law Society alleged that Mr. Chan failed to verify his clients' identities and obtain evidence of their business relationships, breaching the Legal Profession (Professional Conduct) Rules. The court found due cause for disciplinary action and imposed a two-year suspension and a S$100,000 fine on Mr. Chan.
1. Case Overview
1.1 Court
Court of Three Judges1.2 Outcome
Due cause for disciplinary action had been shown. The court imposed a two-year suspension and a fine of S$100,000 on the Respondent.
1.3 Case Type
Regulatory
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The Law Society sought sanctions against Chan Chun Hwee Allan for failing to verify clients' identities and obtain evidence of business relationships, breaching Legal Profession Rules. The court imposed a two-year suspension and a S$100,000 fine.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| The Law Society of Singapore | Applicant | Statutory Board | Application granted | Won | |
| CHAN CHUN HWEE ALLAN | Respondent | Individual | Sanctioned | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Sundaresh Menon | Chief Justice | No |
| Judith Prakash | Justice of the Court of Appeal | Yes |
| Tay Yong Kwang | Justice of the Court of Appeal | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Hassan Esa Almenoar | R. Ramason & Almenoar |
| Liane Yong | R. Ramason & Almenoar |
4. Facts
- The Respondent is an advocate and solicitor admitted to the bar on 21 March 1998.
- The Respondent was the sole proprietor of the law practice, M/s C H Chan & Co.
- The Respondent shared his office premises with Peter Dornan.
- Dornan introduced the Respondent to Sir Robert Cowley.
- Cowley represented that two companies, IBMFS and ISSA, needed legal services.
- The Respondent was to act as an escrow agent, receiving and transferring funds.
- The Respondent did not perform background checks on Cowley, IBMFS or ISSA.
- The Respondent failed to verify his clients’ identities before accepting instructions.
- The Respondent failed to obtain evidence as to his clients’ business relationship.
- Sums totalling AUD55,000, €30,000 and nearly US$2m were transferred by the Respondent in 2008 and 2011.
- The Respondent earned fees in the order of US$90,000 from the transactions in 2011.
- The transactions ceased after the Respondent's banker raised concerns.
5. Formal Citations
- Law Society of SingaporevChan Chun Hwee Allan, Originating Summons No 4 of 2017, [2018] SGHC 21
6. Timeline
| Date | Event |
|---|---|
| Respondent admitted to the bar | |
| Respondent shared office premises with Peter Dornan | |
| Cowley represented to the Respondent that two companies were in need of certain legal services | |
| Respondent accepted instructions from IBMFS | |
| Respondent accepted instructions from IBMFS | |
| Respondent accepted instructions from ISSA | |
| Respondent accepted instructions from ISSA | |
| Respondent sent Scribner an e-mail regarding the transfers | |
| Complaint first made to the Law Society | |
| First set of disciplinary proceedings against the Respondent was disposed of | |
| Third set of proceedings against the Respondent was heard by the Tribunal | |
| Third set of proceedings against the Respondent was heard by the Tribunal | |
| Hearing date | |
| Judgment date |
7. Legal Issues
- Breach of Legal Profession (Professional Conduct) Rules
- Outcome: The court found that the Respondent had breached Rules 11D and 11F of the Legal Profession (Professional Conduct) Rules.
- Category: Substantive
- Sub-Issues:
- Failure to verify client identities
- Failure to obtain evidence of business relationship
- Sanctions for Professional Misconduct
- Outcome: The court imposed a two-year suspension and a fine of S$100,000.
- Category: Procedural
8. Remedies Sought
- Sanctions under the Legal Profession Act
9. Cause of Actions
- Breach of Legal Profession (Professional Conduct) Rules
10. Practice Areas
- Regulatory Law
- Professional Responsibility
11. Industries
- Legal Services
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Law Society of Singapore v Ng Bock Hoh Dixon | High Court | Yes | [2012] 1 SLR 348 | Singapore | Cited regarding the importance of other disciplinary proceedings on the sanction imposed by the court. |
| Law Society of Singapore v Singham Dennis Mahendran | High Court | Yes | [2001] 1 SLR(R) 1 | Singapore | Cited regarding the practice of framing alternative charges against a respondent-solicitor. |
| Law Society of Singapore v Tan Guat Neo Phyllis | High Court | Yes | [2008] 2 SLR(R) 239 | Singapore | Cited regarding the practice of framing alternative charges against a respondent-solicitor. |
| Law Society of Singapore v Chiong Chin May Selena | High Court | Yes | [2013] SGHC 5 | Singapore | Cited regarding the practice of framing alternative charges against a respondent-solicitor. |
