Case Law[2025] ZAGPPHC 1154South Africa
South African Legal Practice Council v Maseti (20286/2022) [2025] ZAGPPHC 1154 (30 September 2025)
Headnotes
the docket. In Mathabela, the respondent was instructed to act as an agent to assist her with the administration of a deceased estate in which Mathabela was appointed as an executrix. The respondent failed to report to her, and she was eventually removed as an executrix of the estate.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## South African Legal Practice Council v Maseti (20286/2022) [2025] ZAGPPHC 1154 (30 September 2025)
South African Legal Practice Council v Maseti (20286/2022) [2025] ZAGPPHC 1154 (30 September 2025)
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sino date 30 September 2025
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REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE
NO: 20286/2022
(1) REPORTABLE: NO
(2) OF INTEREST TO
OTHER JUDGES: NO
(3) REVISED.
DATE: 30/09/25
SIGNATURE
In the matter between:
THE
SOUTH AFRICAN LEGAL PRACTICE COUNCIL
Applicant
and
ONKE
MASETI
Respondent
JUDGMENT
This judgment was
handed down electronically by circulation to the parties’ legal
representatives by email and uploading it
to the electronic file of
this matter on Caselines. The date and time of hand-down is
deemed to be 10:00 on 30 September
2025.
TEFFO,
J (MBONGWE, J CONCURRING
)
Introduction
[1]
The
applicant (“the South African Legal Practice Council”)
seeks an order for the removal of the respondent’s
name from
the roll of legal practitioners, alternatively, for his suspension
pending the finalisation of the application.
The respondent
opposes the application.
[2]
The
respondent and the applicant did not file their answering and
replying affidavits timeously. Their respective condonation
applications
were not opposed and were granted accordingly.
[3]
In
terms of the Legal Practice Act
[1]
(“
the
LPA
”
)
the applicant has full legal capacity to exercise jurisdiction over
all legal practitioners.
[4]
The
respondent was admitted and enrolled as an attorney on 25 July 2012.
He commenced practising as a partner under the name
and style of
Maseti Attorneys, at Suite 1[…], First Floor, K[…]
Towers, 1[…] Commissioner Street, Johannesburg
with effect
from 1 August 2012. He continues to practise as such, and his name is
still on the roll of the legal practitioners
of this court.
Background facts
[5]
The
application stems from allegations of unprofessional conduct against
the respondent which can be grouped under the headings,
the
complaints and failure to keep proper accounting records.
The complaints
[6]
Between
the period August 2016 to February 2022 several complaints of
unprofessional conduct were lodged against the respondent.
They
included allegations that the respondent had failed to execute the
mandate given to him, to supervise and exercise proper
control over
his employees, to account to or report to his clients at all,
properly, promptly, fully, and timeously, had delayed
payments due
and payable to clients and had failed to respond to correspondence
and provide information to the applicant when he
was in a position to
do so.
[7]
The
complaints of Molisakeng, Tshabalala, Xaba and Mngomezulu are all
identical in that the former employees of the respondent’s
firm, Ms Tumi Modise (“Modise “) and Ms Mirriam Motoeneng
(“Motoeneng “), who were secretaries at the time,
took
instructions from the complainants to do conveyancing work for them.
Amounts of money of R16 800,00, R347 150,67, R7 500,00
and R2
500,00 and R158 304,92 were paid into the account of Arnishs and
Associates, a company where Modise was the sole director.
The
mandates were not executed in the said matters, and the complainants
were not refunded their monies. The complaint of Setlhare
also
followed the same pattern save to say that it related to an estate
matter and involved a certain Mr Phiwo Bango (“Bango“).
The amount of R4500,00 was deposited into Bango’s personal
account, and the complainant was issued with a receipt which had
the
details of the respondent’s firm.
[8]
In
response to only the complaints of Tshabalala and Xaba, the
respondent contended that the instructions were not authorised by
him
and/or his firm, and he had no knowledge of the payments made. The
payments were never made into his firm’s accounts.
[9]
The
complaints of Mafuta and Motsai are similar. Mafuta instructed
the respondent to recover a debt that was due and payable
to Vhaswa
Cabling Network (“Vhaswa”), one of his businesses, from
Pick It Up (Pty) Ltd (“Pick It Up”).
The respondent
obtained judgment in favour of Vhaswa for R155 362,03. Motsai
instructed the respondent to claim damages
for unlawful arrest
against the Minister of Police. The respondent obtained judgment in
his favour against the Minister for the
sum of R40 000,00. In
both complaints the respondent failed to report to the complainants,
did not account to them and delayed
the payments that were due and
payable to them.
[10]
In his
response to the complaint of Mafuta, the respondent confirmed the
instructions and alleged that after obtaining judgment,
Pick It Up
lodged an appeal. It later contacted him and made an offer for
payment of the amount of R227 000,00 plus
costs. He discussed
the offer with Mafuta and Mafuta gave him instructions to accept it.
In an affidavit dated 22 December 2018,
Mafuta confirmed the
discussion of the offer with the respondent, the acceptance thereof
and agreed to the respondent’s fees
of the amount of
R227 000,00 less 25% contingency fee.
[11]
Haki
Legal Clinic (“Haki”) which represented Mafuta in this
matter, disputed the respondent’s version regarding
the appeal
and the offer. It averred that Mafuta did not have knowledge of the
appeal and the offer. The respondent was requested
to provide the
details of the offer, a costs breakdown as well as the 25% fee due to
him. He failed to provide same.
[12]
The
respondent’s answer to Motsai’s complaint was that he
reported to him that he was awaiting payment of the claim
whereafter
it would be paid to him.
[13]
In the
complaints of Soji, Sithole and Mathabela, the respondent failed to
execute the mandate given to him, to report to them and
to respond to
their complaints which were forwarded to him by the applicant. In
Soji, the respondent was instructed to sue Dial
Direct Insurance
(“Dial Direct”) for payment in respect of her motor
vehicle. In Sithole, the respondent was instructed
to assist him with
a matter relating to unlawful arrest. Sithole alleged that the
respondent was avoiding him and failed to take
his calls. He sought
the assistance of another attorney, but the respondent withheld the
docket. In Mathabela, the respondent was
instructed to act as an
agent to assist her with the administration of a deceased estate in
which Mathabela was appointed as an
executrix. The respondent failed
to report to her, and she was eventually removed as an executrix of
the estate.
[14]
Morkel
(on behalf of Rodel Financial Property Services (Pty) Ltd (“Rodel“)
and represented by Le Roux Vivier Attorneys
complained that he
instructed the respondent to attend to a property sale transaction.
Rodel paid amounts of R80 278,17 and R20 000,00
on 11 and 21
September 2018 respectively as bridging finance to the respondent for
the benefit of the seller on condition that
the respondent would pay
Rodel the bridging finance and the discounting fee on registration of
transfer of the property. The respondent
paid an amount of R20 770,00
(which included costs), to Rodel on 18 October 2018. After the
registration of the transfer of the
property on 31 October 2018, the
respondent failed to pay the bridging finance. A year later, on 2
October 2019 Rodel obtained
judgment against the respondent for
payment of the bridging finance.
