KwaZulu-Natal Law Society OFFICE OF THE CHIEF EXECUTIVE OFFICER

Transcription

1 KwaZulu-Natal Law Society OFFICE OF THE CHIEF EXECUTIVE OFFICER YOUR REF : OUR REF : CEO 11/1/04 Please Quote Our Reference 6 February 2004 FIRST FLOOR, 200 BERG STREET P.O. BOX 1454 PIETERMARITZBURG 3200 FAX: (033) DX: 25 TELEPHONE: (033) info@lawsoc.co.za Website: CIRCULAR 01/2004 ALL PRACTISING MEMBERS OF THE SOCIETY Dear Member 1. PRESENCE OF ATTORNEYS IN COURT TO SUPPORT COUNSEL ON BRIEF I am bringing the following important High Court Ruling to your attention. In a recent case Patel J. issued a stern warning in the Transvaal Provincial Division of the High Court to attorneys regarding the current practice which has arisen in his Division who fail being present in Court in order to properly instruct Counsel. The learned Judge deprecated the practice in a message issued to both the Bar and the Attorneys profession and urged them to abide by the Rules of Court. In that case Counsel had certain difficulties pertaining to certain issues since he appeared in an Opposed Application in the absence of his instructing attorney. Counsel was given the opportunity to call his instructing attorney to be present in Court so that he could be properly instructed even though he was properly on brief. The Judge's concern is that it is increasingly becoming a practice where members of the Bar are on brief to appear in Court, but do so without being accompanied by their attorneys. Quite often when

2 CIRCULAR 1/2004 Page 2 counsel needs to take instructions the attorney is not present and more often the client is not in Court. Invariably the matter has to stand down in order to afford Counsel an opportunity to procure instructions from his or her attorney. The Learned Judge referred to this as a recently innovative practice to which he is not accustomed and, according to him, does not accord with protocol of the legal profession in the Country. The Court indicated to the attorney concerned that in future he should accompany his Counsel to be able to give instructions, because to stand matters down to give Counsel time to obtain instructions often result in unnecessary delays and the clogging of the Court Roll. In his view this does not augur well for the administration of justice. 2. MASTER OF THE HIGH COURT: TRANSFER OF INSOLVENCY SECTION FROM PIETERMARITZBURG TO DURBAN In a letter dated 29 December 2003 the Master of the High Court advised that the Insolvency Section of the Master of the High Court will be transferred from Pietermaritzburg to Durban. In order to minimise the disruption of services the transfer will be effected as follows: (1) As from 1 January 2004 all new files would have been opened in Durban. The appointment of Provisional Liquidators and Trustees will thus be made in Durban. Requisitions that have been lodged in Pietermaritzburg would have been transferred to Durban at 10h00 on 31 December (2) The files that are pending in Pietermaritzburg will remain under the supervision of the examiner currently entrusted with them. All queries regarding such files must be directed to Pietermaritzburg.

3 CIRCULAR 1/2004 Page 3 The Master is aware that there may be problems in the transition and shall endeavour to deal with problems promptly. Queries in this regard can be directed to the Master personally or to the following officials: Pietermaritzburg - Phone (033) Fax (033) Mrs S. Edwards (Deputy Master) - Mrs T. van Wyngaard (Personnel Officer) Durban - 11 th Floor, Maritime House Corner Salmon Grove/Victoria Embankment Durban (Private Bag X54325, Durban, 4000) - Phone (031) /5 - Fax (031) Miss A. Solikile. (Assistant Master) - Mrs A. Ndlovu (Personnel Officer) 3. MANDATORY PRACTICE MANAGEMENT TRAINING

