Legal fees become final and payable if not challenged within the statutory timeframe, irrespective of claims of champerty.

JUDGMENT

Wong Hok Chong JC:

Introduction

[1] These are 2 appeals emanating from the same Sessions Court suit:

(1) Appeal No 42 is the Defendant's appeal against the learned Sessions Court Judge's ("SCJ") decision to dismiss the Defendant's application to strike out the Plaintiffs Amended Statement of Claim pursuant to O 18 r 19(1)(b) and/or (d) of the Rules of 2012 ("RC") (Encl 26 in the Sessions Court); and

(2) Appeal No 44 is the Defendant's appeal against the SCJ's decision to allow the Plaintiff's application to strike out the Defendant's Amended Defence and to enter judgment against the Defendant pursuant to O 18 r 19(1)(b) and/or (d) RC (Encl 22 in the Sessions Court).

[2] They concerned the same issues and were heard together. After hearing both parties' submissions, I dismissed both appeals and upheld the SCJ's decisions. These are the grounds of my decision.

Background

[3] The Defendant engaged the Plaintiff as solicitors to act for them to sue MBSB in a civil suit ("MBSB Suit"). According to the Defendant, there was an oral agreement between the parties that the legal fees to be paid would be 30% of the damages that the Court awarded to the Defendant in the MBSB Suit ("Oral Agreement").

[4] Subsequently, the Plaintiff discharged themselves as solicitor for the Defendant in the MBSB Suit before the conclusion of the matter. They then issued a Bill on 19 September 2018 for RM98,887.80 ("Bill"). The computation of the bill was premised on the work done and not the Oral Agreement. In any event, the Oral Agreement would have been otiose given that the MBSB Suit had yet to be concluded, and damages had yet to be awarded, at the material time. After the Bill was issued, the Defendant did not petition for an order for the bill to be taxed ("Petition").

Plaintiffs Argument

[5] According to the Plaintiff, the Bill became statutorily final and payable when the 1-year timeframe for the Defendant to Petition lapsed. Hence, the Plaintiff was claiming for the payment of their professional legal fees under the Bill that had become final and indisputable.

[6] Under s 124 of the Legal Profession Act 1976 (" LPA "), the contents of the Bill are presumed correct until the contrary is shown:

"124 No advocate and solicitor to sue for costs until delivery of bill of cost

(1) ...

(2) Where a bill is proved to have been delivered in compliance with subsection (1) it shall not be necessary in the first instance for the advocate and solicitor to prove the contents of the bill and it shall be presumed until the contrary is shown to be a bill bona fide complying with this Act."

[7] And in SP Veloo Co v. Affin Bank Berhad , [2017] 5 AMR 537 , the Court of Appeal held as follows in respect of s 124 LPA :

"[22] As we have stated earlier that a solicitor's bill of costs has special protection by statute and s 124 gives the protection. It does not require the solicitor to prove the contents and it shall be presumed until the contrary is shown a bill bona fide complying with this Act. ..."

[8] The Defendant is entitled to challenge the Bill by petitioning for it to be taxed within 6 months of the issuance of the Bill or, where there are special circumstances, after 6 months but within 1 year of the issuance of the Bill. The relevant parts of s 126 and 128 of the LPA provides as follows:

"126 An order for taxation of costs to be made within 6 months of delivery of bill of costs

(1) An order for the taxation of a bill of costs delivered by any advocate and solicitor may be obtained by a petition as a matter of course by the party chargeable therewith, or by any person liable to pay the cost either to the party chargeable or to the advocate and solicitor; at any time within six months from the delivery of the bill, or, by the advocate and solicitor after the expiration of one calendar month, and within a year from, the delivery...."

"128 Order for taxation of advocate and solicitor's bill on notice given

(1) After the expiration of six months from the delivery of a bi