Cherie Blair has lost an appeal seeking permission to represent a Malaysian client after judges insisted that local lawyers were up to the job.

A panel of five judges at Malaysia’s Federal Court unanimously dismissed the appeal by Mrs Blair, known professionally as Cherie Booth, QC.

"We agreed with the opinion of the High Court judge that such expertise is available among local advocates and solicitors," Chief Justice Ahmad Fairuz Sheikh Abdul Halim, who led the panel, said.

Mrs Blair, a leading human rights lawyer, was instructed by Fawziah Holdings, a Malaysian business, in an £80 million dispute with local rival Metramac over the design, construction and financing of roads in Kuala Lumpur.

Her appointment, opposed by businessmen and lawyers including the Attorney-General of Malaysia, was blocked by the Malaysian High Court on June 7.

The High Court and Federal Court agreed with arguments that it was unreasonable to claim that Mrs Blair’s expertise is needed to fight the case.

In papers submitted to the court one local lawyer said: "Although the applicant does possess impressive credentials and is an eminent Queen’s Counsel, she does not specialise, nor has she distinguished herself, in the particular areas of law that will be adjudicated upon before the federal court."

Lawyers said privately that the brief appeared to be capitalising on the names of Mrs Blair and her husband, The Prime Minister, as much as any relevant legal expertise she has.

Mrs Blair, known chiefly as a human rights lawyer, provoked controversy last year when she delivered a speech on the subject in Malaysia, a country whose human rights record has come under fire.

Peter Skelcy, of Chea Teh & Su, solicitors for Metramac, said it was "preposterous" for Fawziah Holdings to argue that it needed Mrs Blair’s advice when there are enough senior lawyers in Malaysia with the skills and expertise necessary to advance their case.

He said in a submission to the court: "The applicant has failed to exhibit any experience, knowledge and/or understanding in the development of Malaysian jurisprudence with regard to the issues of law before the federal court."

In her application to the court, Mrs Blair outlined seven reported commercial cases in which she has appeared — dismissed by one local lawyer as "hardly an outstanding achievement for a barrister of 30 years’ standing and a QC of 11 years’ standing".

British lawyers are occasionally instructed in the Malaysian courts, but only when their expertise means that they are the best-qualified for the brief.

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