City Law denies having advised claimant in ‘99-to-1’ lawsuit

THE law firm that is being sued over two “99-to-1” property deals – alongside mainboard-listed PropNex’s subsidiary and its agent – disputed having advised the claimant that these transactions were legal and valid.

City Law is contesting all the allegations, including of being negligent and breaching its duty of care to the claimant Melvin Li in his purchases of a 1 per cent interest in his parents’ newly bought properties that the firm handled.

In its defence filed on Friday (Mar 7), City Law claimed that it only assisted in the conveyancing of the property transactions. The scope of its work did not include advising on the legality or potential implications of the “99-to-1” arrangement.

Represented by Dentons Rodyk & Davidson in this lawsuit, City Law alleged that Li had already chosen to structure the transactions in the “99-to-1” manner even before the firm became involved. Neither the claimant nor his parents had informed the firm of their reasons for such a structure.

Li is suing PropNex Realty, its agent Ian Sng and City Law for about S$1.2 million after he was made to top up the Additional Buyer’s Stamp Duty (ABSD) and pay surcharges imposed by the Inland Revenue Authority of Singapore (Iras) for his purchases of a 1 per cent interest in each of his parents’ condominium apartments.