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When you bring a legal action against your opponent and you succeeded in the suit, can you ask your opponent to pay your legal fees? 

  1. It is a common question asked by most of our clients, can they recover the “lawyer’s fees” from the opponent. The answer is NO. 
  1. The costs awarded by the Court is only a party-and-party costs and not solicitors-and-client costs. 
  1. A successful party cannot be given costs of the action by way of damages: -
    1. Cockburn v. Edwards (1881) 18 CH D. 449, Jessel, M.R. held at page 459 that: - 
      “The most important point is as to the costs as between solicitor and client. I am of opinion that it is not according to law to give to a party by way of damages the costs as between solicitor and client of the litigation in which the damages are recovered. The law gives a successful litigant his costs as between party and party, and he cannot be said to sustain damage by not getting them as between solicitor and client. I have conferred with my colleagues as to the damages, and we agree to fix them at £10.”
    2. Kambang Srantau Sdn. Bhd. V. YBK Usahasama Sdn. Bhd. [2017] MLJU 2165, the court held that legal fees is not claimable as part of the damages. See also: Sunseekeers Pte Ltd v JSH Joshua [1990] 3 CLJ (Rep) 979; and Carroll v Kynaston [2010] EWCA Civ 1404.
    3. Legal costs of an action is distinct from damages. See: Sadiah Ismail v. Ong Suan & anor [1999] 5 CLJ 250 at 252.

    4. In The Quartz Hill Consolidated Gold Mining Company v. Eyre (1883) 11 QBD 674, Brett M.R. held at 682 and 683 that: -
      “The present action is in tort, and in order to support it the plaintiff company must have sustained some damage such as the law takes notice of. I assent to the objection taken by the defendant’s counsel that the obligation to pay extra costs is not damage of that kind. The theory of extra costs is that they are not necessary to the purposes of the party who has incurred them. When the costs are taxed as against the losing party in the litigation, he is bound to pay only what are called technically “the costs between party and party;” and the successful party is left to pay what are called technically “the extra costs.” The theory is that the costs which the losing party is bound to pay, are all that were necessarily incurred by the successful party in the litigation, and that it is right to compel him to pay those costs because they have been caused by his unjust litigation; but that those which are called “extra costs,” not being necessarily incurred by the successful party in order to maintain his case, are not incurred by reason of the unjust litigation. It may be quite reasonable as between the successful party and his solicitor that the “extra costs” should be paid to that solicitor; but it is unreasonable that the losing party should pay them, they not having been caused by his litigation. If this be taken to be the reason why “extra costs” are not allowed upon taxation, it is obviously immaterial whether or not the litigation was false and malicious and without reasonable or probable cause; the “extra costs” are not damage caused by the unjust litigation, and therefore they are not damage for which an action will lie.”

 

  1. If it is caused by unjust litigation, then the position could be different. The following authorities explain the position: -
    1. Halsbury’s Laws of England (4th Ed) at para 1120 as: -
      “Where, as a result of the defendant’s wrong, the plaintiff has incurred costs in other proceedings, the plaintiff may, subject to the rules of remoteness, recover those costs from the defendant as damages.”
    2. McGregor on Damages (15th Ed), at para 709 as:
      “Where the now plaintiff has unsuccessfully but reasonably defended an action against him he will generally recover, as well as damages he has been adjudged to pay the third party suing him, the taxed costs he has had to pay him and his own costs of defending the action taxed as between solicitor-and-client.”
  1. It is worthwhile to equip yourself with the knowledge of “costs” before you decide whether to sue your opponent, as the costs awarded by the Court generally will not be able to cover the legal fees expended by you.

 

 

For more information, please do not hesitate to contact us at 03-23001299 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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