Case Law[2025] ZAGPPHC 774South Africa
Naude and Another v South African Legal Practice Council (A262/2023) [2025] ZAGPPHC 774 (12 August 2025)
High Court of South Africa (Gauteng Division, Pretoria)
12 August 2025
Headnotes
with costs on the scale as between attorney and own client.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Naude and Another v South African Legal Practice Council (A262/2023) [2025] ZAGPPHC 774 (12 August 2025)
Naude and Another v South African Legal Practice Council (A262/2023) [2025] ZAGPPHC 774 (12 August 2025)
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sino date 12 August 2025
FLYNOTES:
PROFESSION – Suspension –
Misrepresentation
–
Adequacy
of investigation – Auditor’s report was a superficial
desktop evaluation – Alleged trust account
breaches were
either minor, explained, or later rectified – Failed to
afford attorney a proper hearing before recommending
suspension –
Proceeded on an urgent basis without sufficient justification –
No substantive basis for suspension
– Allegations of
misrepresentation were unfounded – Failed to conduct a
thorough investigation – Appeal
upheld.
IN THE HIGH COURT
OF SOUTH AFRICA
(GAUTENG DIVISION,
PRETORIA)
Case
No. A262/2023
(1) REPORTABLE:
YES
/
NO
(2) OF INTEREST TO
OTHER JUDGES:
YES
/
NO
(3) REVISED
DATE:
12 AUGUST 2025
SIGNATURE:
In
the matter between:
NAUDE,
WYNAND
FIRST
APPELLANT
NAUDE
(WYNAND) INC. ATTORNEYS
SECOND
APPELLANT
And
SOUTH AFRICAN LEGAL
PRACTICE COUNCIL
RESPONDENT
Coram:
Van
der Schyff J
et
Millar & Labuschagne JJ
Heard
on:
21
May 2025
Delivered:
12
August 2025 - This judgment was handed down electronically by
circulation to the parties' representatives by email,
by being
uploaded to the
CaseLines
system of the GD and
by release to SAFLII. The date and time for hand-down is deemed
to be 10H00 on 12 August
2025.
ORDER
It
is Ordered:
[1]
The appeal is upheld with costs on the scale as between attorney
and own
client.
[2]
The order of the Court
a quo
is set aside and replaced with
the following:
“
The
application is dismissed with costs on the scale as between
attorney and own client.”
JUDGMENT
MILLAR J (Van der
Schyff and Labuschagne JJ concurring)
[1]
Honesty, integrity, hard work and dedication form
the bedrock required to establish a good name and professional
reputation. Once
attained, this is to be jealously guarded by both
the practitioner as well as the professional body under whose aegis
he conducts
his practice.
[2]
This is an appeal which lies against an order
granted on 22 February 2023 on an urgent basis in terms of which the
first appellant
(Mr. Naude) was suspended from his 37-year practice
as an attorney pending the finalization of the South African Legal
Practice
Council’s (LPC) application to strike his name from
the roll of legal practitioners.
[3]
This
appeal, which is with the leave of the Supreme Court of Appeal
[1]
raises
3 issues for consideration. The first is the conduct of Mr. Naude
which was said to justify the bringing of the application,
the
second, the circumstances under which the application for suspension
was brought and the conduct of the LPC in doing so and
lastly, costs.
[4]
Before dealing with each of these in turn, it is
necessary to set out the circumstances which brought Mr. Naude to the
attention
of the LPC.
[5]
There were two complaints made against him. The
first was in regard to certain letters authored by him on behalf of
his client/s
and the second in regard to what was said to be his
failure to comply with professional rules of practice.
COMPLAINT LODGED BY
OPES PROPERTIES
[6]
A complaint was lodged against the Mr. Naude
arising from his representation of Mr. Asfar, a Canadian who had
decided to conduct
business within the Republic. For this purpose,
over the period 2015 to 2016, Mr. Asfar had caused R120 million to be
transferred
into the trust account of Mr. Naude’s firm. He then
registered two companies through which he would conduct his business.
These were Equity Cheque Capital Corporation (Pty) Ltd and Equity
Cheque Card Corporation (Pty) Ltd (the Equity Companies).
[7]
Mr. Asfar proceeded, through the Equity Companies,
to enter into 2 lease agreements with Opes Properties (Pty) Ltd
(Opes). Besides
the Equity Companies entering the leases, Mr. Asfar
also bound himself as surety for the obligations of the Equity
Companies to
Opes.
