Case Law[2024] ZAGPPHC 859South Africa
Mokoena v South African Legal Practice and Others (2023/034824) [2024] ZAGPPHC 859 (26 August 2024)
Headnotes
Summary of facts
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Mokoena v South African Legal Practice and Others (2023/034824) [2024] ZAGPPHC 859 (26 August 2024)
Mokoena v South African Legal Practice and Others (2023/034824) [2024] ZAGPPHC 859 (26 August 2024)
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sino date 26 August 2024
FLYNOTES:
PROFESSION
– Advocate –
Professional
fees
–
Respondents
contend applicant was aware that he would receive fees when
respondents received payments from RAF – Parties
had mutual
understanding how payments would be made for services rendered –
Applicant became agitated for payment outside
standing agreement
and longstanding terms of engagement – No basis provided
upon for permissibility to resile from
settlement agreement –
Application dismissed.
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
Case
Number: 2023/ 034824
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
DATE:
26/08/24
SIGNATURE
In the matter between:
TLADI
JACOB MOKOENA
Applicant
and
THE
SOUTH AFRICAN LEGAL PRACTICE
First
Respondent
COUNCIL
SOUTH
AFRICAN REVENUE SERVICES
Second
Respondent
DEV
MAHARAJ INCORPORATED
Third Respondent
DEVENDRANATH
MAHARAJ
Fourth Respondent
Delivered:
This judgment was prepared and authored by the Judge whose name is
reflected and is handed down electronically by circulation to
the
parties/their legal representatives by e-mail and by uploading it to
the electronic file of this matter on Caselines. The date
for
hand-down is deemed to be 19 August 2024.
JUDGMENT
SIPUNZI,
AJ
Introduction
[1]
This is an application in which the applicant, an advocate
[1]
in practice, seeks an order to compel Dev Maharaj Incorporated, a
firm of attorneys and its director Mr. Devendranath Maharaj,
an
attorney (the respondents), to pay fees that became due to him for
services rendered in various matters that served before court.
The
applicant seeks an order in the following terms:
‘
Part
A: Outstanding invoices owed to the applicant by Dev Maharaj
Incorporated and Mr. Devendranath Maharaj:
1.
An order directing the third respondent, Dev Maharaj Incorporated and
the fourth respondent, Mr. Devendranath
Maharaj to deliver the
records (proceeding record) and reasons in respect of the decision
not to pay all the applicant’s
outstanding invoices.
2.
In the event of the third respondent- Dev Maharaj Incorporated and
Fourth Respondent- Mr. Devendranath
Maharaj not being in possession
of the required records (proceedings record), the third respondent-
Dev Maharaj Incorporated and
the fourth respondent- Mr. Devendranath
must provide an explanation on affidavits indicating the whereabouts
of the required records
(proceeding record) and the reasons for the
reasons in respect of the decision not to pay the applicant’s
outstanding invoices.
3.
The third respondent, Dev Maharaj Incorporated and the fourth
respondent- Mr. Devendranath Maharaj are
directed to pay all the
applicant’s outstanding invoices within seven (7) days after
service of the court papers upon them.
4.
Third respondent- Dev Maharaj Incorporated and the fourth respondent-
Mr Devendranath Maharaj shall pay
the applicant an amount of
R1 392 973. 20 (One Million and Three Hundred and Ninety
-Two Thousand and Nine Hundred and
Seventy-Three Rand and Twenty
Cents only) in full and final settlement of all the applicant’s
outstanding invoices.
5.
Interest tempore morae at 15,5 % from the date of the invoices till
the payment date.
6.
The costs of this application against the third respondent- Dev
Maharaj Incorporated and the fourth respondent-
Mr. Devendranath
Maharaj on attorney and own client scale.
7.
The granting of further and /or alternative relief.’
