Law Society of the Northern Provinces v Le Roux

The first and second respondents were practising attorneys and directors of an incorporated firm. Their firm’s trust account was found to be in substantial deficit after millions of rands were fraudulently misappropriated by an associate (the second respondent’s brother). As a result, the firm’s annual audit certificate was heavily qualified. In terms of a 2013 resolution adopted by the Law Society of the Northern Provinces under s 42(3)(a) of the Attorneys Act 53 of 1979, an acceptable, unqualified audit certificate was required for the renewal of fidelity fund certificates. The secretary of the Law Society refused to issue the respondents’ 2015 fidelity fund certificates due to non-compliance with this requirement. The respondents successfully approached the Gauteng Division of the High Court, which compelled the secretary to issue the certificates. The Law Society appealed to the Supreme Court of Appeal.

The appeal was upheld with costs on an attorney-and-client scale. The order of the Gauteng Division of the High Court was set aside and replaced with an order dismissing the respondents’ application with costs.

The case affirms the principle that administrative decisions remain binding and effective until set aside on review, reinforcing the Oudekraal principle in the context of professional regulation. It clarifies that law societies may impose lawful regulatory requirements for fidelity fund certificates and that their officials have no discretion to ignore such requirements. The judgment underscores the importance of protecting the Attorneys Fidelity Fund and the public against risk arising from insolvent practitioners.