NW Civil Contractors CC v Anton Ramaano Inc and Another

The dispute arose from unpaid legal fees allegedly owed by NW Civil Contractors CC to its former attorney, Anton Ramaano Inc, following successful litigation against a municipality that settled for R14 million. Anton Ramaano Inc sued for taxed costs exceeding R1.3 million and obtained default judgment after NW Civil Contractors filed its plea one day late. While a rescission application was pending, various interlocutory orders were granted in favour of NW Civil Contractors. Anton Ramaano Inc later applied to have those interlocutory orders set aside on the basis that NW Civil Contractors’ attorney of record at the time did not hold a valid fidelity fund certificate as required by s 41(1) of the Attorneys Act 53 of 1979. The High Court (Phatudi J) declared all proceedings conducted by that attorney null and void ab initio. NW Civil Contractors appealed both that ruling and the dismissal of its rescission application.

Both appeals were upheld with costs. In case no 1024/2018, the application to set aside the interlocutory orders was dismissed with costs. In case no 1076/2018, the rescission application succeeded with costs and the default judgment granted on 11 August 2016 was rescinded.

The case is significant for clarifying that proceedings conducted by an attorney who lacks a valid fidelity fund certificate are not void ab initio. It confirms that the Attorneys Act does not intend nullity as a consequence of non-compliance with s 41(1), thereby protecting legal certainty, the administration of justice, and the interests of clients and third parties.