Learning Unit 8 Correspondents

Categories of instruction

1. Were NO trust monies are involved e.g.: Patents, settlement in divorce cases
2. Were Trust monies are involved, collection of debt

Types of costs incurred by the client from the legal practice

1. Soft collections, e.g.: emails, calls, messages

2. Hard Collections e.g.: Letter of demand, summons
3. General Cost e.g.: sheriff cost, tracing cost, collection fee

There are 2 types of attorneys when correspondence is being raised.

The attorney who gives the instruction is known as the instructing attorney and the attorney
who receives the instruction and renders the service, is known as the instructed attorney.

Difference in correspondence from an instructing attorney and an instructed attorney

E.g.: below Lange Attorney is instructing SA Attorneys

Explanation of Fees from the instructed attorney

Notes:

1. Funds collected by SA Attorney is the R7500 as Credit, they did receive the funds
2. Fees charged for 2, 3, 6 were incurred as part of the collection, fees are debited
3. Expenses were in inured 4, 5 as we had to get another service provider to assist.
4. Collection commission is calculated on the amount collected here being R7500 only 10% is
allowed limited to R1000.
5. You 1/3 share of the fees, calculation shown above.
6. Amounts received less all cost will be the amount transferred to the instructing attorney.