Legal body concerned by the number of personal injury cases where lawyers overcharge

Legal clients with personal injury cases have been urged to review their fee agreements carefully after a number of recent cases where attorneys were accused of charging excessive fees.

The Personal Injury Plaintiff Lawyers Association (PIPLA) has expressed concern of the number of reports where lawyers deducted more than they should have, with some taking over 25% of their client’s payout.

A Durban legal firm was recently investigated by the Legal Practice Council (LPC) for stealing millions of rand that was meant to be deposited into the trust account of a child born with cerebral palsy as a result of medical negligence.

“We can never condone this type of criminal activity or reports of clients being  charged fees far exceeding agreed-upon terms, leaving them financially compromised despite winning a substantial settlement,” says PIPLA CEO Advocate Justin Erasmus.

“Similarly any cases where attorneys fail to disclose the full fee structure, leading to a significant portion of a compensation payout being withheld can not be condoned. Such actions, Erasmus asserts, not only breach the Legal Practice Act but also undermine public trust in the legal system.”

The association has called for firm and decisive action by the LPC against such malpractice. It also calls on the body to consider stronger regulatory measures, including mandatory audits for firms handling significant claims.

“While these cases represent only a small fraction of the profession, they tarnish the reputation of ethical attorneys who work tirelessly for their clients,” Erasmus added.

PIPLA urges legal clients to carefully scrutinise fee agreements and to report any discrepancies.

The Contingency Fees Act of 1997 states that attorneys may not take more than 25% of the total settlement. Although this Act has been challenged in court, by attorneys who argued that it is ambiguous, impractical and forced the public disclosure of sensitive information, the Constitutional Court this month reaffirmed its constitutional validity.

Section 2 of the Action states that a legal practitioner is not entitled to any fees in respect of the legal proceedings unless the client is successful to the extent stipulated in the agreement. Read the full act here.

IOL