New development in R60 billion lawsuit against banks

The highly anticipated R60 billion class action lawsuit against the major banks in South Africa took an unexpected turn when it was revealed that the lawyer representing the dispossessed homeowners did not have a valid license to practice law. This revelation came just as the proceedings were about to commence, causing a stir in the courtroom.

The lawyer in question, Douglas Shaw, was found to be lacking a Fidelity Fund Certificate for the current year, a mandatory license for legal practitioners in the country. This certificate confirms that they are authorized to handle client funds and operate a trust account, issued by the Legal Practice Council (LPC) to protect the public against any misappropriation of funds. Without this essential certificate, Shaw was unable to represent the applicants in court, leading to a delay in the proceedings.

Upon being informed of this issue, Shaw was given until the following morning to produce the necessary certificate. If he failed to do so, it would significantly impede the progress of the certification application, as he would not be able to argue the case on behalf of his clients. This meant that the proceedings would have to proceed without his representation, causing further complications in the legal process.

In addition to the absence of the Fidelity Fund Certificate, Shaw also faced accusations of contempt of court for referencing affidavits and other documents in his application, despite being instructed by the court to remove these references. This misstep led to further scrutiny of Shaw’s conduct and adherence to legal guidelines, casting a shadow over his ability to represent his clients effectively.

Shaw responded to these allegations by acknowledging his mistake and providing an explanation to the judge regarding the oversight. He assured the court that the offending documents would be removed before the next day’s proceedings, demonstrating his commitment to rectifying the situation promptly. However, the judge reserved her ruling on whether Shaw was in willful contempt of court, highlighting the seriousness of the matter at hand.

Despite these setbacks, the applicants in the class action lawsuit remained hopeful that the main application would proceed as planned. This lawsuit, which had been in the works for six years, aimed to hold the major banks accountable for selling properties at prices below their market value, leading to substantial losses for the homeowners. With Shaw’s representation potentially in jeopardy, the fate of the certification action hung in the balance as the legal proceedings unfolded.