Contingency Fees Act, 1997

Act 66 of 1997

Contingency Fees Act, 1997
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History of this document

23 April 1999
21 November 1997 this version
13 November 1997
Assented to

Cited documents 0

Documents citing this one 78

Judgment
50
Reported
The Contingency Fees Act (and its sections 2 and 4) was not shown to be unconstitutional; leave to appeal dismissed.
Contingency Fees Act 66 of 1997 — constitutionality — rationality review for general legislative challenge — section 36 limitations enquiry where fundamental rights (access to courts) alleged — legislative distinction between regulation of legal practitioners and lay funders rational given lawyers' role and ethical duties — applicants lacked evidence of clients' rights limitation and representative standing.
Reported
Third‑party litigation funding is not automatically champertous or a defence, though funded suits may be restrained if they abuse court process.
* Civil procedure – third‑party litigation funding / pacta de quota litis – whether champerty contrary to public policy; interplay with Contingency Fees Act and constitutional right of access to courts. * Illegality of financing agreement – not a defence to the underlying action between plaintiff and defendant. * Abuse of process – funded litigation may be restrained where not bona fide; courts retain supervisory power to protect judicial integrity. * Costs – punitive costs and refusal to allow attorney’s perusal fee for frivolous supplementation of record.
Reported
Prescription runs from knowing the material facts (fee deductions), not from later knowledge of legal invalidity.
Prescription — s 12(3) Prescription Act — prescription begins when creditor has facts from which debt arises; knowledge of legal invalidity unnecessary; cause of action arose on payment/deduction of fees; contingency-fee agreements — non‑compliance with Contingency Fees Act renders agreement invalid but legal conclusion not required for prescription to run.
Reported
Whether a court‑appointed curator may be paid a percentage of recoveries consistent with a court order requiring fees 'in accordance with' attorneys’ norms.
Pension funds — Curatorship — Curator remuneration — Whether a contingency/percentage‑of‑recovery fee complies with court order requiring remuneration ‘in accordance with the norms of the attorneys’ profession’ — Contingency fees not per se unlawful; Contingency Fees Act applies to litigation — PAJA and administrative‑action review not applicable to court‑appointed curator/FSB fee agreement — Locus standi under s 38 Constitution and s 5(8) FI Act.
The appellant’s bid to allow pay‑as‑you‑go future medical expenses and exclude them from contingency fees was refused.
Delict – damages – ‘once and for all’ rule – future medical expenses – whether common law should be developed under s 39(2) of the Constitution to permit pay‑as‑you‑go payments; Constitutional rights – s 27 (access to health care), s 28 (children’s rights) – burden of proof when invoking constitutional development; Contingency Fees Act 66 of 1997 – contingency fees calculated by reference to total amount recovered – courts lack power to exclude future medical expense awards from contingency fee calculations; law reform is primarily for the Legislature.
Reported
POCA permits forfeiture of foreign-held proceeds of crime; ICCM Act supports enforcement, and NDPP proved most but not all funds were tainted.
POCA – chapter 6 forfeiture – extraterritorial reach – definition of "proceeds of unlawful activities" includes property derived directly or indirectly, including appreciation and property representing proceeds – ICCM Act s19 enables international enforcement assistance – evidentiary standard: balance of probabilities – proportionality and constitutional limits on forfeiture.
RAF must pay past medical expenses despite medical aid payments; internal directive refusing reimbursement unlawful.
* Road Accident Fund – liability for past medical expenses – payments by medical aid schemes are collateral and do not reduce RAF liability (res inter alios acta). * Administrative action – RAF internal directive (Aug 2022) refusing reimbursement unlawful and inconsistent with s17 of the RAF Act. * Civil damages – computation of patrimonial loss in RAF claims – medical scheme indemnification disregarded.
A court may not rewrite a consensual settlement, make orders against non-parties, or invalidate settlements for practitioner-client fee issues without severability analysis.
Settlement agreements – consent order – court must give effect to parties' agreement; contingency fee agreements – bilateral between practitioner and client; illegality of contingency fee does not necessarily void settlement; court may not make orders against non-parties or amend consensual terms; costs consequences for unnecessary state legal attendance.
A plaintiff may recover past medical expenses from the RAF despite medical aid payments; late unpleaded subrogation and statutory-defence arguments dismissed.
Road Accident Fund liability – section 17 RAF Act – recovery of past medical expenses despite medical aid payments; subrogation – insurer’s subrogation collateral and not a defence to RAF liability; Medical Schemes Act Regulations 7 & 8 and s19(d)(i) RAF Act – do not exclude RAF liability; pleading rules – late unpleaded defences disallowed; costs – plaintiff awarded taxed or agreed costs.
Reported
Court develops common law to allow public‑sector care or pay‑as‑you‑go remedies for medical negligence, assessing public services at a reasonable standard.
Medical negligence — development of common law — public healthcare remedy and undertaking to pay (DZ defences) — evidentiary onus on State pleadings — reasonable standard for public provision — case management, annexe‑based delivery and periodic/private procurement or reimbursement — protection of constitutional rights (s 27, s 28) and public finance considerations.
Act
2
Finance and Money
Dispute Resolution and Mediation
Journal
1
Labour Law — Journals