[8]
The first lease agreement was signed between
Equity Cheque Capital Corporation (Pty) Ltd and Opes On 7 April 2017
and the second,
between Equity Cheque Card Corporation (Pty) Ltd and
Opes on 28 July 2017.
[9]
The essence of the complaint lodged by Opes arises
from letters written by Mr. Naude after the conclusion of the
respective leases.
There is nothing to indicate that the conclusion
of the leases or the subsequent letters sent were, at the time,
contentious. It
was only after the business dealings between Opes and
the Equity companies soured and Opes was unable to execute upon
judgments
it had obtained against them and Mr. Asfar that these
letters attained significance.
[10]
It is not in issue that various letters were
written by Mr. Naude to Opes or that in them, the reference, in the
heading of each
as to who the client upon whose behalf the funds were
held, was not clear and unequivocal. In each letter, more than one
party
was reflected as the client being variously Mr. Asfar and one
or other of the Equity Companies.
[11]
This lack of clarity is the fulcrum of the
complaint made by Opes. Mr. Naude for his part contended that he had
always acted for
Mr. Asfar and that the funds, albeit that he had
indicated for whom they were available, were always the funds of Mr.
Asfar and
subject to disposition on his instructions.
[12]
Opes for its part contended that given the
headings in the letters, the funds were held in trust for the Equity
Companies and that
in consequence, the letters constituted
representations upon which Opes had relied. This reliance, so the
argument went, had been
to its detriment.
[13]
After judgment was granted, Opes attempted to
execute by directing the Sheriff to the office of Mr. Naude, as Opes
claimed to be
under the impression that his firm was holding
substantial funds in its trust account on behalf of the Equity
companies. The reason
for such a belief was predicated solely on the
letters that had been written after the conclusion of each of the
leases.
[14]
When the sheriff attended the offices of Mr. Naude, he was informed
that he held no funds
on behalf of the Equity companies.
[15]
Opes then instituted action in the High Court.
Various orders were granted, and reasons thereafter furnished on 13
November
2020. In those proceedings, the court held
inter
alia
that:
“
[7]
Based on numerous representations made by Mr. Wynand Naude (“Mr
Naude”) an attorney
and representative of the third respondent,
the applicant believed that the third respondent held in excess of
R50m of unencumbered
cash on behalf of his client, Capital and the
first and second respondents.
[8]
When the sheriff attempted to execute the warrant, the third
respondent advised that
he/it never held any funds for Capital and
Card, and no assets could be located for them.”
And
“
[41]
The applicant claimed that pursuant to enquiries made, the third
respondent’s banker confirmed
that an amount of R50m was
invested with First National Bank on behalf of their client, being
the third respondent.
[42]
The applicant feared that should the first respondent leave South
Africa; he would leave no assets
behind to satisfy a judgment that
could potentially follow.
[43]
The applicant claimed that both the first and second respondents
resided in rented properties,
drove with cars that were not
registered in their names, and any payments made by them were done
via the offices of the third respondent.”
And
“
[64]
It was apparent from the record, that the FNB account of Wynand Naude
Inc reflected a credit balance
of R50 050 000.00 as at 30
November 2017. It was furthermore apparent that these funds
were transferred into the
third respondent’s bank account over
a period as from the 24 August 2015 to the 15 December 2016.
[65]
The second respondent contended that the third respondent’s
business account statement,
dated 26 January 2018, confirmed that the
third respondent made an onward swift transfer of R119 800 000.00
to Worldwide
Capital on the 27 December 2017 approximately 12 months
later”.
[16]
While Opes was aggrieved that it was unable to
execute and satisfy the judgment it had obtained against the Equity
Companies and
Mr. Asfar, it was simply not open to it to assert to
the LPC that Mr. Naude had “
lied
and brought the legal profession into disrepute and furthermore
caused damages to Opes Properties (Pty) Ltd as a result if
his
fraudulent misrepresentation of the financial status of ECC.
”
[17]
What is clear is that none of the letters upon
which Opes had based its claim of a misrepresentation was in its
terms an undertaking
by Mr. Naude or his firm to hold on behalf of
Opes any of the funds that were in trust.
