Case Law[2024] ZAGPPHC 1239South Africa
South African Legal Practice Council v Segaole (2977/2021) [2024] ZAGPPHC 1239 (28 November 2024)
High Court of South Africa (Gauteng Division, Pretoria)
28 November 2024
Headnotes
by the Court, if the Court finds that a practitioner (attorney) is not a fit and proper person to continue to practice as an attorney then that attorney must be removed from the roll.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## South African Legal Practice Council v Segaole (2977/2021) [2024] ZAGPPHC 1239 (28 November 2024)
South African Legal Practice Council v Segaole (2977/2021) [2024] ZAGPPHC 1239 (28 November 2024)
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sino date 28 November 2024
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHERS JUDGES: NO
(3)
REVISED: NO
(4)
Date: 28 November 2024
Case Number: 2977/2021
In
the matter between:
SOUTH
AFRICAN LEGAL PRACTICE COUNCIL
Applicant
And
LERATO
MOSES SEGAOLE
Respondent
T
his
judgment is issued by the Judge whose name is reflected herein and is
submitted electronically to the parties/their legal representatives
by email. The judgment is further uploaded to the electronic file of
this matter on CaseLines by the Judge or her Secretary. The
date of
this judgment is deemed to be 28 November 2024.
JUDGMENT
COLLIS J (BAM J
concurring)
INTRODUCTION
[1]
The
applicant before this Court is the South African Legal Council
(Council). It acts as
custos
morum
of
the profession. Its function is to place facts concerning legal
practitioners falling foul of the required conduct for consideration
by the Court with the resultant hearing being an inquiry into the
officer’s fitness to remain on the roll of practitioners.
[1]
Effectively,
the Council fulfils the role of an amicus curiae.
[2]
There
is therefore no
lis
between
the Council and the practitioner concerned.
[2]
As such it is its function to ensure that a
practitioner practicing as an attorney must scrupulously observe and
comply with the
provisions of the LPA and the Rules and Code of
Conduct promulgated thereunder.
[3] Furthermore, a
practitioner being a member of a learned, respected and honourable
profession when entering it, pledges himself
with total and
unquestionable integrity to society at large, the Courts and the
profession.
[4]
The present application is brought in terms of Section 44(1) of the
Legal Practice Act
(LPA).
[3]
The
provisions of the LPA do not derogate in any way from the inherent
power of the Court to adjudicate upon and make orders in
respect of
matters concerning the conduct of a legal practitioner.
[4]
[5] The respondent before
Court was admitted as a legal practitioner on 10 December 1996 and
practices as an attorney for his own
account under the name and style
of Segaole Attorneys, in Johannesburg.
[6] On
9 June 2022 this Court suspended the Respondent from practicing as a
legal practitioner(attorney). The Court granted a suspension
order
pending the finalization of the application for the striking of the
respondent’s name from the roll of legal practitioners
(attorneys). The court appointed a
curator
bonis
on whom the financial affairs of
the respondent’s practice vests, and it further granted
ancillary relief. The proceedings
before us concern the relief sought
on the return date in respect of the previous order granted.
GENERAL PRINCIPLES
[7] The image and
standing of the profession are judged by the conduct and reputation
of all its members and, to maintain this confidence
and trust, all
members of the profession must exhibit the qualities required of
members of the profession at all times.
[8] It
is for this reason that the Court and the Council have a duty to act
where an attorney’s conduct falls short of what
is expected and
to curb the erosion of 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 in the
Courts is undermined
when the strict requirements for membership to the profession are
diluted.
[9] It
is trite that applications of this nature constitute a disciplinary
enquiry by the Court into the conduct of the practitioners
concerned.
The proceedings do not constitute ordinary civil proceedings but are
sui
generis
in
nature.
[5]
[10] Upon the three-stage
inquiry being held by the Court, if the Court finds that a
practitioner (attorney) is not a fit and proper
person to continue to
practice as an attorney then that attorney must be removed from the
roll.
[11]
If however, the Court has grounds to assume that after a period of
suspension the practitioner will be fit to practice as an
attorney in
the ordinary course of events, it would not remove the attorney from
the roll but rather order an appropriate suspension.
This will be
where the Court finds the attorney guilty of unprofessional conduct
where such conduct does not make him/her unfit
to continue to
practice as an attorney. this does not mean that the Court is
powerless. The Court may discipline the practitioner
by suspending
him/her from practice with or without conditions or by reprimanding
the practitioner.
[6]
[12]
Importantly, the facts presented to the Court should be considered in
their totality and the Court must not consider each issue
in
isolation.
[7]
Although
not binding to the court , the opinion or conclusion of the SALPC
that a practitioner is no longer a fit and proper person
to practice
as an attorney carries great weight with the court.
[8]
[13]
The question whether a legal practitioner is no longer a fit and
proper person to practice as such as mentioned lies in the
discretion
of the court. The Court’s discretion is not exclusively derived
from the LPA, but is inherent in nature, over
and above the
provisions of the Act.
[9]
THE TEST
[14]
The appropriate sanction, namely a suspension from practice or
striking from the roll, also lies within the discretion of the
court.
[10]
In
exercising its discretion the Court is faced with a three-stage
inquiry as follows:
(i) The first inquiry is
for the Court to decide whether or not the alleged offending conduct
has been established on a preponderance
of probabilities. This is a
factual enquiry.
(ii) Once the Court is
satisfied that the offending conduct has been established, the second
inquiry is whether the practitioner
concerned is a fit and proper
person to continue to practice. This inquiry entails a value
judgment, which involves the weighing
up of the conduct complained of
against the conduct expected of an attorney.