| The Law Society of Singapore v Kangatharan Kandavellu | Disciplinary Tribunal | Yes | [2017] SGDT 9 | Singapore | Cited regarding the practice of framing alternative charges against a respondent-solicitor. |
| The Law Society of Singapore v Ong Teck Ghee | Disciplinary Tribunal | Yes | [2014] SGDT 7 | Singapore | Cited regarding the ability of the Tribunal to find that the more general charge, which was framed in the alternative, was established and convict the respondent-solicitor on that basis. |
| The Law Society of Singapore v Ong Cheong Wei | Disciplinary Tribunal | Yes | [2017] SGDT 4 | Singapore | Cited regarding instances where the Law Society had withdrawn the alternative charge framed on the same facts alleged. |
| The Law Society of Singapore v Christopher Yap Bock Heng | Disciplinary Tribunal | Yes | [2013] SGDT 7 | Singapore | Cited regarding instances where the Law Society had withdrawn the alternative charge framed on the same facts alleged. |
| The Law Society of Singapore v Kurubalan s/o Manickam Rengaraju | Disciplinary Tribunal | Yes | [2012] SGDT 7 | Singapore | Cited regarding instances where the Law Society had withdrawn the alternative charge framed on the same facts alleged. |
| The Law Society of Singapore v Wan Hui Hong James | Disciplinary Tribunal | Yes | [2012] SGDT 5 | Singapore | Cited regarding instances where the Law Society had withdrawn the alternative charge framed on the same facts alleged. |
| Law Society of Singapore v Udeh Kumar s/o Sethuraju and another matter | Court of Appeal | Yes | [2017] 4 SLR 1369 | Singapore | Cited regarding the necessary but not sufficient condition for a finding of due cause. |
| Law Society of Singapore v Ravindra Samuel | Court of Appeal | Yes | [1999] 1 SLR(R) 266 | Singapore | Cited regarding the sentencing considerations which apply in disciplinary proceedings. |
| Law Society of Singapore v Chiong Chin May Selena | Court of Appeal | Yes | [2005] 4 SLR(R) 320 | Singapore | Cited regarding the interest of the public that will be paramount and that must therefore prevail. |
| Law Society of Singapore v Kurubalan s/o Manickam Rengaraju | Court of Appeal | Yes | [2013] 4 SLR 91 | Singapore | Cited regarding the protection of public confidence in the administration of justice. |
| Law Society of Singapore v Ravi s/o Madasamy | Court of Appeal | Yes | [2016] 5 SLR 1141 | Singapore | Cited regarding personal mitigating circumstances that diminish the culpability of the solicitor. |
| Law Society of Singapore v Wee Wei Fen | Court of Appeal | Yes | [1999] 3 SLR(R) 559 | Singapore | Cited regarding the weight to be attached to a plea in mitigation. |
| Law Society of Singapore v Tan Buck Chye Dave | High Court | Yes | [2007] 1 SLR(R) 581 | Singapore | Cited regarding a respondent-solicitor pleaded guilty to his charges at an early opportunity. |
| The Law Society of Singapore v Mustaffa bin Abu Bakar | Disciplinary Tribunal | Yes | [2011] SGDT 1 | Singapore | Cited as a guiding precedent before the Tribunal. |
| Law Society of Singapore v Leong Pek Gan | Court of Appeal | Yes | [2016] 5 SLR 1131 | Singapore | Cited regarding the court found that the respondent-solicitor had ignored glaring red flags and proceeded with the transaction without probing further. |
| The Law Society of Singapore v Yoong Tat Choy Joseph | Supreme Court | Yes | [1993] SGDSC 9 | Singapore | Cited regarding the respondent-solicitor was found guilty of facilitating an illegal moneylending transaction. |
| Law Society of Singapore v Ng Cher Yeow | Court of Appeal | Yes | [1999] 3 SLR(R) 596 | Singapore | Cited regarding the respondent-solicitor acted for both the vendors and the purchaser in a sale and purchase of property. |
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 Act (Cap 161, 2009 Rev Ed) s 83(2)(b) | Singapore |
| Legal Profession Act (Cap 161, 2009 Rev Ed) s 83(2)(h) | Singapore |
| Legal Profession Act (Cap 161, 2009 Rev Ed) s 94(1) | Singapore |
| Legal Profession Act (Cap 161, 2009 Rev Ed) s 98(1) | Singapore |
| Legal Profession Act (Cap 161, 2009 Rev Ed) s 83(1) | Singapore |
| Legal Profession Act (Cap 161, 2009 Rev Ed) s 85(4A)(a) | Singapore |
| Legal Profession Act (Cap 161, 2009 Rev Ed) s 85(4C) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Disciplinary Proceedings
- Professional Misconduct
- Client Due Diligence
- Money Laundering
- Escrow Agent
- Client Identity Verification
- Legal Profession Act
- Legal Profession (Professional Conduct) Rules
15.2 Keywords
- disciplinary proceedings
- professional misconduct
- legal profession
- money laundering
- client due diligence
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Disciplinary Proceedings | 95 |
| Professional conduct | 90 |
| Legal Profession Act | 90 |
| Professional Ethics | 85 |
| Breach of Duty | 80 |
| Breach of Solicitors' Accounts Rules | 70 |
| Money Laundering | 60 |
16. Subjects
- Legal Ethics
- Professional Responsibility
- Regulatory Compliance