[18]
It is evident from the subsequent investigation
conducted by the LPC and as found by the Court in the Cape, that at
the time that
the letters were written by Mr. Naude, he indeed did
hold the funds that he said he did in his firm’s trust account.
Both
of his letters were entirely accurate insofar as
this aspect was concerned.
[19]
It is to my mind a red herring whether the client
of Mr. Naude, at the time that he sent the letters, was either the
Equity Companies
or Mr. Asfar. It matters not with regards to
the subsequent disposition of the funds, for whom he acted.
[20]
In
view of the fact that none of the letters were or could be construed
in any way as undertaking an obligation by Mr. Naude or
his firm or
his client, whether it was the Equity Companies or Mr. Asfar
[2]
,
there was no concomitant duty upon Mr. Naude or his firm or his
client to inform Opes of any instructions received to transfer
the
funds held in his trust account on their behalf to a third party.
[21]
On 27 December 2017 and upon instructions of his
client (whether it was one of the Equity Companies or Mr. Asfar), the
funds which
had been in the trust account and to which the letters
had referred were all transferred to a third party. This occurred
some 6
months before the relationship between the Equity Companies
and Opes soured and some 15 months before Opes obtained judgment in
its favour on 4 March 2019.
[22]
Put
simply, he was bound to do what he had been instructed to do
[3]
by his
client and he did so.
[23]
The proceedings before the court in the Cape, were
brought for the purposes of trying to obtain information for Opes to
execute
upon its judgments. While it is understandable that it
embarked upon this course of action, it knew that Mr. Naude had not
undertaken any legal obligation to it on behalf any client and
furthermore that there had been no “fraudulent
misrepresentation.”
Opes knew that the two leases
signed with the Equity Companies had both been signed prior to the
letters having been
sent by Mr. Naude. For Opes, the die had
been cast when the leases were signed.
[24]
The proceedings in the High Court in the Cape,
were for all intents and purposes nothing more than a proverbial
“fishing expedition”
to try and find assets against which
execution of its judgment could be made. It yielded nothing of
substance to Opes save
for a referral of Mr. Naude to the LPC.
ALLEDGED
NON-COMPLIANCE WITH RULES OF PRACTICE
[25]
On
24
June 2020,
Opes lodged a complaint
with the LPC against Mr. Naude in which it alleged that he had
misrepresented that he was in possession
of certain funds in his
trust account. It was also alleged that had misrepresented that
he had never held any funds on behalf
of the Equity Companies and
that he had “
lied and brought the
legal profession into disrepute and furthermore caused damages to
Opes Properties (Pty) Ltd as a result of
his fraudulent
misrepresentation”.
[26]
In addition, to the complaint lodged by Opes on 24
June 2020, when the reasons given by the High Court in the Cape for
the orders
it had made were handed down on 13 November 2020, this
also contained a referral to the LPC.
[27]
The High Court in the Cape found:
“
[89]
None of the bank statements provided by Mr. Naude on behalf of the
third respondent were endorsed as
a trust account.”
[28]
This was the basis upon which the LPC in Gauteng
was to conduct its investigation – pursuant to the referral by
the Court.
[29]
Upon receiving the complaint, the LPC embarked on
an investigation against Mr. Naude and his firm. An
auditor, Mr. Nyali
was appointed and commenced with an investigation
on 18 February 2021. The investigation by Mr. Nyali dealt only
with the
books and records of the firm and did not take the form of a
forensic audit but was rather a “desktop evaluation”.
[30]
Mr. Nyali requested certain documents from Mr.
Naude, these were furnished and after consideration of these
documents, a report
was prepared. In the words of Mr. Nyali “
I
did not perform any substantive audit procedures on the documentation
and accounting records presented.”
It
is in this context that the report and findings of Mr. Nyali are to
be considered.
[31]
Since
the period that was being investigated, in part, pre-dated the coming
into operation of the Legal Practice Act
[4]
on 1
November 2018, it was necessary for Mr. Nyali to also have regard to
the Attorneys Act
[5]
,
and Rules for the Attorneys Profession which were applicable under
that Act.
[32]
Mr. Nyali formed the view that Mr. Naude did not
comply with the Attorneys Act and Rules in that he had:
[29.1]
failed to obtain the client’s written confirmation of the
investment as soon as
reasonably possible or notify the client
forthwith thereof in writing (rule 35.16.2 of the Rules of the
Attorneys' Profession)
– the first finding.
