EPR 12 - Legal Ethics and Fees Regulation

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Questions and Answers

What must a lawyer maintain to effectively discharge their duty to the court?

A commitment to achieving client emotional satisfaction

A close relationship with their clients

An adequate sense of detachment (correct)

A focus solely on client interests

In the context of a contingency fee agreement, what condition must be met for a solicitor to take on a case with an imprecunious client?

There must be evidence of good cause for action or defense (correct)

The solicitor must have personal stakes in the outcome

The client must have a history of litigation success

The client's previous legal costs must be dismissed

What percentage of the damages awarded could the respondent solicitor possibly receive if the client won the case and the damages exceeded $5 million?

30%

20%

15%

25% (correct)

What was the court's stance regarding the sufficiency of the respondent's account of the contingency fee agreement?

The court dismissed it as implausible and lacking reasonable doubt. Signup and view all the answers

In the case described, what total amount did the client claim she would only be liable to pay?

$28,000 Signup and view all the answers

What is the primary principle guiding legal practitioners regarding professional fees and costs according to Rule 17?

To act in the best interest of the client and charge them early. Signup and view all the answers

What must the legal practitioner inform the client regarding payments?

Any reasonably foreseeable payments and the timing of these payments. Signup and view all the answers

According to Rule 17.2, what should legal practitioners not do in relation to costs?

Undertake work that unnecessarily increases costs. Signup and view all the answers

What responsibility does a legal practitioner have if a client does not understand English?

Explain any settlements in a language the client understands. Signup and view all the answers

According to Rule 17.4 of the PCR, at what point(s) must the explanation of fees be provided to the client?

At the beginning and at other appropriate stages. Signup and view all the answers

What is the client's responsibility regarding fees according to Rule 17.4?

The client is responsible for paying his fees regardless of the outcome of the case. Signup and view all the answers

What aspect of litigation did the Court of Appeal criticize regarding the SRA's approach?

The disproportionate manner in which litigation was run. Signup and view all the answers

What must a legal practitioner do if a client raises a query about a bill?

Provide transparency regarding the billing process. Signup and view all the answers

What must legal practitioners undertake regarding risk-benefit evaluations according to court directives?

Proper evaluations should be performed at each stage of the proceedings. Signup and view all the answers

Why must a legal practitioner inform a client about their right to have a bill taxed?

Clients must be aware to avoid potential exploitation. Signup and view all the answers

What is a legal practitioner required to advise their clients on regarding the consequences of pursuing a matter?

Whether the consequences justify the expense and risk involved. Signup and view all the answers

What did the court suggest about the SRA's conspiracy claim?

It should not have been part of the proceedings initially. Signup and view all the answers

What happens if a client consents to a taxation or a court orders one?

The legal practitioner can still submit a bill for a larger amount if allowed by the registrar. Signup and view all the answers

What is NOT a requirement for legal practitioners regarding their fees?

Offering discounts to clients when possible. Signup and view all the answers

What does the legal practitioner need to ensure about the actual fee amounts?

They do not vary substantially from the initial estimates. Signup and view all the answers

What should a client understand regarding their total potential costs if they lose a case?

They may have to pay their own costs as well as the costs of other parties. Signup and view all the answers

Under what conditions may a legal practitioner be considered to have overcharged a client?

If a reasonable legal practitioner cannot in good faith charge the fee Signup and view all the answers

What must a solicitor do in a conflict of interest situation according to Rule 79?

Charge only for items that need not be duplicated by the alternative lawyer Signup and view all the answers

What does Practice Direction 5.2.2 specifically address?

The use of retainer agreements and non-refundable deposits Signup and view all the answers

Which Section of the LPA prohibits solicitors from entering into agreements linked to the success of a suit?

Section 107 Signup and view all the answers

What can happen to agreements between solicitors and clients deemed unfair or unreasonable?

The Court may set them aside Signup and view all the answers

What implication does charging less than the fixed party-and-party cost have for solicitors?

It may violate Section 107 of the LPA Signup and view all the answers

What is the implication of the Council's caution regarding non-refundable deposits?

