Undertakings, Enforcements
Undertakings, Enforcements
Undertakings, Enforcements
Faculty: FUHA
Programme Name: Bachelor of Law with Honours
Course Name: Ethics
Course Code: LLB 40603
Lecturer: Mdm Ooi Chooi Gaik
1
Topic:
Undertakings, Enforcements of Undertakings and Summary
Jurisdiction of Courts Over Solicitors
2
1. Solicitor’s Undertakings
i. Undertakings
◦ Undertaking is a promise to do a particular act. It is necessarily given pending the outcome of a
particular event.
3
1. Solicitor’s Undertakings cont.
4
1. Solicitor’s Undertakings cont.
◦ When an advocate and solicitor gives an undertaking and fails to fulfill the terms of the undertaking, the
courts may summarily enforce the terms of the undertaking upon application to the court if the
undertaking is clear, unambiguous and unequivocal and it was given in the capacity of a solicitor.
◦ The court’s jurisdiction is based upon the court’s right to enquire its officers to observe a high standard of
conduct; it is immaterial that no misconduct on the part of the solicitor is suggested.
6
2. Enforcement of Undertaking cont.
7
3. Summary Jurisdiction
◦ The court has summary jurisdiction over the advocates and solicitors as they are the officers of the court.
Summary jurisdiction is exercised by the court when the advocates and solicitors commit professional
misconduct.
◦ They are subject to the discipline of the court. The discipline is exercisable in two ways; either by
punishing the advocate and solicitor or by making them pay compensation. In so far as it is punitive, the
court could strike a solicitor off the roll of the court or suspend him. In so far as it is compensatory, the
court could order him to pay the costs, sometimes the costs of his own client, sometimes those of the
opposite party and sometimes it may be both.
8
3. Summary Jurisdiction cont.
9
3. Summary Jurisdiction cont.
10
3. Summary Jurisdiction cont.
12
3. Summary Jurisdiction cont.
(cont.) Civil Suit No S5-22-224-89 did not proceed to trial. The matter was settled out of court on 23
October 1996 whereby the plaintiff obtained a sum of RM150,000. The defendant sought for a refund of
the sum inclusive of interest. The plaintiff filed an originating summons to declare that on a true and proper
construction of the undertaking given by the plaintiff’s solicitors, the defendant is not entitled to be paid
the sum. The issue of interest of the sum also arose for the court’s consideration.
◦ Held, dismissing the application:
Messrs Skrine & Co must abide by their undertaking to the defendant. To say that the settlement out of
court was outside the purview of the undertaking would prevent the course of justice. The undertaking was
very clear in its terms. There was no necessity for adjudication and there was no need to proceed to full
trial in order to be successful in the plaintiffs’ endeavour in regard to Civil Suit No S5-22-224-89. in
drafting the settlement out of court, there was no attempt to incorporate the requirement for payment of an
equivalent sum back to the Malaysian Bar so that the plaintiff will not (cont. next page)
14
3. Summary Jurisdiction cont.
(cont.) obtain double recovery (see p 166E-F). Section 80(13) of the Legal Profession Act 1976 states, inter
alia, that the income derived from the compensation fund shall be exempted from income and all other
taxes and there was thus no necessity to demand interest from M/s Skrine & Co (see pp 166I-167A).
15
3. Summary Jurisdiction cont.
Bank Kerjasama Rakyat Malaysia Bhd v Tetuan Haranay, Rono & Anikah & Ors [1999]
◦ Whether extrinsic evidence must be ignored in construing terms of undertaking.
◦ The defendants had, in their capacity as solicitors for one Ahmad Padli, written to the plaintiff,
requesting the plaintiff not to proceed further with the auction of the goods of Ahmad Padli and gave to
the plaintiff an undertaking to pay the sum of RM26,000 within six months from the date of the letter.
◦ However, the defendants had failed to honour their undertaking. Hence this application. The defendants
opposed this application and in doing so filed an affidavit (‘Abdul Roni’s affidavit’) in opposition.
Paragraph 6 of Abdul Roni’s affidavit explained the circumstances in which the undertaking was given.
16
3. Summary Jurisdiction cont.
◦ Based on Abdul Roni’s affidavit, counsel for the defendants raised two grounds to oppose the plaintiff’s
application, namely that:
a) The undertaking was in fact a conditional one as it was given upon an agreement or assurance of the
plaintiff’s credit officer that it would not be enforced until Ahmad Padli received his commission from
sale of a piece of land; and
b) The allegation in para 6 of Abdul Roni’s affidavit had not been denied, refund or replied to by the
plaintiff by reason whereof the plaintiff must be taken as accepting the allegation and if so, there is
clearly a dispute as to the enforceability of the undertaking.
