Leysath v Legal Practitioners Fidelity Fund Board of Control (51027/19)
Leysath v Legal Practitioners Fidelity Fund Board of Control (51027/19) [2021] ZAGPPHC 7 (14 January 2021)
The court held that although clients may pay deposits to attorneys to cover counsel's fees, such funds are entrusted to the attorney on behalf of the client, not the counsel. The contractual obligation for payment of counsel's fees exists between the attorney and counsel, and not between counsel and the client. Therefore, any loss suffered by counsel due to non-payment of fees by the attorney arises from breach of contract, not from theft of money entrusted by or on behalf of counsel. The applicant failed to establish that the funds were entrusted to Costa on his behalf, and thus did not suff…
Source excerpt
- Fidelity Fund Liability
- Entrustment Of Funds
- Advocate Fee Recovery
- Statutory Interpretation