A law firm is pushing back against accusations by the Road Accident Fund of “gross misconduct and cruelty to clients”, calling the claims false and misleading.
In media releases dated 14 September and 2 October, respectively, the RAF said it has reported Spruyt Incorporated to the Legal Practice Council (LPC) and assisted several claimants in laying charges against the law firm with the South African Police Service.
The RAF also said it has lodged a complaint of misconduct against Spruyt with the Gauteng LPC.
Spruyt addressed the matter in a letter sent to the RAF on 9 October.
According to Spruyt, the allegations are “nothing more than a thinly veiled response” to the firm’s persistent efforts to recover long-overdue payments owed to its clients – many of which have been outstanding for more than 1 000 days after the date on which they obtained a court order.
“Many, if not most, of the claimants represented by Spruyt Incorporated are indigent and cannot afford to wait for their claims to be paid when the RAF is ready to do so. These claimants have already been subjected to the statutory 180-day payment moratorium, which moratorium was specifically sought by the RAF on numerous occasions,” the firm said.
In the media releases, the RAF alleges “the RAF paid the claimant’s legal representative, Spruyt Inc Attorneys, R241 000, but they paid the claimant a measly R10 400”.
“The discrepancy was justified by the attorney as necessary due to high administrative costs, a malpractice that is misleading and in clear contravention of the Contingency Fees Act 66 of 1997, which limits the total fee to a maximum of 25% of the compensation,” the RAF said.
In response to the RAF’s claims that it underpaid a client, Spruyt said that because of the Fund’s “deliberate delaying tactics”, the claimant’s matter was finalised on two separate hearing dates, 14 August 2023 and 31 October 2023.
According to the firm, the RAF has been in possession of the stamped and signed court orders for more than a year, “by virtue of the fact that the RAF was represented by a State Attorney”.
“In amplification hereof, the RAF included both of the aforementioned court orders in a complaint it lodged on behalf of this claimant at the LPC during the course of May 2024. Both court orders clearly stipulate in the last paragraph on each respective order that there is no contingency fee agreement between the claimant and Spruyt Incorporated,” the letter read.
The firm claims the RAF is “acutely aware” there are still monies due, owing and payable by the RAF to this claimant.
“The document attached by the RAF to its media release clearly indicates that the statement is an interim statement, and that further payments are still due to be paid by the RAF.”
Spruyt claimed that, despite having documents proving otherwise, the RAF continues to make defamatory allegations in relation to the claimant.
“These allegations are not only misleading and demonstrably false; they illustrate the malicious intent of the RAF,” the letter said.
RAF warns of ‘unscrupulous lawyers’
In the media statement of 2 October, the RAF said this is but one of several complaints about attorneys who pay the claimants they represent amounts that are significantly lower than the amounts paid to them by the Fund.
According to the RAF, “unscrupulous attorneys are giving groceries and transport money to claimants, a scheme aimed at swindling them of their RAF claims”. The RAF said this is an illegal scheme that benefits the law firms rather than the claimant.
According to the RAF, the scheme includes borrowing money to cover living expenses while the claim is being finalised, then claiming back the money with “exorbitant” interest from the claimant’s RAF compensation.
“South Africa has exceptionally high levels of inequality. Desperate road crash survivors and their families are often lured into these illegal schemes, then often coerced by attorneys into signing agreements that prevent them from questioning their RAF pay-out amounts,” the RAF said.
The Fund alleged that law firms in Mpumalanga are forcing their represented claimants to apply for their money to be paid in instalments.
“Claimants across the country narrate stories of not hearing from their attorneys, being forced to sign documents that are not explained to them, are not informed about the undertaking that they may use for medical needs while waiting for compensation, and/or not having access to their funds for about five years after compensation has been paid,” the RAF said.
RAF chief executive Collins Letsoalo has urged claimants to speak out: “We urge claimants who have been subjected to such unethical practices to contact the Fund immediately. The Fund’s contact centre capacity was increased last year to deliver more transparent and fair services to the claimants. It is imperative that these issues are addressed, and that the integrity of the claims process be upheld.”
In addition, the RAF said claimants should be aware of their right to information about party-and-party costs, which are the costs the RAF may be ordered to pay if a court case is involved. These costs do not include the personal fees between claimants and their attorneys.
Claimants who believe they have been wronged or need clarification on the status of their claim can contact the RAF on 087 820 1111, Monday to Friday. Information is also available at the Fund’s offices or on its website, www.raf.co.za.
