Legal fees gone wild: A case of costs, controversy and common sense
At a glance
- The recent matter of Sports Tavern & Restaurant and Others v Executor Estate Late Santos (HCAA 01/2023) [2025] ZALMPPHC 17 (5 February 2025) dealt with the issue of what constitutes "reasonable legal fees".
- Judge Muller, who presided over the appeal, criticised the appellants for persisting in their demand for an exorbitant fee.
- This case raises critical questions about the responsibilities of legal professionals and the role of the judiciary in regulating costs. On the one hand, attorneys should be fairly compensated for their expertise and efforts. However, the profession must balance this with ethical considerations and the broader goal of accessibility to justice.
The issue in this case was whether an attorney with right of appearance who appeared in the High Court to move an unopposed application under Rule 30 was entitled to claim a day fee similar to that of advocates. This question touches on the interpretation of Rule 69, Item A10, and Rule 70 of the Uniform Rules of Court, as well as relevant case law.
The appellants argued that attorneys with the right of appearance in the High Court should be entitled to fees equivalent to those of advocates, as per Item A10 of the Tariff of Fees under Rule 70. This item suggests that attorneys performing the functions of advocates in the High Court should have their fees determined in accordance with Rule 69. Rule 69(5) provides that where no specific tariff applies, the taxing master has the discretion to allow fees that are reasonable. This discretion is central to determining whether a day fee is justified.
Rule 70 outlines the taxation process for attorneys’ fees and emphasises that costs must reflect reasonable remuneration for necessary work properly done. The taxing master must balance indemnifying the successful party with ensuring fees remain within reasonable bounds.
Background
The taxing master initially allowed R5,400 for the appearance, but the respondent challenged this figure. In subsequent reviews, the court reduced the attorney’s fees further to a modest R1,752 for 1,5 hours of work. But this wasn’t the end of the matter – the appellants insisted their original claim was justified, citing the uncertainty in the rules regarding tariffs for attorneys appearing in the High Court.
Judge Muller, who presided over the appeal, criticised the appellants for persisting in their demand for such an exorbitant fee. Highlighting the difference in complexity between unopposed and opposed applications, he emphasised that a seasoned attorney should have known better. Ultimately, the court set the attendance fee at R3,500, striking a balance between what was deemed reasonable and what aligned with the principles of justice.
Conclusion
In delivering the judgment, the court also underscored a larger issue plaguing the legal profession: spiralling legal costs. Judge Muller pointed out the public perception of these costs as unaffordable and called for better oversight to prevent “egregious overreaching” by legal practitioners. The judgment was referred to the Legal Practice Council for further consideration, signalling a firm stance against exploitative practices.
This case raises critical questions about the responsibilities of legal professionals and the role of the judiciary in regulating costs. On the one hand, attorneys should be fairly compensated for their expertise and efforts. On the other hand, the profession must balance this with ethical considerations and the broader goal of accessibility to justice.
The original R20,000 charge was as an example of what many would perceive as overreach, potentially eroding public trust in the legal system. The court reminded the taxing master of its responsibilities and remarked that the time has come for instances of overreaching to be reported to the registrar for onward reporting to the Legal Practice Council.
Legal practitioners must reflect on their duty not just to their clients but to society as a whole. As Judge Muller aptly noted, making the High Court accessible doesn’t necessarily mean making it affordable. If the profession is to maintain its dignity and public confidence, it must tread carefully in navigating the fine line between reasonable remuneration and opportunism.
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