Civil Procedure

Contingency Fee

A fee arrangement where an attorney receives payment only if the client is successful in the claim — typically a percentage of the award or settlement. Regulated by the Contingency Fees Act.

Legal Definition

The Contingency Fees Act 66 of 1997 allows attorneys and advocates to enter into contingency fee agreements (no-win-no-fee) for certain types of litigation. The maximum contingency fee is the lesser of twice the normal fee or 25% of the value awarded. The agreement must be in writing and the client must be informed of alternatives.

📖 Constitutional / Statutory Basis: Section 34 (access to courts — enabling access for those who cannot afford upfront fees)

Practical Example

A personal injury victim cannot afford an attorney. They sign a contingency fee agreement — the attorney handles the RAF claim and receives 25% of the settlement if successful, nothing if unsuccessful.

Frequently Asked Questions

What types of cases can be done on contingency in South Africa?

The Contingency Fees Act applies to any civil matter. Common cases: personal injury (RAF, medical negligence), workplace injury, insurance claims, and consumer protection matters.

Can an attorney charge a contingency fee for criminal defence?

No. Contingency fee agreements are prohibited in criminal cases — attorneys cannot make their fees dependent on an acquittal, as this would create a conflict of interest.

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