They may be characterized as professional misconduct Signup and view all the answers

What is considered improper conduct for solicitors in contentious matters?

Having an interest in the subject matter of the litigation Signup and view all the answers

Which of the following factors is NOT considered when determining if a fee is excessive?

Client's ability to pay the fee Signup and view all the answers

What should a practitioner do if they insist on a non-refundable deposit?

Provide a clear explanation to the client Signup and view all the answers

What is the primary issue with the Two-Thirds Rule in Singapore according to the Council of the Law Society?

It is not enforced at all. Signup and view all the answers

Which of the following statements is true regarding the acceptance of shares as payment in legal practices?

It is permitted with conditions concerning ethical considerations. Signup and view all the answers

What does the prohibition against contingency fees relate to according to Section 107 of the Legal Profession Act?

Non-contentious work solely. Signup and view all the answers

In the case of Law Society of Singapore and Krupalan Sanam Manikam Rangaraju, what type of agreement did the solicitor enter into?

A champetus arrangement. Signup and view all the answers

Which ethical consideration is NOT mentioned regarding the acceptance of shares as payment?

Requirement for written contracts with clear terms. Signup and view all the answers

What was the court's observation regarding Rule 37 in the context of the solicitor's agreement in the case?

It had been breached. Signup and view all the answers

What is a critical risk associated with a law firm's arrangement of accepting shares as payment?

Potential overcharging of clients. Signup and view all the answers

What does the concept of 'secret profits' refer to in a law practice's arrangement?

Profits received that could mislead clients due to fiduciary duty. Signup and view all the answers

Which aspect needs to be evaluated when a law practice receives shares as payment, specifically related to impartiality?

Influence on ability to provide impartial advice. Signup and view all the answers

Which provision does Section 107 of the Legal Profession Act primarily address?

Prohibition of contingency fees for non-contentious work. Signup and view all the answers

Study Notes

Professional Fees and Costs

Legal practitioners' fees and costs are discussed.
Rule 17 of the PCR outlines ethical obligations for legal practitioners regarding fees.
Legal practitioners must act in the client's best interest.
Fees need to be charged to the client for work done promptly.

Ethical Obligations

Under Rule 17.2, practitioners should not increase costs unnecessarily or improperly.
They must complete work diligently and explain any settlement proposals.
Clients who do not understand English will have settlements explained in their language.
Practitioners should discuss risks and expenses with clients, enabling informed decisions.

Case Examples

Cases like Singapore Shooting Association and Singapore Rifle Association highlight appellant successes related to aspects of appeal.
SRA's conspiracy claim failed, along with their application for Declaratory Relief.
The court found litigation was disproportionate relative to the amount at stake.

Fee Information to Clients

Practitioners must inform clients about fee structures and payment methods.
All reasonably foreseeable costs must be disclosed, with payment schedule provided.
Estimated fees must be transparent, with no significant variance from the estimate.

Contentious Matters

Rule 17.4 clarifies fees in contentious matters.
Clients are responsible for their own fees, even if they lose.
The client may need to pay for the other party's costs as well.
Clients are informed about their rights to have bills assessed and/or reviewed.

Overcharging

Rule 17.8 factors in determining overcharging.
Fee reasonableness is judged based on practitioner's standing, work nature, time, client instructions and other relevant circumstances.
Overcharging situations arise from unreasonable, unjustified or standing-and-experience-unrelated pricing.

Rule 19 prohibits fee sharing with unauthorized individuals.
Cases of fee-sharing with an expired practicing certificate are mentioned, highlighting court actions.
Holding oneself out as a practitioner when unauthorized is an offense.

Contingency Fees

Contingency fees are prohibited.
The use of some methods improper for creditors is noted, as is the court's role in determining fee-related issues.

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Description

This quiz covers the essential aspects of legal practitioners' fees and ethical obligations as outlined in Rule 17 of the PCR. It includes case studies to illustrate key points regarding costs and the importance of practitioners acting in their clients' best interests. Test your understanding of these regulations and their practical applications.