JUDGMENT
The claim
[1] The plaintiff's claim is for, inter alia, the following:
a) A declaration that the two agreements between the plaintiff and defendant are valid, reasonable, and enforceable pursuant to
ss 116 and118 of the Legal Profession Act 1976 ("the LPA") ;b) That the plaintiff be permitted to cash the cheque in the amount of MYR10,000 issued by Messrs Vooi & Yee to settle the balance sum owing by the defendant, and if the cheque has lapsed, that Messrs Vooi & Yee immediately issue a new and valid cheque for the same amount;
c) The balance of the legal fees and disbursements due from the defendant in the amount of MYR62,200 pursuant to both agreements, and Goods and Services Tax ("GST") to be imposed on such amount due;
d) General damages/exemplary damages in the amount of MYR20,000.
[2] I allowed the plaintiff's claim with regard to the First Agreement but dismissed the claim pursuant to the Second Agreement.
[3] The following are my reasons.
Brief Facts
[4] The plaintiff is a legal firm operating under the name and style of Messrs Albert Ding, Lee & Partners. In April 2017, the defendant, an individual, sought legal advice from the plaintiff regarding her divorce from one Wong Yoon Chong ("the former husband"). A Warrant to Act dated 11 April 2017 ("the First Agreement") (exhibited at p 15 of Part B of the Common Bundle of Documents ("CBD")), was signed by the defendant. There was no agreement on how much legal fees were payable when the First Agreement was signed.
[5] The divorce was, however, finalised through a Decree Nisi Order by way of consent ("the Decree Nisi Order"), that was reached on 20 April 2018, whereby the defendant was to receive a total of MYR1.1 million from the former husband, with MYR200,000 to be paid immediately and the balance of MYR900,000 to be paid by instalments over 60 months. The Decree Nisi Order, dated 25 April 2018 is exhibited at pp 1-9 of Part A of the CBD.
[6] Pursuant to legal fees for work done up to filing the Decree Nisi Order, the plaintiff charged the defendant a total of MYR25,000. This is based on the undated invoice exhibited at pp 13-14 of Part B of the CBD.
[7] The Second Agreement purportedly entered between the defendant and Albert Ding (the Managing Partner of the plaintiff) during a meeting on 23 April 2018, was documented in a letter dated 26 April 2018 (exhibited at p 16 of Part B of the CBD) ("the Second Agreement"), which was for legal fees which the plaintiff was to charge by way of deducting 6% from the monthly installments of MYR15,000, which was payable by the defendant's former husband, for a period of 60 months commencing May 2018. In return, the plaintiff agreed to ensure that the former husband adheres to the terms of the Decree Nisi Order, and to act for the defendant in case of any default or refusal by her former husband to make the necessary payments.
[8] On 8 May 2018, the defendant paid an amount of MYR15,000 to the plaintiff as part of the legal fees and disbursements in respect of the First Agreement. Receipt of this payment was duly acknowledged by the plaintiff.
[9] In both May and June 2018, the defendant had made payments of MYR1,800 (MYR900 per month) pursuant to monthly fees in respect of the Second Agreement. However, subsequently upon the instructions of the defendant, a letter dated 25 June 2018 was issued by Messrs Vooi & Yee informing the plaintiff that they would take over the matter from the plaintiff, and requested for final tax invoice for the legal services provided by the plaintiff in respect of her divorce matter.
[10] The defendant had also informed the plaintiff of her intention to terminate the Second Agreement. This she had done vide letter by Messrs Vooi & Yee to the plaintiff, dated 19 July 2018 (exhibited at pp 27-28 of Part B of the CBD), in which she had enclosed a cheque (exhibited at p 29 of Part B of the CBD) to the plaintiff in the amount of MYR10,000 as full and final settlement
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