Johannesburg - A liquidation application has been launched against an attorney firm accused of failing to pay an advocate it briefed for lucrative Road Accident Fund (RAF) cases.
Pretoria-based advocate Anton Knoetze has filed papers at the Polokwane High Court against Chueu Attorneys Incorporated over non-payment of debt amounting to over R3 million.
In his affidavit, Knoetze said Chueu Attorneys had used his services for various successful RAF cases since 2013.
Knoetze said the debt owed to him accumulated over the years and the firm of attorneys previously committed to paying between R80 000 and R100 000 monthly to settle it.
He revealed that while payments were made over a period, Chueu Attorneys stopped paying in January this year. This left over R3m allegedly still outstanding.
“Various efforts have been made by Auxcon – a service provider who assists, among others, advocates with accounting and debtor management – to obtain payment and co-operation from the respondent, but to no avail,” Knoetze said in his affidavit.
“Notwithstanding the fact that the respondent does not dispute the fact that it is indebted to me in the amount of R3 055 624, the respondent fails to effect payment. The respondent reneged/neglected all its commitments to pay myself and other advocates to date.”
Knoetze drew the court’s attention to the fact that Chueu Attorneys was one of the legal firms from which the RAF sought to recoup millions.
The RAF revealed in March that it had double-paid some firms over the years for claims as a result of administrative errors. While some firms paid back the money, others allegedly refused to pay.
Knoetze said Chueu Attorneys was one of the attorney groups the RAF vowed to not pay due to their refusal to reimburse the duplicate payments.
“It is … evident that the respondent will not be receiving any form of income or any further payments from the RAF, and the respondent will therefore undoubtedly not be in any position to pay any of its creditors,” he said.
Knoetze insisted that the option going forward was to liquidate Chueu Attorneys.
“It is obvious that the respondent is unable to pay its debts,” he said. “The respondent confirmed its inability to pay and accordingly, stands to be liquidated.”
Chueu Attorneys was bracing itself to fight Knoetze’s application.
“We’re going to oppose,” Mzwandile Lumka, its appointed attorney, told The Star yesterday.
Lumka said Knoetze’s application had no prospects of success.
“It’s malicious and it has no merit. When you accept a brief from my client in a RAF matter as counsel, there’s a disclaimer right there on the face of the brief that you get paid when I get paid.
“The fund owes my client millions (of rand) and they have not paid yet. So, where is our client supposed to get this money to pay people? We’re looking at close to R7m that’s owed to my client by the fund.”
The Star