Quick answer
Before appointing a lawyer for a taxi-passenger RAF matter, ask for the fee model, normal rates, success-fee calculation, disbursements, VAT treatment, scope, early-termination consequences and payment process in writing. Request a worked example using hypothetical figures and ask what you would owe if the claim succeeds, partly succeeds, settles, is withdrawn or does not succeed.
How to use this guide
A statement such as “we only get paid if you win” is not a complete explanation. The Contingency Fees Act sets requirements for lawful contingency-fee agreements, while another mandate may use hourly, staged or mixed charging. Read the actual agreement and verify the practitioner before signing.
First ask which fee model is proposed
Ask the lawyer to identify the agreement by name and explain whether it is:
- a contingency-fee agreement under the Contingency Fees Act;
- an hourly or time-based mandate;
- a fixed fee for a defined stage;
- a mixed arrangement combining different stages or charges; or
- an initial consultation followed by a separate litigation or claim mandate.
Do not assume that every percentage arrangement is lawful or that every RAF mandate must use a percentage. Ask why the proposed structure fits the matter and what alternatives are available. Keep the proposal and the final signed version.
What are the normal fees?
The Contingency Fees Act uses the practitioner’s “normal fees” as an important reference. Ask for the ordinary hourly, daily or task rates that would apply without a contingency arrangement, who may work on the file and whether different rates apply to the attorney, candidate attorney, advocate or other professional.
Request an example that separates:
- normal professional fees;
- any success fee;
- external disbursements;
- VAT or other tax treatment where applicable;
- party-and-party or other recovered costs; and
- the amount ultimately payable to the client.
The explanation should not blend these categories into one unexplained deduction.
How will a contingency success fee be calculated?
Under section 2 of the Contingency Fees Act, a practitioner may enter a qualifying agreement where the practitioner considers that there are reasonable prospects of success. The Act permits an arrangement in which fees depend on success or a higher fee becomes payable upon success, subject to statutory limits.
The higher fee may not exceed the normal fee by more than 100 percent. For a claim sounding in money, the total success fee may also not exceed 25 percent of the amount awarded or obtained as a result of the proceedings, excluding costs for that calculation. These are limits, not an automatic entitlement to charge 25 percent.
Ask the lawyer to show both calculations using the same hypothetical outcome and to explain which lower limit controls. Confirm whether the agreement describes the “normal fee” clearly enough to reproduce the calculation later.
What counts as success or partial success?
The written agreement should state what the parties regard as success or partial success. Ask whether success means any payment, a minimum amount, acceptance of liability, a settlement, a court order, an undertaking, payment of a category of loss or another defined outcome.
Then ask:
- What fee applies if only one part of the claim succeeds?
- What happens if liability is accepted but the amount remains disputed?
- Does an interim payment trigger a fee?
- How is a structured or non-cash benefit treated?
- When is the fee due if payment occurs in stages?
Do not rely on a verbal definition that differs from the signed agreement.
Which disbursements may be incurred?
Disbursements are not necessarily the lawyer’s professional fee. They may include costs for records, medical or other experts, reports, counsel, court processes, travel, copying or administration, depending on the matter.
Ask for a schedule showing:
- which expenses are likely at each stage;
- who chooses and instructs the supplier;
- whether your approval is needed above a threshold;
- who pays upfront;
- whether the firm funds any expense;
- whether interest or a funding charge applies;
- what happens to the expense if the claim fails; and
- which receipts or invoices you will receive.
The Contingency Fees Act requires the agreement to address how disbursements are handled. “Costs will be deducted later” is not sufficiently specific for informed consent.
Are VAT and recovered legal costs included?
Ask whether quoted rates and examples include VAT where it is chargeable. Confirm how recovered party-and-party costs, a cost contribution or taxed costs are treated and whether they reduce what you owe or belong to a particular party under the agreement and applicable law.
Do not subtract a cost award from a fee example yourself without understanding the legal and contractual treatment. Request a closing statement that separately records the award or settlement, professional fees, success fee, disbursements, recovered costs, tax and net amount.
What does the mandate include and exclude?
A fee agreement cannot be evaluated without scope. Ask whether the quoted mandate includes:
- initial RAF claim preparation and lodgement;
- correspondence and requests for further information;
- medical and expert coordination;
- serious-injury processes where relevant;
- settlement review and negotiation;
- court proceedings, interlocutory work and trial preparation;
- appeals, reviews or enforcement;
- tax, estate, guardianship or other specialist work; and
- transfer of the file if the mandate ends.
