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South Africa Judgment

Limpopo High Court, Polokwane

M.DV v C.DV (521/2022) [2023] ZALMPPHC 28 (5 June 2023)

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Professional case brief

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Source document

01

Holding and result

The court found that while Ms. Visagie did obtain confidential information about the applicant during her employment at Bosman Attorneys, there was no evidence that such information was being passed within DDKK Inc. or that Ms. Visagie discussed the matter with the attorney handling the respondent’s case. The applicant’s apprehension of harm was unsubstantiated and amounted to a mere perception, which is insufficient to restrain a firm from representing a client. The court held that the code of conduct does not extend the prohibition to the entire firm, but only to the specific legal practitioner with privileged information. The applicant failed to establish the requirements for a final interdict, particularly the existence of injury or reasonable apprehension of injury. The application was therefore dismissed.

Court disposition

Application dismissed with costs, including costs of counsel.

Orders

  • The application is dismissed with costs, which include costs of counsel.

02

Material facts

Parties

M.DV

Applicant Counsel: Mr Bosman

C.DV

Respondent Counsel: Advocate S S Green

03

Procedural history

  1. Posture

    Urgent Application / Application for Declaratory and Interdictory Relief

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contends that DDKK Inc. has a conflict of interest because it employs Ms. Visagie, who previously obtained confidential information about the applicant while at Bosman Attorneys. The applicant argues that the Legal Practice Council’s code of conduct prohibits such conduct and that the entire firm should be barred from acting against a former client of an attorney who has joined the firm. The applicant asserts that confidential information may be passed within DDKK Inc., creating a risk of prejudice.
Respondent
The respondent argues that the code of conduct prohibits only the specific legal practitioner with privileged information from acting against a former client, not the entire firm. The respondent submits that Ms. Visagie has not discussed the case with the attorney handling the matter at DDKK Inc. and has given an undertaking not to do so. The respondent contends that barring the entire firm would unreasonably limit both the firm and clients’ rights to legal representation. The respondent further argues that the applicant has not proven any actual or reasonably apprehended injury.

05

Court’s reasoning

  1. 01

    Legal Practice Act 28 of 2014

    Legal practitioners must adhere to the code of conduct developed by the Legal Practice Council, which governs conflicts of interest and professional conduct.

  2. 02

    S[...] v S[...] 1914 AD 221 at 227

    A final interdict requires proof of a clear right, injury actually committed or reasonably apprehended, and the absence of similar protection by any other ordinary remedy.

06

Ratio, limits and disposition

Ratio decidendi

The court found that while Ms. Visagie did obtain confidential information about the applicant during her employment at Bosman Attorneys, there was no evidence that such information was being passed within DDKK Inc. or that Ms. Visagie discussed the matter with the attorney handling the respondent’s case. The applicant’s apprehension of harm was unsubstantiated and amounted to a mere perception, which is insufficient to restrain a firm from representing a client. The court held that the code of conduct does not extend the prohibition to the entire firm, but only to the specific legal practitioner with privileged information. The applicant failed to establish the requirements for a final interdict, particularly the existence of injury or reasonable apprehension of injury. The application was therefore dismissed.

Obiter and limits

  • The applicant did not address the client’s right to choose a law firm of her preference, nor the practical absurdity that would result if a firm had to withdraw from all matters involving an opposing party due to hiring a new attorney.
  • The relief sought was flawed as DDKK Inc. was not cited as a party to the proceedings, undermining the foundation of the application.

Court disposition

Application dismissed with costs, including costs of counsel.

  • The application is dismissed with costs, which include costs of counsel.

Source and reliance status

Limpopo High Court, Polokwane

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Judgment text

The complete available source text.

