High Court Reins In Contingency Fee Practices

The High Court in Johannesburg recently handed down judgment in Masango and Another v Road Accident Fund and Others[1], a case with important implications for lawyers who enter into contingency fee agreements. The Court’s primary finding was that VAT is not recoverable above the 25% cap imposed by the Contingency Fees Act 66 of 1997 (“the Contingency Fees Act”).[2]

The plaintiff’s attorney of record concluded a contingency fee agreement with the plaintiff. The agreement provided that if the […]