King and Others v The Attorneys Fidelity Fund Board of Control (137/2008)
King and Others v The Attorneys Fidelity Fund Board of Control (137/2008) [2009] ZASCA 44; 2010 (4) SA 185 (SCA) (12 May 2009)
The Supreme Court of Appeal held that the plaintiffs' claims are excluded by section 47(1)(g) of the Attorneys Act. The evidence showed that the moneys paid into Van Schalkwyks' trust account were intended to be invested in a factoring scheme operated by a third party, with the expectation of earning a profit. The acknowledgements of debt issued by Van Schalkwyks explicitly authorised investment of the capital on behalf of the creditor in the factoring scheme. The court found that each payment into the trust account amounted to an instruction to invest the money, thereby triggering the statut…
Source excerpt
- Attorneys Fidelity Fund
- Entrustment Of Funds
- Investment In Factoring Scheme
- Exclusion Of Liability
- Attorneys Act Section 47 1 G
- Banking Act Contravention