Question 1

When is a case considered a litigation matter?

Accepted Answer

A case is considered a litigation matter when a dispute between parties cannot be resolved through negotiation or mediation and requires formal legal proceedings in a court. This involves one party seeking a legal remedy, such as compensation or specific performance, through a lawsuit. Upon receiving a summons from the plaintiff, the defendant typically files a notice of intention to defend.

Question 2

How can I determine litigation costs before I start legal action?

Accepted Answer

Litigation costs can vary significantly based on the complexity and duration of the case. These costs typically include attorney fees, court fees, and various other expenses. It's advisable to discuss your case with your attorneys beforehand to get a clearer understanding of potential costs. There may be additional fees you are unaware of, such as expert witness costs, consultation fees, and charges for interlocutory applications. Other basic costs can include fees for pleadings, letters, phone calls, copies, court attendances, and preparation.

Question 3

What is the appeals process in South Africa?

Accepted Answer

When it comes to civil matters, the appeals process in South Africa can be broken down into five distinct steps:   It starts with the notice of appeal which is filed by the party who wants to appeal with the Court. The opposing party is then informed of the filing as well. Next, a record of proceedings is submitted to the court for review.  After this, the involved parties will submit written arguments to the appellate Court. If the Court chooses to proceed, there will be a hearing where oral arguments can be presented. Finally, the Appellate Court issues its decision, which may confirm, vary, or overturn the lower court's judgement.

Question 4

When does an agreement qualify as an incidental credit agreement?

Accepted Answer

An agreement qualifies as an incidental credit agreement when credit is extended as part of a sale of goods or services without a formal credit application process. This typically happens when payment is deferred and interest or fees are charged for late payments.   A credit agreement is a legal contract between a credit provider and a consumer, where the provider supplies goods, services, or loans with a delayed payment, and charges fees and interest for this deferral.  Schools and other entities must be cautious when offering discounts, as this can constitute a credit agreement. We recommend discussing the terms and conditions of any such agreement with your attorney to ensure compliance and avoid falling under the ambit of the credit act.

Question 5

Do I have any alternatives to litigation when I want to resolve a legal dispute?

Accepted Answer

One very practical alternative to traditional litigation is online arbitration. You can either include an online arbitration clause in your company’s contracts, or you can approach a debtor with the suggestion that you resolve your dispute via this very useful method.   Online Arbitration is the quickest way to solve legal disputes. It doesn’t rely on long, complicated processes or in-person arguments to produce results. The arbitrator judges each case solely on the paperwork submitted, cutting the time it takes to reach a decision to just 60 days if there are no counterclaims to resolve. What’s more, the arbitrator’s ruling is final. This means that once a judgement is made, there is no way to drag out the process.   To learn more about this process, visit the Online Arbitration Centre at www.onlinearbitration.co.za.

Question 6

What is the current mora interest rate?

Accepted Answer

Mora interest is charged when a payment is not made timeously, and an interest rate has not been agreed upon between the parties, but  prescribed by law.   As of the latest update, the mora interest rate in South Africa is the repurchase rate plus 3.5%. The current prescribed rate is 11.75% per annum.

Question 7

When can a landlord evict a business?

Accepted Answer

A landlord can evict a business tenant primarily when the tenant breaches the terms of the lease agreement. Common grounds for eviction include non-payment of rent, unauthorised use of the property, subletting without consent, or any other violations specified in the lease contract.   The process begins with the landlord issuing a notice of breach to the tenant, providing an opportunity to remedy the breach within a specified period. If the tenant fails to rectify the breach, the landlord can then proceed to seek an eviction order from the court.  The eviction of a business tenant must also comply with the provisions of the PIE Act if the tenant is in unlawful occupation. However, commercial leases often include specific clauses detailing the procedure for eviction, which can streamline the process compared to residential evictions. It is crucial for both landlords and business tenants to understand the terms of their lease agreements and the legal framework governing evictions to ensure that the process is conducted fairly and within the bounds of the law.

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