[15]
In his
answer to the complaint, the respondent confirmed the civil action
against him and mentioned that a certain Mareletse was
joined in the
action. He denied the misappropriation of funds which were due and
payable to Rodel on registration of the transfer
of the property. He
claimed that Mareletse misled him, and he was in the process of
tracking him to recover the funds from him.
[16]
Khosa
complained that he never consulted or met the respondent. However,
the respondent impersonated as his legal representative
in an
arbitration matter without proper instructions from him. He alleged
that the respondent was in fact, recommended to
inter
alia
handle
communications including case management and to communicate with the
Arbitration Foundation of South Africa (“AFSA“).
Although
he did not disclose the amount that he paid to the respondent, Khosa
alleged that the respondent took money from him under
the
circumstances he could not explain, and he never furnished him with
any report or statement of account. He requested the respondent
to
explain the work he had done and on whose instruction he did it. The
respondent failed to respond to the complaint after it
was forwarded
to him. In further correspondence the respondent was called to appear
before the Investigating Committee of the applicant
for a discussion
of the matter. He failed to appear after he wrote back to the
Committee and stated that he was sick and consulting
a doctor.
Failing to keep proper
accounting records
[17] This
infraction includes amongst others, the respondent’s failure to
update and balance his firm’s
accounting records regularly, to
extract a list of trust creditors at intervals of not less than three
months as required in terms
of the regulations, to retain the
trust accounting records of the firm at the firm’s office, to
ensure that withdrawals
from the firm’s trust banking account
shall be made only to or for a trust creditor or as a transfer
to the firm’s
banking account, provided that such transfer
shall be made only in respect of money due to the firm, etc.
[18] Mr D Swart (“Swart“)
a chartered accountant, inspected the accounting records of the
respondent’s firm between
March 2018 to February 2021 and
compiled a report dated 30 September 2021. He mentions in the report
that when he visited the respondent’s
offices on 22 July 2021,
the respondent’s firm’s accounting records were not
available. He was subsequently provided
with the trust cash books and
trust creditors’ ledgers of the firm for the years ended 28
February 2019, 29 February 2020,
and 28 February 2021. He did
not receive any trust or business bank statements or monthly trust
trial balances, any trust
accounting records from 1 March 2021
onwards as requested in his email of 29 June 2021. There were
no lists of client balances
available, and he decided to prepare
lists of trust creditors for the period 28 February 2019, 29 February
2020 and 28 February
2021 to determine the respondent’s firm’s
trust positions as at these dates.
[19]
The trust positions as at the above three dates were as follows:
28/09/2019
29/02/2020
28/02/2021
List of trust
creditors
333 683,74
131 432,26
46 373,20
List of trust bank
balances
318 665,04
127 288,96
40 292,04
Trust shortage
15 018,70
4 143,30
6 081,61
[20]
According to Swart all the above trust shortages were caused by the
excess of bank charges against bank interest
on the trust banking
account.
[21] Swart further
explained that these trust shortages were increased by the trust
funds which, in terms of the complaints, should
have been available
in the respondent’s firm’s trust banking account, but
which were not. He referred to the trust
funds of Tshabalala in the
amount of R347 260,67 which were deposited on 10 March 2020, the
trust funds of Rodel in the amount
of R100 278,71 which were
deposited on 21 September 2018 and those of Mngomezulu in the amount
of R158 302,12 which were
deposited on 16 January 2018.
[22] The abovementioned
amounts according to Swart increased the trust shortages as follows:
28/02/2019
29/02/2020
28/02/2021
Trust shortages
15 018,70
4 143,30
6 081,16
Ms Tshabalala
347 260,67
Rodel
100 278,71
100 278,71
100 278,71
Mr Mngomezulu
158 601,53
158 304,12
158 304,12
Adjusted trust
shortage
273 601,53
262 726,13
611 924,66
[23] Swart concluded that
the trust accounting records of the respondent’s firm were
purely prepared and retained as a record
but not used by the firm to
control and balance the firm’s trust positions or any of the
trust creditors’ balances.
He found that the trust accounting
records were incomplete and did not contain sufficient detail of the
transactions to identify
the entries in the trust ledger accounts of
the trust creditors of the firm.
[24] In Swart’s
opinion, the trust shortage that relate to the trust funds of
Tshabalala and Mngomezulu was caused by the
lack of control by the
respondent over his staff members as well as over the receipt of
trust funds. The non-payment of the trust
funds due to Rodel was a
further indication of the respondent’s lack of control over the
receipt and payment of trust funds.
Swart established that the trust
creditor’s ledger accounts which reflect the receipt of funds
from Rodel indicate that the
funds were removed by the firm from the
firm’s trust account through the payment of fees.
[25] Swart discussed the
complaints of Tshabalala, Mafuta, Motsai, Morkel on behalf of Rodel,
and Mngomezulu with the respondent.
These discussions will be
referred to later in the judgment.
The respondent’s
version
[26] The respondent
denies the allegations against him. He contends that the application
has been instituted prematurely as he was
never subjected to a
disciplinary hearing by the applicant.
The
complaints
[27] In respect of the
complaint of Setlhare, the respondent contends that Bango was never
employed by his firm. Regarding the complaints
of Molisakeng,
Tshabalala, Xaba and Mngomezulu, he admitted that Modise was employed
at his firm as a secretary between 2017 and
2019. He claimed
that he never took such instructions nor received any payment from
any of the complainants. He stated
that he could not take such
instructions as he has never been admitted as a conveyancer. He
has never met any of the complainants.
He asserted that he became
aware of Ms Modise’s fraudulent activities when the applicant
wrote to him and informed him about
a complaint it had received from
Xaba. Immediately thereafter, he dismissed Modise from his
employment. Subsequent thereto, he
conducted his own investigation
which led him to Alberton Police Station where he got information
that Modise was at the time facing
criminal charges of fraud and her
case was pending in court.
[28] With regard to the
complaint of Mafuta, the respondent stood by what he said in his
response to the complaint that was forwarded
to him by the applicant.
In relation to Motsai’s complaint, he confirmed the instruction
by him and agreed that Motsai was
paid the amount due to him less his
fees. He asserted that the matter was long resolved between him
and Motsai and Motsai
has never proceeded further with the
complaint. He referred to an affidavit deposed to by Mr Motsai
in confirmation thereof.
[29] The respondent
confirmed receipt of instructions from Soji. He contended that Soji
only paid an amount of R3 500,00 for
consultation and opening a
file. Soji undertook to make further payments for the services
to be rendered. He started working
on the process of drafting summons
and had it issued without any further payment from Soji. He
claimed that Soji approached
the applicant to avoid paying his legal
fees.
[30] The respondent
denied the allegations made by Sithole and submitted that despite
having not carried out the mandate to finality,
it is not disputed
that he performed some work and had rendered the statement of account
to Sithole for payment which is still
pending. He claimed that
Sithole sought to avoid payment and decided to terminate his
mandate. Sithole instructed Mashele
Attorneys who have
requested the file. He confirmed that he refused to hand over the
file to Mashele Attorneys as security for
the payment of his fees.