In
Part B of the Notice of Motion, the applicant sought relief against
the first respondent, the South African Legal Practice Council
(SALPC). However, at the commencement of the oral submissions, the
applicant withdrew ‘Part B’ and ‘Part C’
of
the application. For the sake of brevity, a summary of the relief
outlined in these ‘Parts’ should suffice. In essence,
’Part B’ sought to enforce the SALPC to commence
disciplinary proceedings against the third respondent- Dev Maharaj
Incorporated and the fourth respondent- Mr. Devendranath Maharaj. The
applicant also sought to enforce the third and fourth respondents
to
disclose certain records to SALPC. According to him, such records
were allegedly part of fraudulent activities in tax avoidance,
fraud,
extortion, defeating ends of justice, perjury, violation with the
investment law, hiring of illegal immigrants, failure
to register the
illegal immigrants with SARS, failure to disclose PAYE for illegal
immigrants and misappropriation or withholding
of advocate fees that
were due to him.
In
Part C, the applicant sought an order that directed SARS to
investigate the creation of alleged fake investment accounts that
were created as part of tax avoidance by the third and fourth
respondents. He also sought an order that directed SARS to charge
the
third respondent- Dev Maharaj Incorporated and the fourth respondent-
Mr. Devendranath Maharaj with criminal charges relating
to
withholding of VAT output amounts of about R20 000 000 due
to SARS for the past ten (10) years.
[2]
The withdrawal of the application against
the SALPC was also contained in the withdrawal notice dated
23
September 2023, and the applicant tendered the costs. When the matter
served before this court on 22 May 2024, Mr. Stoker appeared
on
behalf of the SALPC and recorded their consent to the withdrawal of
the application. The applicant confirmed that the relief
sought under
‘Part B’, as outlined in the Notice of Motion was
abandoned.
[3]
The second respondent did not take part in the proceedings, despite
having been served with the
application on 16 November 2023. Because
the applicant also abandoned ‘Part C’ of the Notice of
Motion, the focus of
this judgment will be on the remainder of the
relief sought, being ‘Part A’.
[4]
The application is opposed by the third and the fourth respondents
(the respondents). They did
not dispute that the applicant had
rendered services on their instructions. The basis of the opposition
was that at all material
times when the applicant rendered the
services on their behalf, there was a service level agreement that
fees payable to him would
be paid when the Road Accident Fund (RAF),
in whose matters he was on brief, had been taxed and paid.
[5]
On 29 November 2023, this matter served before court on an unopposed
basis. It was however removed from
the unopposed motion roll to be
placed on the opposed roll.
[6]
When the matter served on 22 May 2024, the respondents sought
condonation for the late filing
of the heads of arguments. This
application was not opposed. Having considered their application and
what occasioned their failure
to file on time, I am of the view that
the application should succeed.
Legal
representation of the applicant
[7]
From the perusal of the papers, it became apparent that the notice of
motion appeared to be signed
by the applicant as counsel. This
anomaly led/prompted the court to inquire about his appearance before
the start of the oral arguments/submissions.
The applicant confirmed
that he was appearing as an attorney, counsel and in personal
capacity in his own matter. The applicant
is practising as a trust
advocate in terms of section 34(2)(a)(ii) of the Legal Practice Act
(LPA). When I pointed out to the applicant
that the situation was
undesirable,
[2]
in protest, he
insisted that the terms of his admission as a trust advocate,
permitted him to appear in such a manner. Ultimately,
it was settled
that in the proceedings, he was appearing in person.
[3]
Summary
of facts
[8]
The facts upon which the dispute arose are largely common cause.
[4]
The plaintiff provided professional services as counsel, representing
the RAF, and on the brief and instructions of the third and
fourth
respondents. Their relationship operated from 2016 until 2020, when
the last matter in which he appeared was finalised.
During the
subsistence of their contractual relationship, the respondents made a
practice to pay the plaintiff every four to five
months, for the
services he would have provided in various RAF matters over time.
[9]
In this instance, the applicant claims payment in the sum of R
1 392 973.20 (One Million
Three Hundred and Ninety-Two
Thousand, Nine Hundred and Seventy-Three Rand and Twenty Cents), in
full and final settlement of all
his outstanding invoices, with
interest. The amount claimed being the total sum of fees accumulated
in thirty (30) matters.
[5]
The
applicant claimed that the respondents refused or neglected to pay
the fees that were due to him, in contravention of the code
of
conduct that regulates the relationship and or payment of fees,
between counsel and briefing legal practitioners.
