Circular 6 of 2007 - Natal Law Society

KwaZulu-Natal Law Society
OFFICE OF THE DIRECTOR
YOUR REF :
OUR REF : 11/6/07
Please Quote Our Reference
14 September 2007
1 ST Floor, 200 Hoosen Haffejee Street
P.O. BOX 1454
PIETERMARITZBURG 3200
FAX: (033) 3949544
DX: 25
TELEPHONE: (033) 3451304
E-mail: info@lawsoc.co.za
Website: http://www.lawsoc.co.za
CIRCULAR 6/2007
ALL PRACTISING MEMBERS OF THE SOCIETY
Dear Member
1.
RULINGS OF THE KZNLS COUNCIL: RULING 2(4)(g) - UNDERTAKINGS
At its meeting held on 24 August 2007 the Council approved the addition of the
following new Ruling 2(4)(g) under the heading of "Professional Advice":
"2(4)(g) A member shall honour any undertaking given in the course of the
member's practice."
2.
CHIEF MASTER'S DIRECTIVE 4 OF 2007
Enclosed is a copy of Chief Master's Directive 4 of 2007, for information.
We draw your attention to Page 2 under the item headed:
Dispensing of Bank accounts where an executor uses an attorney's trust
account
Kindly take cognisance of the following Director's Note
Please note that in each case the prior written consent of the respective Master
must be sought and obtained to the dispensing of the provisions of Section 28.
The fact of the Chief Master supports the view of the LSSA does not offer a
blanket authority to the profession to unilaterally depart from the provisions of
Section 28.
Ref. DIR 47/4/3

CIRCULAR 6/2007 Page 2
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3.
LEGAL AID BOARD CIRCULARS
Members are advised that from time to time the Legal Aid Board issue Circulars
that amend the Legal Aid Guide, which is the working tool for all those who
work with the LAB. These Circulars are now available on their website, the
address which is as follows: www.legal-aid.co.za
Ref. DIR 39/9
4.
REFUGEE BACKLOG PROJECT BY THE DEPARTMENT OF HOME AFFAIRS
The Chairperson of the LSSA Immigration and Refugee Law Committee, Julian
Pokroy, has asked that the enclosed notice be brought to the attention of
members as it runs from 1 September to 31 October 2007.
Ref. DIR 45/19
5.
NATIONAL CREDIT ACT WORKSHOPS
Enclosed is the information regarding the National Credit Act Workshop to be
presented by Mr Saber Jazbhay, Senior Practising Attorney of Durban, to be
held on 29 September 2007 at the Durban Conference Centre, 11 th Floor,
Salmon Grove Chambers, 407 Smith Street, Durban from 09:00 – 11:30.
6.
ATTORNEYS INSURANCE INDEMNITY FUND: AGE OF MAJORITY
The AIIF advised that certain sections of the Children's Act 38 of 2005 came into
effect on 1 July 2007. Of significance is the fact that in terms of the Act, a minor
child becomes a major on reaching the age of 18 as opposed to 21, as was
previously the case.
This will have an effect on minors' MVA claims in that if the minor was involved in
an accident other than a "hit-and-run" on or after the 1 st of July 2007, the claim
will prescribe three years after the minor turns 18. Claims of minors which arose
before the 1 st of July 2007 would still prescribe three years after the minor turns
21.

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Their Prescription Alert system will be updated to cater for the above change,
but the onus remains on the registered firm to ensure that they calculate the
prescription date correctly taking into account the above.
Any further queries can be referred to Sharifa Ally on Tel: (011) 329-1965.
7.
COURT TERM DATES FOR 2008
Notice was given by the Judge President of the Natal Provincial Division of the
High Court of South Africa who has, in accordance with Rule 2(1) of the rules
regulating the conduct of the proceedings of the Natal Provincial Division and
Durban and Coast Local Division of the High Court of South Africa, fixed the
term dates for the year 2008 as follows:
(1) Terms
(a)
(b)
(c)
(d)
The first term shall be from 28 January to 30 March
The second term shall be from 14 April to 29 June
The third term shall be from 28 July to 28 September
The fourth term shall be from 13 October to 14 December
(2) Administrative recesses
The administrative recesses for 2008 shall be as follows:
(a) 31 March to 13 April
(b) 30 June to 27 July
(c) 29 September to 12 October
(d) 15 December to 25 January 2009
The splits in the term dates will be as follows:
28 January to 2 March 2008
3 March to 30 March 2008
14 April to 25 May 2008
26 May to 29 June 2008
28 July to 31 August 2008
1 September to 28 September 2008
13 October to 16 November 2008
17 November to 14 December 2008
Ref. DIR 29/1/4

