The prickly matter of legal costs
Lawyers’ fees! Need we say more? Probably not, but in the spirit of informing people about the legal world, and as a source of much discontent, we thought it would be good to tackle
this issue head on.
It is often difficult for clients to get clarity on what to expect in the way of fees. This may be
because attorneys don’t want to talk about money and clients feel they can’t ask about it.
We will discuss different aspects of attorneys’ fees in Grey Space, but we have decided to
start with the funding of court cases (litigation) and the idea that the winner in a court case
gets all their legal fees back. As always there is a catch, and when considering taking
someone to Court, knowing about this catch will help you make an informed decision.
As a point of departure, you cannot rely on the possibility of winning for the funding of your
case. This is because:
1) it takes a long time before a case gets to trial and judgment is granted awarding costs;
2) the Court Tariff, which is used to calculate costs, is lower than most attorneys’ fees; and
3) recovering the costs from the losing party can take a long time.
We deal with each point in more detail below.
First, it can take months for a case to be resolved. The legal system allows time for both
parties to set out their dispute in detail and prepare arguments before getting to Court. Most
attorneys can’t work for free for that time and then only be paid out of the costs recovered.
Secondly, the Court’s costs order is based on a Tariff which is part of the Rules of Court.
The Court does not order that your attorney’s invoices be paid. Your costs are paid in terms
of the Tariff, which sets out the amount that can be charged for everything done during the
case. This is one of the reasons why your lawyer should record every single action that was
taken on your case!
As an example, the Tariff allows R7.00 for each page your attorney examined as part of your
case. If your attorney charged you R500.00 for examining a 10 page contract, you can only
claim R70.00 in terms of the Tariff.
Finally, once (and if) you have won your case, you have to recover your costs from the
losing side. To assume that winning will result in a quick payment is often a mistake. They
might appeal the judgment, dispute the costs, have no means to pay, or have their assets,
which could be sold to cover your costs, tied up in a variety of ways.
Therefore, when considering taking someone to Court, make sure that your attorney
explains the process to you including being frank about the costs implications.
Please visit our website to see how we can help you, or contact us to discuss any matters
where you think our advice might assist you.
From the team.
With Energy and with Experience, giving you Expression
