Van Der Westhuizen v Road Accident Fund (21947/2022)
Van Der Westhuizen v Road Accident Fund (21947/2022) [2024] ZAGPPHC 742 (29 July 2024)
The court held that the statutory cap of 25% under section 2(2) of the Contingency Fee Act 66 of 1997 includes VAT. The Legislature, when enacting the CFA, was aware of the VAT Act and did not specify that the cap excludes VAT. Section 64(1) of the VAT Act deems any price charged by a vendor to include VAT. Allowing VAT to be charged above the cap would disadvantage clients and undermine the purpose of the CFA, which is to enhance access to justice and regulate legal fees. The court followed the principle in Masango v Road Accident Fund and Others, finding that VAT is not recoverable above th…
Source excerpt
- Contingency Fee Agreements
- Value Added Tax
- Statutory Fee Caps
- Contractual Interpretation