[10]
According to the respondents, they operated on the widely accepted
practice among legal practitioners that
litigation in RAF matters
invariably proceeded with massive delays, thereby affecting payment
of fees that would be due to legal
practitioners. The respondents
contended that the applicant was always aware that he would receive
his fees when the respondents
received payments from the RAF. The
respondents also contended that due to non-payment or delays in
payment of fees by the RAF,
in one instance, they also concluded a
settlement agreement in terms of which they resolved to pay some of
the money to the applicant.
The respondents also raised points
in
limine
, upon which they argued that the applicant was not
entitled to the reliefs he sought against them, as shall be traversed
hereunder.
Applicant’s
case
[11]
According to the applicant, the respondents were in breach of the
code of conduct that required them to pay
counsel fees before the
services were rendered and or within thirty days upon submission of
his bill. Upon service of the answering
affidavit of the respondents,
which also contained some defence to the claims, the applicant
elected not to rebut or gainsay same.
In his replying affidavit, the
applicant elected not to reply nor challenge the points
in
limine
that
were raised by the respondents. Instead, the applicant sought other
reliefs that did not form part of the initial notice of
motion, and
which were not dealt with in his founding affidavit. During oral
arguments, the contents of his replying affidavit,
which had not been
part of his founding affidavit, were brought to the attention of the
applicant. Amongst others, such content
included calls for the SALPC
KZN to prefer criminal charges against various legal representatives;
SALPC- GP to prefer criminal
charges against the respondents, and for
the Bar Council of Advocates to initiate disciplinary proceedings
against other legal
practitioners.
[6]
The applicant elected to abandon the relief sought in his replying
affidavit.
[12]
In any event, the style and content of the reply to the answering
affidavit of the respondents did not comply
with the rules, they were
out of place. The replying affidavit contained fresh averments that
were not part of the applicant’s
case as set out in the
founding papers of his application. It is therefore befitting not to
place any regard to its content.
Respondents’
case
Points
in limine
Non-joinder
[13]
According to the respondents, the subject matter of this application
relates to outstanding payments for
work done in litigation against
the RAF. They contended that it is widely accepted among
practitioners that litigation in RAF matters
invariably proceeds with
massive delays, thereby affecting payment of fees that would be due
to legal practitioners. They argue
that applicant was aware that he
would receive his fees when the respondents received payments from
the RAF. They submitted that
the RAF had a significant interest in
the outcome of the application and should have been joined.
[7]
[14]
Further, in pursuit of payment of his fees, the applicant had been in
direct contact and extensive interaction
with the RAF, to no avail.
He also lodged a complaint against the respondents, on the same
facts, with the first respondent, however,
this too returned no
positive results in his quest. The respondents also alleged that the
applicant had directly contacted their
client (RAF) in attempts to
demand payment for counsel fees. According to them, the applicant
went about this without their prior
consent and knowledge.
[15]
Much as the applicant was entitled to sue the respondents for fees
due and payable to him, this process is
also regulated in terms of
the code of conduct.
[8]
This
conduct of the applicant appears to be a direct contrast to Clause
27.4 of the code of conduct, which provides that, “Counsel
shall receive fees charged only from or through the instructing
attorney who gave the brief to counsel, except where such attorney,
for reasons of insolvency, or for any other reason, is unable to pay,
in which circumstances, with leave from the Provincial Council,
counsel may receive fees due from another source in discharge of the
indebtedness of the attorney.”
[16]
The applicant did not reply to or dispute these allegations. The
applicant offered no evidence against the
defence raised.
[17]
As it seems, the applicant had not shown that the respondents were
insolvent or unable to pay or that he
had sought leave of the SALPC
to pursue payment of his fees directly from the RAF. There were no
factors that sought to rebut the
points raised by the respondents. In
the circumstances, the defence raised should succeed.
Lis
pendens
[18]
The respondents averred that there is a pending litigation, on the
same cause of action, with the same parties,
seeking the same relief,
under Case No. 2023/033072, issued in this Court. According to the
respondents, that application is opposed
and still pending before
this Court. The applicant elected not to engage with these
allegations. They remained unchallenged. Without
any factors or
evidence presented to gainsay these allegations, in my view, the
defence raised should succeed.