[31] Regarding the claim
of Mathabela, the respondent contended that Mathabela was duly
informed that she had been removed as an
executrix and that there is
a pending application to have her removal as executrix challenged.
[32] In the complaint of
Morkel (on behalf of Rodel) and represented by Le Roux Vivier
Attorneys, the respondent denies the allegations
and contends that
payment has been made to Rodel which disposes of the matter. He
claims that in this matter his firm only acted
as surety and the firm
never squandered any money save for the fact that payment was made in
error and this was later rectified.
[33] The respondent
denies the allegations against him by Khosa. He contends that
Khosa had a matter against Bowman Gilfillan
Attorneys, and the matter
was set down for arbitration under the auspices of AFSA. He claims to
have objected to the arbitration
because Bowman Gilfillan Attorneys
is one of the founders of AFSA and the matter was therefore postponed
sine die
.
Failing
to keep proper accounting records
[34] The respondent
disputed Swart’s report. He denied that there were trust
shortages as alleged as far as they relate
to monies that were
clearly never paid into his business nor trust accounts but to other
people who were not acting on his behalf
and/or the firm. He
submitted that Swart’s report clearly demonstrates that he was
not responsible for the alleged trust
shortages as these funds were
never received by him or his firm.
The
issue for determination
[35] The questions for
consideration in this case entail a three-stage enquiry:
(a)
Whether the alleged offending conduct has been established on a
preponderance of probabilities,
(b)
Once the court is satisfied that the
offending conduct has been established, it must consider whether
the
practitioner concerned is a fit and proper person to continue to
practise. This involves a weighing up of the conduct
complained
of against the conduct expected of an attorney and, to this extent,
is a value judgment,
(c)
If the court is of the view that the practitioner concerned is not a
fit and proper
person to practise as an attorney, it must inquire
whether in all the circumstances the practitioner in question is to
be removed
from the roll of attorneys or whether an order of
suspension from practice would suffices
[2]
.
Applicable
legal principles
[36]
It is trite that the court’s jurisdiction and power to exercise
disciplinary jurisdiction over
the legal practitioners and to
pronounce upon an appropriate sanction is not derived solely from the
provisions of sections 40(3)(a)(iv)
and 44(1) of the LPA. The
court has such inherent and common law power.
[37]
The
proceedings instituted by the applicant against members of the legal
profession (“
the
legal practitioners
”
)
are of a disciplinary nature and are
sui
generis
[3]
.
The Appellate Division in
Solomon
v Law Society of the Cape of Good Hope
[4]
,
described the proceedings as follows:
“
Now
in these proceedings the Law Society claims nothing for itself …
It merely brings the attorney before court by
virtue of a statutory
right, informs the court what the attorney has done and asks the
court to exercise its disciplinary powers
over him … The
Law Society protects the interests of the public in its dealings with
attorneys. It does not institute
any action or civil proceedings
against the attorney. It merely submits to the court facts
which it contends constitute unprofessional
conduct and then leaves
the court to determine how it will deal with this officer
[of
the court].”
[38]
Where allegations and evidence are presented against an attorney,
they cannot be met with mere denials
by the attorney concerned.
If the allegations are made by the Law Society and the underlying
documents are provided which
form the basis of the allegations, they
cannot simply be brushed aside; the attorneys are expected to respond
meaningfully to them
and to furnish a proper explanation
[5]
.
[39]
When the court admits an attorney to the profession, he is put in a
position to conduct matters of
trust with the public. He
occupies a position of great confidence and power, and the court is
entitled to demand a very high
standard of honour from him in the
profession. The law exacts from him
uberimma
fides
where
he acts as agent for others; that is the highest possible degree of
good faith. It is, therefore, essential that the public
should be
able to rely implicitly on the integrity and good faith of any
attorney they may wish to employ. If the court,
having regard
to all the circumstances brought before it, is no longer justified in
regarding an attorney as a fit and proper person
to be entrusted with
the important duties and grave responsibilities which belong to an
attorney, it should either remove him from
the roll of attorneys or
suspend him from practice. For the sake of the public, and no less
the profession, it is of utmost importance
to enforce on all
attorneys the high standard of duty which rests upon them and demand
the great integrity which is expected of
them
[6]
.
[40]
In
General
Council of the Bar of South Africa v Geach & others
[7]
,
the SCA had this to say in relation to legal practitioners:
“
After
all they are the beneficiaries of a rich heritage and the mantle of
responsibility that they bear as the protectors of our
hard-won
freedoms is without parallel. As officers of our courts, lawyers play
a vital role in upholding the constitution and ensuring
that our
system of justice is both efficient and effective. It therefore
stands to reason that absolute personal integrity and
scrupulous
honesty are demanded of each of them. It follows that generally a
practitioner who is found to be dishonest must surely
in the absence
of exceptional circumstances expect to have his name struck from the
roll.
”
[41]
The court and the applicant have a duty to act where a legal
practitioner’s conduct falls short
of what is expected, and to
curb the erosion of the values in the profession. The protection of
the public goes hand in hand with
the court’s obligation to
protect the integrity of the courts and the legal profession. Public
confidence in the legal profession
and the courts is necessarily
undermined when the strict requirements for membership to the
profession are diluted.
Discussion
[42]
Before addressing the questions raised in this application, I find it
prudent to consider the respondent’s
contention that this
application is premature, it was not supposed to have been brought to
court without him being called to a
disciplinary hearing. In
his supplementary heads of argument, a submission was made that the
respondent feels that he has
been denied the opportunity to have the
facts set out in his supplementary answering affidavit investigated
internally. It
was further submitted that on 11 October 2024
when this application was postponed to allow the applicant to file a
supplementary
replying affidavit, the court expressed the view that
the applicant may need to revisit its internal inquiry.
[43]
When this issue was raised again during argument, Ms Moolman for the
applicant submitted that the respondent
had many opportunities to
answer to the allegations made against him. He was not
co-operative at all. Various correspondences
were addressed to
him inviting him to respond to the complaints lodged against him.
However, he failed and/or neglected to
respond and/or responded long
after the correspondences were sent to him.
[44] Furthermore, the LPC
invited him to an Investigating Committee meeting. He failed to
appear on the day. It took
Swart months to get the respondent
to cooperate to allow him to inspect the firm’s accounting
records. In the replying affidavit
the applicant contends that there
is no obligation on it to first exhaust any procedure in terms of its
own Rules prior to instituting
proceedings against a legal
practitioner.
[45]
While we agree with Ms Moolman that referral to an internal
disciplinary hearing is not a prerequisite
for bringing an
application of this nature to court, the history of this matter,
attest to the difficulties the applicant encountered
in having the
respondent to respond to the correspondence sent to him.
Considering a series of correspondence addressed to
him, we agree
that it would not have been possible for the applicant to conduct a
disciplinary hearing against the respondent.
The respondent is
facing serious allegations of misconduct, the application had to come
to court. Having said that, it is our view
that the contentions by
the respondent are meritless.
Has
the offending conduct been established on a preponderance of
probabilities
?