(iii)
If the Court is of the view that the practitioner is not a fit and
proper person to practice as an attorney, then the only
sanction will
be to order his removal from the roll of practicing practitioners. If
the Court is satisfied that the practitioner
is still a fit and
proper person to practice then other sanctions may be considered.
This constitutes the third inquiry namely
whether in all the
circumstances, the practitioner in question is to be removed from the
roll of attorneys or whether an order
suspending him from practice
for a specified period will suffice. This will depend on factors such
as the nature of the conduct
complained of the extent to which it
reflects upon the person’s character or shows him to be
unworthy to remain in the ranks
of an honourable profession, the
likelihood or otherwise of a repetition of such conduct and the need
to protect the public. Ultimately
this is a question of degree. In
deciding whether an attorney ought to be removed from the roll or
suspended from practice, the
court is not first and foremost imposing
a penalty. The main consideration is the protection of the
public.
[11]
[15]
Our Courts, have repeatedly expressed themselves on the conduct
required of practitioners in proceedings of this nature.
[12]
An
approach to the proceedings is that a conduct that is contrary to
these principles in itself constitutes unprofessional conduct
and a
separate inquiry is held regardingthe substantive ground for a
practitioner’s removal from the roll or suspension from
practice.
[16]
The following principles
inter alia
have crystalized themselves over the years:
16.1.
When a practitioner receives an application for his suspension or
striking, he should realize that the time for telling the
truth has
arrived.
[13]
A
practitioner must from the outset declare the relevant facts fully
and openly and not allow the truth to emerge gradually. The
practitioner should raise defenses in a manner that evince complete
honesty and integrity.
[14]
16.2.
From the nature of disciplinary proceedings, it follows that the
legal practitioner concerned is expected to co-operate and
provide
where necessary information to place the full facts before the court,
to enable the court to make a correct decision. Broad
denials and
obstructionism have no place in disciplinary proceedings;
[15]
16.3.
Where allegations and evidence are presented against a legal
practitioner, they cannot simply be brushed aside, the legal
practitioner concerned is expected to respond meaningfully to them
and to furnish a proper explanation;
[16]
16.4. A legal
practitioner should not approach the proceedings as if it were
criminal proceedings and, instead of meeting
the allegations, rely
upon bare denials without providing explanations; and
16.5.
A legal practitioner should not, instead of dealing with the issues,
launch an attack on the Council, accuse the accuser and
seek to break
down his/her controlling body.
[17]
[17]
It is also expected of practitioners when it comes to their
engagements with the Council, to respond within a reasonable time
to
all communications which require an answer unless there is good cause
for refusing to answer.
[18]
[18]
Practitioners are expected to respond timeously and fully to requests
received from the Council for information and/or documentation
which
he or she is able to provide,
[19]
and
to comply timeously with directions from the Council
[20]
and
refrain from doing anything that may hamper the ability of the
Council to carry out its functions.
[21]
[19]
The present application has been served before this Court on three
previous occasions. At the first hearing the application
was
postponed to 9 June 2022, and certain
dies
were
prescribed for the filing of further papers. At the second hearing on
9 June 2022, the respondent was suspended pending finalization
of the
application, and was ordered to show cause on or before 14 March 2023
why he should not be suspended for a period to be
determined,
alternatively, why his name should not be struck from the roll.
[22]
Further
affidavits were exchanged after each hearing.
[20]
Prior to the hearing set down on 14 March 2023, new information came
to the attention of the Council that
inter
alia
confirmed
that the respondent’s previous answers under oath were not
honestly made and that he had been practicing during
a previous
period when he was not reflected as a practicing attorney.
Further, that he has practiced contrary to the suspension
order. The
application was postponed
sine
die
,
the suspension order was maintained,
dies
for
the filing of further papers were prescribed, and the issue of costs
was reserved.
[23]
The
further papers have been filed and the matter is ripe for hearing.
THE MERITS OF THE
APPLICATION
[21] As per the Founding
Affidavit, the Applicant’s case is premised on a number of
transgressions on the part of the Respondent.
These complaints will
individually be dealt with for the purposes of this judgment.
[22]
It is the Applicant’s case that the Respondent was admitted as
a legal practitioner (attorney) on 10 December 1996. According
to the
records of the Council, until his suspension, the respondent was a
sole practitioner, practicing for his own account under
the name and
style of Segaole Attorneys in Johannesburg, Gauteng.
[24]
The
respondent informed the Council that the practice was opened on 15
August 2019.
[23]
The present application has as its genesis a complaint received from
attorneys that acted as a correspondent firm for the respondent.
The
account of the correspondent the respondent had failed to pay. In
addition, the respondent failed to respond to the Council
on
correspondence addressed to him in this regard. The Respondent’s
failure to submit auditor’s reports to the Council,
and him
having practiced without being in possession of fidelity fund
certificates. This complaint is of particular significance
as it
illustrates that the respondent was practicing for his own account
well before he formally opened his practice on 15 August
2019. This
without informing the Council thereof, he has been dishonest in the
present proceedings and he has continued to practice
notwithstanding
the suspension order.
COMPLAINT: HUMAN LE ROUX
MEYEROWITZ (HLRM)
[24] The respondent
instructed HLRM to act as his correspondent firm in Bethlehem on 22
August 2016. HLRM executed their instructions
and rendered an account
in respect of its fees and disbursements. The respondent failed to
pay the account thereafter, notwithstanding
repeated attempts by HLRM
to obtain payments from the respondent.
