Thousands of road-accident victims will be deprived of legal representation if the Road Accident Fund (RAF) does not continue paying the claimants’ compensation directly into their attorneys’ accounts, the Cape High Court heard on Friday.
Presenting arguments before Judge Jeanette Traverso, advocate Jeremy Gauntlett said the move would make it difficult for attorneys to represent victims.
Gauntlett was representing a group of lawyers challenging the RAF’s recent decision to pay compensation funds directly into the accounts of claimants.
The new system, which came into effect on August 1, is indicative of the RAF’s ”hypocrisy, cynicism and will deprive claimants of legal representation”, he said.
The previous practice, which saw the fund depositing claimants’ compensation into the account of their attorney, allowed them to recover their legal fees.
While a few lawyers have abused the previous system, the RAF’s new system of compensation is not the answer, he said.
Gauntlett argued that existing contracts between clients and attorneys would be negatively affected and asked the court to impose an interim order against the new system.
However, advocate Nazeer Cassim, representing the RAF, said the lawyers’ application has nothing to do with protecting the interests of claimants, but is meant to ensure that attorneys continue to ”rip off” road-accident victims.
”They want to preserve their lifestyle, a large chunk of the money meant for claimants lands up at the middlemen,” he said.
By continuing to pay claimants’ funds into the lawyers’ accounts, the RAF would be legitimising the ”abuse”.
Judgement on the matter was due to be delivered later in the day. — Sapa