[46] This is a factual
inquiry. All the facts should be considered in totality.
Complaints of Molisakeng,
Xaba, Mngomezulu and Tshabalala
[47] These are the
complaints where the former employees of the respondent, Modise and
Motoeneng were involved. In the respondent’s
heads of argument,
the following submissions were made: that the duties of Modise did
not include consulting and taking instructions
from clients. Modise
had always known that the respondent is not an admitted conveyancer
and does not take conveyancing work from
clients. The applicant chose
to ignore the bank deposits attached to the founding affidavit which
indicate that the payments by
the complainants were made to Arnishs
and Associates. The applicant elected not to follow the money but the
respondent even in
the face of glaring evidence pointing to the
contrary.
[48]
In submitting that the respondent failed to supervise and exercise
control over his employees and staff, Ms Moolman
referred
us to the case of the
Law
Society of the Transvaal v Malatji
[8]
,
where
the Court had this to say:
“…
It
is equally fine that attorneys may have to leave the handling of
matters and taking of administrative, managerial, and professional
decisions in the hands of the partners and of junior staff members.
The attorney does not by so doing escape personal responsibility.
The respondent cannot place the blame for the manner in which trust
money was handled on his candidate attorney or his staff. The
respondent’s duty towards the preservation of trust monies is a
fundamental, positive and unqualified duty. In failing to
personally
supervise his candidate attorneys or staff in their handling of trust
moneys, the respondent has breached his duty.
”
[49]
The respondent further explained that upon investigation, it was
established that Arnishs and Associates
was a private company that
was registered on 14 June 2018 with Modise as its sole director.
[50]
In all the above matters the respondent contends that he has never
authorised Modise and Motoeneng
to do any conveyancing work and/or
receive money on his behalf and/or the firm. It is common cause
that all the monies paid
by these complainants were never deposited
into the trust banking account of the firm. They were all paid into
the banking account
of Arnishs and Associates. The respondent further
contended that the infractions took place in his absence, and he
could not have
been expected to supervise and exercise control over
the employees who were mere secretaries and not authorised to consult
and
take instructions on his behalf or the firm.
[51]
He further mentioned that Motoeneng listed herself on LinkedIn as a
legal specialist at Arnishs and
Associates from September 2018 to May
2022. She together with Modise ran a scheme using the company
Arnishs and Associates
to defraud the public.
[52]
The argument on behalf of the respondent which purports to blame his
former employees for what happened,
loses sight of the fact the
respondent has a duty towards the preservation of trust monies which
is fundamental, positive and unqualified.
In our view the respondent
has breached this duty. It follows that he is guilty of
unprofessional conduct in that he failed and/or
neglected to
personally supervise his employees in their handling of trust moneys
in contravention of clause 18.3 of the Code of
Conduct. It is
immaterial that the infractions happened in his absence and were not
authorised by him.
[53]
The respondent did not take the instructions from the complainants.
He was not aware of these
instructions and did not authorise them.
We are not persuaded that he contravened clause 3.1, 3.11 and 18.4 of
the Code of
Conduct. The funds paid by the complainants
were never deposited into the trust and business accounts of the
firm.
He did not benefit from these funds. He also did not contravene
Rule 54.13 of the LPC Rules.
[54] In the
matters of Tshabalala, Xaba, and Mngomezulu, the
respondent has also been accused of failure
to account faithfully,
accurately and timeously for his client’s money which came into
his possession, keep such money separate
from his own money, and
retain such money for so long as is strictly necessary in breach of
clause 3.8 of the Code of Conduct.
As said earlier the respondent did
not consult and/or take instructions from these complainants.
We are therefore not persuaded
that the respondent contravened clause
3.8 of the Code of Conduct.
[55]
The respondent was also accused of contravening Rule 54.12 of the LPC
Rules in the matter of Mngomezulu
in that he failed within a
reasonable time after the performance or earlier termination of the
mandate received from the complainant,
to furnish the complainant
with a written statement of account setting out with reasonable
clarity: details of all amounts
received by him in connection
with the matter, appropriately explained; particulars of all
disbursements and other payments made
by him in connection with the
matter; fees and other charges charged to or raised against the
client and, where any fee represents
an agreed fee, the amount due to
or owed by the client. The evidence does not prove the contravention
of Rule 54.12 of the LPC
Rules.
[56]
The complaints of Molisakeng and Mngomezulu were sent to the
respondent in various correspondences, and he simply did not respond.
We are persuaded that the respondent contravened clauses
16.1, 16.2 and 16.3 of the Code of Conduct.
[57]
In the matter of Setlhare, the respondent is also accused of
contravening the provisions of Clauses
3.1, 3.11, 18.14, 18.3, and
16.1 to 16.3 of the Code of Conduct as well as Rule 54.13 of the LPC
Rules. The complaint was
forwarded to the respondent on 10
February 2022. He denies receiving it. The correspondence shows
that the complaint was
sent to the same email address that has been
used in the other complaints. The contention by the respondent that
he did not receive
this complaint, can therefore not be true. There
can be no doubt that the respondent received the complaint and failed
and/or neglected
to respond to it in contravention of clauses 16.1 to
16.3 of the Code of Conduct.
[58]
In the supplementary answering affidavit, the respondent further
states that he does not know how Bango
came into possession of the
receipt book of his firm as he was never employed by the firm.
He also states that he laid criminal
charges against Bango. The
applicant contends that when this matter was postponed to allow the
respondent to file a supplementary
answering affidavit, the court
requested the respondent’s Counsel to indicate in the
respondent’s papers where he explained
his relationship with
Bango or where he indicated that he does not know him. Even in the
supplementary answering affidavit the
respondent did not address the
issue. He does not deny that he knows Bango.
[59]
Taking into account that it is common cause that Setlhare met Bango
in the mall and also deposited
the money into Bango’s personal
account, it is evident that the respondent and or the firm have never
benefited from these
funds. The receipt issued to Setlhare
although it has the details of the respondent’s firm, does not
indicate whether
the money was paid in the trust or business account
of the firm. In my view the applicant’s argument is
neither here
nor there as it does not take this matter any further.
There is therefore no evidence to prove that the respondent
contravened
clauses 3.1, 3.11, 18.14 of the Code of Conduct. There is
also no evidence that Bango was employed by the respondent’s
firm.
We are not convinced that the respondent breached clause
18.3 of the Code of Conduct.
Mafuta,
Soji, Le Roux Vivier Attorneys, Sithole, Khosa, Mathabela and Motsai
[60]
Regarding the complaint by Mafuta, it appears that the respondent did
not update him of the progress
in the matter. The reason for the
complaint was that the respondent did not account to him and pay over
the money that he instructed
him to claim against Pick It Up.
Mafuta was not aware of the appeal against the judgment that was
granted in his favour.
Even though the respondent confirmed to Swart
that Mafuta was paid his money during 2018, the respondent has not
supplied the information
that was requested by the applicant and
Swart. This is despite the fact that the respondent had
indicated that he had requested
Pick It Up to furnish him with a
remittance order which he intended to include it in his response.