Source document

Limpopo High Court, Polokwane

Judgment

[2023] ZALMPPHC 28

SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy

REPUBLIC OF SOUTH AFRICA

IN THE HIGH COURT OF SOUTH AFRICA

LIMPOPO DIVISION, POLOKWANE

Case Number: 521/2022

REPORTABLE: NO

OF INTEREST TO OTHER JUDGES: NO

REVISED: NO

Date:5/6/2023

In the matter between:

M.DV

APPLICANT And C.DV

RESPONDENT

JUDGMENT

MTHIMKULU SS AJ:

Introduction

[1] The parties before court are married to each other and there are currently divorce proceedings pending between them. The applicant is and has always been represented by Bosman Attorneys in the divorce proceedings. The respondent is represented by DDKK Inc. Ms. Visagie, an attorney by profession and was in the employ of Bosman Attorneys, and assisted in the divorce matter concerning the applicant. On or about July 2022, Ms. Visagie left the employ of Bosman Attorneys and took up employment as an attorney with DDKK Inc.

[2] The applicant in this application seeks a declaratory order in the following terms;

(a) That DDKK Inc., being the attorneys of record acting on behalf of the respondent, be declared to have a conflict of interest in the matter (to wit, the divorce matter).

(b) That DDKK Inc., be barred from acting as attorneys of record in this matter.

(c) That the respondent, alternatively DDKK Inc. be ordered to pay the costs of this application.

[3] It is common cause between the parties that Ms. Visagie was in the employ of Bosman Attorneys as an attorney and whilst so employed,

dealt with the divorce matter pertaining to the parties. It also common cause that she obtained confidential information from the

applicant, while employed at Bosman Attorneys.

[4] What is in dispute in this application is whether Ms. Visagie, who is now in the employ of DDKK Inc., will have a conflict of interest in the matter. The main issue for determination, is whether an attorney who obtained confidential knowledge from one party while acting as his attorney, should be allowed to act on behalf of the opposition party, relating to the same matter. The applicant further raises the issue of whether the attorneys acting on behalf of the respondent can in fact act as such.

Conflict of interest:

[5] In its application the applicant makes the following submissions:

(a) That DDKK Inc. has a conflict of interest in the divorce matter because it employed Ms. Visagie as a practising attorney in its firm, while she had received confidential knowledge or information about the affairs of the applicant when she was employed at Bosman Attorneys.

(b) That the conduct by DDKK Inc. is prohibited in terms of the Legal Practice Council’s code of conduct.

(c) That DDKK Inc. does not dispute that Ms. Visagie has information relating to the matter but states that she will not divulge any of the information relating to the divorce matter or any other matter she became privy to whilst she was employed at Bosman Attorneys.

[6] The court was referred to the Legal Practice Act[1] which governs the conduct of legal practitioners and regulates the legal profession, in the public interest, by means of a single

statute. The argument by the applicant, which argument this court accepts as correct, is that failure to adhere to this conduct by legal practitioners or by law firms constitutes misconduct.

[7] Section 36(1) of the Legal Practice Act provides that the Council must develop a code of conduct that applies to all legal practitioners and all candidate legal practitioners and may review and amend such code of conduct.

[8] In opposing this application, the respondent made the following submissions:

(a) That section 63.1.1 of the code of conduct states “…..the legal practitioner may not act in any proceedings in which the prejudiced client is a party.”

(b) That the interpretation of “legal practitioner” should not be understood to mean the entire “firm of attorneys”. That an entire firm of attorneys cannot be barred from acting against a former client of a legal practitioner, tainted with privileged information, who has joined the firm.

(c) The respondent further submits that if the legal practitioner dealing with a matter is not the legal practitioner with the privileged

information, there can be no possibility or probability of a conflict of interest.

(d) A compelling argument is advanced by the respondent that it is unreasonable and unrealistic to expect that a firm, after having

employed a new attorney will have to withdraw as attorneys of record for all the matters where it is the opposing party, just because the new employee was involved in certain matters or was employed by the opposing party’s firm. To allow this would unreasonably limit the firm as well as the clients’ rights with regards to legal representation and choosing their preferred legal representatives.