[25] As per the Answering
Affidavit the respondent vehemently denies the majority of the
allegations that are made with reference
to this complaint. In this
regard, he denies that:
25.1. He instructed HLRM
to act as his correspondent in Bethlehem on 22 August 2016;
25.2 HLRM executed his
instruction and rendered and account to the respondent in respect of
his fees and disbursements;
25.3 He failed to pay
HLRM’s account and persisted in his failure;
25.4 He failed to respond
to HLRM’s demands and he failed to pay the outstanding account;
25.5.
HLRM
’
s telephone calls to the
respondent did not bear fruit; and that
25.6.
He, on two occasions, undertook to pay HLRM’s account and
failed to honour his undertakings.
[25]
[26]
In the same affidavit however, he alleges that he has since paid the
fees and disbursements of HRLM and that the matter was
settled as
confirmed by correspondence directed to the Council by the
attorneys.
[26]
[27] In respect of this
complaint, the respondent fails to take this Court into his
confidence or to cogently explain the contradiction
between his
denial that he instructed HLRM and his confirmation that he paid the
account of HLRM allegedly in 2019. This clearly
flies in the face of
his initial denial that he instructed HLRM and having given such an
instruction to the correspondent, it gives
credence to the veracity
of the complaint.
[28]
Furthermore, the respondent does not dispute that HLRM addressed
letters/emails/text messages to him from 17 January 2017 to
4
September 2017 demanding payment of their account.
[27]
He,
however, denies that these efforts were not responded to and that
they did nor bear fruit.
[28]
[29] He however provides
no indication or evidence that the various correspondence addressed
to him was ever responded to, and clearly
the account on his version,
was only paid well after HLRM’s complaint to the Council. His
denials are, therefore, not made
in honesty.
[30]
In his Answering Affidavit, the respondent alleges that the account
of HLRM was settled in 2019. This allegation however is
inaccurate.
HLRM’s ledger account confirms that the funds were only
received on 11 May 2020,
[29]
and
this date accords with the letter by HLRM attached to the
respondent’s Answering Affidavit confirming such
settlement.
[30]
[31] Here too the
respondent does not provide any basis upon which he could allege that
he had paid HLRM during 2019. His election
to do so brings into
question his honesty and integrity.
[32] In terms of Rule
18.18 of the Code of Conduct, an attorney shall:
“
pay
timeously, in accordance with any contractual terms or, in the
absence of contractual terms, in accordance with the standard
terms
of payment, the reasonable charges of any legal practitioner, whether
an advocate or an attorney, whom he or she has instructed
to provide
legal services to or on behalf of a client; such liability shall
extend to every partner of a firm or member of an incorporated
practice, and if the firm is dissolved or the incorporated practice
is wound up, liability shall remain with each partner or member,
as
the case may be, the one paying, the others to be absolved.”
[33]
Therefore, the respondent’s failure to timeously pay HLRM
amounts to misconduct.
[31]
[34]
As per the Founding Affidavit, the applicant further alleges that at
the time that the respondent instructed HLRM, he was reflected
as a
non-practicing attorney on the Council’s records. According to
the latter, the respondent did not practice as an attorney
during the
period 30 September 2011 to 31 July 2019 as his name appeared on the
roll of non-practicing attorneys during the period
in question.
[32]
[35] The implication
therefore, is that the respondent during the said period could not
have instructed the complainant HLRM as
he by then was a
non-practicing attorney, and if he did, the implication is that he
was actually practicing as an attorney for
his own account, contrary
to the Attorneys Act and Rules, and was, therefore, not subject to
regulatory oversight which he should
have been.
[36]
In response to this serious allegation, the respondent merely alleges
that at the time he was assisting a debtors legal aid
company
pro-deo, which was helping the indigent for free (sic) and he
vehemently denies that he was practicing for his own account.
[33]
[37] His answer to the
above complaint is exceptionally vague. Even on the little
information provided, it could be accepted that
he was practicing
while his name was recorded on the non-practicing roll. Assisting a
debtors’ legal aid company pro deo
certainly would constitute
“practicing law” even if one is to accept that he was
rendering such services pro deo.
[38]
In the affidavit filed setting out the complaint by HLRM it is
recorded that:
[34]
38.1.
On or about the 22nd day of August 2016, HLRM was contacted by the
secretary of the respondent, who referred to herself as
Lerato from
Segaole
Attorneys
;
[35]
38.2.
That Lerato from
Segaole
Attorneys
provided a new instruction to HLRM, which entailed urgent service of
an application, and an undertaking was given to HLRM that
a deposit
would be paid to HLRM in respect of the costs associated with urgent
service;
[36]
38.3.
That the sheriff’s return was posted to the offices of the
attorney;
[37]
38.4.
That HLRM’s statement of account was sent to
Segoale
Attorneys
;
[38]
38.5.
That in their engagements with Daphne of Segoale Attorneys, HLRM was
informed that payment would be made shortly thereafter
i.e., during
January 2017.
[39]
38.6.
That numerous letters were addressed to Segaole Attorneys requesting
payment.
[40]
[39] The complainant
throughout his complaint describes the functioning of an ordinary
attorney’s office, supported with the
necessary administrative
staff assisting the respondent. The respondent in this regard merely
denies that he was not responding
to correspondence from these
attorneys.
[40]
An attempt was made by him, in his Supplementary Answering affidavit
where he vaguely asserts that, unknown to him, his firm’s
letterhead was utilized by Debtors Aid Legal Consultant CC to
instruct HLRM.
[41]
This
was the first time that this assertion was made by him is unsupported
by any evidence. Also he failed to explain why
a letterhead
bearing the name of his firm would exist and be in circulation three
years in advance of his firm being opened. The
explanation provided
by the respondent appears to be fabricated.
[41]
In the most recent supplementary affidavit, the applicant asserts
that that the respondent was not being forthcoming with the
Court.
