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Cases

HASINA MEERA MAIDIN v. TETUAN RAJINDER & GOH & ORS
High Court Malaya, Kuala Lumpur
Arziah Mohamed Apandi JC
[Civil Appeal No: WA-12BNCVC-83-10-2021]
4 November 2024
[2025] 2 MLRH 690

JUDGMENT

Arziah Mohamed Apandi JC:

Introduction

[1] This appeal spotlights a critical intersection between access to justice and legal ethics, examining whether an investor who funds litigation costs can legitimately contract with lawyers to share successful cases' proceeds. At its heart lies a written undertaking by the Respondent law firm to share 15% of judgment proceeds with the Appellant, who had advanced RM80,000.00 in legal fees to enable litigation that ultimately succeeded. The Sessions Court struck down this arrangement, finding it void for lack of consideration and contrary to professional conduct rules.

[2] The facts unfold against a backdrop where Indah Sebati Sdn Bhd (ISSB) facing financial constraints, required funding to pursue legitimate claims against JKR Terengganu. The Appellant, already an investor in ISSB, stepped forward to fund the litigation by paying the Respondents' legal fees. The Respondents subsequently documented their undertaking to share proceeds in a letter dated 29 September 2017. When the litigation succeeded with a judgment of RM5,130,537.60, the Respondents received their fees but declined to honour their undertaking to the Appellant.

CASE HIGHLIGHTS

PRESS METAL SARAWAK SDN BHD v. ETIQA TAKAFUL BERHAD
Federal Court, Putrajaya
2016] 5 MLRA 529
[Civil Appeal No: 02(i)-27-04-2015(W)]
15 August 2016 [+]
TAN POOI YEE v. KETUA PENGARAH JABATAN PENDAFTARAN NEGARA
High Court Malaya, Kuala Lumpur
[2016] 5 MLRH 501
24NCVC-1306-08-2015
18 July 2016 [+]
ILANGOVAN KRISHNAN v. SHIYA SDN BHD
Industrial Court, Johor
[2016] 2 MELR 374
16/4-157/15
27 April 2016 [+]
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