M and Others v Wim Krynauw Incorporated and Others (41450/2017) [2018] ZAGPJHC 489 (19 September 2018)

M and Others v Wim Krynauw Incorporated and Others (41450/2017) [2018] ZAGPJHC 489 (19 September 2018)

The court found the contingency fee agreement between the third applicant and the first respondent invalid for non-compliance with the Contingency Fees Act, specifically because VAT was levied in addition to the success fee rather than being included. The respondents conceded the invalidity. The applicants' claim that they never received bills of cost was found to be false and misleading, as evidence showed they had received two sets of bills and distribution statements. The court held that the applicants were entitled to have the first respondent serve an attorney and own client bill of costs for all work done in respect of Z, which must be taxed, and any difference paid into the Z K...

Citation
[2018] ZAGPJHC 489
Parties
Applicant: M, G; Applicant: M, A; Applicant: K, N; Applicant: N, D; Respondent: Wim Krynauw Incorporated; Respondent: Krynauw, Wilhelm Johannes; Respondent: Coetzer, Johannes Bernardus van Aardt; Respondent: Nortje, Hein; Respondent: Bekker, Hendrik Johannes Stephanus (NO); Respondent: Law Society of the Northern Provinces; Respondent: Master of the High Court – Pretoria; Respondent: Member of the Executive Council for Health and Social Development of the Gauteng Provincial Government
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
19 September 2018
Case Number
41450/2017
Procedural Posture
Review Application / Judgment
Outcome
The contingency fee agreement is declared invalid. The first respondent is ordered to serve an attorney and own client bill of costs, with any difference paid into the Z K Trust. The Trust Deed is ordered to be amended. The matter is referred to the Department of Social Development for investigation. No order as to...
Judges
Windell
Legal Topics
Contingency Fee Agreement, Attorney and Client Bill of Costs, Trust Deed Amendment, Fiduciary Duties, Professional Conduct of Attorneys, Taxation of Costs
Civil Procedure Commercial and Corporate Family and Children Contingency Fee Agreement Attorney and Client Bill of Costs Trust Deed Amendment Fiduciary Duties Professional Conduct of Attorneys +1 more

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Parties

M, G

Applicant

M, A

Applicant

K, N

Applicant

N, D

Applicant

Wim Krynauw Incorporated

Respondent

Krynauw, Wilhelm Johannes

Respondent

Coetzer, Johannes Bernardus van Aardt

Respondent

Nortje, Hein

Respondent

Bekker, Hendrik Johannes Stephanus (NO)

Respondent

Law Society of the Northern Provinces

Respondent

Master of the High Court – Pretoria

Respondent

Member of the Executive Council for Health and Social Development of the Gauteng Provincial Government

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the contingency fee agreement between the applicants and the first respondent is valid and enforceable under the Contingency Fees Act.
  2. 2 Whether the first respondent properly accounted to the applicants for fees and disbursements deducted from the award.
  3. 3 Whether the Trust Deed of the Z K Trust complies with statutory and court order requirements and requires amendment.

Ratio Decidendi

The court found the contingency fee agreement between the third applicant and the first respondent invalid for non-compliance with the Contingency Fees Act, specifically because VAT was levied in addition to the success fee rather than being included. The respondents conceded the invalidity. The applicants' claim that they never received bills of cost was found to be false and misleading, as evidence showed they had received two sets of bills and distribution statements. The court held that the applicants were entitled to have the first respondent serve an attorney and own client bill of costs for all work done in respect of Z, which must be taxed, and any difference paid into the Z K...

Court Disposition

The contingency fee agreement is declared invalid. The first respondent is ordered to serve an attorney and own client bill of costs, with any difference paid into the Z K Trust. The Trust Deed is ordered to be amended. The matter is referred to the Department of Social Development for investigation. No order as to...

Orders

  • The contingency fee agreement entered into between the third applicant and the first respondent is declared invalid.
  • The first respondent is ordered to serve an attorney and own client Bill of Costs in respect of all work done in respect of Z and to make payment of the difference, if any, between the taxed fees and disbursements and the actual fees and disbursements deducted by Krynauw Attorneys in respect of work done in the case...