Identify the first stage that would require a new price or written scope. Ask who has authority to expand the work and how you will approve it.
What happens if the mandate ends early?
Section 3 of the Contingency Fees Act requires the agreement to address premature termination and gives the client a 14-day period from the agreement date to withdraw in writing, subject to the statutory treatment of necessary or essential protective work during that period.
Ask what fees and disbursements would be claimed if you withdraw, appoint another lawyer, cannot continue, reject advice, or the lawyer terminates the mandate. Request the method for calculating work already done and the process for releasing the file and accounting for originals or funds.
Do not sign a termination clause you cannot translate into a practical amount or process.
Who controls settlement decisions?
Ask the lawyer to explain how settlement offers will be communicated, analysed and authorised. The Contingency Fees Act contains specific affidavit requirements where a settlement is made under a contingency-fee arrangement, including information about the settlement terms, prospects, fee comparison, recommendation and the client’s understanding.
Clarify that no settlement may be accepted merely because it improves the lawyer’s fee position. Ask what medical, loss and expert information should be available before a recommendation is made and how you will receive the calculation of your net result.
Keep every written offer, explanation, instruction and accepted version.
How will money and bank details be verified?
The published RAF 1 form includes payment-stage document requirements, including banking information and contingency-fee material in the circumstances described there. Ask which account may receive money, how you will verify bank details, when funds may be held, what statement will be issued and who can authorise a payment.
Keep the payment file separate from the merits of the claim. Providing banking or contingency-fee documents does not itself establish statutory liability, prove the amount of compensation or guarantee when funds will be paid. Ask which settlement, court order or other operative authority supports a payment request and which remaining conditions are merely administrative.
Confirm changed bank details through an independently obtained contact channel. Do not rely solely on the phone number or email contained in the change message. Never pay an unverified intermediary who promises faster processing or a guaranteed outcome.
Verify the practitioner and keep the agreement
Use the Legal Practice Council practitioner search to reconcile the person’s identity and practising status. Confirm the firm, responsible attorney and contact details independently. Ask whether any applicable Fidelity Fund Certificate verification is relevant to the proposed handling of funds.
The agreement should be signed as required, and section 3 of the Contingency Fees Act says a copy must be delivered to the client on the signing date. Keep the full version, annexures, mandate, authority documents and later amendments together.
If a client feels aggrieved by a contingency agreement or fee, section 5 provides a review route through the professional controlling body in the circumstances described there. The LPC also publishes a public complaint process. A general article cannot decide which remedy applies, but the existence of a review or complaint route should not be concealed.
A fee-question script to take into the meeting
Ask the provider to answer these questions against the draft agreement:
- What exact fee model are you proposing, and what alternatives did you consider?
- What are each professional’s normal rates?
- How are success and partial success defined?
- Show me the success-fee calculation and both statutory caps.
- Which disbursements may arise, and who carries them if the matter fails?
- Are quoted amounts inclusive or exclusive of VAT where applicable?
- How are recovered costs or cost contributions treated?
- What work is outside the current mandate?
- What becomes payable if either party ends the mandate early?
- Who may accept settlement, receive funds or change payment details?
- What statement and supporting invoices will I receive?
- May I take the unsigned documents away for review?
Record the answers and correct the document before signing if the written terms differ.
FAQs
Is 25 percent an automatic RAF lawyer fee?
No. For a qualifying monetary claim, 25 percent is one statutory ceiling on a contingency success fee, not an automatic charge. The agreement must still identify normal fees, and the alternative limit based on those fees must also be applied.
What are disbursements in an RAF mandate?
Disbursements are external matter expenses such as records, reports, experts, counsel or process costs. The agreement should explain who approves, advances and ultimately carries them, including what happens if the matter does not succeed.
What happens if I end a contingency-fee agreement?
The agreement should explain premature termination and how work and expenses are calculated. The Act also provides a 14-day written withdrawal period, subject to its treatment of necessary or essential protective work.
May a lawyer accept an RAF settlement without explaining it?
Settlement authority and communication should be clear. Under a contingency arrangement, the Act also requires specified settlement affidavits addressing the terms, prospects, fee comparison, recommendation and the client's understanding.
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Legal note
This article is general legal information for South African readers. It is not legal advice. Speak to a qualified legal professional about your specific facts before taking action.