There were other cases in which the respondent is reflected as the
attorney of record during the same period. These matters
have been
brought to the Court’s attention not by any honest disclosure
by the respondent, but by the fact that these matters
so happened to
also involve the Council’s attorneys of record.
[42]
[42] The following cases
can be listed in support of the above assertion:
42.1
Butler v Old Mutual Limited & Financial Services Board
32392/2017.
Motion proceedings instituted on 29 August 2017, represented by the
respondents’ firm and his firm received and
exchanged several
correspondences.
[43]
During
the course of these proceedings, RW Attorneys addressed several
letters to Segaole Attorneys that went unaddressed.
42.2 In the matter of
Shibambo & Others v Malefo & Others 46536/2017, similarly
Motion proceedings were instituted out of
the Pretoria Division of
the High Court in a matter between Annastetia Shibambo & Others,
as the applicants, against Sarah
Matshidiso Malefo & Others, as
the respondents. Herein the proceedings were initiated on 6 July 2017
under case number 46536/2017
and the applicants represented by the
respondent’s firm, namely Segaole Attorneys.
42.3
In respect of both these proceedings the respondent’s address
was listed as 62 Marshall and Sauer Street, Khotso House
Building,
5th Floor, Suite 518, Marshall Town.
[44]
This
address so recorded in the notice of motion is the same address
utilized for the respondent throughout the complaint by Attorney
Human.
[43] On the strength of
the above exposition counsel for the applicant therefore had argued
that the inescapable conclusion to be
drawn is that the respondent
was practicing as an attorney whilst being recorded on the
non-practicing roll and that his various
denials that he was
practicing while registered as a non-practicing attorney were not
honestly made. As such it was argued that
he was dishonest under
oath.
[44]
In response to the above, the respondent in his supplementary
answering affidavit responds to these allegations in broad sweeping
terms. Albeit that he confirms that his firm acted on behalf of
Butler, he alleges it was in a limited capacity.
[45]
In
so far as the Shibambo matter is concerned, the respondent baldly
denies the allegations, contending that he has no recollection
of the
matter and has not seen it before.
[46]
[45] The exposition of
the above facts confirm that the respondent practiced for his own
account without the Council’s knowledge,
without any regulatory
supervision by the Council and without compliance with the provisions
of the former Attorneys Act, the Law
Society Rules and subsequently
the Rules for the Attorneys’ Profession. They further confirm
that the respondent’s
previous denials of his conduct were
dishonestly made and that the explanations proffered by the
respondent were fabricated to
avoid the conclusion that he had, in
fact, been practicing.
COMPLAINT: FAILURE TO
REPLY TO CORRESPONDENCE AND TO COMPLY WITH DIRECTIONS OF THE COUNCIL
[46]
In this regard the applicant contends that the Council addressed
several letters to the respondent regarding the complaint
by
HLRM,
[47]
repeatedly
requesting his comments to the allegations made against him. The
respondent failed to reply to the Council.
[47]
In answer thereto, the respondent merely notes that he failed to
reply to the correspondence addressed to him by the Council
and to
comply with the Council’s requests. He vaguely alleges that he
was in touch with the Council’s offices at the
time and as a
result the matter was resolved and the file was closed.
[48]
It
is noteworthy that the respondent’s assertions are not
supported with evidence.
[48]
The letters received from the Council set deadlines for his
responses. It further recorded his failure to respond to the previous
letters in this regard, and finally noted that he would
inter
alia
be charged for his failure to
respond to the Council’s letters. Needless to say, he did not
reply to the Council’
s letters.
[49]
The respondent does not provide a proper and cogent explanation for
his abovementioned failures. He does not appreciate and/or
acknowledge the unacceptability of his failures, nor does he show any
remorse. He also fails to take responsibility for his persistent
disregard to reply to the Council’
s letters.
COMPLAINT:
AUDITOR
’S REPORTS
[50]
The respondent was required to submit an auditor’s report to
the Council within six months of commencing practice for
his own
account, covering the first four months of such practice and it was
due for submission to the Council on or before 28 February
2020.
[49]
[51]
At the time of the present application being launched, more than a
year after this report was due to be submitted, the respondent
had
still not filed an opening auditor’s report with the Council.
There can be no denial by the respondent of his failure
to comply
with his obligations. Initially he admits that he failed to submit an
opening auditor’s report to the Council and
that he, therefore,
failed to report to the Council on his trust bookkeeping for the
financial period ending 28 February 2020.
[50]
Later
baldly denies that an opening auditor’s report was due for
submission to the Council on or before 28 February 2020 and
that he,
therefore, failed to report to the Council on his trust bookkeeping
for the financial period ending 28 February 2020.
[51]
[52]
As such he boldly denies without any basis, his contravention of Rule
54.21 of the LPA Rules and that such contravention is
misconduct in
terms of Rule 57.1 of the LPA Rules.
[52]
[53]
The respondent further alleges that he did not submit the report as
there were no records to be audited as the practice had
just opened,
and that he instead submitted opening bank statements, and that the
opening auditor’s report could not be submitted
due to COVID-19
disruptions.
[53]
[54] The provision of
confirmation of the opening of the trust bank account is not in
compliance with the provision of an opening
auditor’s report.
The two instances cannot be equated with one another, for obvious
reasons.
[55]
Rule 54.26 of the LPA Rules provide for those instances where the
Council is satisfied that it is not practicable to obtain
the
services of an auditor or inspector for the issuing of an auditor’s
report. In such instances the Council may accept
such other evidence
as it deems sufficient. In lieu of an auditor’s report, the
Council, generally, requires the completion
of an exemption
application which entails
inter
alia
the
submission of the relevant form accompanied with the relevant trust
bank account statements and payment of the prescribed fee.
