A JUDGE has expressed concern over the apparent 'unhealthy' increase in the number of lawyers who place themselves in situations where there is conflict of interest or who fail to free themselves when they land in such positions.
Judge of Appeal Andrew Phang made the remarks when he and two other judges last week imposed a two-year suspension on lawyer Vasantha Vardan for acting improperly in a case involving an estate agent who fleeced his clients.
A potential conflict of interest arises when a lawyer acts for two separate parties in a related deal. An example would be a lawyer representing a real estate agent as well as the seller in the same property deal.
Ms Vardan was found guilty by a Court of Three Judges headed by Chief Justice Chan Sek Keong. The lawyer had acted for the housing agent as well as the agent's clients.
Judge Phang, who issued the judgment on behalf of the three judges, described as 'particularly startling' the standing arrangement Ms Vardan had with the agent 'with whom she was beholden for legal work from time to time'.
'We should have thought that given the nature of the business of this 'benefactor', she must have known that she would always be at risk of preferring his interests to the interests of the clients recommended by him,' he said. There were at least two similar cases referred to the Law Society involving conflict of interest in the recent past, said Mr Sheik Nawaz, a volunteer with Bilal & Co who helped draft the complaints for the aggrieved clients of the lawyers concerned.
Association of Criminal Lawyers of Singapore president Subhas Anandan said the issue was of longstanding concern to lawyers.
He noted that the subject was hotly debated at a Law Society annual general meeting in the 80s.
Said Mr Anandan: 'I then moved a motion, seconded by lawyer Goh Aik Chew, that would have precluded a lawyer from acting for two parties, be it bank and property seller or buyer, to avoid potential conflict of interest.'
He said the motion was passed but it was not followed through with legislation.
Judge Phang criticised the report of the Disciplinary Committee - a body appointed by the Chief Justice - which recommended that Ms Vardan be referred to the Court of Three Judges.
He said there were many instances where the committee had failed to make clear findings of fact and said the job demanded both 'a rigorous as well as analytical approach'.
vijayan@sph.com.sg
