A client asked, “If I win my case
will I get back all the fees I paid you?”
Types of legal costs
There are three types of legal costs:
Party and party costs
These are the costs that a court will
award the successful party in a court case. The losing party must pay these costs.
They can be agreed or taxed. Taxed costs are those assessed by the Taxing Master
of the court you sued out of. The bill of
costs is based on the applicable Magistrates’ or High Court tariffs laid down
by law. You would proceed out of the Magistrate’s Court or Regional Court for
matters up to R400 000. For claims above that amount, one would sue out of
the High Court.
Your attorney will ask you to sign a
fee agreement setting out the hourly rate of the attorney and his or her
support staff. The agreement will make it clear that the rates are not according to tariff but are on an attorney and
own client basis.
Even if you win the case, you
will normally only recover the party and party costs and will have to pay your
attorney his costs in full. These costs will always be more than the laid down
tariff, so you will be out of pocket by the difference.
Attorney and client costs
Such order obliges the losing party to pay party and party
costs plus certain other legal costs, including costs for attendances between
you and your attorney.
Of course, if the case is of a
contractual nature and the contract has a clause that obliges the losing party
to pay attorney and client costs, the court would make such a costs order.
Attorney and “own” client costs
Attorney and “own” client costs are
the actual fees and disbursements a client pays his attorney in terms of their
fee agreement. Such a costs order is equally rare.
In extreme cases, a court may punish
the defendant's lawyer and order him or her to pay the costs de bonis
propriis (out of his or her own pocket).
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