◦ Counsel for the plaintiff, in reply to the first ground, submitted that the court should not look outside the
document or import extrinsic evidence to contradict the very clear and unambiguous terms of the
undertaking.
17
3. Summary Jurisdiction cont.
18
3. Summary Jurisdiction cont.
19
3. Summary Jurisdiction cont.
21
3. Summary Jurisdiction cont.
Re David Marshall; Law Society of Singapore v David Saul Marshall [1972]
◦ The respondent, a senior advocate and solicitor of the Supreme Court, acted for the managing editor
and three other employees of the Nanyang Siang Pau, a Chinese language daily newspaper, in their
applications for habeas corpus to the High Court.
◦ The affidavits in support of the habeas corpus applications were affirmed by the four applicants and
these were filed in the registry of the Supreme Court. The habeas corpus applications were fixed for
hearing on May 26, 1971. At the hearing, these applications were adjourned to June 7, 1971. Both
the Attorney-General who appeared for the Government and the respondent were requested to see
the Chief Justice in his chambers. Whilst in the Chief Justice’s chambers, the Attorney-General
intending to prevent publication of the affidavits before the hearing fixed on June 7, 1971, drew the
attention of the Chief Justice to the fact that affidavits and their contents had a habit of being leaked
out to the press and the public at large before the hearing. The respondent thereupon volunteered an
oral undertaking in the following terms:
“The Attorney-General need have no anxiety about our office because we never give any pleadings to the press before trial and I
can assure you that neither I nor my office have given these affidavits to them for publication.” 22
3. Summary Jurisdiction cont.
◦ The respondent, however, before June 7, 1971 sent: (a) five sets of the affidavits together with
explanatory documents by registered post to the Secretary-General of Amnesty International; (b) two sets
of the affidavits to Sir Elwyn Jones Q.C.; (c) one set of the affidavits to Mr. Harold Ebens, the editor of
the London Sunday Times.
◦ All the affidavits sent to the persons above (except one) had the headings deleted and the words
“Instructions to Counsel” substituted. The jurats of these affidavits were also deleted.
23
3. Summary Jurisdiction cont.
◦ On June 4, 1971, the Chief Justice ordered certain portions of these affidavits to be struck out. The
disciplinary committee on the above facts held that the respondent’s undertaking given to the Attorney-
General in the presence of the Chief Justice, was a general undertaking not to release the affidavits to the
press. This undertaking was given by the respondent in his professional capacity, and the respondent had,
therefore, committed a breach of the undertaking in sending the contents of the affidavits to the persons
mentioned above. On reference to the court, held:
a) It was clear beyond any real doubt that the respondent meant the undertaking to be understood by the
Attorney-General that neither the respondent nor his office would be a party to the contents of the
affidavits being made available to the “press’ using the expression “press” in its generally accepted
connotation without any qualification whatsoever;
b) It was plain from the disciplinary committee’s report and the facts that the respondent acted with
premeditation and deliberation and the inference can clearly be drawn that he must have foreseen that one
of the consequences of his making available to the press the contents of the affidavits was the likelihood
of the contents being published in the news media;
24
3. Summary Jurisdiction cont.
c) The test of what constitutes “grossly improper conduct in the discharge of his professional duties” has
been laid down in many cases to mean conduct which is dishonourable to him as a man and
dishonourable in his profession. Applying that test and taking into consideration the fact that the
respondent was a leading member of the legal profession in Singapore, that the undertaking was given
to the Attorney-General in the presence of the Chief Justice, that the matter had aroused considerable
public interest and the interest of journalists and pressman all over the world, and the fact that the legal
profession here must be zealous and constantly endeavour to uphold its standing in the community by
strict adherence to the ethics and etiquette accepted as binding by the profession on its members; the
respondent should be suspended from practice for a period of six months, the period of suspension to
commence from the date of the order.
25
4. Defences Available Against Enforcement of
Undertaking
i. Undertaking Given by Mistake
◦ It must be shown that the solicitor was not aware of the extent of the undertaking and it was given by
mistake.
26
4. Defences Available Against Enforcement of
Undertaking cont.
Tunku Ismail bin Tunku Md Jewa & Anor v Tetuan Hisham, Sobri & Kadir [1989]
◦ The plaintiffs as administrators of an estate sold to the purchasers a piece of land for $1,038,228. the
defendants were solicitors acting for purchasers and the bank.
◦ On 16 January 1985, the defendants wrote to the plaintiffs’ solicitors, undertaking to pay $450,000 and
provide a continuing and irrevocable banker’s guarantee for $435,305.20 upon the plaintiffs’ solicitors
providing the necessary documents and registration of the transfer. The documents were forwarded and
the land was duly registered in the purchaser’s name on 29 January 1985. The sum of $450,000 was paid
but despite requests the defendants failed to furnish the guarantee.
