LITIGATION COSTS ESTIMATES

ASSUMPTIONS

This or any cost estimate provided for litigation is based on a number of assumptions, e.g.:

1. The legal practitioner and staff's time required for each process or procedure cannot
be quantified precisely. All estimates are subject to the inherent unpredictability of
litigation. Irrespective of what is set out in this estimate, the firm is entitled to charge
a reasonable amount for all services rendered.

2. The process described below may be commenced and interrupted by a settlement

discussion. The estimate is based on the number of hours the legal practitioner
estimates each procedure will require based on the hourly rate of the legal practitioner
or staff member who will be required to perform it. Some services require the work
of more than one legal practitioner or staff member. For example, documents
prepared for submission to opposing parties and the court are carefully checked by
more than one member of the firm, and typically go through several draft versions
before completion.

The hourly rates for practitioners (excluding VAT) are as follows:

Senior Counsel: R3 000.00 – R4 400.00;

Junior Counsel: R700.00 – R1 700.00;
Candidate Attorney: R1 000.00;
Junior Attorney: R1 800.00;
Senior Attorney: R2 800.00.

3. Services may be outsourced where expediency or cost savings can be achieved.

Outsourcing refers to suppliers which are not part of this firm and who are not
employees, partners or associates of the law firm. It is likely that an advocate or trial
attorney will be appointed on this basis.

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4. This estimate does not include a estimate of the cost of experts and expert reports. In
most cases, expert witnesses, such as forensic accountants and valuators are required.
Other experts may also be retained depending on the circumstances of the case,
including economists, engineering experts, construction experts, real estate
appraisers, a document analyst, etc. These skilled professionals charge fees on an
hourly basis similar to the rates set out in paragraph 2 above, plus travel and
accommodation costs.

5. Every legal practitioner is fully committed to obtaining the best possible result for the
client, but the results of litigation may be affected by (but not limited hereto):

1) the facts of the case

2) how witnesses deliver their evidence at trial

3) whose evidence the trial judge prefers, and

4) principles of law;

6. The fees and disbursements are payable regardless of the result unless a contingency
fee agreement was signed between the legal practitioner and the client. Where a
success fee contingency fee agreement has been signed, the rates and fees set out in
this agreement will be regarded as the normal fees for the purpose of calculating the
cap on the success fee.

7. Should the client withdraw from the matter, or for any reason terminate the mandate
of the firm, the client will still be legally bound for all costs and disbursements
incurred before the matter was withdrawn or the mandate was terminated. Such
amounts will be due immediately on withdrawal and/or termination. The client also
realizes that should he/she/it withdraw from the matter or terminate the mandate a
costs order may be made against him/her/it in favour of the opponent or other
parties.

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DIFFERENT COSTS SCALES

Attorney and own client costs:

These are the costs for which the client is liable to his/her attorney, for services rendered
(which are based on an hourly rate) or disbursements incurred on his/her behalf in legal
proceedings to which the attorney had been formally mandated to act; i.e. these are the
actual fees payable by a client to an attorney in terms of their fee arrangement (the hourly
rate is not restricted to the statutory Magistrates and High Court tariffs).

These costs are not generally awarded by the Courts against a (losing) party.

Party-and-party costs:

These are costs allowed by the Court to (generally) a winning litigant against a losing litigant.
It does not include legal costs incurred before a summons or notice of motion has been
issued and served.

Party and party costs are subject to court tariffs, which are set by law and charged according
to fixed scales (note that the tariffs charged by Magistrates’ Courts differ from those charged
by High Courts).

Party and party costs only covers some of the costs he/she may have incurred to his/her
attorney for services rendered, i.e. the party-party costs does not cover the full extent of the
attorney-own-client costs incurred (it is generally estimated to be 30/40% of the attorney
own client costs incurred).

Attorney-and-client costs:

The matter of Attorney and Client costs gets a bit more complicated, these costs are on the
same tariff as party and party costs but with more items allowable like communications
between attorney and client which are not recoverable on the party and party scale.

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These costs are generally granted against a losing party as a punitive measure or where the
litigation arises from an agreement between the parties i.t.o which the parties agreed to costs
to be awarded on this scale in the event of litigation.