[29.2]
failed to invest trust monies in an interest-bearing account that is
endorsed as a section
78(2A) investment (section 70(2A) of the
Attorneys Act) – the second finding.
[29.3]
failed to promptly deposit the funds withdrawn from an investment
account into the trust
account (rule 35.13.7.1.6 of the Attorneys
rules)- the third finding.
[29.4]
failed to ensure that the total amount of money in the second
appellant’s banking
account at any date is not less than the
total amount of the credit balances of the trust creditors (rule
54.14.8 of the SALPC
rules) – the fourth finding.
[29.5]
failed to immediately report in writing to the Council that the total
amount of money
in the second appellant’s bank accounts was
less than the total amount of credit balances of the trust creditors
(rule 54.14.10
of the SALPC rules) – the fifth finding.
[33]
Mr. Naude was not given an opportunity to address
these findings. These were addressed in the present
proceedings.
RESPONSE TO THE
COMPLAINTS RAISED IN MR. NYALI’S REPORT
The first finding
[34]
In regard to the finding that Mr. Naude had failed
to obtain the client’s written confirmation of the
investment as
soon as reasonably possible, or notify the client
forthwith thereof in writing, this was dealt with by Mr. Asfar in an
affidavit
filed by him in which he explained that Mr. Naude had
explained to him that trust money could be invested, but that
depending upon
the type of investment, the protection of the Fidelity
Fund may be lost. He also stated
inter
alia
that:
“
I,
with the knowledge, consent and approval of my brother, instructed
the first respondent verbally during April 2016 and again
in writing
by WhatsApp on 11 October 2017, to withdraw the monies paid into the
second respondent’s trust account and to
invest the monies in
an interest-bearing account with FNB. Copies of the WhatsApp
instructions to the first respondent is
annexed hereto. . .”
The second finding
[31]
In regard to the finding that Mr. Naude failed to invest trust monies
in an interest-bearing
account that is endorsed as a section 78(2A)
investment (section 70(2A) of the Attorneys Act), this coincided with
the finding
made by the Cape High Court that “
None of the
bank statements provided by Mr. Naude were endorsed as a trust
account.”
[32]
This was explained by Mr. Asfar on the basis that
Mr. Naude had explained to him that if the funds were to remain in
trust and under
the umbrella of protection provided by the Attorneys
Fidelity Fund, then interest would not accrue to Mr. Asfar.
[33]
This explains why some of the bank statements do
record that the firm opened accounts in terms of either section 78(1)
– an
ordinary trust account or, section 78(2A), a trust
investment account.
[34]
The investment made on behalf of Mr. Asfar, was
accordingly not at the time of the statements upon which the LPC
relied in its application,
subject to declaration in terms of the
Act. The position in this regard changed materially after the
LPA came into operation
where in terms of section 86(4), even if a
client wanted to earn the interest on trust investments for himself,
a declaration to
the Fidelity Fund in this regard was required and
they would sweep by EFT transfer a percentage of the interest earned
on those
accounts.
[35]
That all such investment accounts were disclosed
on Mr. Naude’s applications for a fidelity fund certificate is
not in issue.
[36]
In any event, since all accounts were properly
disclosed, both in terms of the Attorneys Act and LPA, nothing turns
on the fact
that a specific bank statement may not have contained an
endorsement as to the type of account which had been opened.
The
description of the account contained on the printed statement is
something which is peculiarly under the control of the Bank concerned
and any oversight or omission is on their part and not that of Mr.
Naude.
The
third finding
[37]
Regarding the finding that Mr. Naude failed to
promptly deposit the funds withdrawn from an investment account into
the trust account,
the finding by Mr. Nyali in this regard was
predicated on the fact that Mr. Naude had on the instructions of the
client closed
certain investment accounts.
[38]
The proceeds of those accounts had been paid into
his firm’s business account and instead of immediately
transferring those
proceeds to the firm’s trust account and
thereafter effecting onward transfer in terms of Mr. Asfar’s
instructions,
he had a few days later (a period of 5 days) then
transferred the funds in accordance with Mr. Asfar’s
instructions.
[39]
This occurred on 22 December 2017. This was
a Friday, and the onward transmission occurred on the following
Wednesday 27
th
December
2017. It must be borne in mind that the 23
rd
and 24
th
of December 2017 fell on the weekend, Monday 25
th
and Tuesday 26
th
were public holidays and thus the onward
transmission occurred on the very next business day.
