Contingency Fees Act, 1997 (Act No. 66 of 1997)4. Settlement |
| (1) | Any offer of settlement made to any party who has entered into a contingency fees agreement, may be accepted after the legal practitioner has filed an affidavit with the court, if the matter is before court, or has filed an affidavit with the professional controlling body, if the matter is not before court, stating— |
| (a) | the full terms of the settlement; |
| (b) | an estimate of the amount or other relief that may be obtained by taking the matter to trial; |
| (c) | an estimate of the chances of success or failure at trial; |
| (d) | an outline of the legal practitioner’s fees if the matter is settled as compared to taking the matter to trial; |
| (e) | the reasons why the settlement is recommended; |
| (f) | that the matters contemplated in paragraphs (a) to (e) were explained to the client, and the steps taken to ensure that the client understands the explanation; and |
| (g) | that the legal practitioner was informed by the client that he or she understands and accepts the terms of the settlement. |
| (2) | The affidavit referred to in subsection (1) must be accompanied by an affidavit by the client, stating— |
| (a) | that he or she was notified in writing of the terms of the settlement; |
| (b) | that the terms of the settlement were explained to him or her, and that he or she understands and agrees to them; and |
| (c) | his or her attitude to the settlement. |
| (3) | Any settlement made where a contingency fees agreement has been entered into, shall be made an order of court, if the matter was before court. |