Litigation may take the form of either Action or Motion proceedings, the following
estimates are based on Action proceedings.

We estimate the following costs based on an attorney and own client scale of R1 800.00 per
hour (Please be reminded that the estimate costs for each process/procedure/attendance
cannot be quantified precisely and this projection is based on an hourly rate of a junior
attorney).

Please note further that the costs may be drastically less or in exceptional cases more than
estimated below, the costs should be reviewed on a case to case basis and depends largely on
the complexity of the matter – as such we would suggest you contact us for an explanation and
estimation on the envisions costs in for your matter.

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 A. Taking instructions to Summons to Service

Attorney and Own Client

• Consult and take instructions R2 550.00

(1.5 hours)

• Fact Investigation R8 500.00

• Review of documents
• Initial case analysis, strategy, consideration of relevant law
(5 hours)

• Letter (of demand) R5 100.0

• Emails/calls from and to client
• Amendments
(3 hours)

• Draft Summons R10 200.00

• Draft particulars of claim
• Telephone calls/emails to client to obtain instructions and/or
perusal and consideration of summons
(6 hours)

• Attend to copies R3 400.00

• travel to court
• issue summons
• travel to sheriff and deliver and travel back to the office
(2 hours)

• Receive and consider return of service R850.00

• pay sheriff and update client
(30 minutes)

• Unforeseen additional time spend (e.g. consultations, telephone R3 400.00

calls and correspondences)
(2 hours)

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• Disbursements (Copies, Telephone calls, Traveling, Sheriff’s +/- R1 500.00
Fees)

B. Undefended Action and default Judgment (in which case C + D does not apply)

Attorney and Own Client

• Draft default judgment application R850.00

(30 minutes)

• Attend to copies of application R1 700.00

• travel to court
• file application and travel back to the office
(1 hour)

• Appear in Court/collect default judgment R1 700.00

(1 hour)

• Unforeseen additional time spend (consultations, telephone R850.00

calls and correspondence)
(30 minutes)

• Disbursements (e.g. Copies, Telephone calls, Traveling) +/- R800.00

Total:

C. Defended Action, pleadings, discovery

Attorney and Own Client

• Receive notice of intention to defend R5 100.00

• Receive and consider Pleadings
Approximately

(3 hours)

• Consult/telephone calls/emails R3 400.00

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 (2 hours)

• Draft Replication R4 250.00

• Service, filing and traveling
(2.5 hours)

• Request Discovery R11 900.00

• Receive Discovery
• Perusal/consideration
• Drafting discovery affidavit and schedules and consideration of
documents to discover
• copies/telephone calls/emails
(7 hours)

• Settlement negotiations (taking instructions /letters) R5 100.00

(3 hours)

• Unforeseen additional time spend (e.g. consultations, telephone R10 200.00

calls and correspondence)
(6 hours)

• Disbursements (Copies, Telephone calls, Traveling) +/- R1 000.00

UNFORSEEN INTERLOCURORY MATTERS (but not limited

to the following)

SUMMARY JUDGMENT APPLICATION / EXCEPTIONS /

APPLICATIONS TO COMPEL

• Draft Application R29 750.00

• Draft Affidavit
• Attend to copies
• Travelling to serve and file application
(5 hours)
• Receive and consider opposing affidavit

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 (30 minutes)
• Draft Heads of argument
• copies of Heads of Argument
• Research, consider and peruse law
(6 hours)
• Attend at court for argument and note judgment
• Waiting time at court
(4 hours)
• Unforeseen additional time spend (consultations, telephone
calls and correspondence)
(2 hours)

• Disbursements (Copies, Telephone calls, Traveling) +/- R1 000.00

D. PRE-TRIAL TO TRIAL

Attorney and Own Client

• Apply for Pre-Trial R13 600.00

• Draft Pre-trial minutes
• Emails/Telephone calls with opponents
• Service/filing/traveling
• Attend to Pre-Trial including waiting time
(8 hours)

• Consult expert witnesses R13 600.00

• Draft expert summaries and notices
(8 hours)