[40]
While it is technically correct for Mr. Naude to
have transferred the funds immediately into the trust account and
thereafter for
them to have been transferred on, it would in the
circumstances have been nothing more than paying “lip service”
to
compliance. The single oversight in this regard is certainly not
sufficient for the LPC to have taken the view of it that it did.
The
fourth and fifth findings
[41]
Lastly, the findings that Mr. Naude failed to
ensure that the total amount of money in the second appellant’s
banking account
at any date is not less than the total amount of the
credit balances of the trust creditors and failed
to
immediately report in writing to the Council that the total amount of
money in the second appellant’s bank accounts was
less than the
total amount of credit balances of the trust creditors are simply not
borne out by the facts.
[42]
During his desktop evaluation, Mr. Nyali
discovered what purported to be a trust shortfall of R3 027.27.
This arose from a
difference between what was reflected in the bank
statements as a trust credit balance and what was reflected in the
books of the
firm as its trust credit liability. The balance in
the trust bank account was R52 360 126.23 (over R52million)
and the balance in the trust ledger R52 357 098.95.
This related to the period ending 28 February 2021.
[43]
Mr. Nyali engaged with Mr. Naude’s
bookkeeper who informed him that the discrepancy was possibly because
of the firm having
previously moved to a new accounting system and
there being the transfer of incorrect opening balances. Mr.
Naude’s
bookkeeper was unable to take the matter any further.
[44]
In the absence of a substantive forensic audit and
given what is in its terms an inconsequential discrepancy, this ought
properly,
at least at that stage, to have been dealt with on the
basis that it was “
de minimis
”
and that it did not impugn either the veracity of
the information in the books of the firm or the integrity and honesty
of Mr. Naude.
[45]
Subsequently, the firm’s auditor in
conducting the annual audit, ascertained that there was in fact no
trust shortfall at
all. This is not in dispute. Had Mr. Nyali
conducted a proper audit this would no doubt have been discovered by
him.
CIRCUMSTANCES
LEADING TO THE URGENT APPLICATION
[46]
Mr. Nyali issued his report on 13 May 2022.
This was just shy of two years after Opes had lodged its complaint
and 15 months
after Mr. Nyali had been instructed to proceed.
On 20 June 2022, Mr. Nyali’s report was furnished to Mr. Naude
and
on 19 July 2022, referred to an LPC investigating committee.
The report together with the complaint of Opes was considered
by the
investigating committee on 23 August 2022.
[47]
Somewhat surprisingly, Mr. Naude was not informed
when the investigating committee was to meet and consider the matter
- nor was
he invited to participate. Had he been invited and
had he presented what he was able to place before the Court
a
quo
, the decision taken would likely
have been materially different.
[48]
The LPC investigating committee such as it was,
appears to have consisted of only one member who also conducted a
“desktop”
evaluation of the matter. In the
memorandum of the investigating committee, the member accepted
uncritically and without
more the reasons handed down by the Cape
High Court and concluded in interpreting those reasons that “
the
last sentence of the quoted paragraph (78) is in my view a judicial
pronouncement that the actions of the Respondent (Naude)
in regard to
the R50m was tantamount to fraudulent misrepresentation.”
It
is unfortunate that the sole member of the committee did not consider
the entirety of the body of evidence that was available
or see fit to
hear Mr. Naude.
[49]
For the reasons set out above, there was neither a
misrepresentation made by Mr. Naude nor any actionable breach of the
rules of
professional conduct or mismanagement of his trust account
so as to justify the recommendation that was made by the
investigating
committee that he be suspended from practice.
[50]
Had the members of the Gauteng Provincial Council
of the LPC properly considered all the documents that were before
them, they would
have realized that there was simply no case,
prima
facie
or otherwise, for the suspension
of Mr. Naude. The failure on the part of the LPC to afford Mr.
Naude a right to be heard
does not appear to have moved the members
of the Council in their consideration of the matter and this is a
matter of concern.
[51]
Although the events in question had occurred some
five years previously and the high watermark of the complaints, at
least insofar
as the protection of the public was concerned, was the
R3 027.00 discrepancy, the LPC took more than two years to
complete
the investigation and reach its decision.