The respondent did not
come clean in this matter. In his heads
of argument, it was submitted that the particulars of claim clearly
gave a breakdown
of how the amount of R155 362,30 claimed, was
arrived at and that he had properly accounted to Mafuta. It is
the respondent
who indicated that after judgment was granted in
favour of Mafuta and/or his business, Vhaswa, he received an offer
from Pick It
Up in the amount of R227 000,00. Swart
reported that in the judgment, Pick It Up was also ordered to pay
legal costs.
Swart was unable to identify receipt of such legal costs
in the trust cash book of the firm.
[61]
The respondent is a senior legal practitioner. He is expected to
provide the LPC with sufficient information
and reply fully and
accurately to the complaint lodged against him. The information that
he has provided is not supported by any
evidence. He should
have attached a copy of the judgment, proof of the notice of appeal
together with the offer he received,
and the acceptance of the
offer. The Court is in the dark as to what happened, when was
the judgment granted, when was the
offer made and accepted, and when
was the payment received. There is also no proof of payment to
the complainant and the
date it was made. The fact that Mafuta’s
affidavit confirms that he accepted the payment, does not resolve the
issues at
hand. It is evident that the respondent did not
account to Mafuta, did not handle this matter properly, and delayed
payment
of his money which was due and payable to him. In our
view the respondent failed to maintain the highest standard of
honesty
and integrity. He therefore contravened clauses 3.1, 3.8, and
16.2 to 16.3 of the Code of Conduct together with Rules 54.12 and
54.13 of the LPC Rules.
[62]
In respect of Soji’s complaint, the respondent was given
instructions during April 2019. However,
he only issued summons on 8
September 2020. The applicant received this complaint on 15 May
2020. There are no details as
to how much Soji paid the respondent
although the respondent states in his answering affidavit that she
only paid an amount of
R3 500,00 which was for opening the file
and consultation. He also mentions that Soji promised to make further
payments which
she did not effect. He executed the mandate
notwithstanding the non-payment.
[63]
The respondent does not explain why he only issued summons more than
a year after he received instructions
from Soji and he does not
attach proof of a statement of account indicating the amount of work
he had done, and the fees Soji was
supposed to pay him.
[64]
The respondent failed to respond to the complaint after 5 (five)
letters were addressed to him by the
applicant. The answering
affidavit was deposed to on 19 June 2022, almost 2 (two) years after
the complaint was sent to him.
He does not explain what happened
after Dial Direct Insurance had filed the notice of intention to
defend the matter. It
is evident that this matter was not
properly handled. We agree that the respondent contravened clauses
3.1, 3.11, 18.14 and 16.1
to 16.3 of the Code of Conduct.
[65]
Regarding the complaint lodged by Le Roux Vivier Attorneys on behalf
of Morkel (Rodel), the fact that
the respondent has now paid the
money he owed to Rodel and that the matter has been resolved between
the parties, does not take
away the fact that the money that was held
in trust on behalf of a client, Rodel, for a specific purpose was not
available upon
the transfer of the property to fulfil that purpose.
Rodel paid the funds in the trust account of the firm as bridging
finance
and in paragraph 7 of the undertaking by the respondent dated
2 September 2018, the respondent’s firm undertook to pay Rodel
money from the proceeds of the transfer within 72 hours of the
registration of the transfer/receipt of funds.
[66]
Summons was issued against the respondent’s firm because it
could not pay the funds as agreed.
According to Swart the
amounts of R80 278,17 and R20 000,00 received from Rodel on
11 and 21 September 2018 respectively,
were paid into the trust
banking account of the firm. On 18 October 2018, an amount of
R20 770,00 (inclusive of interest)
was paid to Rodel from the
firm’s business banking account. The respondent’s
firm’s trust creditor’s
ledger accounts which reflected
receipt of the two amounts from Rodel, indicated that the trust funds
in these accounts were removed
from the firm’s trust account
through the payment of fees. No payments were made to the
seller and to Rodel.
The seller of the property did not receive
bridging finance as alleged by the respondent’s firm. The
seller did not
owe Rodel or the respondent’s firm any funds. We
agree with Swart that there was therefore a trust shortage in respect
of
the trust money received from Rodel in the total amount of
R100 278,71 from the period 28 February 2019 to 28 February
2021.
[67]
It is very concerning that the version of the respondent in respect
of this matter was that the seller
(Mr Moreletse) borrowed the money
received from Rodel and that the seller misled the respondent by not
telling him that he borrowed
that money whereas in fact it was the
respondent who borrowed the money. As per Swart’s report the
funds were not even borrowed
on behalf of the seller. These
funds were immediately transferred to the respondent’s firm’s
business account.
In the answering affidavit the respondent stated
that his firm merely acted as a surety and the payment that was not
available
to Rodel which was later rectified, was made in error.
[68]
It appears that after judgment was obtained against the respondent’s
firm on 2 October 2019 for
the sum of R101 698,05, the
respondent negotiated the terms of the repayment of the debt with
Rodel and he signed an acknowledgement
of debt on 20 July 2021 in
terms of which the firm agreed to pay the settlement amount of
R200 000,00 in six monthly instalments
of R33 333,33 from
31 July 2021 to 31 December 2021. Swart reported that as at the date
of his report on 30 September 2021,
no instalments were paid and the
full amount of R200 000,00 was still due and payable to Rodel.
[69]
Without explaining how the full amount due and payable to Rodel had
been paid and not even attaching any
form of proof of payment, the
respondent just attached an email from Rodel’s attorneys
stating that the matter has been settled
between the parties and that
the amount due and payable has been paid in full.
[70]
Three letters were addressed to the respondent relating to this
complaint, with the last letter sent
on 23 June 2020. He only
responded on 12 October 2020.
[71]
We are satisfied that the respondent has contravened clauses 3.1,
3.8, 16.1 to 16.3 of the Code of
Conduct and Rule 54.13 of the LPC
Rules.
[72]
The response of the respondent in the answering affidavit to the
complaint of Sithole is extremely
deficient. He is being accused of
failing to execute an instruction given to him by a client and that
he has been avoiding to take
his calls. However, without explaining
and attaching any proof of what he had done as alleged, he makes bald
allegations that although
he did not carry out the mandate to
finality, there is no dispute that he performed some work. He further
says he rendered an account
to Sithole and payment is still pending.
It appears that Sithole terminated his mandate because he was unhappy
with his performance.
He arrogantly mentions that he refused to
hand over the file to Mashele Attorneys as security for the payment
of his fees.
The attitude displayed here, and the response
thereof, do not accord with the conduct that is expected of an
attorney.
[73]
Five letters were addressed to the respondent relating to the
complaint of Sithole. The respondent
failed and/or neglected to
answer any of the letters. He has not been cooperative with the
applicant.
[74]
In our view, the respondent’s conduct is,
inter alia
, in
contravention of the following provisions of the Legal Practice Act,
the Code of Conduct and the LPC Rules: clauses 3.1,
3.11,
18.14, 16.1 to 16.3 of the Code of Conduct.