[54]
[56] The respondent
within days of the application being served on him, and to be precise
on 15 February 2021, he completed the
requisite exemption application
for the period 15 August 2019 to 29 February 2020. He submitted the
exemption application to the
Council on 17 February 2021 and it was
approved on 17 March 2021.
[57] From the above, it
is apparent that the respondent was clearly aware of the requisite
exemption application. He simply did
not ensure his compliance with
his obligations. He was aware that his opening auditor’s report
was due approximately a month
prior to the country being placed into
lockdown. The pandemic and the ensuing lockdowns could have no impact
on the timeous submission
of the exemption application. He simply
fails to adequately explain his omission in this regard.
[58] The respondent by
failing to submit his opening auditor’s report to the Council
timeously had contravened the provisions
of Rules 54.21 of the LPC
Rules and made himself guilty of misconduct in terms of Rule 57.1 of
the LPC Rules.
[59] The respondent’s
denials that his conduct and failure constituted a contravention of
the Rules and that it amounted to
misconduct cannot be made in
earnest, and his assertions that the practice had just opened were
patently untrue. He simply failed
to apply with Rule 54.21 and thus
is guilty of misconduct.
[60] The respondent as a
seasoned practitioner was no doubt fully aware of his duty to have
his trust accounting records audited
and to submit an unqualified
opening auditor’s report to the Council and to do so timeously.
He nevertheless failed to timeously
comply with his said duty.
[61] The submission of
auditors’ reports to the Council is important. These reports
enable the Council to exercise its oversight
function over
practitioners and satisfy itself that the practitioner concerned is
conducting a trust banking account correctly,
that trust funds are
being administered properly, and that trust accounting records are
being kept in terms of the LPA and the
LPC Rules. A practitioner is
obliged to comply with this rule.
[62] The respondent
further fails to appreciate the importance of the timeous submission
of auditor’s reports to the Council
and he fails to recognize
the seriousness of his failure to have done so. He also does not show
any remorse for his omission.
[63] In addition he
advances unsustainable denials for his misconduct, contradicted
himself under oath and further advances patently
unacceptable
explanations for his conduct. His answers further reflect a negative
blemish on his character and upon his honesty
and integrity.
[64]
The respondent by virtue of the fact that he was practicing for his
own account is also required to submit annual auditor’s
reports
to the Council, reporting on the firm’s trust affairs, within 6
months of each financial year end.
[55]
The
respondent practiced for his own account during several financial
periods without ever informing the Council of his practice,
and
without reporting to the Council. This is misconduct on its own.
COMPLAINT: PRACTICING
WITHOUT FIDELITY FUND CERTIFICATES (FFCS)
[65] A further complaint
by the Council in in terms of Section 84(1) of the LPA which requires
every attorney and trust account
advocate who practices or is deemed
to practice for his or her own account to be in possession of an FFC.
[66]
Section 41(1) of the repealed Attorneys Act contained a similar
requirement. An FFC is issued annually. It is generally issued
on the
strength of an unqualified auditor’
s report.
[67] As at the time of
this application being launched the respondent had not been in
possession of an FFC since opening his practice
(on whatever date
that may have been). He failed to apply for an FFC during the 2019
period and, as a result of his failure to
submit an opening auditor’s
report, was not eligible to be issued with an FFC thereafter.
This remained the case until
16 April 2021.
[68]
Despite this, he nonetheless, continued to practice for his own
account without being in possession of an FFC.
[69] In so far as the
period following the formal opening of his practice is concerned, the
respondent denies outright:
69.1.
That he was practicing as an attorney without being in possession of
a fidelity fund certificate at the time of the application
being
issued;
[56]
69.2.
That he practiced as an attorney without being in possession of a
fidelity fund certificate during the period 1 January 2020
to 31
December 2020;
[57]
and
69.3.
That he practiced as an attorney without being in possession of a
fidelity fund certificate during the period 15 August 2019
to 31
December 2019.
[58]
[70]
In his Answering affidavit, the respondent contends that he applied
for a FFC in November–
December
2019,
[59]
albeit
that he did not receive any deposits into his trust account by
then.
63
Further
that he was in contact with the Council offices to obtain a FFC,
[60]
but
that the Council’s offices were shut down in March 2020 due to
COVID-19 and the Council, therefore, could not issue the
certificate.
[61]
[71] From his responses
so given, all that become blatantly clear is that during this period
at no stage was the respondent in possession
of the relevant FFCs. To
the contrary, his answers confirm that during this period that he was
not in possession of these certificates.
The respondent’s
denial of his misconduct cannot therefore be sustained on his own
version.
[72] His explanation that
he did not receive any deposits into trust account also does not
assist him. This has never been a requirement
relative to an
attorney’s obligation to be in possession of an FFC.
[73] On behalf of the
applicant it was further argued that the process of applying for a
fidelity fund certificate is an online
application made through the
Legal Practitioners’ Fidelity Fund, not the Council, and it is
completed by the legal practitioner
concerned. The FFC is issued to
the practitioner as soon as the application process is successfully
completed.
[74] To the matter at
hand, the applicant submitted that the respondent did not complete
the online application for his FFCs for
the 2019 and 2020 periods,
and as such he was not entitled to be issued with an FFC for the 2020
period in any event. He completed
the online application for his FFC
for the 2021 year on 16 April 2021, this after the present
application was launched.
[75] The respondent’s
further failure to timeously submit an opening auditor’s report
resulted that he was not entitled
to, nor would he be issued with an
FFC for the 2020 and 2021 periods.
[76] His half-hearted
attempt to lay the blame at the door of the Council and the COVID-19
pandemic, and his assertion that he applied
for the relevant
certificates, can be safely rejected and is in fact rejected by this
Court.