[52]
There is no explanation what transpired between 23
August 2022 and 13 October 2022, when the decision to apply for his
suspension
was communicated to Mr. Naude. It was also not disclosed
to him that the LPC had also resolved to launch such proceedings on
an
urgent basis.
[53]
He was not furnished with any reasons for the
decision either. It bears mention that the report of the
investigating committee did
not find its way into the founding papers
when the application was issued and had to be elicited through a
request in terms of
rules 35(12) and (14) of the uniform rules of
Court.
[54]
The LPC emailed its application to Mr. Naude on 21
November 2022. The application indicated that it would be
enrolled for
hearing in the urgent court on 6 December 2022 some two
weeks later.
[55]
Having regard to what is set out above with
regards to the lack of merit with the Opes complaint and absence of
any non-compliance
with the rules that rose to the level requiring
suspension from the roll, the refusal to furnish a Fidelity Fund
Certificate for
the following year placed Mr. Naude in an invidious
position.
[56]
Even though the founding affidavit deposed to on
behalf of the LPC asserts on no less than nine occasions that Mr.
Naude was dishonest
or had made himself guilty of dishonesty,
properly construed, these allegations were simply not sustainable on
the information
that was before the Court.
[57]
On 24 November 2022, a letter was addressed to the
LPC on behalf of Mr. Naude addressing the various issues raised in
the application.
In the letter, he undertook
inter
alia
to retire at the age of 66 and to
dispose of his practice. He also undertook to “
sell
his practice and transfer all trust monies to a colleague, who will
also take over his employees, and undertakes to the GPC
[Gauteng
Provincial Council of the LPC] a closing auditor’s report
within the prescribed time period of 3 months thereafter,
before 31
May 2023.”
[58]
This
drastic course of action was precipitated by the refusal of the LPC
to issue a Fidelity Fund Certificate, the consequence of
which would
be, if he continued to practice without it, criminal conduct in terms
of section 93(8)
[6]
read
with section 84(1)
[7]
of the
LPA. The LPC for all intents and purposes ended the 37-year career of
Mr. Naude.
[59]
Despite the failure to properly investigate or
consider the matter, the LPC nonetheless decided to approach the
Court on an urgent
basis.
[60]
Two postponements ensued to afford Mr. Naude an
opportunity to respond properly to the application. It bears
mention that
on no less than five occasions, Mr. Naude sought an
audience with the LPC to discuss the application that had been
brought against
him and on each occasion was rebuffed. When the
application was eventually decided, it was done so in the Urgent
Court before
a single judge.
[61]
It is not in issue that applications for the
suspension of errant practitioners are inherently urgent. This
is so because
usually there is some pressing need for the Court to
suspend the practitioner to protect both the public and the
profession at
large against either continued or possible future
conduct. In the present matter, there was simply no
prima
facie
case against Mr. Naude.
[62]
The
LPC is, besides the statutory regulator of the legal profession, also
the
custos
morum
or
guardian of morals for the profession and its members. It is the duty
of the LPC, acting in this capacity, to safeguard both
the profession
as well as its members
[8]
.
The LPC is obliged, once concerning conduct which represents a risk
or danger to either the public or the profession, to
bring this to
the attention of the Court.
[9]
This
is to be done responsibly
[10]
and
after due process has been followed.
[63]
The LPC as
custos
morum
is expected to exercise great
caution and to avoid recklessness or irresponsibility in its
institution of proceedings for misconduct
against a legal
practitioner. It is expected that it acts to the same standard
and with the same degree of care to the Court
as any of the legal
practitioners whom it regulates. This is so because besides its
regulatory function over practitioners,
it is enjoined by section
5(i) of the LPA to enhance access to the legal profession.
[64]
It is the role of the LPC to place facts before
the Court which the Court is to evaluate. In this regard it
must place the
totality of the facts before the court.
[65]
The LPC sought to use its power to withhold the
issue of a Fidelity Fund Certificate against Mr. Naude to make him
acquiesce to
the course of action that they had decided upon.
It conducted itself, by all accounts, not as a
custos
morum
but rather as a litigant having a
direct personal interest in the matter. This is not its
function.
[66]
The
way in which the LPC conducted this matter is to be deprecated.