[75]
The applicant in the matter of Khosa, has accused the respondent with
serious allegations which are
very concerning that he fraudulently
masqueraded as his firm’s representative in an arbitration
matter without proper instructions
from him. He also took money from
him under circumstances he could not explain and has never furnished
him with any report or statement
of account. Although the details of
how much money was paid to the respondent are not there, the
respondent did not come clean
in this matter. Numerous
correspondences were sent to him by the applicant including the
correspondences that called him to a meeting
with the Investigation
Committee. The respondent elected not to answer to the letters sent
to him and only on the day of the meeting,
he sent an email stating
that he was sick. He did not cooperate with the applicant. In his
answering affidavit he does not give
a proper answer to the
complaint. He does not explain how he got the instruction to
represent Sithole in the arbitration.
He just denies the allegations.
The respondent must state full facts to counter the allegations
against him. He failed to do so.
We are persuaded that he contravened
the provisions of the LPA, the Code of Conduct and the LPC Rules.
[76]
The respondent did not respond to the correspondence addressed to him
relating to the complaint of
Mathabela. In the answering affidavit he
barely denies the allegations without attaching any proof of the
statements he made.
As an agent who has been instructed
to assist the executrix in an estate, the respondent is supposed to
have kept Ms Mathabela
informed about what was happening in the
estate. He does not submit the progress report that he gave
her. There is
nothing to support the allegations he made. Ms
Mathabela is armed with a letter from the Master which states that
she had been
removed as an executrix. She did not hear it from the
respondent but the Master. This is a clear indication that the
respondent
has failed to execute his mandate.
[77]
Also in this matter the respondent has not been cooperating with the
applicant. More than three letters
were sent to the respondent which
related to this complaint. The respondent failed/neglected to answer
even when he was notified
that the Investigating Committee of the
applicant had recommended that he be charged. We are persuaded that
the respondent’s
conduct is in contravention of the provisions
of the LPA, the Code of Conduct and the Rules in particular clauses
3.1, 3.11, 18.14,
and 16.1 to 16.3.
[78]
In the complaint of Motsai, the court notes that the matter has been
resolved between the respondent
and Motsai. Be that as it may,
the respondent still did not furnish the applicant with the
information it requested.
The respondent’s reply to this
complaint is as good as no response at all. Whilst there is proof
that judgment in this matter
was granted on 26 January 2015, there
are no details as to when payment was made and what kind of the fee
arrangement was in place.
Swart reported that it appears that
the respondent’s firm only acknowledged payment to Motsai on 2
December 2017 which is
a period of almost three years after judgment
was obtained in Motsai’s favour. Whereas Motsai stated that
there was a contingency
fee agreement in place, when the respondent
was requested to furnish a copy, he indicated that the Motsai had not
signed any contingency
agreement.
[79]
There are no details as to how the matter was resolved. There
is no reason why the respondent
failed and/or neglected to provide
the information requested by the applicant. It is not known how
the amount that was paid
to Motsai was calculated. The respondent has
failed to account to Motsai, delayed payment to him and elected not
to provide the
applicant with the information it requested making
himself guilty of unprofessional or dishonourable conduct in
contravention of
clauses 3.1, 3.8 and 16.1 to 16.3 of the Code of
Conduct as well as Rules 54.12 and 54.13 of the LPC Rules.
Is
the respondent a fit and proper person to continue to practice
?
[80]
This enquiry entails a value judgment which involves the weighing up
of the conduct complained of against
the conduct expected of an
attorney.
[81]
In
Kekana
[9]
,
Hefer JA stated that absolute integrity and scrupulous honesty are
demanded from legal practitioners and that those who have
demonstrated a lack of those qualities cannot be expected to play
their part. In this matter
in
casu
,
the conduct of the respondent demonstrates a lack of these necessary
qualities. The respondent has not cooperated with the
applicant
to allow it to conduct proper investigation of the complaints against
him. The applicant wrote him several letters
which he elected
not to answer when he was in a position to do so. In some
complaints he did not respond within a reasonable
time to allow the
applicant to further investigate the matters. In the complaints of
Motsai and Mafuta, the applicant requested
the respondent detailed
information as to how he had calculated the amounts paid to the
complainants, whether there was a fee structure
in place, proof of
the payment of the trust money to the firm, etc. The respondent
just responded by saying the matters have
been resolved between the
parties.
[82]
Furthermore, the respondent repeatedly contended that he was not
admitted as a conveyancer and has
never taken instructions to do such
work when he was confronted with the complaints where his former
employees defrauded members
of the public. It was established
in the complaint of Morkel on behalf of Rodel that he took
instructions to transfer immovable
property and money was paid into
the respondent’s firm as bridging finance. He also signed an
undertaking to transfer immovable
property. Furthermore, he lied
under oath when he stated that his firm only acted as surety when in
fact that was not the case.
Moreover, his version regarding the
amount of money that was paid in trust by Rodel, leaves much to be
desired.
[83]
In most of the complaints as discussed above, the responses are very
sketchy. He had many opportunities
to come forth with information,
but he failed to do so. He still has not disclosed where he took
instructions from Khosa whom he
represented in an arbitration and how
the payment by Khosa was made. He has not been honest and has not
displayed absolute integrity
expected of him as an attorney.
We are therefore not persuaded that the respondent can be considered
as a fit and proper
person to be allowed to continue to practise as a
member of the legal profession.
The
appropriate sanction
[84]
In determining the appropriate sanction, the court is not imposing a
penalty. The main consideration
is the protection of the public
[10]
.
[85]
It is never easy to impose the ultimate sanction on an attorney as it
has the effect of terminating
his means of livelihood, with adverse
consequences to himself, and his family. Before imposing such a
sanction, a court must be
satisfied that the lesser stricture of
suspension from practice will not achieve the court’s
supervisory powers over the
conduct of an attorney. These
objectives have been described as twofold: first, to discipline
and punish the errand
attorney and, second, to protect the public,
particularly where trust funds are involved
[11]
.
[86]
An attorney’s duty in regard to the preservation of trust money
is a fundamental, positive and
an unqualified duty. Neither
negligence nor wilfulness is an element of a breach of such duty.
Where trust money is paid
to an attorney, it is his/her duty to keep
it in his/her possession and use it for no other purpose than that of
trust. It
is inherent in such a trust that the attorney should
at all times have available liquid funds in an equivalent amount.
The
very essence of a trust is the absence of risk. It is imperative
that trust money in the possession of an attorney should be available
to his/her client the instant it becomes payable. Trust money is
generally payable before and not after demand
[12]
.
[87]
Mr Ndlovu for the respondent argued that the respondent should not be
punished for the trust shortage
of the funds which his former
employees pocketed when they defrauded the complainants. The evidence
is clear that the amounts paid
by Tshabalala and Mngomezulu were not
paid in the respondent’s firm’s banking accounts, and he
did not authorise the
payments thereof. Those payments were paid in
the account of Arnishs and Associates the company of Modise. We
cannot therefore
hold the respondent responsible for the trust
shortage that involve such funds. However, the evidence proves that
there was a trust
shortage which relate to the amount of R100 271,71
which was paid by Rodel as bridging finance. This amount which was
supposed
to be paid to Rodel upon registration of transfer of the
immovable property was not available for that purpose at the time.