4 CIRCULAR 1/2004 Page 4 We refer to items 9 and 12 of our previous Circular (11 of 2003) and the news item in the January/February edition of De Rebus. At the date of preparation of this item (30 January 2004) the date of commencement of the Second Judicial Matters Amendment Act, 2003 (making this training compulsory) has not yet come into operation. From 2001 to date the LSSA provided voluntary distance training and Internet-based training as methods of delivery, which will continue in Prospective part-time instructors from KZN attended a meeting with LSSA L.E.A.D representatives on 21 January 2004 to discuss a proposed Durban attendance course. The tentative programme is due to commence on 10 February 2004, but at the date of the last Practice Management Advisory Committee Meeting (19 January 2004) no applicants have enrolled therefor. Although the training has not been made mandatory as yet, it is recommended that new sole practitioners, partners and directors enrol for the course, which is offered to assist them to manage their practices effectively. Enquiries should be directed to Glen-Rose Manzini or Geoffrey Ngonyama at the LSSA. Full details of the course, including an entry form, appeared in 2003 (Dec) DR The LSSA needs additional part-time instructors for the Durban attendance course. Members or other persons with appropriate recent experience in the management of law firms are invited to write to the Director of L.E.A.D, Nic Swart, quoting the nature and duration of their experience, their position and practice (if applicable), qualifications and contact particulars. Alternatively, they could contact Geoffrey Ngonyama for further information.

5 CIRCULAR 1/2004 Page 5 Members will be updated on future developments in this regard, particularly the issues mentioned in 12.5 to 12.8 of the previous Circular. Contact information: Glen-Rose Manzini: glenrose@lssalead.org.za Geoffrey Ngonyama: geoffrey@lssalead.org.za Nic Swart: nic@lssalead.org.za Tel: (012) Fax: (012) /1339/1269 Legal Education and Development (L.E.A.D) PO Box 27167, Sunnyside, 0132 DX 247 PRETORIA 4. TRUST INTEREST INCOME: ATTORNEYS FIDELITY FUND (AFF) AGENCY FEE: YOUR SOCIETY Interest on trust balances represented 83% of the AFF s income in The 2003 figures had not been finalised at the date of preparation of this item (30 January 2004), but an analysis of the 2003 figures (available mid February) will probably yield a similar result. The AFF s cumulative application of its resources in 2002 in the exercising of its core function and in the interest of the public was R per member. An analysis of the 2003 figures will be communicated to members once the figures become available. Business development in context of the AFF was discussed in 2003 (May) DR

6 CIRCULAR 1/2004 Page 6 Your Society s agency fee of 12.5% on trust interest collected by it represented 64.75% of its income for the first six months (July to December 2003) of the current financial year. Interest rate decreases of 5.5% since June 2003 impact significantly on the income of the AFF and your Society. Interest rates on balances over R agreed to between the AFF and the banks decreased by 49% on average from December 2002 to December The AFF and your Society appeal to all members to maximise their firms trust interest income and simultaneously minimise the trust bank charges incurred to the best of their ability by, inter alia: ensuring that the agreed interest and charges structures are applied to all the firms trust banking accounts (see voluntary investing surplus trust moneys in Section 78(2)(a) investment accounts if it would be viable to do so; recovering value-added tax from SARS as input credits, if applicable; recovering exceptional bank charges incurred at the special instance of clients; considering electronic banking as an alternative due to increased risks in non-electronic banking and the concomitant escalation of bank charges; limiting additional bank charges levied.

7 CIRCULAR 1/2004 Page 7 Members are reminded that the payment of trust interest is required within three months after the end of a firm s financial period. However, the earlier payment of interest at frequent intervals would assist the Society in its endeavours to ensure consistent cash flow. Likewise, if the AFF received the interest due to it at an earlier stage, it would be in a better position to optimise its income (your Society effects weekly payments to the AFF). Dirk Vercuil, our Business Development Manager, is responsible for creating awareness among members of the aforesaid agreed rates and assists them to ensure that these rates are applied. In addition, Cynthia Naidoo, our Practice Management Officer, has the responsibility to ensure compliance by new firms with the agreed rates whilst conducting practice support visits. They can be contacted for advice at the Society s offices in Pietermaritzburg, via at dirk@lawsoc.co.za or cynthia@lawsoc.co.za or their respective cell numbers at (Dirk) or (Cynthia). 5. REFORMATTING OF THE RULE 21A REPORT: FIFTH SCHEDULE Members are to note that the format of the Rule 21A Report has changed and that this new format, having been approved by members at the 2003 Annual General Meeting, has been Gazetted (GG on pp ) on the 05 th December 2003, the date from which it became effective. Members are to advise their auditors accordingly and this format is to be applied to all reports for accounting periods ending in 2004 and henceforth.