◦ The plaintiffs alleged breach of the undertaking and applied to enforce it. The defendants denied liability
on several grounds; firstly, that the undertaking was ambiguous in that the terms and conditions of the
guarantee were not stated; secondly, that the legal assistant who carried on the day-to-day business of the
branch of the firm in Alor Setar had no actual or ostensible authority to bind the principals; thirdly, the
undertaking was given by mistake in that the legal (cont. next page)
27
4. Defences Available Against Enforcement of
Undertaking cont.
(cont.) assistant was mistaken into believing that the bank was going to issue the guarantee; fourthly, that
the undertaking became impossible to comply; fifthly, that the undertaking was a matter which should not
be dealt with summarily as there were issues which should go for trial.
◦ Held, allowing the plaintiff’s application:
a) The defendants had wanted to register the memorandum of transfer and charge before paying the full
price to the plaintiffs because the bank would not release the loan until the charge was registered. To
achieve this, the defendants had to give the necessary usual undertakings which was elementary
conveyancing practice under the Torrens system. The plaintiffs’ solicitors had in their letter acceded to
the defendants’ request for the necessary documents and clearly stated that the guarantee was to be
made in favour of the plaintiffs and payable upon delivery of vacant possession. Any banker’s
guarantee would be sufficient. On the facts, the defendants’ undertaking was clear, unqualified and
unequivocal.
28
4. Defences Available Against Enforcement of
Undertaking cont.
b) The onus of providing ostensible authority rested with the plaintiffs. There can only be ostensible
authority to give an undertaking of a kind which was in the ordinary course of a solicitor’s business. It
was crystal clear that the undertaking in question was within the ordinary course of a solicitors’ business
that no further proof is required. The undertaking was necessary for the completion of the documentation
and registration of the charge which was undertaken by the defendants as solicitors for the bank.
c) An undertaking would not be enforced if the court is satisfied that the mistake went further than what a
solicitor intended or was aware of. In the present case, the solicitor knew the nature and effect of the
undertaking and was merely taking risks in giving the undertaking when the guarantee had not come into
his hands.
d) The undertaking had not become impossible to perform as the guarantee could be obtained from any
bank and expressed to be payable upon delivery of vacant possession.
e) A court could exercise summary jurisdiction over solicitors and it extended so far that if a solicitor gave
an undertaking in his capacity as a solicitor, the court may order him to perform his undertaking
straightaway. This jurisdiction should however be exercised in a clear case.
29
5. Undertaking Impossible to Perform
Re A Solicitor [1966]
◦ The court held that the lease i.e. the subject matter of undertaking, was already forfeited.
Tunku Ismail bin Tunku Md Jewa & Anor v Tetuan Hisham, Sobri & Kadir [1989]
◦ The plaintiffs as administrators of an estate sold to the purchasers a piece of land for $1,038,228. the
defendants were solicitors acting for purchasers and the bank.
◦ On 16 January 1985, the defendants wrote to the plaintiffs’ solicitors, undertaking to pay $450,000 and
provide a continuing and irrevocable banker’s guarantee for $435,305.20 upon the plaintiffs’ solicitors
providing the necessary documents and registration of the transfer. The documents were forwarded and
the land was duly registered in the purchaser’s name on 29 January 1985. The sum of $450,000 was paid
but despite requests the defendants failed to furnish the guarantee.
30
5. Undertaking Impossible to Perform cont.
◦ The plaintiffs alleged breach of the undertaking and applied to enforce it. The defendants denied liability
on several grounds; firstly, that the undertaking was ambiguous in that the terms and conditions of the
guarantee were not stated; secondly, that the legal assistant who carried on the day-to-day business of the
branch of the firm in Alor Setar had no actual or ostensible authority to bind the principals; thirdly, the
undertaking was given by mistake in that the legal assistant was mistaken into believing that the bank
was going to issue the guarantee; fourthly, that the undertaking became impossible to comply; fifthly,
that the undertaking was a matter which should not be dealt with summarily as there were issues which
should go for trial.
31
5. Undertaking Impossible to Perform cont.
c) An undertaking would not be enforced if the court is satisfied that the mistake went further than what a
solicitor intended or was aware of. In the present case, the solicitor knew the nature and effect of the
undertaking and was merely taking risks in giving the undertaking when the guarantee had not come
into his hands.
d) The undertaking had not become impossible to perform as the guarantee could be obtained from any
bank and expressed to be payable upon delivery of vacant possession.
e) A court could exercise summary jurisdiction over solicitors and it extended so far that if a solicitor gave
an undertaking in his capacity as a solicitor, the court may order him to perform his undertaking
straightaway. This jurisdiction should however be exercised in a clear case.
33