What does a claims & compensation attorney cost in South Africa?

In claims and compensation work, the attorney's fee is often not the number that catches people out. The disbursements are. A no win no fee agreement can leave you owing nothing in professional fees and still owing tens of thousands of rand for expert reports. Ask about both, in writing, before you sign anything.

All figures below are typical ranges excluding VAT. They are a guide to what the market charges, not a quote, and firms vary widely by city, seniority and specialisation.

What is genuinely free

• Lodging a Road Accident Fund claim. You can lodge and pursue a claim directly with the Fund yourself at no cost. No attorney is required. See how to claim from the Road Accident Fund.
• The National Financial Ombud Scheme, for a rejected insurance claim or a banking or credit dispute. Free, no attorney needed, funded by the industry.
• The Health Professions Council of South Africa, for a complaint about a practitioner's conduct. It can discipline, but it does not award you compensation.
• The National Consumer Commission and provincial consumer affairs offices, for consumer complaints.
• A first consultation at most personal injury and RAF firms.
• Legal Aid South Africa on 0800 110 110, subject to a means test.

How attorneys charge for this work

Contingency, or no win no fee. The standard arrangement in RAF and personal injury work. The Contingency Fees Act 66 of 1997 requires the agreement to be in writing and signed by you, and caps the success fee at double the attorney's normal fee or 25% of the amount awarded, whichever is lower. The 25% is calculated on the compensation, not on costs recovered from the other side. Read how no win no fee works before signing.

Hourly. Common for insurance disputes, defamation and commercial claims. Ask for an estimate of total hours per stage, not just the rate, because the rate on its own tells you nothing.

Fixed fee. Sometimes offered for discrete work such as a letter of demand or reviewing a settlement offer. Worth asking for.

Disbursements: the part people miss

Disbursements are amounts paid to third parties on your behalf. Under a contingency agreement you can still be liable for them, including if the claim fails, unless your written agreement says otherwise. This is the single most important question to ask at the first meeting.

In a serious injury or medical negligence file, expect some combination of medico-legal reports from an orthopaedic surgeon, neurosurgeon, clinical psychologist, occupational therapist and industrial psychologist, an actuarial calculation, hospital record retrieval fees, counsel's fees, sheriff's fees and court filing fees, and travel costs for examinations. Individually they look manageable. Together they are often the biggest line in the file.

Some firms carry disbursements and recover them from the award. Some ask you to fund them as you go. Some carry them until the claim fails and then invoice you. Those are three different deals. Get the answer in the agreement.

What drives the cost up

• Whether liability is disputed. A conceded merits claim is far cheaper than one that goes to trial on who caused the accident.
• The number of specialities involved. Each additional expert is another report and another set of fees.
• Medical negligence generally. It is the most expensive area in this category because causation has to be proved by independent experts before anyone can even sensibly issue summons.
• Going to trial rather than settling, which adds counsel's fees, trial preparation and often postponements.
• Poor record keeping by you. Reconstructing lost payslips and receipts costs time, and time is billed.

How to avoid surprises

1. Ask for a written fee estimate and a written contingency agreement, and take them home to read.
2. Ask specifically: who pays for the expert reports if we lose?
3. Ask whether the quoted figures include VAT.
4. Ask what happens to the party and party costs recovered from the other side if you win.
5. Ask for an itemised statement of account at settlement, showing the normal fee calculation, the contingency calculation and every disbursement.
6. Compare two or three firms. Fees for the same work vary more than most people expect.

If you believe you have been overcharged, raise it with the firm first, then with the Legal Practice Council. A bill can also be taxed, which means an independent taxing master reviews it.

LawMatch is not a law firm and does not give legal advice. These ranges are published to help you ask better questions.