Irregular
notice of motion: non-compliance with Uniform Rule 6(5)(b)(i) &
(iii)
[19]
The respondents complained that the notice of motion bears the
signature of the applicant as both attorney
and the counsel for the
applicant, whereas the applicant is not an attorney. They argued that
an attorney may not be counsel in
a matter where he is also appearing
in his personal capacity. They further argued that an advocate is
precluded from signing a
notice of motion. Further, that the
applicant failed to comply with Uniform Rule 6(5)(b)(i) and (iii) to
the extent that he failed
to provide a service address for processes
and provide days on which the respondents would be required to
respond to the service.
Uniform Rule 6(5)(b)(i) provides that,
“(b)(i) In a notice of motion the applicant must appoint an
address within 15 kilometres
of the office of the registrar, at which
applicant will accept notice and service of all documents in such
proceedings. (ii) State
the applicant’s postal, facsimile or
electronic mail addresses where available and (iii) Set forth a day,
not less than 10
days after service thereof on the respondent, on or
before which such respondent is required to notify the applicant, in
writing,
whether respondent intends to oppose such application, and
must further state that if no such notification is given the
application
will be set down for hearing on a stated day, not being
less than 10 days after service on the said respondent of the said
notice.”
[20]
The applicant elected not to challenge nor rebut the allegations
contained under this point
in
limine
.
It remains incontestable that the applicant was under a professional
duty not to induce a sense of confusion on the part of other
litigants and interested parties about his capacity in a case where
he may be acting in his professional capacity as against his
personal
capacity.
[9]
[21]
Therefore, in my respectful view, on this aspect, the applicant’s
posture may have negatively impacted
on the integrity in the
performance of his professional services. Once more, the respondents’
point
in limine
should be upheld
.
Pre-existing
dispute of fact
[22]
The respondents contended that there was a dispute of fact that
existed before the application was lodged.
They alleged that the
applicant had a complaint that was pending with the first respondent.
Apparently, such complaint also related
to the outstanding payments
of his fees on matters that he provided services on behalf of the
respondents’ firm in RAF matters.
After the respondents filed
their answering affidavit, as alleged, it seemed that the applicant
abandoned that process, in favour
of this application.
[23]
The letter dated 27 March 2023, addressed to the applicant, and
written by C Miranda Attorneys, who was the
legal representative of
the respondents bears testimony to the allegations of the respondents
that there was an existing dispute
on which arose from the same
subject of the application at hand. This letter sought to inform the
applicant the writer was acting
on behalf of the respondents when the
application was launched. The content of the email dated 11 April
2023, from the applicant
to the legal representatives of the
respondents clearly showed that already before the notice of motion
was served on the respondents,
there was a dispute that was before
the SALPC. This email also showed that the dispute involved the
applicant and the respondents,
and the subject matter was the alleged
failure of the respondents to pay fees that were due to the
applicant.
[10]
[24]
The existence of the pre-existing dispute of facts would be
established on a balance of probabilities if
regard be also had to
the contents of the communication exchanged between the applicant and
the legal representatives of the respondents
on one hand, as well as
between the SALPC, the applicant and the legal representatives of the
respondents on the other. The applicant
did not admit nor deny the
communication set out above, and as it appeared in the respondents’
answering affidavit. Furthermore,
the applicant offered no
substantial resistance to the alleged pre-existing dispute of fact.
Wherefore, in the circumstances, this
point
in limine
should
stand.
Defects
in relief claimed in Part A
[25]
This relates to the prayers 1 and 2 in ‘Part A’ of the
notice of motion, where the applicant
prayed for an order that
directed the respondents to furnish the applicant with the record of
proceedings wherein a decision was
taken by the respondents not to
pay his fees, failing which that they should be directed to disclose
the location of such a record.
The respondents contended that this
prayer was akin to review proceedings, therefore argued that the
applicant ought to have complied
with Uniform Rule 53.
[26]
The respondents also contended that the most suitable process that
would have adequately addressed the applicant’s
quest would
have been action proceedings, where it would have been permissible
for him to obtain some form of evidence through
discovery procedures.
The respondents made the point that they were merely service
providers to the RAF, not in positions of decision
making and
therefore exercise no authority over the business of the RAF.
According to the respondents, that was yet another factor
that
strengthened their argument that the RAF should have been joined in
the application.