[77] The respondent’s
failure to make a full disclosure to the Court and his election to
blame the Council is yet another
negative reflection of his honesty
and integrity.
[78]
On 16 April 2021, the respondent was issued with an FFC for the 2021
period, this after he complied with the Council’s
requirements
and completed the online application.
[79] Having first been
issued in April 2021, it therefore must follow that he was not in
possession of an FFC from the formal opening
of his practice on 15
August 2019 until 16 April 2021, a period of approximately one year
and eight months.
[80] The respondent was
also not in possession of an FFC during all periods that he practiced
prior to his practice being formally
opened with the Council. This is
at a minimum a further period of 3 years that the respondent was not
in possession of an FFC from
the years 2016 to 2021.
[81]
The respondent having practiced without an FFC is extremely serious.
It is an offence, punishable by a fine or imprisonment,
[62]
and
the respondent was not entitled to any fee, reward, or reimbursement
while he did not have an FFC.
67
To
the Court it appears that the respondent, does not display any
insight into the seriousness of his conduct, nor express any
remorse.
[82]
The respondent
’
s lack of insight and
remorse is further illustrated by his subsequent failure to obtain an
FFC for the 2022 year. He, therefore,
again practiced for his own
account from 1 January 2022 until his suspension on 9 June 2022. At
the time of his suspension, the
respondent had only been in
possession of an FFC for approximately eight months of the preceding
six years that he had been practicing.
FURTHER COMPLAINT:
CONTEMPT OF COURT
[83]
On 9 June 2022 the respondent was suspended from practicing as an
attorney pending finalization of the application. Pursuant
thereto,
the Court appointed a curator bonis for the respondent’s
practice and ordered the respondent to deliver his accounting
records, records, and files to the curator bonis.
[63]
[84]
In his supplementary answering affidavit, signed a month later, on 7
July 2022, he recorded that he is admitted as an attorney
practicing
as such under the name and style of Segaole Attorneys.
[64]
The
respondent, therefore confirmed his continued practice contrary to
the suspension order.
[85]
The respondent further addressed correspondence to RW Attorneys in
the Butler matter on 13 March 2023.
[65]
The
respondent’
s
letter
inter
alia
records
the name of the respondent’s firm; his contact particulars and
the address of the firm. The letter further records
that the
respondent no longer acts on behalf of Mr. Butler and that he will be
withdrawing as attorney of record in due course.
The letter was
signed by Segoale Attorneys.
[86]
The letter so written was on the respondent’s letterhead and in
his capacity as an attorney some nine months after he
was suspended
from practicing as an attorney. This provides confirmation that the
respondent continued to practice as an attorney
contrary to the
suspension order being issued against him. The respondent simply
offers bare denials in this regard
[66]
and
he vehemently denies that he was in contempt of court.
[87] Given the exposition
of what has been set out above, this Court is satisfied that the
offending conduct on the part of the
respondent has been established
on a preponderance of probabilities and as such the first leg of the
inquiry has been met.
[88] In answering the
second leg of the inquiry, i.e. whether the practitioner concerned is
a fit and proper person to continue
to practice. The respondent
has repeatedly failed to comply with important legislative safeguards
intended to protect his
clients and the public and has committed
repeated offences. He did so for several years, briefly complied
after the commencement
of these proceedings, and thereafter returned
to default. The respondent’s misconduct therefore remains
serious.
[89] The complaint by
HLRM raises serious issues that the respondent has not properly
addressed. He has not only displayed a disregard
for his fellow
colleague but also the legislation, rules and regulations that govern
his practice as an attorney.
[90]
In addition, the defenses advanced by the respondent do not withstand
scrutiny. He has not made any concessions when he ought
to have done
so. He has advanced numerous unsubstantiated denials and explanations
that cannot be made in earnest. He seeks to
avoid sanction for his
conduct to such extent that he refers to his career record as
“unblemished”
.
[67]
Yet
the Council’s records reflect the receipt of 20 complaints
against the respondent and that disciplinary committees have
imposed
fines in the amount of R17,000.00 against him.
[91]
The respondent has not approached the proceedings as one would expect
of an officer of the Court. Instead of full and frank
disclosures, he
has made numerous denials that cannot be sustained in earnest, and he
has not made an effort to place the full
and correct facts before
Court. Instead, he has sought to avoid any conclusions of misconduct
by fabricating his version of events.
His conduct in the proceedings
illustrates a dire lack of insight concerning the conduct expected of
him as a legal practitioner
and an officer of the Court. He has had
numerous opportunities to address the
[68]
inconsistencies
that are readily apparent from his papers, and to take the Court into
his confidence. He has not done so. He is
fortified to continue to
advance submissions and allegations that cannot be made in earnest.
[92]
It is expected of legal practitioners to maintain the highest
standards of honesty and integrity.
[69]
As
a matter of principle, a legal practitioner who is dishonest under
oath in defending himself in disciplinary proceedings cannot
complain
if his perjury is held against him when the question arises whether
he is a fit and proper person to continue practicing.
[70]
[93]
In
General
Council of the Bar of South Africa v Geach &
Others
[71]
the
Supreme Court of Appeal (per Wallis JA) said in relation to lawyers:
"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."
[94] In casu the
respondent’s conduct does not meet the mantle of honesty and
integrity expected of legal practitioners. He
demonstrates that he
does not appreciate the seriousness and unacceptability of his
conduct, that he will advance untruths to avoid
being held
accountable, and that he will not be regulated by the Council nor the
Court.