A proper consideration of the facts would have made plain
that there
was no basis to apply to Court for the suspension of Mr. Naude from
the roll of attorneys and conveyancers. In this
regard, the present
case is to be distinguished from cases such as
Botha
v Law Society of the Northern Provinces
[11]
where
it was found that no order for costs should be made against the
custos morum. The present case is not one where the degree
of
severity is in issue and that there was an unimpeachable
justification for the bringing of the proceedings. Here there was to
my mind a manifest failure to properly consider what was before it
and an unnecessary and unjustified abdication of its own
responsibility
to the urgent court.
COSTS
[67]
In the same way that the LPC argues that it is
acting in a wider interest and ought in applications where an order
for suspension
or striking is granted, to be awarded punitive costs,
so too should the same criteria apply when it fails in such
applications.
[68]
There is no reason why Mr. Naude should be out of
pocket at all. There was no case against him and had the LPC
conducted a
proper investigation – both of his records and of
the complaint and afforded him a right of hearing, the application
against
him could have been avoided altogether.
[69]
In
Seima
NO and Others v Master of the High Court Johannesburg
[12]
it was
held that “
An
Officer of the Court may not simply convey allegations to a Court
where there is good reason to believe they are not truthful
or
factually based and this duty becomes more acute where imputations of
dishonesty are conveyed.”
On
this score both the investigating committee and the Gauteng Council
of the LPC failed.
[70]
It is for this reason that it is apposite that the
order for costs to be made in this matter is on the scale as between
attorney
and own client. For the assistance of the taxing
master, having regard to the provisions of the tariff, had the costs
order
been made as between party and party, the scale of counsels’
costs awarded would have been on scale C.
ORDER
[71]
In the circumstances, I propose the following
order:
[71.1]
The appeal is upheld with costs on the scale as between attorney and
own client.
[71.2]
The order of the Court
a quo
is set aside and replaced with
the following:
“
The
application is dismissed with costs on the scale as between attorney
and own client.”
A
MILLAR
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
PRETORIA
I AGREE AND IT IS SO
ORDERED
E VAN DER SCHYFF
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
PRETORIA
I AGREE,
E
LABUSCHAGNE
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
PRETORIA
HEARD ON:
21 MAY 2025
JUDGMENT DELIVERED ON:
12 AUGUST 2025
COUNSEL FOR THE
APPELLANTS:
ADV. HF GEYER
INSTRUCTED BY:
SMIT & MARAIS
REFERENCE:
MR J SMIT
COUNSEL FOR THE
RESPONDENT:
MS N COLLETT
INSTRUCTED BY:
ROOTH & WESSELS
REFERENCE:
MR. R STOCKER
[1]
Leave
to appeal to the Full Court was granted on 3 August 2023, the Court
a
quo
having
refused leave on 9 June 2023.
[2]
See
for example the case of an adjectus solutionis causa distinguished
from an ordinary agent in
Stupel
& Berman Inc v Rodel Financial Services (Pty) Ltd
2015
(3) SA 36
(SCA) at para [17].
[3]
Bloom’s
Woollens (Pty) Ltd v Taylor
1962
(2) SA 532
(A) at 538H.
[4]
28
of 2014.
[5]
53
of 1979.
[6]
The
section provides: “
.
. .that any person who contravenes section 84(1) or (2) or section
34, in rendering legal services –
(a)
commits an offence and is liable on conviction
to a fine or to imprisonment for a period not exceeding two years or
to both such
fine and imprisonment;
(b)
is on conviction liable to be struck off the
Roll; and
(c)
is not entitled to any fee, reward or
reimbursement in respect of the legal services rendered.”
[7]
The
section provides that every attorney who practices for their own
account or as a director of a juristic entity “
must
be in possession of a Fidelity Fund Certificate
”
.
[8]
Claasen
and Another v Free State Law Society and Others
2020
JDR 0337 (FB) at para [12].
[9]
South
African Legal Practice Council v Segaole
2024
JDR 5218 (GP) at para [1]. See also Jiba and Another v
The
General Council of the Bar of South Africa and Another
2019
(1) SA 130
(SCA) at para [72] as
[10]
Mavudzi
and Another v Majola and Others
2022
(6) SA 420
(GJ) at para [34].
[11]
[2008] ZASCA 106
;
2009
(1) SA 227
(SCA) at para
[22]
.
[12]
2025
JDR 3026 (GJ) at para [30].
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