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 […]

National Security and Exchange Control – the temptations of protectionism

1. The economic growth outlook in South Africa at present does not make for the rosiest picture. It was not more than a week ago that Standard and Poor’s (“S&P’s”) decided, thankfully, to hold off on downgrading South Africa’s long-term debt status from its current ‘BBB–’ rating to ‘junk’, i.e. below investment grade. The International Monetary Fund’s latest forecast of our economy’s growth outlook for this year is at 0.6 percent (with some forecasting even less than this), and global […]

Criminalisation of Cartels

Time to ratchet things up on cartels! From a report in the Business Day of Friday, 22 April 2016, that’s effectively the message of the Minister of Economic Development, Mr Ebrahim Patel. The Minister appears bent on using section 73A of the Competition Amendment Act to criminalise hard-core cartel practices such as price-fixing, market division and collusion in tenders (bid rigging). Granted, cartel practices have worldwide been declared a most egregious offence which has no place in a sound economy […]