High Court sets aside law firm’s RM1.55mil fee agreement with 203 clients

The Kuala Lumpur High Court has overturned a RM1.55 million fee agreement between a law firm and 203 clients in an investment case, deeming it not fairly obtained and containing unreasonable terms. Judicial Commissioner Nixon Kennedy Kumbong ordered all 18 legal bills issued by Jerald Gomez & Associates to be taxed as if there had been no agreement, directing the High Court registrar to assess the exact amount of legal costs or fees owed.

The taxpayers, who were investors, suffered substantial financial losses in an investment scheme linked to MYAirline co-founder Goh Hwan Hua. The law firm conducted preliminary investigations and filed a writ on behalf of the plaintiffs. The plaintiffs had challenged the terms of engagement signed on January 16, 2024, alleging overstaffing, duplication of work, and the absence of contemporaneous time records.

The court ruled the agreement to be set aside and directed the firm to refund any amount exceeding the taxed sum within 30 days of the certificate of taxation.