[27]
The respondents claimed that they were also impoverished by the
non-payment of fees for services rendered
to the RAF in various
matters. They too, had not been paid by the RAF and in no position to
pay the applicant’s fees. On
this too, there was no substantial
resistance or rebuttal of the allegations made by the respondents.
[28]
The respondents also sought to answer to the relief that was sought
in Part B of the notice of motion. However,
due to the withdrawal of
the claim in Part B, I shall not burden this judgment by traversing
the matters related thereto.
[29]
In all the points
in
limine
raised by the respondents, the applicant did not take issue or rebut
and deny them. In the circumstances, I it difficult
to interrogate
the respondents’ allegations. In the replying affidavit, the
applicant elected not to respond to the allegations
either; instead,
he sought to bring in new matters that were not part of his founding
affidavit. This was an explicit deviation
from the established
purpose of pleadings, and in particular, the replying affidavit.
[11]
In the circumstances, and with the application of the
Plascon
Evans
Rule
[12]
principle, facts and
evidence that are not met with a denial and in rebuttal should be
considered as proven. In the absence of any
evidence or attempts to
gainsay the allegations of the respondents on each point
in
limine
above,
they ought to be regarded as proven facts.
[30]
Therefore, the substance of the points
in limine
remained
unchallenged and should accordingly be upheld.
The
main application
The
applicable law
[31]
Rule 7.8. of the General Council of the Bar of South Africa: Uniform
Rules of Professional Conduct provides,
under the heading, “Improper
arrangement Re Fees” that, “Counsel may not agree with
the attorney briefing him
that counsel will await payment of the fees
payable on that brief until the attorney shall have received them
from the lay client.”
[32]
Further, Rule 7.9. of the same rules provides for fees payable only
by attorneys. Rule 7.9.1. states that,
“Fees for any
professional services may only be paid by or through an attorney, or
by the Legal Aid Board, or the Road Accident
Fund provided that the
instructing attorney consents thereto in writing.”
Evaluation
[33]
From the onset, the essence of the dispute between the parties
revolves around the apparent arrangement for
payment of counsel fees.
According to the respondents, the letter of instruction to engage the
services of the applicant, in the
matter of
Ngobese
Albert Mandla v RAF Case No. 06345/2014,
dated
10 February 2018, was an example of how they did business with the
applicant.
[13]
The matter was
set down for hearing on 5 March 2018. The letter unequivocally states
that, “Please note that you shall get
paid immediately after we
receive payment from our client, the Road Accident fund in terms of
the allowed tariffs. Please note
further that we shall not be
responsible for the remainder of your fees in terms of your invoice
should the taxing master decide
to tax off any amounts.”
[14]
The applicant has also claimed payment for this matter.
[34]
According to the respondents, the subject of their dispute was always
the usual terms upon which they had
always cooperated with applicant,
since around 2016. The respondents contended that, “the
applicant was always aware that
he would receive his payments after
the RAF had made payments to the third respondent, and readily
accepted the reduced amounts
that would be paid into his
account.”
[15]
[35]
The respondents also contended that the applicant elected to not
contest nor engage with the averments that
were made in the
respondents’ answering affidavit to the complaint. Instead, he
replied by stating that he would respond
in the first proceedings,
leaving the dispute of fact raised by the respondents
uncontested.
[16]
[36]
According to Clause 30. 1 of the code of conduct, if an attorney
offers a brief to counsel which is already
marked with a fee,
counsel, upon acceptance of the brief, tacitly agrees to that fee. If
counsel chooses to refuse the brief on
those terms, counsel and the
instructing attorney must expressly agree in writing or by email to a
different fee, otherwise, if
counsel performs the work mandated by
the brief, the initial marked fee shall bind counsel.
[37]
When the applicant’s attention was drawn to the contents of
this letter, he would not be committal.
His response was to the
effect that he could not be certain if he claimed payment for
services in that matter. He would not admit
or deny that such an
arrangement existed in the general conduct of their business
relationship. However, if regard is had to the
averments in his
founding affidavit that the respondents “would pay him every
four or five months for services rendered”,
the letter from the
respondents bears credence to the respondents’ contention that
they operated on that understanding with
the applicant.