[95] His conduct does not
meet the standard of behavior, conduct and reputation which is
required of attorneys and officers of this
Court. As such he can no
longer be considered a fit and proper person to be allowed to
practice as a member of a learned, respected
and honourable
profession.
[96] If this Court is of
the view that the practitioner is not a fit and proper person to
practice as an attorney, the third enquiry
as mentioned, is whether
in all the circumstances the practitioner in question is to be
removed from the roll of attorneys or whether
an order suspending him
from practice for a specified period will suffice.
[97] The following
principles have been laid down by our Courts in the determination of
sanction:
97.1.
The question before Court is whether the respondent should be
permitted to continue practicing as a legal practitioner in
the
prevailing circumstances
[72]
.
97.2.
The objectives of the Court’s supervisory powers over the
conduct of legal practitioners have been described as being
two-fold:
first, disciplining and punishing errand attorneys, and secondly, to
protect the public.
[73]
In
deciding which course to follow, the court is not first and foremost
imposing a penalty, the main consideration is the protection
of the
public.
[74]
97.3.
The Court may make such order it deems appropriate in the
circumstances. The exercise of this discretion is not bound by rules,
and precedents consequently have a limited value. All they do is to
indicate how other courts have exercised their discretion in
the
circumstances of a particular case. If a court were bound to follow a
precedent in the exercise of its discretion it would
mean that the
Court has no real discretion.
[75]
97.4.
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
remove him
from the roll of attorneys. For the sake of the public, and no less
the profession, it is of the utmost importance to
enforce on all
attorneys the high standard of duty which rests upon them and demands
the great integrity which is expected of them.
[76]
97.5.
The implications of an unconditional order removing a legal
practitioner from the roll for misconduct are serious and
far-reaching.
Prima facie, the Court which makes such an order
visualizes that the offender will never again be permitted to
practice his profession
because ordinarily such an order is not made
unless the Court is of the opinion that the misconduct in question is
of so serious
a nature that it manifests character defects and lack
of integrity rendering the person unfit to be on the roll. If such a
person
should in later years apply for re-admission, he will be
required to satisfy the Court that he is 'a completely reformed
character'
and that his 'reformation or rehabilitation is, in all the
known circumstances, of a permanent nature'.
[77]
[98] Herein, the
respondent’s conduct is serious. He has shown no remorse.
Neither is there any indication that he is to be
deterred from
repeating his misconduct in future. His repeated dishonesty confirms
that he lacks the honesty and integrity expected
of legal
practitioners. His conduct throughout the course of the proceedings
has been dishonest.
[99] The respondents’
contempt of court, since the order of suspension was granted
disqualifies him from this Court granting
as a sanction the
imposition of another suspension. He has shown that he will not abide
by an order of the Court.
[100]
Furthermore, our Courts have taken a firm stance against dishonesty,
requiring the circumstances to be exceptional before
a court will
order the suspension of the practitioner concerned instead of his
name being struck from the roll.
[78]
We
agree that in the present application, there are no exceptional
circumstances present and it is for this reason that an order
for the
striking of his name from the roll will be given.
COSTS
[101] The applicant being
the successful party in the circumstances and it having approach the
Court under a public duty, we find
no reason to deviate from the
practice to award the applicant its costs and for such costs to be
awarded on an attorney and client
scale.
[102] In addition the
applicant also requested to be awarded the costs previously reserved
on 14 March 2023. Hereto such costs will
be awarded to the applicant.
ORDER
[103] In the result the
following order is made:
[103.1]
The Respondent, LERATO MOSES SEGAOLE
is
struck from the roll of legal practitioners.
[103.2]
The Respondent
is to immediately surrender
and deliver to the Registrar of this Honourable Court his certificate
of enrolment as an attorney of
this Honourable Court.
[103.3] That in the event
of the Respondent failing to comply with the terms of this order
detailed in the previous paragraph within
two (2) weeks from the date
of this order, the sheriff of the district in which the certificate
is, is hereby authorised and directed
to take possession of the
certificates and to hand it to the Registrar of this Honourable
Court.
[103.4] Paragraphs 3 to
11 of the order of 9 June 2022 remain in force.
[103.5] The respondent is
to pay the costs of this application and those costs reserved on 14
March 2023 on an attorney-and-client
scale.
COLLIS J
JUDGE OF THE HIGH
COURT, GAUTENG
DIVISION,
PRETORIA
I agree
BAM J
JUDGE OF THE HIGH
COURT, GAUTENG
DIVISION, PRETORIA
APPEARANCES:
APPLICANT
ATTORNEYS
FOR APPLICANT
Rooth
& Wessels Inc
COUNSEL
FOR APPLICANT
Mr.
R. Stocker
RESPONDENT
ATTORNEYS
FOR RESPONDENT
In
persona
COUNSEL
FOR RESPONDENT
Adv
J.S.C Nkosi
DATE
OF HEARING:
24
August 2023
DATE
OF JUDGMENT:
28
November 2024
[1]
Law
Society of the Northern Provinces v Le Roux
2012 (4) SA 500
(GNP) at
502
E–F.
[2]
Ibid.
[3]
No.
28 of 2014.
[4]
Section
44(1) LPA.
[5]
Solomon
v The Law Society of the Cape of Good Hope
1934 AD 401
at 407;
Cirota
and
Another v Law Society, Transvaal
1979 (1) SA 172
(A) at 187H;
Prokureursorde
van Transvaal v Kleynhans
1995 (1) SA 839
(T) at 851G–H.
[6]
See:
Malan
v The Law Society of the Northern Provinces
(supra) at 219 – 220, par. 4 to 8.