8 CIRCULAR 1/2004 Page 8 Members experiencing difficulty in obtaining the new Report should contact help@lawlibrary.co.za or any of the librarians in Pietermaritzburg ( ) or Durban ( ) 6. PRACTICE SUPPORT WORKSHOPS PRACTICAL BOOKKEEPING COURSES INTRODUCTORY COURSES FOR NEW PRACTITIONERS Practice Support workshops In 2003 we arranged 7 Practice Support workshops (4 on the FICA, 2 on Debt Collections and 1 on Criminal Law) in Chatsworth, Ladysmith, Newcastle, Pietermaritzburg (3) and Uvongo reaching 197 participants. All the workshops followed on the LSSA L.E.A.D seminars having been first presented in Durban as the main centre. The cost was R150 for the 1 st enrolment from a firm and R100 for additional enrolments. We consider arranging similar follow-up seminars in We have been advised that the LSSA seminar programme would to be finalised shortly. In addition thereto, we will consider arranging regional seminars upon demand by our members (on a similar basis as in 2002) and will appreciate it if you could forward suggestions to Patty Forbes- Milne at patty@lawsoc.co.za (Tel /Fax ) in this regard, stating: the topic (be as specific as you possibly can); possible lecturer(s);

9 CIRCULAR 1/2004 Page 9 level of workshop (basic/intermediate/advanced); estimated duration; time of day viable in your area; suitable day of the week; town; and possible venue. The cost for the regional seminars in 2002 was R75 per person. We have not finalised the 2004 cost, but will endeavour to ensure that they are self-funding at a reasonable cost (similar to the follow-up seminars in 2003 and the 2002 regional seminars). Only 63 candidates attended the 8 One-Hour Legal Updates arranged in Durban and Pietermaritzburg in Two 2) sessions had to be cancelled. Members could also forward suggestions in this regard to Patty. Consideration will be given to whether it would be viable to repeat these updates in 2004, by arranging 2 updates back-to-back (which could particularly be cost-effective in the country areas) or co-ordinating updates with the School for Legal Practice in Durban. Practical Bookkeeping courses Five bookkeeping courses were arranged in 2003 in Durban (2), Pietermaritzburg, Uvongo and Vryheid, which were attended by 81 candidates. The 2004 courses will be presented on demand and will be aimed specifically to assist members to participate in the audit reform support system pilot project. It is anticipated that the courses will be arranged from April to June The following 12 areas have been identified as possible delivery centres:

10 CIRCULAR 1/2004 Page 10 Central Pietermaritzburg Greater Durban Durban central Chatsworth Phoenix/Verulam/Umhlanga Pinetown North Coast Stanger Empangeni/Richards Bay South Coast Port Shepstone Umzinto/Scottburgh East Griqualand Kokstad Northern Natal Ladysmith Newcastle/Dundee/Vryheid The courses will be over two consecutive days and consist of 6 modules of 2 hours each. Members who are interested to attend and/or send their employees should provide their contact details to Patty. Subject to available space, independent bookkeepers/auditors or their staff members would also be able to attend (at additional cost). General information will be sent to all members, but we want to ensure that

