Below are several actual cases which also highlights various learning points that are simple, but often overlooked:

Case 1 – Investors sued a company and its lawyer when an investment scheme failed.
 
Case 2 – Purchaser sued vendor for a failed promise of investment returns.  Vendor brings in their lawyer as co-defendant for failing to advise the terms.  The lawyer merely drafted the agreement.
 
Case 3 – A person claiming to be the principal shareholder/beneficiary to a stockholder, sued the shareholders and their lawyer for unlawfully releasing a substantial fee to the broker.
 
Case 4 – A borrower sued a lender and their lawyer alleging harassment when demanding repayment of a loan which the borrower now denies its existence.
 
It is very important to list down a complete scope of work in detail and confirm it in writing with a client.  Any subsequent changes or additional work should also be promptly put in writing.  This will help if there is a dispute or even ambiguity in the future with the client.
 
At the same time, it is prudent to always confirm in writing (eg by letter/email) on any key points discussed, whether with the client or any other parties involved in the matter.
 
Verifying such instructions may be challenging while working remotely during the current pandemic lockdown, therefore, confirmations via email should be carefully scrutinized for possible cyber security issues, eg in case the email is hacked.  It is better to speak to the client directly on the mobile phone or in a virtual online meeting, and then confirm it in writing. 

Case 1 – Upon termination of an investment agreement, purchaser sued vendor and their lawyer for refund of the deposit which the lawyer released to the vendor, as it had no specific conditions on the same.
 
Case 2 – In a consultancy services agreement between a consultant (the client) and a company, the lawyer had immediately released the fees to the consultant, after receiving money from the company when the consultant failed to deliver the services.  The company sued the consultant and lawyer for refund of the fees paid under the consultancy services agreement.
 
Case 3 – As instructed in a supply contract, the lawyer released the purchase price to a 3^rd party manufacturer for the goods.  Due to non-delivery, the purchaser sued the supplier and the lawyer for damages and the purchase price paid.
 
Case 4 – Lawyer acted as stakeholder for an international transaction.  Monies transferred in USD exchanged into MYR.  The Client’s transaction did not materialize, and the lawyer proceeded to refund but exchanged from MYR to USD.  The amount was materially short due to the Forex loss.  Client demanded the lawyer to make good of the shortfall.
 
When drafting agreements, details such as how to manage stakeholder sum should be clearly stated and to be strictly adhered to.  If there are any changes, even if the instructions came from the client, it must be agreed to in writing by the relevant parties.

Case 1 – A lawyer acted for purchaser Mr X in a property SPA with vendor Ms B.  The lawyer never met Mr X, and received instructions only from Ms B (supposedly Mr X and Ms B know each other very well) including the disbursement of purchase price.  Mr X sued Ms B and the lawyer for the loss of the monies.
 
As lawyers, strict compliance with the statutory anti-money laundering and countering terrorism obligation is required.  Do not proceed any further until sufficient verifications to identify details of the client have been made.  This applies to individuals, corporate clients, and includes verifying the appropriate mandate or authority for any intermediary or representatives of the client.  This is a basic and essential way to avoid being unknowingly related to any sort of potential fraud or crime. 

Case 1 – The lawyer acted as stakeholder.  The lawyer was subsequently discharged over dispute on legal fees, but the lawyer retained stakeholder sum as fees.  Client sued lawyer for the return of the full stakeholder sum.
 
Disputes over legal fees and expenses are not covered by the Professional Indemnity Insurance Policy.   Therefore, it is crucial to communicate and confirm legal fees with the client in writing, before or in the early stages of providing service.  Any additional or revised fees should also be promptly confirmed in writing.  This issue may seem less important to some and hence overlooked on many occasions – until a dispute arises over legal fees, which can literally end any client relationship as a provider of legal services in the future.  
 
Finally, continue to keep your clients engaged and informed regularly, especially during this difficult time.  Update them regularly with the developments in the legal work you are doing for them, finding out their wellbeing and if you are able to offer any help.   Extend the extra mile for them and the effort can go a long way!
 
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