This
led to the institution of an action against the respondent’s
firm for recovery of same and judgment was eventually obtained
against the respondent’s firm.
[88]
Although it appears that the complaint of Rodel has been resolved in
that the respondent had finally
paid the amount that was due and
payable to Rodel, this does not take away the fact that as at the
time of Mr Swart’s report,
the trust shortage was still there
and Rodel was not paid any cent in terms of the acknowledgement of
debt signed by the respondent.
[89]
In
Malan
[13]
,
it was held that if the Court finds dishonesty in the conduct of a
legal practitioner, the circumstances must be exceptional before
a
Court will order a suspension instead of a removal.
[90]
The conduct of the respondent in the above matters and the extent to
which it reflects on his character,
clearly indicates that he is not
worthy to remain in the ranks of the profession. The court has to
protect the public from this
kind of conduct. We cannot find
any exceptional circumstances that would justify a lesser sanction.
It, therefore,
follows that the appropriate sanction under the
circumstances is to have the name of the respondent struck off the
roll of attorneys
(legal practitioners).
Costs
[91]
Given the nature of these proceedings and the role that the applicant
fulfils as
amicus
curiae,
[14]
the
applicant is entitled to its costs on attorney and client scale.
[92]
In the result the following order is made:
1.
That the name of Onke Maseti (hereinafter referred to as the
respondent) be removed from the roll of legal
practitioners of this
Court.
2.
The respondent immediately surrenders and deliver to the registrar of
the Honourable Court his certificate
of enrolment as a legal
practitioner of this Honourable Court.
3.
That in the event of the respondent failing to comply with the terms
of this order detailed in the previous
paragraphs within two (2)
weeks from the date of this order, the Sheriff of the district in
which the certificate is, be authorised
and directed to take
possession of the certificate and to hand it to the registrar of this
Honourable Court.
4.
That the respondent be prohibited from handling or operating on the
trust accounts as detailed in paragraph
5 hereof.
5.
That Ignatius Wilhelm Briel, the Director of the Gauteng
Provincial Office of the applicant or any person nominated
by him, be
appointed as
curator
bonis (curator
)
to administer and control the trust accounts of the respondent,
including accounts relating to insolvent and deceased estates
and any
deceased estate and any estate under curatorship connected with the
respondent’s practise as a legal practitioner
and including,
also, the separate banking accounts opened and kept by respondent at
a bank in the Republic of South Africa in terms
of section 86(1) and
(2) of Act No 28 of 2014 and/or any separate savings or
interest-bearing accounts as contemplated by section
86(3) and/or
section 86(4) of Act No 28 of 2014, in which monies from such trust
banking accounts have been invested by virtue
of the provisions of
the said sub-sections or in which monies in any manner have been
deposited or credited (the said accounts
being hereafter referred to
as the trust accounts), with the following powers and duties:
5.1
immediately to take possession of the respondent’s accounting
records, records, files and
documents as referred to in paragraph 6
and subject to the approval of the Legal Practitioners’
Fidelity Fund Board of Control
(hereinafter referred to as the fund)
to sign all forms and generally to operate upon the trust account(s),
but only to such extent
and for such purpose as may be necessary to
bring to completion current transactions in which the respondent was
acting at the
date of this order;
5.2
subject to the approval and control of the Legal Practitioners’
Fidelity Fund Board of Control
and where monies had been paid
incorrectly and unlawfully from the undermentioned trust accounts, to
recover and receive and, if
necessary in the interests of persons
having lawful claims upon the trust account(s) and/or against the
respondent in respect of
monies held, received and/or invested by the
respondent in terms of section 86(1) and (2) and/or section 86(3)
and/or section 86(4)
of Act No 28 of 2014 (hereinafter referred to as
trust monies), to take any legal proceedings which may be necessary
for the recovery
of money which may be due to such persons in respect
of incomplete transactions, if any, in which the respondent was and
may still
have been concerned and to receive such monies and to pay
the same to the credit of the trust account(s);
5.3
to ascertain from the respondent’s accounting records the names
of all persons on whose
account the respondent appear to hold or to
have received trust monies (hereinafter referred to as trust
creditors) and to call
upon the respondent to furnish him, within 30
(thirty) days of the date of service of this order or such further
period as he may
agree to in writing, with the names, addresses and
amounts due to all trust creditors;
5.4
to call upon such trust creditors to furnish such proof, information
and/or affidavits as he may
require to enable him, acting in
consultation with, and subject to the requirements of the Legal
Practitioners’ Fidelity
Fund Board of Control, to determine
whether any such trust creditor has a claim in respect of monies in
the trust account(s) of
the respondent and, if so, the amount of such
claim;
5.5
to admit or reject, in whole or in part, subject to the approval of
the Legal practitioners’
Fidelity Fund Board of Control, the
claims of any such trust creditor or creditors, without prejudice to
such trust creditor’s
or creditors’ right of access to
the civil courts;
5.6
having determined the amounts which he considers are lawfully due to
trust creditors, to pay such
claims in full but subject always to the
approval of the Legal Practitioners’ Fidelity Fund Board of
Control;
5.7
in the event of there being any surplus in the trust account(s) of
the respondent after payment
of the admitted claims of all trust
creditors in full, to utilise such surplus to settle or reduce (as
the case may be), firstly,
any claim of the fund in terms of section
86(5) of Act No 28 of 2014 in respect of any interest therein
referred to and, secondly,
without prejudice to the rights of the
creditors of the respondent, the costs, fees and expenses referred to
in paragraph 10 of
this order, or such portion thereof as has not
already been separately paid by the respondent to the applicant, and,
if there is
any balance left after payment in full of all such
claims, costs, fees and expenses, to pay such balance, subject to the
approval
of the Legal Practitioners’ Fidelity Fund Board of
Control, to the respondent, if he is solvent, or, if the respondent
is
insolvent, to the trustee(s) of the respondent’s insolvent
estate;
5.8
in the event of there being insufficient trust monies in the trust
banking account(s) of the respondent,
in accordance with the
available documentation and information, to pay in full the claims of
trust creditors who have lodged for
repayment and whose claims have
been approved, to distribute the credit balance(s) which may be
available in the trust banking
account(s) amongst the trust creditors
alternatively to pay the balance to the Legal Practitioners’
Fidelity Fund;
5.9
subject to the approval of the chairman of the Legal Practitioners’
Fidelity Fund Board
of Control, to appoint nominees or
representatives and/or consult with and/or engage the services of
legal practitioners, counsel,
accountants and/or any other persons,
where considered necessary, to assist him in carrying out his duties
as curator; and
5.10 to
render from time to time, as curator, returns to the Legal
Practitioners’ Fidelity Fund Board of
Control showing how the
trust account(s) of the respondent has/have been dealt with, until
such time as the board notifies him
that he may regard his duties as
curator as terminated.