[9] The respondent further argued that since the applicant is seeking a final interdict, he has failed to prove that he will suffer injury if the said order is not granted by this court.

[10] From the afore-going it is apparent that the relief sought by the applicant is a final interdict. The requirements for a final interdict are trite. These are:

(a) A clear right;

(b) an injury actually committed or reasonably apprehended; and

(c) the absence of similar protection by any other ordinary remedy.[2]

[11] As indicated earlier, one of the elements of the right foundational to the relief sought by the applicant is that Ms. Visagie received

confidential information pertaining to the divorce matter concerning the applicant, whilst she was employed at Bosman Attorneys. The respondent does not dispute that Ms. Visagie received confidential information during her tenure as an attorney at Bosman Attorneys. The respondent however contends that, Ms. Visagie, has not discussed the case in question with the person dealing with the matter at the firm and has given her assurance that she will refrain from doing so.

[12] Furthermore, that she gave an undertaking in a letter sent to the applicant’s attorney of record prior to the application being brought to not discuss matters in which her erstwhile employer was involved in, with the attorneys of the respondent.

[13] The applicant seeks to suggest in its submissions that the term “legal practitioner” should be interpreted widely and be understood to mean an entire “firm of attorneys” and therefore the firm of attorneys being DDKK Inc., cannot act against a former client of a legal practitioner, tainted with privileged information, who has joined the firm.

Is there injury or reasonable apprehension of injury proved?

[14] The applicant contends that when Ms. Visagie is at DDKK Inc. information is being passed within the firm. This contention by the applicant is not substantiated by any tangible evidence to the effect that information is being passed within the firm, especially with regards to this matter. In fact, the applicant’s case is framed in broad terms and it is difficult to discern from the papers what information is referred to as being passed within the firm and to then assess whether such information is indeed confidential.

[15] The applicant also does not make out a case to convince the court that Ms. Visagie discussed the divorce with the person assigned to deal with the matter at DDKK Inc. The contention that when Ms. Visagie is at the firm, information is being passed within the firm is a mere perception. The applicant’s apprehension of suffering harm remains unsubstantiated. A mere perception or probability is not enough to restrain a firm from representing a client, especially if the legal practitioner within the firm dealing with the matter is not privy to the privileged information that may be detrimental to the opposing client’s case.

[16] Moreover, the applicant in its application does not address an important factor which requires consideration, relating to the client’s right to choose a law firm of her preference. Neither does the applicant address the absurdity that would occur if a law firm, after employing a new attorney, would have to withdraw as attorneys of record for all the matters, where it is the opposing party because the new employee was involved in some of the matters or was employed by the opposing party’s firm.

[17] I am not satisfied that a proper case has been made out for the order sought.

[18] It is regrettable that the order sought is against DDKK Inc. but the applicant in this application elected not to cite DDKK Inc. as a party to these proceedings. The relief sought by the applicant is flawed and has no solid foundation in law.

Conclusion:

[19] The applicant has failed to make out a case for the relief sought, and consequently the application falls to be dismissed.

Order:

[20] The application is dismissed with costs, which include costs of counsel.

SS MTHIMKULU

ACTING JUDGE OF THE HIGH COURT

This judgment was handed down electronically by circulation to the parties’ representatives by email. The date and time for hand-down is deemed to be 16h00pm on 05 June 2023.

DATE OF HEARING: 05/22/23

DATE JUDGMENT DELIVERED: 06/05/23 APPEARANCES: Attorney for the Applicant: Bosman Attorneys Counsel for the Applicant: Mr Bosman fourie@bosmanattorneys.com Attorney for the First Respondent:

DDKK Attorneys Counsel for the First Respondent: Advocate S S Green mdk@ddkk.co.za

[1] 28 of 2014.

[2] S[...] v S[...] 1914 AD 221 at 227.

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

S[...] v S[...] 1914 AD 221 at 227

Case cited

Legal Practice Act 28 of 2014

Legislation

Legislation referenced in the available case record.

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