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8.
SARS: CERTIFICATE OF REVENUE FEE
SARS has advised that, with immediate effect, the amount to be paid for a
Certificate of Revenue application has increased to R50.00 per request.
Only cash will be accepted for this transaction and no other payment method.
A Certificate of Revenue is used for issuing a duplicate receipt and confirming
an original receipt that was issued by their office.
This is also applicable for Transfer Duty payments. It must also be noted that no
photocopies of transfer duty receipts where a payment has been effected. will
be allowed. A Certificate of Receipt must be requested.
Ref. DIR 59/8
9.
SOUTH AFRICAN POLICE SERVICE: REQUEST FOR
OFFICER'S ACCIDENT REPORT: ETHEKWINI MUNICIPAL AREA
The Station Commander of the Durban Central SA Police Service advised that
their office is inundated with numerous requests from attorneys requesting
Officer's Accident Reports where minor accidents have occurred and where
only an accident report has been completed, commonly known as AR.
The procedure is placing a serious burden on the administrative capacity
within the South African Police Services.
The Ethekwini Transport Authority has taken over the function of supplying
accident reports to the public and attorneys since May 2000.
Members are to note that in future the SAPS will only supply accident reports
and other statements or status of prosecution if a case docket is opened,
commonly known as a CAS number.
All requests for Officer's Accident Reports must be forwarded to the Ethekwini
Transport Authority at P.O. Box 680, Durban, 4000.
Enclosed are copies of pro forma letters from the Ethekwini Transport Authority,
for information.
Ref. DIR 56/8

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10.
MISCONDUCT OF MEMBERS
The schedule of disciplinary action which has been taken against certain
members, appear below for information:
1. MR J F CARR (JOHNATHAN CARR & CO.) (PIETERMARITZBURG)
Fined R10 000,00 for having debited fees in conveyancing transactions prior to
the transactions having been registered in the Deeds Office.
2. MR M A T HULLEY (HULLEY & ASSOCIATES) (DURBAN)
Fined R3 000,00 (previous convictions) for failing to lodge his 2006 Audit Report
timeously.
3. MR D VENGTAS (DANIEL VENGTAS & ASSOCIATES) (CHATSWORTH)
Fined R2 000,00 (previous convictions) for failing to reply to a complaint.
4. MR J L SWAN (LESTER HALL, SWAN & FLETCHER INC.) (HILLCREST)
Fined R5 000,00 for, in attending to a conveyancing transaction, having
arranged for transfer to be registered when he was aware that the property was
not ready for occupation and in circumstances where the Local Authority had
withdrawn the occupation certificate. As such he had failed to protect the
purchasers’ interests. R2 500,00 of the fine was suspended for a period of one
year.
5. MR T B NKOSI (NKOSI & ASSOCIATES) (NEW GERMANY)
Mr Thulani Bhekinkosi Nkosi was, in terms of a High Court Order dated 23 March
2007, suspended from practising as an attorney because of his failure to lodge a
2005 Trust Audit Report.
6. MR G CHRISTMAS (G CHRISTMAS ATTORNEYS) (DURBAN)
Fined R2 000,00 for failing to lodge his first 6 months Audit Report.
7. MR D G GIFFORD (GIFFORDS ATTORNEYS) (HILLCREST)
Fined R5 000,00 for having paid some or all of Progressive Property’s costs in
producing a folder for buyers and sellers of properties and as such had
endeavoured to attract conveyancing work unfairly. He had thereby
contravened Rule 14(b)(xix)(cc) of the Society’s Rules.