[38]
Furthermore, if the above is considered in light of the fact that
their professional relationship was from
2016 to 2020, the
respondents’ contentions do not appear to be farfetched. Let
alone that their method of doing business
was in direct violation of
the rule that prohibited the applicant, as counsel, from accepting
briefs on the basis that he would
await payment of the fees payable
on that brief until the attorney shall have received them from the
lay client.
[17]
[39]
Instead, the main question that arises in the given circumstances
would be whether it was still open for
the applicant to abandon their
long-standing agreement or method of doing business and call upon the
court’s intervention
when he was no longer pleased with the
respondents. As a point of departure, one takes guidance from the
principle in
Wells
v South African Aluminite Company.
The
principle stated that, “If there is one thing which, more than
another, public policy requires, it is that men of full
age and
competent understanding shall have utmost liberty of contracting, and
that their contracts, when entered into freely and
voluntarily, shall
be held sacred and shall be enforced by courts of justice.”
[18]
[40]
A closer look at their working arrangement over the years revealed
that the parties were both happy with
their rules of engagement even
in circumstances where they were contrary to the code of conduct,
upon which the applicant seeks
to enforce. At this point, it is
noteworthy that although their agreement was prohibited by Clause
26.1 of the LPA: Code of conduct
of legal practitioners, the parties
exercised their freedom to contract and were equally comfortable to
be bound by such rules.
Furthermore, it can be seen from a variety of
averments in both the applicant’s founding affidavit; the
answering affidavits
of the respondents and the erstwhile first
respondent, that the applicant enjoyed and benefitted from his
relationship with the
third and fourth respondent. Once more,
reference to the brief dated 05 March 2018 sheds light to the reality
that the applicant
was always at liberty to contract with the
respondents.
[41]
Guided by the principle set out in
Mohamed’s
Leisure Holdings (Pty) Ltd v Southern Sun Hotel Interests (Pty)
Ltd,
[19]
one finds that the
applicant has not established any ground upon which interference with
his long-standing arrangement with the
respondents is warranted by
the courts. The court in this case held that:
“
The privity and
sanctity of contract entails that contractual obligations must be
honoured when the parties entered into the contractual
agreement
freely and voluntarily. The notion of the privity and the sanctity of
contracts goes hand in hand with the freedom to
contact. Taking into
considerations the requirements of a valid contract, freedom to
contract denotes the parties are free to enter
into contracts and
decide on the terms of the contract.”
[20]
[42]
The respondents also contended that although they
had not received payment from the RAF for services rendered,
there
was a settlement agreement in operation between them and the
applicant in an attempt to meet his demands. This was done in
appreciation of the egregious position of the applicant. The
respondents had agreed to pay what they believed would be fair in
order to alleviate his financial hardships. In one of the matters in
which the applicant rendered services, he was paid an amount
of R
170 000.
[21]
It appears
that this payment was also followed by an email dated 14 January
2023, to which a proof of payment was attached.
[22]
[43]
The applicant did not deny that he received the amount of money as
alleged by the respondent. He however
sought to allege that he was
not a willing participant in the settlement agreement that was
signed, and which had his particulars
and signature. Nonetheless, the
applicant retained the money that was paid into his account. The
applicant did not deny receipt
of the same amount of money.
[44]
As gleaned, the content and the detail of their settlement agreement
appears to be conclusive evidence that
the parties elected to resolve
their dispute by making concessions. It also does not appear that the
applicant was not appreciative
of its purpose and content when he
agreed to bind himself. The applicant also alleged that his signature
as it appeared on the
settlement agreement was fraudulently placed by
the fourth respondent. The applicant alleged that the agreement was
fraudulently
obtained. On the settlement agreement, the applicant
alleged that the conduct of the respondents was unethical and
unlawful. However,
his allegations were not supported by objective
evidence when only looked closely at the agreement and if regard was
also had to
the fact that the applicant had also retained the amount
of money that was paid in terms of their alleged settlement
agreement.
[45]
If the validity or sustainability of this settlement agreement and
its terms are considered closely, regard
must be had to some
established legal principles that find application. For instance, the
applicant did not allege that there was
lack of consent on his part
or that there was a mistake on his part and the respondents’
part when this agreement was concluded.
Upon receipt of payment,
based on the settlement agreement, the applicant kept the money but
still complained that the settlement
agreement was null and void. He
acquiesced to the agreement, and he did so without any substantial
evidence to support his allegations.
