Allison v Road Accident Fund (2975/2021) [2022] ZAECMKHC 52 (23 August 2022)

Allison v Road Accident Fund (2975/2021) [2022] ZAECMKHC 52 (23 August 2022)

The court found that the contingency fees agreement did not set out the attorney's normal fees as required by section 2(1)(b) of the Contingency Fees Act, 66 of 1997. The agreement merely referred to 'normal fees prevailing from time to time' without specifying the actual amount or basis for calculation. Strict compliance with the Act is mandatory, and failure to set out the normal fees renders the agreement invalid and unenforceable. The court declared the contingency fees agreement invalid and ordered that the plaintiff's attorney is entitled to fees on an attorney and own client basis for services rendered.

Citation
[2022] ZAECMKHC 52
Parties
Plaintiff: Lynn Monique Allison (Olivier); Defendant: Road Accident Fund
Court
Eastern Cape High Court, Makhanda
Jurisdiction
South Africa
Judgment Date
23 August 2022
Case Number
2975/2021
Procedural Posture
Civil Action / Judgment After Settlement and Review of Contingency Fees Agreement
Outcome
The contingency fees agreement is declared invalid and unenforceable. The plaintiff's attorney is entitled to fees on an attorney and own client basis.
Judges
Bloem
Legal Topics
Contingency Fees Act, Attorney Client Fees, Invalid Agreement, Road Accident Fund Claim
Civil Procedure Contingency Fees Act Attorney Client Fees Invalid Agreement Road Accident Fund Claim

Case Brief

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Parties

Lynn Monique Allison (Olivier)

Plaintiff

Road Accident Fund

Defendant

Procedural Posture

Civil Action / Judgment After Settlement and Review of Contingency Fees Agreement

Legal Issues

  1. 1 Whether the contingency fees agreement complies with section 2(1)(b) of the Contingency Fees Act, 66 of 1997.
  2. 2 Whether the attorney's normal fees are properly set out in the agreement as required by law.
  3. 3 Whether the contingency fees agreement is valid and enforceable.

Ratio Decidendi

The court found that the contingency fees agreement did not set out the attorney's normal fees as required by section 2(1)(b) of the Contingency Fees Act, 66 of 1997. The agreement merely referred to 'normal fees prevailing from time to time' without specifying the actual amount or basis for calculation. Strict compliance with the Act is mandatory, and failure to set out the normal fees renders the agreement invalid and unenforceable. The court declared the contingency fees agreement invalid and ordered that the plaintiff's attorney is entitled to fees on an attorney and own client basis for services rendered.

Court Disposition

The contingency fees agreement is declared invalid and unenforceable. The plaintiff's attorney is entitled to fees on an attorney and own client basis.

Orders

  • The contingency fees agreement concluded on 19 February 2019 between Lucille Ronelle Allison, on behalf of Lynn Monique Allison, and MA Fredericks & Associates is declared invalid and unenforceable.
  • The plaintiff's attorney is entitled, in relation to services rendered by him to the plaintiff in connection with proceedings under the above case number, to fees on an attorney and own client basis.