Levenson v Fluxmans Incorporated (14/27503) [2015] ZAGPJHC 68 (27 March 2015)

Levenson v Fluxmans Incorporated (14/27503) [2015] ZAGPJHC 68 (27 March 2015)

The court found that the contingency fee agreement between the applicant and respondent was invalid as it did not comply with the formalities required by the Contingency Fees Act. The respondent conceded the invalidity. The applicant's claim for repayment of fees was not prescribed, as he only acquired the necessary knowledge of the invalidity in 2014 following the Constitutional Court's judgment. The court distinguished between knowledge of facts and knowledge of legal conclusions, holding that the applicant's initial suspicion did not amount to knowledge sufficient to trigger prescription. The court further held that motion proceedings were appropriate for the declaratory relief sought,...

Citation
[2015] ZAGPJHC 68
Parties
Applicant: Steven Zulla Levenson; Respondent: Fluxmans Incorporated
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
27 March 2015
Case Number
14/27503
Procedural Posture
Civil Application / Judgment on Application for Declaratory Relief and Ancillary Orders
Outcome
The contingency fee agreement is declared invalid, void, and of no force or effect. The quantum of the applicant's claim is referred for trial. The respondent is ordered to deliver a detailed statement of account and to pay the costs of the application.
Judges
Windell
Legal Topics
Contingency Fee Agreements, Prescription Act, Declaratory Orders, Condictio Ob Turpem Vel Iniustam Causam
Civil Procedure Commercial and Corporate Contingency Fee Agreements Prescription Act Declaratory Orders Condictio Ob Turpem Vel Iniustam Causam

Case Brief

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Parties

Steven Zulla Levenson

Applicant

Fluxmans Incorporated

Respondent

Procedural Posture

Civil Application / Judgment on Application for Declaratory Relief and Ancillary Orders

Legal Issues

  1. 1 Whether the contingency fee agreement between the applicant and respondent is invalid and unenforceable under the Contingency Fees Act.
  2. 2 Whether the applicant's claim for repayment of fees is prescribed under the Prescription Act.
  3. 3 Whether motion proceedings are appropriate for the relief claimed, or whether action proceedings are required.

Ratio Decidendi

The court found that the contingency fee agreement between the applicant and respondent was invalid as it did not comply with the formalities required by the Contingency Fees Act. The respondent conceded the invalidity. The applicant's claim for repayment of fees was not prescribed, as he only acquired the necessary knowledge of the invalidity in 2014 following the Constitutional Court's judgment. The court distinguished between knowledge of facts and knowledge of legal conclusions, holding that the applicant's initial suspicion did not amount to knowledge sufficient to trigger prescription. The court further held that motion proceedings were appropriate for the declaratory relief sought,...

Court Disposition

The contingency fee agreement is declared invalid, void, and of no force or effect. The quantum of the applicant's claim is referred for trial. The respondent is ordered to deliver a detailed statement of account and to pay the costs of the application.

Orders

  • The quantum of the applicant's claim is referred for trial, with the notice of motion to stand as simple summons and the respondent's notice of opposition as notice of intention to defend.
  • The applicant is to file a declaration within 30 days of the date of this order; thereafter, normal rules for pleadings and trial preparation apply.