[46]
It would be fair for one to infer from the content and style of the
agreement that the parties merely reached
a compromise which sought
to settle the dispute that was occasioned by failure to pay the
applicant’s fees, due to non-payment
by the RAF. In
Van
Reenen Steel (Pty) Ltd v Smith NO and Another,
[23]
the court reasoned that a
settlement agreement had a final and binding effect, because the
motivation for the parties involved would
have been to settle their
dispute and or prevent litigation. Therefore, one should be cautioned
against easily setting aside such
agreements on reasons that are not
informed by either lack of consent or apparent error on the part of
the parties.
[47]
The respondents also averred that they stopped working for the RAF in
February 2019, but they were still
owed monies by the RAF. They
acknowledged that the applicant was among counsel that were not paid
due to the delays at the RAF.
In January 2020, upon receipt of
outstanding invoices from the applicant, they conducted an audit on
32 such matters. On 6 September
2021, the respondents learned that
the applicant had submitted his invoices directly to the RAF. On 22
April 2022, this exercise
revealed that the applicant had already
been paid in 18 of those matters. On 3 November 2022, the respondents
received an enquiry
for outstanding payments on 15 matters. According
to them, although they still owed monies to the applicant, the amount
claimed
was still a subject of dispute between them.
[48]
The respondents alleged that in some instances, the applicant had
submitted two different accounts for the
same matter at different
times. As a point of reference, the respondents sampled two matters.
Such matters were, Leonora Bianca
Adams,
[24]
where the applicant allegedly submitted invoices for October 2018 and
April 2022 with different figures, and Malabo James Mokgadi,
which
the applicant attended to on 7 August 2018. However, the applicant
would not respond to rebut nor confirm such allegations.
In my
respectful view, in these proceedings, the court was not called upon
to make any finding on these allegations. Furthermore,
in the absence
of evidence to support such allegations, one finds no basis to make
findings and conclusions on the veracity of
such allegations.
[49]
Upon close examination of the relationship between the parties, they
clearly enjoyed a mutually beneficial
business relationship over a
period of four years. They had an understanding on how briefs were
sent and accepted and how payments
would be made for services
rendered. This fact is evident in the settlement agreement in which
the applicant accepted payment of
R 170 000 as part payment of
his fees, and the letter in the matter of
Ngobese Albert Mandla v
RAF Case No. 06345/2014,
dated 10 February 2018.
[50]
The dispute arose when the applicant got agitated for payment outside
the standing agreement and the longstanding
terms of engagement. The
applicant has not provided any basis upon which it should be
permissible for him to resile from the settlement
agreement. The
applicant has also not established grounds upon which the
longstanding manner of engagement should be abandoned
or set aside in
favour of compliance with the provisions of the LPC Code of conduct
on how he ought to have engaged with the respondents.
There has been
no credible evidence to suggest that the applicant was not a willing
participant or that he was coerced in the manner
in which he engaged
with the respondents. From the discussion above and the evaluation of
the evidence, with the application of
relevant legal principles, the
applicant has failed to establish a case that entitled him to the
relief sought under Part A of
the notice of motion.
[51]
The applicant has fallen short of establishing the respondents’
alleged breach of the Rule 7.8. of
the General Council of the Bar of
South Africa: Uniform Rules of Professional Conduct, which prohibits
the instructing attorney
and counsel from agreements that counsel
would await payment of the fees payable on that brief until the
attorney shall have received
them from the lay client.
Costs
[52]
The respondents argued for a punitive costs order. One carefully
engaged with their arguments in the exercise
of judicial discretion.
I carefully considered the substance of the submissions from both
parties, the nature of the dispute that
informed the application and
the prevailing circumstances of the RAF, which were common cause. The
cumulative effect of all matters
involved, including the conduct of
the applicant throughout the litigation process. It appears that this
application was lodged
out of desperation and no malice on the part
of the applicant. The respondents seemed to acknowledge that the
applicant was experiencing
financial hardships when they paid him the
R170 000.
[53]
In my view, the costs in the ordinary norm should suffice in the
circumstances as punitive costs are not
warranted. The costs on a
party and party on Scale C are justified.
Order
[54]
The following order is made:
1.