11 CIRCULAR 1/2004 Page 11 all interested persons obtain details personally once the courses have been arranged. Introductory courses for new practitioners Two (2) courses were arranged in The course of 7 hours tuition, on a Friday afternoon (3 hours) and Saturday morning (4 hours) serves as enhancement to initial and follow-up practice support visits by the Practice Management Officer, Cynthia Naidoo, to new firms. It deals with aspects of bookkeeping, practice management in general, the Attorneys Fidelity Fund, Attorneys Insurance Indemnity Fund and the Law Society of South Africa. We recommend that all new practitioners in addition enrol for the LSSA full practice management course, which is to become mandatory, to this basic course, the purpose of which is to enable members to acquire basis skills at the commencement of practising. Two(2) courses will be presented in AUDIT REFORM SUPPORT SYSTEM: PILOT PROJECT The relevant changes to our Rules (1) [new wording of definitions], 21B and the new Ninth and Tenth Schedules thereto) as agreed to at our AGM, were approved of by our Judge President and the Chief Justice and were published in GG (pp.26-32) on 5 December You were informed thereof in item 5 of Circular 11 of The future modus operandi for the pilot project (the roll-out date being 1 March 2004) was discussed at an Audit Reform Committee meeting held on 10 December The Committee met again on 15

12 CIRCULAR 1/2004 Page 12 January 2004 and confirmed the revised modus operandi, which follows hereunder. The BDM was mandated to proceed to brief Mitchells (CA) SA to review and comment on the project. The review commenced on 20 January and the comment was discussed with the BDM and FM on 30 January. The reported comment will be considered on 12 February at the Committee s next meeting. Members will be invited by mid-february to six briefing sessions throughout the Province to be held between 1 and 26 March. As many Councillors as possible will endeavour to attend these sessions. At least two Committee members, the BDM, FM and PMO will attend each session. An information pack will be made available to members prior to attending the sessions. A minimum attendance figure of 10 will be set. Refreshments will be served. A letter of invitation by the President to all member firms to participate in the project (including details of the briefing sessions) will be distributed after the next Committee meeting. The BDM will present as many bookkeeping courses throughout the Province as deemed necessary (based on demand) between April and June to assist firms to participate in the project. 8. INCREASE IN HIGH COURT TARIFF The increase in the High Court tariff was published in Government Gazette No of 5 December 2003, which came into operation on 5 January 2004.

13 CIRCULAR 1/2004 Page 13 Ref. H.1407/ QUESTIONNAIRE ON LEGAL CIRCLES Members are requested to complete the enclosed questionnaire regarding Legal Circles and return it to the Society's office before the end of February. Ref. CEO 10/3 10. INTERNATIONAL BAR ASSOCIATION: SEMINAR ON ABDUCTION AND TRAFFICKING OF WOMEN, VULNERABLE ADULTS AND CHILDREN IN AFRICA The International Bar Association is holding a seminar on the abovementioned topic on Wednesday, 7 April 2004 at the Shehu Musa Yaradua Centre, Abuja, Nigeria. This will be an adjunct to the African Regional Conference of the IBA on Developing the Law as an Instrument for Social and Economic Rights to be held I Lagos from 5 8 April Registration documents for these events are available on demand from this office. Please ask Collette or Engela for a copy. 11.

14 CIRCULAR 1/2004 Page 14 LEGAL AID BOARD REPORT & NEW LEGAL AID TARIFFS Your Society has received the following report from a member of the Legal Aid Board which is published for your information: "The Legal Aid Board has approved the introduction of a sliding scale of fees in civil matters. The new fee regime in respect of civil matters is premised on graded tariffs being brought into effect as a means of measuring the value of work performed by employee legal practitioners of the LAB co-operation partners with immediate effect. The new tariffs will come into effect in respect of judicare instructions simultaneously with implementation of the LAB new accreditation system. In respect of judicare matters a limit, to be determined when the LAB's 2004/2005 budget is considered, will apply in respect of the application of the graded tariff to instructions issued on or after the judicare implementation of the graded tariff. The new tariff in respect of civil matters seeks to classify the services being rendered at five different levels from entry level work to complex High Court matters, including appeals to the Supreme Court of Appeal. A copy of the detailed tariff in respect of each level is available if required. In summary the new regime seeks to remunerate practitioners to render basic entry level services at the rate of R per 4 hour trial date to a sum of R per 4 hour trial day in respect of level 5 services rendered.

