Shivambu and Another v FR Pandelani Inc (30053/2020) [2021] ZAGPJHC 745 (19 November 2021)

Shivambu and Another v FR Pandelani Inc (30053/2020) [2021] ZAGPJHC 745 (19 November 2021)

The court held that the respondent, as an attorney, is obligated under the Legal Practice Act to keep proper accounting records and to retain trust monies until services are rendered and a valid tax invoice is issued. The respondent failed to render a tax invoice for the services provided and did not keep the funds in trust as required. The applicants are entitled to an account and a tax invoice for the amount paid. The respondent must submit the tax invoice to the Legal Practice Council for taxation, and may only set off the amount taxed from the trust monies, paying any balance to the applicants. The respondent is ordered to pay the costs of the application.

Citation
[2021] ZAGPJHC 745
Parties
Applicant: Joseph Geophrey Shivambu; Applicant: Grace Hlamalani Chauke-Mohlomi; Respondent: FR Pandelani Inc
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
19 November 2021
Case Number
30053/2020
Procedural Posture
Civil Application / Judgment
Outcome
Application granted. The respondent is ordered to render a tax invoice, submit it for taxation, set off the taxed amount from trust funds, pay any balance to the applicants, and pay costs.
Judges
Booysen
Legal Topics
Attorneys Trust Account, Legal Practice Act, Fiduciary Duty, Tax Invoice Requirement
Civil Procedure Commercial and Corporate Attorneys Trust Account Legal Practice Act Fiduciary Duty Tax Invoice Requirement

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 11 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Joseph Geophrey Shivambu

Applicant

Grace Hlamalani Chauke-Mohlomi

Applicant

FR Pandelani Inc

Respondent

Procedural Posture

Civil Application / Judgment

Legal Issues

  1. 1 Whether the respondent is obligated to account for monies paid into its trust account by the applicants.
  2. 2 Whether the respondent may retain the deposit for services rendered without rendering a tax invoice.
  3. 3 Whether the applicants are entitled to a refund or accounting in respect of the R21 582.16 paid for the antenuptial contract.

Ratio Decidendi

The court held that the respondent, as an attorney, is obligated under the Legal Practice Act to keep proper accounting records and to retain trust monies until services are rendered and a valid tax invoice is issued. The respondent failed to render a tax invoice for the services provided and did not keep the funds in trust as required. The applicants are entitled to an account and a tax invoice for the amount paid. The respondent must submit the tax invoice to the Legal Practice Council for taxation, and may only set off the amount taxed from the trust monies, paying any balance to the applicants. The respondent is ordered to pay the costs of the application.

Court Disposition

Application granted. The respondent is ordered to render a tax invoice, submit it for taxation, set off the taxed amount from trust funds, pay any balance to the applicants, and pay costs.

Orders

  • The respondent is ordered to, within 14 days of the date of this order, render a tax invoice to the second applicant for services rendered as of 29 April 2017.
  • The respondent must submit the tax invoice and a copy of this judgment to the Legal Practice Council for taxation within 5 days of rendering the tax invoice.