6. That the
respondent immediately delivers the accounting records, records,
files and documents containing particulars and
information relating
to:
6.1
any monies received, held or paid by the respondent for or on account
of any person while practising
as a legal practitioner;
6.2
any monies invested by the respondent in terms of section 86(3)
and/or section 86(4) of Act No
28 of 2014;
6.3
any interest on monies so invested which was paid over or credited to
the respondent;
6.4
any estate of a deceased person or an insolvent estate or an estate
under curatorship administered
by the respondent, whether as executor
or trustee or curator or on behalf of the executor, trustee or
curator;
6.5
any insolvent estate administered by the respondent as trustee or on
behalf of the trustee in
terms of the
Insolvency Act, No 24 of 1936
;
6.6
any trust administered by the respondent as trustee or on behalf of
the trustee in terms of the
Trust Properties Control Act, No 57 of
1988;
6.7
any company liquidated in terms of the provisions of the Companies
Act, No 61 of 1973 read together
with the provisions of the
Companies
Act, No 71 of 2008
, administered by the respondent as or on behalf of
the liquidator;
6.8
any close corporation liquidated in terms of the
Close Corporations
Act, 69 of 1984
, administered by the respondent as or on behalf of
the liquidator; and
6.9
the respondent’s practice as a legal practitioner of this
Honourable Court, to the curator
appointed in terms of paragraph 5
hereof, provided that, as far as such accounting records, records,
files and documents are concerned,
the respondent shall be entitled
to have reasonable access to them but always subject to the
supervision of such curator or his
nominee.
7. That should the
respondent fail to comply with the provisions of the preceding
paragraph of this order on service thereof
upon him or after a return
by the person entrusted with the service thereof that he has been
unable to effect service thereof on
the respondent (as the case may
be), the Sheriff for the district in which such accounting records,
records, files and documents
are, be empowered and directed to search
for and to take possession thereof wherever they may be and to
deliver them to such curator.
8. That the curator
shall be entitled to:
8.1
hand over to the persons entitled thereto all such records, files and
documents
provided that a satisfactory written undertaking has been
received from such persons to pay any amount, either determined on
taxation
or by agreement, in respect of fees and disbursements due to
the firm;
8.2
require from the persons referred to in paragraph 8.1 to provide any
such documentation
or information which he may consider relevant in
respect of a claim or possible or anticipated claim, against him
and/or the respondent
and/or the respondent’s clients and/or
fund in respect of money and/or other property entrusted to the
respondent provided
that any person entitled thereto shall be granted
reasonable access thereto and shall be permitted to make copies
thereof;
8.3
publish this order or an abridged version thereof in any newspaper he
considers appropriate;
and
8.4
wind-up of the respondent’s practice.
9.
That the respondent be and is hereby removed from office as:
9.1
executor of any estate of which the respondent has been appointed in
terms of
section 54(1)(a)(v)
of the
Administration of Estates Act, No
66 of 1965
or the estate of any other person referred to in
section
72(1)
;
2.54cm; margin-bottom: 0cm; line-height: 150%; text-decoration: none">
9.2
curator or guardian of any minor or other person’s property in
terms of
section 72(1)
read with
section 54(1)(a)(v)
and
section 85
of the
Administration of Estates Act, No 66 of 1965
;
9.3
trustee of any insolvent estate in terms of
section 59
of the
Insolvency Act, No 24 of 1936
;
9.4
liquidator of any company in terms of
section 379(2)
read with 379(e)
of the Companies Act, No 61 of 1973 and read together with the
provisions of the
Companies Act, No 71 of 2008
;
9.5
trustee of any trust in terms of section 20(1) of the Trust Property
Control Act, No 57
of 1988;
9.6
liquidator of any close corporation appointed in terms of
section 74
of the
Close Corporations Act, No 59 of 1984
; and
9.7
administrator appointed in terms of
section 74
of the Magistrates
Court Act, No 32 of 1944.
10. That the
respondent be and is hereby directed:
10.1
to pay, in terms of section 87(2) of Act No 28 of 2014, the
reasonable costs of the inspection of the
accounting records of the
respondent;
10.2 to
pay the reasonable fees of the auditor engaged by applicant;
10.3 to pay
the reasonable fees and expenses of the curator, including travelling
time;
10.4 to pay
the reasonable fees and expenses of any person(s) consulted and/or
engaged by the curator as aforesaid;
10.5
to pay the expenses relating to the publication of this order or an
abbreviated version thereof; and
10.6
to pay the costs of this application on an attorney-and-client scale
and on scale C in terms of Rule
69(7) of the Uniform Rules of Court.
11.
That if there are any trust funds available the respondent shall
within 6 (six) months after having
been requested to do so by
the curator, or within such longer period as the curator may agree to
in writing, shall satisfy the
curator, by means of the submission of
taxed bills of costs or otherwise, of the amount of the fees and
disbursements due to the
respondent in respect of his former
practice, and should he fail to do so, he shall not be entitled to
recover such fees and disbursements
from the curator without
prejudice, however to such rights (if any) as he may have against the
trust creditor(s) concerned for
payment or recovery thereof.
12.
That a certificate issued by a director of the Legal Practitioners’
Fidelity Fund shall constitute
prima facie
proof of the
curator’s costs and that the Registrar be authorised to issue a
writ of execution on the strength of such certificate
in order to
collect the curator’s costs.
M J TEFFO
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
I
agree:
M
MBONGWE
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
Appearances
For the
applicant
J Moolman
Instructed
by
Damons Magardie Richardson Attorneys
For the
respondent
W B Ndlovu
Instructed
by
Peter Zwane Attorneys
Heard
on
11 February 2025
Handed down
on
30 September 2025
[1]
Section
4 of Act 28 of 2014
[2]
Jasat
v Natal Law Society
2000
(3) SA 44
,
[2000] 2 All SA 310
(SCA) at para 10
[3]
Hepple
and Others v Law Society of the Northern Provinces
[2014]
ZASCA 75
;
[2014] 3 All SA 408
(SCA) para 9;
Cirota
and Another v Law Society, Transvaal
[1979]
1 All SA 179
(A);
1979 (1) SA 172
(A) at 187
[4]
1934
AD 401
at 408-409
[5]
Hepple
and others v Law Society of the Northern Provinces supra
at
para 9
[6]
Incorporated
Law Society, Transvaal v Visse and others, Incorporated Law Society
v Viljoen
1958
(4) SA 115
(T) at 131D-G
[7]
2013
(2) SA 52
(SCA) at para 87
[8]
2004
JDR 0087 (T) para 19
[9]
Kekana
v Society of Advocates of South Africa
[1998] ZASCA 54
;
1998
(4) SA 649
(SCA),
[1998] 3 All SA 577
(A) at 656A-B
[10]
Malan
& Another v Law Society, Northern Provinces
[2008] ZASCA 90
;
2009
(1) SA 216
(SCA) par 7
[11]
Summerley
v Law Society, Northern Provinces
2006
(5) SA 613
(SCA) at para 19
[12]
See:
Law
Society, Transvaal v Matthews
1989
(4) SA 389
(T) at 394
[13]
Supra
at
221D-F, see also
General
Bar Council of South Africa v Geach & Others supra
[14]
Law
Society of the Northern Provinces v Le Roux
2012
(4) SA 500
GNP at 502E-F
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