15 CIRCULAR 1/2004 Page 15 IMPACT SERVICES AND REPRESENTATIONS OF THE LAB Legal Practitioners who perform impact services on the instruction of the LAB and/or act on behalf of the LAB itself, will be entitled to be remunerated as follows: 1. As agreed, or in the absence of agreement: 1.1 For non-litigious and criminal trial work by an attorney as allowed by the Provincial Law Society having jurisdiction over the attorney concerned; 1.2 For litigious work by an attorney as allowed on taxation by the relevant Taxing Master as between attorney and client on the applicable statutory tariff. 2. Without derogating from the generality of the aforegoing: 2.1 Impact services shall include Constitutional Court matters, civil appeals before the Supreme Court of Appeal, matters classified as impact litigation by the LAB, complex criminal appeals before the SCA classified as such by the LAB and non-litigious impact services classified as such by the LAB. LEGAL INTERNSHIP PROJECT It was previously reported on a trial internship project implemented by the Legal Aid Board with foreign funding. The project has created, albeit temporary, a paralegal capacity separate from the candidate attorneys employed by the Board. It was reported that the Justice Centres whereat the interns where placed were extremely positive about the internship project because of the perceived value they have added to the

16 CIRCULAR 1/2004 Page 16 participating Justice Centres. The interns have been able to increase a number of clients that the Justice Centres have been able to service since the inception of the project and the fear has been expressed that a valuable capacity would be lost upon the termination of the project which is to occur at the end of From the viewpoint of the interns concern has been expressed as to what happens to them on the termination of the internship contracts. It has been recommended to the Board that the LAB needs to find ways of absorbing those interns who have shown competency and great potential possibly as candidate attorneys. There is a possibility that the internship project will be treated as a feeder programme for candidate attorneys in the organisation rather than relying on the recruitment of graduates from University. Ref. CEO 39/1/04 This Circular is issued on behalf of the Council. F.P. VAN DER MERWE CHIEF EXECUTIVE OFFICER Encl.

17 QUESTIONNAIRE ON LEGAL CIRCLES In terms of Section 69(j) of the Attorneys' Act, the Council may permit members of the Society to form associations of such members to be known as Circles in respect of such areas in the Province as the Council may determine from time to time. The Council may impose conditions as it may deem fit and may determine the duties, functions and powers of the Circle, designate the place of headquarters of such Circle and determine the constitution of bodies responsible for the management of the affairs of the Circle. Currently there are 12 Circles within the Provinces and their area of jurisdiction cover most of the geographical soil within the province. A few of the Circles are reasonably active whilst others are inactive and have been inactive for a very long time. The question has arisen as to how the ordinary member see the Circle. It appears that the inactivity of the Circle is often a measure of a lack of interest by the ordinary member in the affairs of the Circle. You are therefore earnestly requested to spend a few minutes to give the Society your views by answering the following questions: 1. Are you a paid up member of a current Circle? 2. To what extent has your Circle been active? 3. Has your Circle ever provided you with professional or trade union support? 4. Do you think that Circles are relevant in today's circumstances, given the fact that many members belong to other organisations such as the National Democratic Lawyers Association (NADEL) and the Black Lawyers Association (BLA)?

18 Page 2 5. Do you believe that the Law Society should be more pro-active in its relationship with the Circles and contribute more funds towards the running of the Circles? 6. If the Circles do not serve a purpose, in your opinion, do you believe that they should be abolished, restructured or replaced? 7. Do you believe that Circles can play an important role by dealing with Magistrates' Courts, Police stations, other State Departments and parastatals at local level? 8. Do you believe that Circles should be more informal and should concentrate on fostering better relationships amongst members without getting involved in matters affecting the ordinary practitioner's practice? 9. If you have your own views on Circles, please give it in the space below.

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