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State set to cap legal fees

Cape Town - All lawyers and advocates are set to have the fees they charge capped and will be required to do a prescribed amount of compulsory community service for free, Minister of Justice and Constitutional Development Jeff Radebe announced on Wednesday.

Cabinet has approved the Legal Practice Bill, which introduces reforms aimed at increasing access to justice.

Speaking to journalists ahead of his Budget vote speech in parliament, Radebe said in terms of the bill legal practitioners – newly-qualified as well as experienced - will be required to "render legal services for a prescribed period of time on a pro bono basis for the benefit of the indigent".

The bill will create the South African Legal Practice Council, which will replace the existing law society and general council of the bar. This council will prescribe a fee framework within which legal practitioners will be allowed to charge for their services.

While Radebe will specify how much community service is required by each individual when he writes regulations for the bill, the chief director in the department of justice and constitutional development, Jacob Skosana, said that fee parameters would be decided on by the legal practitioners themselves.

"The fee structure in the legal profession is cumbersome and complex at the moment. The aim is to standardise and regulate," he said, adding that it would be much like prescribed medical aid rates.

While the department is still unclear how much leeway legal practitioners will have when it comes to exceeding the prescribed framework, the bill states that these fees may not exceed "normal fees by more than 100%". And so-called success fees, where the practitioner is paid based on the outcome of the case, may not exceed 25% of the total amount awarded to the client as a result of the lawsuit.

The bill also aims to change the way attorneys and advocates do vocational training after completing their studies. At present, attorneys do articles for two years with a law firm while advocates do a 12-month pupilage. The bill aims for all post-graduate law students to go through the same, standardised period of vocational training, regardless of whether they want to end up as attorneys or advocates.

Skosana said that those who want to become advocates or specialise in another area of law would then do so after the standard vocational training period.

 - Fin24.com

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