• Consult client R34 000.00

• Prepare for trial
• Consider expert’s report/evidence/case law
• Draft and prepare heads of argument
• Perusal of opponents heads of argument
(20 hours)

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• Trial Evidence (calculated on 2 trial dates) R68 000.00
• argue matter (1 day)
• attend to note judgment
• Waiting time at court
• Unforeseen additional time spend (e.g. consultations, telephone R13 600.00
calls and correspondence)

• Disbursements (e.g. copies, Telephone calls, Traveling) +/- R2 000.00

E. Execution

Attorney and Own Client

WARRANT OF EXECUTION

• Draft and issue warrant of execution R6 800.00

• Arrange sale in execution and attend at auction

• Advertisement of execution property

• Correspondence re advertisement
(4 hours)

• Unforeseen additional time spend (e.g. consultations, telephone R1 700.00

calls and emails)
(1 hour)

• Disbursements (Copies, Telephone calls, Traveling, Sheriff’s R3 000.00

Fees, Advertisement costs, Courier Collection)

FINANCIAL ENQUIRY (Section 65)

• Drafting of notices/letters R3 400.00

• Emails/phone calls

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•Travel to and from Sheriff

(2 hours)

• Per attendance at Court for enquiry R3 400.00

(2 hours)

• Unforeseen additional time spend (e.g. consultations, telephone R1 700.00

calls and emails)
(1 hour)

• Disbursements (Copies, Telephone calls, Traveling, Sheriff’s R3 000.00

Fees, Advertisement costs, Courier Collection)

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We require a deposit in the amount of R_______. Interim accounts are submitted at
appropriate intervals and are due within 30 days of receipt. We will request that the
deposit be refreshed as the case progresses. The failure to pay outstanding accounts or to
provide an additional deposit as requested, may lead to no further services being rendered.
Interest is payable on outstanding accounts 30 days after submission at the rate shown at
the bottom of the account.

COST ESTIMATED IN THIS DOCUMENT WERE READ AND ACCEPTED AS A

MERE ESTIMATE WHICH IS SUBJECT TO CHANGE ON REASONABLE NOTICE
AND SIGNED AT____________________ON_____________ 2020.

BY _________________________________ (PRINT FULL NAMES)

WHO BY HIS/HER SIGNATURE BELOW ACKNOWLEDGES THAT:

1. HE/SHE MAY ASK FOR AN EXPLANATION BEFORE SIGNING.

2. THIS ESTIMATE WAS EXPLAINED TO HIM/HER ON

_____________________ AT ___________.

3. HE/SHE HAS THE RIGHT BEFORE SIGNATURE TO NEGOTIATE ON

THE CONTENT OF THE HOURLY RATE AND OTHER ASPECTS
CONTAINED HEREIN.

4. HE/SHE IS DULY AUTHORISED TO SIGN THIS COST ESTIMATE

AND THE APPLICABLE MANDATE.

__________________________

(FULL SIGNATURE IF YOU AGREE TO ALL OF THE ABOVE)

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 ACTIONS / MOTION PROCEEDINGS

(SIMPLIFIED)

CONSULTATION

ACTION MOTION PROCEEDINGS

COMBINED SUMMONS NO DEFENCE/OPPOSITION NOTICE OF MOTION

AND PARTICULARS OF AND FOUNDING
CLAIM AFFIDAVIT
DEFAULT JUDGMENT

NOTICE OF INTENTION
NOTICE TO DEFEND TO OPPOSE

INTERLOCUTARIES

DEFENDANT’S PLEA SUMMARY JUDGMENT RESPONDENT’S

AND COUNTERLCAIM APPLICATION ANSWERING AFFIDAVIT

PLAINTIFF’S EXCEPTIONS/ IRREGULAR APPLICANT’S REPLYING

REPLICATION /PLEA TO STEP/APPLICATIONS TO AFFIDAVIT
COUNTER STRIKE

DISCOVERY APPLICATIONS TO COMPEL

PRE-TRIAL JUDGMENT
PROCEEDINGS

TRIAL SET DOWN FOR ARGUMENT

EXECUTION

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