• When a claimant succeeds with h​​is or her claim the RAF will make payment of the compensation, legal costs (if the matter became litigious), and interest (if applicable). The payments are typically staggered over time with the compensation paid first and the legal costs paid much later. ​
  
  
• ​Before legal costs can be paid a party-and-party bill of cost is drafted by the claimant's attorney and then submitted to the RAF to negotiate settlement. If the RAF and the claimant's attorney cannot agree on the reasonable party-and-party cost due to the claimant the claimant's attorney will refer the bill of costs to the Taxing Master who will assess the party-and-party bill of cost and issue an allocator confirming the amount of the party-and-party cost to be paid by the RAF.  ​
  
  
• Legal costs comprise of three distinct categories: 
• ​Party-and-party costs are subject to prescribed tariffs, is awarded to the successful party by the courts and relates specifically to the litigation process. Party-and-party costs do not include all costs, for instance, items such as consultations and correspondence between the attorney and the claimant are not included. ​
• Attorney-and-client costs are subject to prescribed tariffs and may be awarded to the successful party as a punishing cost order in relation to the conduct of the other party.   
• The prescribed tariffs for party-and-party costs and attorney-and-client costs are not binding on attorneys. Attorney-and-“own" client costs are therefore not subject to the prescribed tariffs where the fees due to the attorney are based on the fee agreement entered into by the claimant. ​
  
  
• ​The attorney representing the claimant may recover his or her fees and disbursements based on a fee agreement or a contingency fee agreement. The use of contingency fee agreements in RAF matters is the norm. ​
  
  
• The Contingency Fees Act, No. 66 of 1997, provides that the contingency fee agreement must state:​
  
• ​the proceedings to which the agreement relates;
• that, before the agreement was entered into, the client:-
  
• ​was advised of any other ways of financing the litigation and of their respective implications;
• was informed of the normal rule that in the event of his, her or it being unsuccessful in the proceedings, he, she or it may be liable to pay the taxed party and party costs of his, her or its opponent in the proceedings;
• was informed that he, she or it will also be liable to pay the success fee in the event of success; and
• ​​understood the meaning and purport of the agreement;
  
  
• ​​what will be regarded by the parties to the agreement as constituting success or partial success;
  
• the circumstances in which the legal practitioner's fees and disbursements relating to the matter are payable;​
  
• ​the amount which will be due, and the consequences which will follow, in the event of the partial success in the proceedings, and in the event of the premature termination for any reason of the agreement;​
• either the amounts payable or the method to be used in calculating the amounts payable;
• the manner in which disbursements made or incurred by the legal practitioner on behalf of the client shall be dealt with;
• that the client will have a period of 14 days, calculated from the date of the agreement, during which he, she or it will have the right to withdraw from the agreement by giving notice to the legal practitioner in writing: Provided that in the event of withdrawal the legal practitioner shall be entitled to fees and disbursements in respect of any necessary or essential work done to protect the interests of the client during such period, calculated on an attorney and client basis; and
• the manner in which any amendment or other agreements ancillary to that contingency fees agreement will be dealt with.​
  
  
• ​​The Contingency Fees Act, No. 66 of 1997, provides that a copy of any contingency fees agreement must be given to the client concerned upon the date on which such agreement is signed.​
  
  
• The Contingency Fees Act, No. 66 of 1997, provides that a client of a legal practitioner who has entered into a contingency fees agreement and who feels aggrieved by any provision thereof or any fees chargeable in terms thereof may refer such agreement or fees to the professional controlling body or, in the case of a legal practitioner who is not a member of a professional controlling body, to such body or person as the Minister of Justice may designate by notice in the Gazette for the purposes of this section.​
  
  

The information provided herein is not intended to serve as legal advice and is provided by the Road Accident Fund to foster transparency by providing the public with timely, accessible and accurate information. ​​​