Failed Legco candidate and solicitor Helen Chung Yee-fong's conduct was condemned by a judge yesterday as underhanded and an affront to the court. The comments were made before the Court of Appeal rejected her challenge to an order that she pay court costs. Mr Justice Michael Hartmann made the order in June after concluding that she had used one of her companies to make a fraudulent agreement on a flat sale. Ms Chung campaigned as 'The Lady Lawyer' in a failed attempt to win a Legco seat for the Kowloon West geographical constituency. In the original case, Panlead Development Limited sued Ms Chung in the Court of First Instance for damages and the return of its deposit. On June 28, 1992, Panlead had paid Ms Chung a $200,000 deposit after signing an agreement to buy her Braemar Hill Mansion flat and carport for $4.8 million. But Panlead discovered an agreement to buy the flat was still outstanding with a firm called Sarrayo Investment Company Limited. When Panlead suggested its deposit be held in trust until the matter was resolved, Ms Chung accused it of breaching its agreement and said it had forfeited the deposit. More than a year later Ms Chung agreed to sell the flat to another buyer for $6.45 million. But the Sarrayo documents were still in her way. Ms Chung overcame the problem by arranging for a company she controlled to change its name from Obion Limited to Sarrayo Investment Company Limited. She used it to cancel the agreement of sale and refund the deposit, signing the document on behalf of herself and the buyer. 'She had to know this was a fraudulent agreement,' Mr Justice Gerald Nazareth said yesterday. Mr Justice Benjamin Liu Tsz-ming said the solicitor's conduct was 'underhanded' and 'an affront which provoked the court's indignation'. Mr Justice Nazareth, Mr Justice Liu and Mr Justice Arthur Leong Shiu-chung dismissed her appeal.