Du Preez v Zwiegers

Versatile Construction CC paid R385 000 into the trust account of the respondent, a Johannesburg attorney, as a refundable deposit pending the procurement of a foreign loan through DLA International Financial Services. Despite a prior letter from the appellants’ attorneys stipulating that the money was not to be paid out without their written consent, the respondent paid the funds (less a fee) to a third-party company on the instructions of his client, Mr Michael Louw, without contacting the depositor or its representatives. The loan was never paid out, and the appellants were unable to recover the deposit.

The appeal was upheld with costs. The High Court order was set aside and substituted with judgment in favour of Versatile Construction CC for payment of R385 000, interest at 15.5% a tempore morae, and costs of suit.

The case confirms that attorneys owe a delictual duty of care to depositors of trust account monies, even where no attorney-client relationship exists. It reinforces strict standards governing the handling of trust funds and clarifies the scope of professional negligence in South African law.