
The above question was raised in the matter of Blakes Maphanga Incorporated vs Outsurance Insurance Company Limited, a matter which was heard in the Supreme Court of Appeal (SCA). The facts of the matter were briefly that the Appellant (“Blakes”) was a firm of attorneys and the Respondent (“Outsurance”) a client who had instructed the firm to represent it in close to 400 litigious matters. After terminating the attorneys’ mandate and demanding that all monies collected on its behalf be paid over, Blakes sought to set-off against the fees owing to it against the monies collected. The question for decision was whether the fees claimed were liquidated amounts, capable of being set-off as such. That, in turn, depended on whether the process of “taxation” was required to render the fees, which were disputed by Outsurance, liquidated. Briefly, taxation is the process whereby a detailed statement of fees and disbursements is drafted by the attorney or a cost consultant and, after a copy thereof is furnished to the client or opposing party, the statement, also known as a bill of costs, is presented to a court official known as a taxing master, for a decision. The SCA held that Outsurance was entitled to taxation of the attorney’s account. There were sound reasons for the client’s right to assist on taxation and to regard the amount owed to the attorney as not liquidated. As a result thereof the appeal by Blakes was dismissed with costs. Clients are reminded of their right to insist that an attorney’s bill of costs be taxed in order to render it liquidated and that they should not merely regard the attorney’s account as something which is not subject to debate. However, clients should bear in mind that attorneys often reserve the right, where a client insists on taxation, to charge a higher amount should the taxing master find that the attorney, in fact, undercharged the client. Adams & Adams engages the services of various experienced cost consultants who are able to assist clients should they believe that they are being charged exorbitant fees by their attorneys. Interested clients are requested to make contact with anyone of the partners in the Commercial, Property and Litigation Department for assistance in this regard. Leander Opperman Partner leander-o@adamsadams.co.za

12/09/2011

Featured news Rwanda: Intellectual Property Rights Bill passed
Senate has approved the bill on protection of Intellectual Property Rights and effective enforcement mechanisms.

The bill on intellectual property covers patent rights on trademarks and copyrights, and gives creators exclusive rights to their creations thereby providing an incentive for the author or inventor to develop and share the information rather than keep it secret.

The legal protections granted by Intellectual Property bill are credited with significant contributions toward national economic growth.

The bill approved by the Senate also protects inventions, literary and artistic works, and symbols, names, images, and designs.

Featured office: Johannesburg
Inquiry: +27 (0) 11 646 1507

Featured person:
Muscat, Paul
Associate
Patent Attorney
Tel: +27 (0) 21 418 8560
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The firm practises directly in several Southern African countries and through long-established associates in others.