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Party and party fees not keeping up with inflation
When party and party fees were first introduced, they pretty much covered, as I understand, all legal costs of the winning party. That was important, because the whole purpose of party and party fees was that if you won your case you get costs back from the other side on the party and party scale.
Over time however, those fees have fallen further and further behind and fortunately there is going to be an increase of the party and party fees in November. The rate at which one used to get one’s fees back was R400,00 per hour on 21 October 1996. That figure, if it was adjusted for inflation, would be R1 149,52 now, and the party and party rate is about to be increased, from R800,00 (showing you how much it has fallen behind) to R940,00 per hour. That means it will still only be 82% of the inflation adjusted tariff of 1996, and by 1996 we had already fallen behind inflation. The unfortunate impact is that it means that legal services become more and more expensive for the winning party, because even when they win, they get back much less of their costs than they would have decades ago. It makes it harder for such people to elect to take on a case, because they have to look at the amount involved and as to whether or not what they will end up paying their attorney and not recovering will make the case worthwhile. The one thing that is clear is that it cannot be attorneys who are to blame. The costs of an attorney’s business are going to increase to at least inflation, if not more, and it is not their fault that sadly the party and party tariff has lagged so far behind inflation over the decades.
Posted by Michael de Broglio on Monday 21-Oct-13
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Comments
salomie said:
on Thursday 24-Oct-13 11:30 AM
just another thing people have to accept, as nothing will be done about this
Caron said:
on Monday 21-Oct-13 04:05 PM
Sadly justice is for the rich!
I often use the simple analogy of comparing party and party costs to medical aid rates - recoverable in taxation - versus attorney and own client costs being the the doctors actual fees charged equaling the medical aid rate plus the members portion. Though it's evident that the difference between the two in the legal profession is ever increasing.
Sorea said:
on Monday 21-Oct-13 12:11 PM
One can only hope that with some progressive reviews of the tariffs that they will eventually come to a stage where they have caught up with inflation.
Brumilde said:
on Monday 21-Oct-13 10:48 AM
Clients also have to accept that at the end of the day Attorneys it a business and they need to make a profit as well in order to keep the doors open. But if the costs go to high no one will want to use them.
Sally said:
on Monday 21-Oct-13 10:09 AM
This is really unfair. The average person in today's life cannot afford legal representation and in future it will be just be the rich people that will be able to afford legal representation.
Melissa said:
on Monday 21-Oct-13 10:05 AM
The increasing inflation rate will have no effect on the high income bracket, but the lower income bracket is those who have no money to spend.
Bianca said:
on Monday 21-Oct-13 09:39 AM
This is extremely unfair, I think that what is spent should be completely recoverable to the winning party. Very disappointing that the tariffs are not up to date with inflation. The more it costs you, the less you get back - backward system if you ask me.
Lorette said:
on Monday 21-Oct-13 09:25 AM
I have to agree with Benita that everyone has to accept that and there is absolutely nothing we can do about it.
Benita said:
on Monday 21-Oct-13 09:23 AM
People are just going to have to accept that all things go up with inflation and that our government is to blame for not keeping these tarrifs up to date with the inflation rates.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
