South African lawyers express concern over Government proposals to cap fees
South African lawyers could face their legal fees being capped under controversial new Government proposals designed to improve access to legal services in the country and make the profession more representative.
July 12, 2012 at 07:03 PM
3 minute read
Plans to boost access to SA legal services met with caution from local lawyers
South African lawyers could face their legal fees being capped under controversial new Government proposals designed to improve access to legal services in the country and make the profession more representative.
Stakeholders have until 27 July to comment on the Legal Practice Bill, which includes proposals such as the creation of a single South African Legal Practice Council and regional councils to regulate lawyers.
The Bill also includes a new legislative framework intended to open access to the profession and guarantee accessible legal services by setting a structure for determining reasonable and affordable fees.
The Law Society of South Africa (LSSA) Council discussed the Bill, which also proposes allowing foreign lawyers to requalify in South Africa and guidelines for how foreign lawyers can practise in the country, earlier this month.
While the LSSA is broadly in favour of overhauling existing laws, local lawyers have warned the plans threaten the independence of the profession, which is currently regulated by a Bar Council for barristers and four regional councils overseeing solicitors, and that the fee cap could be damaging for an increasingly international market.
One South African partner commented: "The profession is very diverse – one regulator doesn't fit at all. If it had the power to cap fees, the consequences could be devastating.
"We just don't know what the Bill means for us. Where there is uncertainty there is fear, and where there is fear there is opposition."
Local lawyers expect the cap to be set relatively low in line with attempts to boost access to legal services.
However, Piet Faber, chief executive of Africa's largest law firm ENS, observed: "Access to justice could be improved with pro bono requirements or community service. The fee setting proposals are an enabling provision – it's not yet clear what they mean."
Corporate partner Morne van der Merwe (pictured), who recently joined Baker & McKenzie as part of a 31-strong team from defunct firm Dewey & LeBoeuf, said: "You cannot argue with the importance of making legal services more accessible, but I worry the Bill is slightly disconnected from current trends and realities.
"South African clients are increasingly developing the requirement for both SA and international law expertise, and we have to be cautious not to create an environment which would preclude this from happening."
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