Therefore, the respondents’ application for condonation for the
late filing of their heads of arguments
in the main application is
granted.
2.
The point
in limine
raised by the respondents on the
non-joinder of the RAF is upheld.
3.
The point
in limine
raised by the respondents, namely,
lis
pendens
is upheld.
4.
The point
in limine
raised by the respondents, namely,
Irregular notice of motion: non-compliance with Rule 6(5)(b)(i) &
(iii)
is upheld.
5.
The application in terms of the notice of motion is dismissed with
costs. Such costs to include reasonable
costs of counsel on scale C.
N SIPUNZI
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
PRETORIA
Appearances
For
the applicant:
In
person
For
the third and fourth respondents:
Mr.
Maharaj
Instructed
by:
Dev
Maharaj Incorporated
Date
of hearing:
22
May 2024
Date
of judgment:
26
August 2024
[1]
The
applicant is practicing as a trust account advocate, in terms of
section 34(2)(a)(ii)
of the
Legal Practice Act 28 of 2014
.
[2]
Rule
9.4
of the Code of conduct.
[3]
Clause 25.4 of the Code of conduct.
[4]
As
gleaned from the founding, answering and replying affidavits.
[5]
Founding
affidavit, paras 49 and 50.
[6]
Applicant’s
replying affidavit dated 27 February 2024) runs into more than 100
pages and it is impossible to refer to all
its averments.
[7]
Third
and fourth respondents’ answering affidavit, para 6.3-6.4.
[8]
Clause
35, “Recovery by counsel of fees owing and payable”,
read with Clause 51.
[9]
Rule
9.4
of the Code of conduct.
[10]
Third and Fourth respondents’ opposing affidavit (27 November
2023 in 02: Notices- Opposed application,
Case
lines 02- 54, DM 3, email dated 11 April 2023.
[11]
Bayat
and Others v Hansa and Another
1955
(3) SA 547
(N) at 553D – E, and more recently in
SATAWU
and Another v Garvas and Others
2013
(1) SA 83
CC at para 114, “Holding parties to pleadings is not
pedantry. It is an integral part of the principle of legal certainty
which is an element of the rule of law.”
[12]
[1984] ZASCA 51
;
1984
(3) SA 623(A)
at 634-635
where
it was stated:
“
.
. .
where
in proceedings on notice of motion disputes
of
fact
have arisen on the affidavits,
a
final order, . . . may
granted
if those facts averred in the applicant's affidavits which have been
admitted by the respondent, together with the facts alleged
by
the respondent, justify such an order
.”
In
National Director
of Public Prosecutions v Zuma
[2009] ZASCA 1
;
2009 (2) SA 277
(SCA), the court
went further to say: “It may be different if the respondent’s
version consists of bald or uncreditworthy
denials, raises
fictitious disputes of fact, is palpably implausible, far-fetched or
so clearly untenable that the court is justified
in rejecting them
merely on the papers.” (Footnotes omitted).
[13]
SALPC Answering Affidavit, Annexure
DM
1 Letter dated 5 March 2018 addressed to the applicant, Case lines
018-107.
[14]
Letter addressed to the applicant, signed by Mr. T Putsoane, marked
DM
5 at page 55 of 228 of the third and fourth respondents’
opposing affidavit (Case lines 02-58).
[15]
Affidavit
of the fourth respondent in response to a complaint that was lodged
by the applicant with the first respondent. @ Page
62 of 228 of the
third and fourth respondents’ opposing affidavit, marked DM 6
(Case lines 02-64- 02-65).
[16]
Third
and fourth respondents’ opposing affidavit, para 9.9.
[17]
General Council of the Bar of South Africa: Uniform Rules of
Professional Conduct, Rule 7.
[18]
Wells
v South African Alumenite Company
1927
AD 69
at 73.
[19]
2018
(2) SA 314 (SCA).
[20]
Id
at para 23.
[21]
This
is also apparent in the settlement agreement dated 13 January 2023.
The settlement agreement at page 109/228 (Case lines
02-112)
Annexure DM 6 A and Case lines 018-117.
[22]
Annexure
DM 7, Case lines 018-118.
[23]
2002 (4) SA 264 (SCA).
[24]
Third
and fourth respondents’ opposing affidavit, para 23.13.
sino noindex
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