Wong v Ronald Bobroff and Partners Inc and Others (15/13402) [2016] ZAGPJHC 412 (5 February 2016)

Wong v Ronald Bobroff and Partners Inc and Others (15/13402) [2016] ZAGPJHC 412 (5 February 2016)

The court found that the applicant did not have knowledge of his claim against the respondents on 1 August 2007, nor could he be deemed to have had such knowledge by exercising reasonable care. The applicant was misled by the respondents and the Law Society, who failed to inform him of the unlawfulness of the...

Source-derived case information.

Citation
[2016] ZAGPJHC 412
Parties
Applicant: Adrian Gavin Wong; Respondent: Ronald Bobroff and Partners Inc; Respondent: Ronald Bobroff; Respondent: Stephen Derek Bezuidenhout; Respondent: The Road Accident Fund; Respondent: The Law Society of Northern Provinces
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Case Number
15/13402
Procedural Posture
Civil Application / Judgment on Application for Declaration of Invalidity and Ancillary Relief
Outcome
Application granted. The Contingency Fee Agreement is declared invalid and void. Respondents ordered to account, repay retained funds, and pay punitive costs.
Judges
Vally
Legal Topics
Contingency Fee Agreements, Prescription Act, Attorney Client Fees, Bill of Costs, Unlawful Agreement
Civil Procedure Delict Contingency Fee Agreements Prescription Act Attorney Client Fees Bill of Costs Unlawful Agreement

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Parties

Adrian Gavin Wong

Applicant

Ronald Bobroff and Partners Inc

Respondent

Ronald Bobroff

Respondent

Stephen Derek Bezuidenhout

Respondent

The Road Accident Fund

Respondent

The Law Society of Northern Provinces

Respondent

Procedural Posture

Civil Application / Judgment on Application for Declaration of Invalidity and Ancillary Relief

  1. 1 Whether the Contingency Fee Agreement between the applicant and the first respondent was unlawful and invalid.
  2. 2 Whether the applicant's claim for relief was extinguished by prescription under the Prescription Act.
  3. 3 Whether the applicant is entitled to a detailed accounting and repayment of monies retained by the first respondent.

Ratio Decidendi

The court found that the applicant did not have knowledge of his claim against the respondents on 1 August 2007, nor could he be deemed to have had such knowledge by exercising reasonable care. The applicant was misled by the respondents and the Law Society, who failed to inform him of the unlawfulness of the Contingency Fee Agreement. The majority of attorneys at the time believed such agreements were lawful, and the applicant, as a layperson, could not be expected to know otherwise. The court held that mere suspicion does not amount to knowledge for the purposes of prescription. Consequently, the applicant's claim had not prescribed. The Contingency Fee Agreement was declared invalid,...

Court Disposition

Application granted. The Contingency Fee Agreement is declared invalid and void. Respondents ordered to account, repay retained funds, and pay punitive costs.

Orders

  • The Common Law Contingency Fee Agreement entered into between Adrian Gavin Wong and the first respondent on or about April 2004 is declared to be invalid, void and of no force or effect.
  • The first respondent is to deliver to the applicant, within fifteen (15) days, a fully itemized and detailed accounting in the form of a Bill of Costs with applicable tariffs for 2004, 2005 and 2006, reflecting reasonable fees and disbursements incurred, and the applicant is entitled to demand taxation thereof.