[7]
See:
Law
Society, Cape of Good Hope v Segall
1975 (1) SA 95C
at 99B;
Beyers
v Pretoria Balie Raad
1966
(2) SA 593
(A) at 606B;
Prokureursorde
van Transvaal v Kleynhans
(supra);
Malan
v The Law Society of the Northern Provinces
(supra).
[8]
See:
Kaplan
v Incorporated Law Society, Transvaal
1981 (2) SA 762
(T) at 781H;
Die
Prokureursorde van die Oranje Vrystaat v Schoeman
1977 (4) 588 (O) at 603A–B.
[9]
Prokureursorde
van Transvaal v Kleynhans (supra) at 851E–F; Law Society of
the Cape of Good Hope v C
1986 (1) SA 616
(A) at 638C–639F;
Law Society of the Transvaal v Tloubatla
[1999] 4 ALL SA 59
(D) at
63G–I; Law Society of the Transvaal v Machaka and Others (No
2) 1998 (4) SA 413 (TPD).
[10]
A
v Law Society of the Cape of Good Hope
1989 (1) SA 849
(A) at
851A–F; Jasat v Natal Law Society
2000 (3) SA 44
(SCA) at
51B–I.
[11]
See:
Jasat v Natal Law Society (supra); Law Society of the Cape of Good
Hope v Budricks
2003 (2) SA 11
(SCA) at 13H–14; Malan v The
Law Society of the Northern Provinces
[2008] ZASCA 90
;
2009 (1) SA 216
(SCA) at p
219, par 7.
[12]
See
inter alia: Prokureursorde van Transvaal v Kleynhans (supra) at
846G-H and at 853E-H.
[13]
Kekana
v Society of Advocates of South Africa
[1998] ZASCA 54
;
1998 (4) SA 649
(SCA) 656 D.
[14]
Law
Society of the Northern Provinces v Sonntag
2012 (1) SA 372
(SCA)
380 C - I.
[15]
Prokureursorde
van Transvaal v Kleynhans (supra) at 853G-H.
[16]
Hepple
v Law Society of the Northern Provinces 2014 JDR 1078 at par 9.
[17]
Law
Society of the Northern Provinces v Mogami & Others
2010 (1) SA
186
(SCA) at par 26.
[18]
Rule
16.1, Code of Conduct.
[19]
Rule
16.2, Code of Conduct.
[20]
Rule
16.3, Code of Conduct.
[21]
Rule
16.4, Code of Conduct.
[22]
013:
p 1 – 12.
[23]
017:
p 1 – 2.
[24]
002:
p 9, par 2.1 - 2.2.
[25]
007:
p 6 – 7, par 18 – 22.
[26]
007:
p 7, par 20 – 21.
[27]
007:
p 7.
[28]
007:
p 7.
[29]
30
008: p 41.
[30]
007:
p 13.
[31]
Rule
21.1 and 21.2 of the Code of Conduct.
[32]
002:
p 30 para 8.
[33]
007:
p 6, par 18.
[34]
002:
p 41, para 4.
[35]
002:
p 41, par 4.
[36]
002:
p 42, par 4.
[37]
002;
p 42, par 5.
[38]
002:
p 42, par 6.
[39]
002:
p 42, par 6.
[40]
002:
p 42 – 43, par 7, 9, and 11.
[41]
015:
p 5, par 12.
[42]
019:
p 24 – 26.
41
019: p 27 – 29.
[43]
019:
p 27 – 29.
[44]
47
019: p 53 – 56.
[45]
48
020: p 2, at Ad paragraph3.
[46]
020:
p 2, at Ad paragraph 4.
[47]
002: p 68 – 76.
[48]
007: p 7, par 23.
[49]
Rule
54.21 LPA Rules (Rule 35.20 Rules for the Attorneys Profession).
[50]
007:
p 4, par 4.
[51]
54
007: p 5, par 12.
[52]
007:
p 6, par13.
[53]
007:
p 4, par 4 and p 5, par 11.
[54]
Rule
54.26, LPA Rules.
[55]
Rules
54.20, 54.22, 54.23, 54.24, and 54.28.
[56]
007:
p 3.
[57]
007:
p 3, par 2.
[58]
007:
p 4, par 3.
[59]
007:
p 3
[60]
64
Ibid.
[61]
Ibid.
[62]
Section
93(8)(a), LPA, Section 83(10), Attorneys Act.
[63]
013:
p 1 – 12.
[64]
015:
p 1, par 1.
[65]
019:
p 52.
[66]
020:
p 2, at Ad Paragraph 1 and Ad Paragraph 2.
[67]
72
015: p 1, par 1.
[68]
016:
p 43 - 44, par 8.2.1 – 8.2.3.
[69]
Rule
3.1 - Code of Conduct for All Legal Practitioners, Candidate Legal
Practitioners and Juristic Entities – GENN
168 OF 2019.
[70]
Kekana
v Society of Advocates of South Africa
[1998] ZASCA 54
;
1998 (4) SA 649
(SCA) 655
[71]
2013
(2) SA 52
(SCA) at para. 87.
[72]
Law
Society Cape v Peter
2009 (2) SA 27
(SCA) par 28.
[73]
Summerley
v Law Society, Northern Provinces
2006 (5) SA 613
(SCA) at par 19.
[74]
Malan
and another v The Law Society, Northern Provinces (supra) par. 7.
[75]
Malan
& another v Law Society, Northern Provinces (supra) para 9.
[76]
Incorporated
Law Society, Transvaal v Visse and Others; Incorporated Law Society
Transvaal v Viljoen 1958(4) SA 115(T) at 131
D - G.
[77]
Malan
& another v Law Society, Northern Provinces (supra) para 8.
[78]
Malan
& another v Law Society, Northern Provinces (supra) para 10.
sino noindex
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