Lawyer facing disciplinary inquiry over firm's 'excessive' $370,000 bill

Total fees charged in medical negligence suit were over 2.5 times the initial estimate

- Selina Lum

A lawyer who handled a lawsuit for the parents of a 31-year-old man over their son's suicide is facing a disciplinary inquiry after a court said it had "grave concerns" that he had overcharged the couple.

Mr V.K. Rai of Arbiters Inc Law Corporation was one of two lawyers who represented Mr Steven Joseph Arokiasamy and Madam Tan Kin Tee in a medical negligence suit that sought $3.3 million in damages.

Mr Steven, 69, and Madam Tan, 68, later dropped both lawyers, and personally settled the case for $330,000 with the Institute of Mental Health (IMH) and Dr Nelson Lee, a psychiatrist in private practice.

After the settlement, Arbiters sued the couple to press for payment of bills amounting to about $370,000.

The sum comprised $363,000 in professional fees and about $7,400 in disbursements, which are out-of-pocket expenses. The dispute was mainly over the fees.

In January, a High Court judge slashed the total sum to $60,000, saying that the fees were "excessive".

The firm appealed.

The Appellate Division of the High Court similarly said the fees were excessive and amounted to overcharging, but adjusted the sum from $60,000 to $87,000.

The three-judge court also said it was referring Mr Rai's conduct to the Law Society of Singapore for an inquiry.

In written grounds of decision issued on Dec 5, the court set out its reasons for finding the bill excessive and its concerns over various aspects of Mr Rai's conduct.