SINGAPORE Law and Practice Contributed by: Foo Yuet Min, Kong Man Er, Shumin Lin and See Chern Yang, Drew & Napier LLC
2.5 Types of Costs Considered Under Third-Party Funding A third-party funder will consider funding solici- tor-and-client costs, party-and-party costs and other costs incurred in the conduct of the matter. 2.6 Contingency Fees Conditional fee agreements may be made in respect of arbitration proceedings and certain SICC proceedings and related mediation and court proceedings. Such agreements may pro- vide for all or part of the lawyers’ remuneration and costs, including any uplift in fees, to be payable only upon specified circumstances or pre-agreed outcomes in the dispute. Pure con- tingency fee arrangements, whereby lawyers get paid an agreed percentage of the sum or dam- ages claimed, remain impermissible. 2.7 Time Limit for Obtaining Third-Party Funding There are no time limits for obtaining third-party funding. Where both parties are represented by lawyers before proceedings start, the claimant’s law- yers must first enquire whether the defendant’s lawyers have instructions to accept service on behalf of their client. If the defendant’s lawyers do not confirm that they have such instructions within three working days, the claimant’s lawyers can serve the originating process court papers on the defendant directly. Before starting an action, a prospective claim- ant should have a letter of demand sent to the prospective defendant to give an opportunity for 3. Initiating a Lawsuit 3.1 Rules on Pre-action Conduct
SGD5 million or not less than SGD5 million in managed assets. Lawyers are obliged to disclose the existence of any funding arrangement and the identity of the funder to the relevant court or tribunal, and to every other party to the proceedings. Lawyers and law practices are prohibited from holding any financial or other interests in, or receiving commissions, fees or shares of pro- ceeds from, the funder they have introduced to their clients or that has funding contracts with their clients. 2.2 Third-Party Funding: Lawsuits Third-party funding is allowed for arbitration and related court or mediation proceedings, proceedings commenced in the SICC or appeal proceedings arising from any decision made in proceedings commenced in the SICC, for so long as such proceedings remain in the SICC, related mediation proceedings and certain insol- vency matters. 2.3 Third-Party Funding for Plaintiff and Defendant Third-party funding is available to both claimants and defendants, although in practice funding is unlikely to be available or offered to defend- ants except where a substantial counterclaim is involved. 2.4 Minimum and Maximum Amounts of Third-Party Funding There is no minimum or maximum statutory limit on the amount of third-party funding.
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