Woman sues law firm over 'excessive' contingency fees

The New Age reports De la Guerre has filed an application in the North Gauteng High Court against the law firm, the Law Society of the Northern Provinces (LSNP) and the Road Accident Fund (RAF), asking for her contract to be declared null and void. She is also asking to be paid the amount she was allegedly overcharged. De la Guerre, a passenger when she was injured in November 2005, was awarded almost R2.6m in by the RAF in April 2009, but received only R1.7m in staggered payments over 22 months from Bobroff and Partners, according to court papers. This meant that she received just over 68% of the pay-out granted to her in compensation, while her lawyers pocketed almost 32%. The report notes that in her application, De la Guerre said she was advised by her current lawyer that the fee agreement she signed with Bobroff and Partners was 'illegal, invalid and unenforceable', as it did not comply with the Contingency Fees Act. In a supporting letter submitted as part of the application, the LSNP said it was prepared to participate in the referral of the test case. Full report on The New Age site

De la Guerre effectively wants the firm to refund her the difference between what it charged her and what it was entitled to charge her, according to a Sunday Times report. De la Guerre told the paper: 'They must be paid for a fair day's work and I must get my compensation that the RAF intended me to get.' Her attorney, Anthony Millar, from the law firm Norman Berger and Partners, is quoted as saying lawyers should not 'profiteer off the misery of accident victims'. 'They (clients) sign such agreements because their bodies, lives and spirits are broken and they feel they have no other choice.' Millar alerted the Law Society of the Northern Provinces about the case and was assured it fully agreed that attorneys who entered into invalid or illegal fee agreements should be sanctioned. Ronald Bobroff, who will oppose the court action, said the fixed percentage fee contract gave 'those who would otherwise not get the keys to the courthouse, access to justice'. Full Sunday Times report