Melamed & Hurwitz Incorporated v Goldberg

The appellant, a firm of attorneys, acted for the respondent in negotiating an improved divorce settlement over several months. After a favourable settlement was achieved, the attorney claimed an agreed fee of R450 000 plus VAT. The respondent disputed that she had agreed to the fee and, alternatively, alleged that the fee was excessive and amounted to overreaching. The Johannesburg High Court ordered that the attorney’s fee be referred to the Law Society for assessment. The appellant appealed, contending that the court should not have interfered with an agreed fee.

The appeal was dismissed with costs. The fee agreement was declared void, and the appellant was permitted to submit its claim for fees to the Law Society of the Northern Provinces for assessment, after which the matter would return to the High Court for an appropriate payment and costs order.

The case reaffirms the supervisory role of courts over attorney–client fee agreements and underscores that even agreed fees will not be enforced if they are extortionate or result from overreaching. It reinforces ethical standards in the legal profession and the protection of clients from unconscionable fees.