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8. MR M C BUCK (MACRITCIHE & BUCK) (DURBAN)
Mr Buck was fined R2 000,00 for having reduced his bond registration fees by
50% so as to influence the financial institution to allocate the bond registration
work to his firm. In doing so he had contravened the Guidelines for Conduct in
Conveyancing Matters which state that it is unprofessional conduct for a
conveyancer to, having ascertained that a colleague had been instructed,
approach the borrower to cause the first conveyancer’s mandate to be
terminated because the second conveyancer was prepared to reduce his fees
should he be substituted as the conveyancer.
9. MR A S MOTLOLI (MOTLOLI MDLEDLE & PARTNERS) (MATATIELE)
Mr Motloli was, in terms of a High Court Order dated 25 May 2007, suspended
from practising as an attorney because of his failure to lodge an unqualified
2006 Audit Report.
10. MR N GOVENDER (NAVIN GOVENDER & ASSOCIATES) (DURBAN)
Fined R2 500,00 (previous convictions) for failing to reply to a complaint. R1
000,00 of the fine was suspended subject to the condition that it will become
payable if during a 2 period he fails to reply to correspondence in
circumstances where there is a duty on him to reply.
11. MR THUBELIHLE CUTHBERT KUZWYAYO (T C KUZWAYO ATTORNEYS) (NEWCASTLE)
Mr Kuzwayo's name was, in terms of a High Court Order dated 30 July 2007,
struck off the roll of attorneys because of the theft of trust money.
12. MR E SINGER (ALEC SINGER ATTORNEYS) (UMHLANGA)
Mr Singer's name was in terms of a High Court Order dated 15 June 2007, struck
off the roll of attorneys because of the theft of trust money.
Members may be aware that the Council is concerned about the manner in
which members are touting for conveyancing and third party work and has
established 2 Special Committees to deal with all aspects relating to the unfair
acquisition of conveyancing and third party work. For members' information the
following Rules and Rulings relate to touting –
(1) Rule 14(b)(vi) – Unprofessional conduct includes conduct in the course of
the member's practice which may reasonably be regarded as likely to
attract business unfairly.
(2) Rule 14(b)(xv) – Unprofessional conduct includes touting otherwise than as
is permitted in the advertising Rule (Rule 14(d)).

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(3) Rule 14(b)(xviii) – Soliciting or requesting instructions from any source in
exchange for payment directly and/or indirectly of any consideration, gift,
allowance, reward or benefit.
(4) Rule 14(b)(xix) – Endeavouring to secure work, or favourable treatment,
unfairly by conferring a benefit, or offering to confer a benefit upon a
person who by reason of his office, employment or relationship of agency is
in a position to influence the flow of work to the member, or to exercise a
power in favour of the member or the member's client. "Benefit" includes –
(a)
A donation in cash or in kind other than a gift given on an occasion
when gifts are customarily given, provided that the gift is of such a
value that it is unlikely to exert an undue influence on the recipient,
(b) A disposition made or service provided for a consideration that is
inadequate in relation to the value thereof,
(c) Sharing with a person who is not an attorney any advertising or
promotional costs intended to attract work to the member and/or a
person who is not an attorney,
(d)
Payment made to an estate agent, or mortgage bond originator, or
any person or body, for work done or services rendered that would
normally be done by a legal practitioner in the performance of a
mandate received from a bank or a client.
(5) Ruling 5(1)(c)(i) – A member shall not do anything which is calculated to
induce others to solicit work for him, nor shall he offer any financial
inducement, whether by way of a loan or gift or otherwise, to any person in
order to influence that person to refer work to him or to procure that work is
referred to him.
(6) Rule 8 of the Code of Ethics for Legal Practitioners – Legal practitioners
shall, subject to the laws regarding contingency fees and the Rules and
Guidelines regarding advertising, not engage in any form of activity that
may be construed as touting.
This Circular is issued on behalf of the Council.
G.M. JOHN
DIRECTOR
Encl.