Billions of rand at stake if lawyers lose out, but the fund says it is only trying to reduce the ballooning costs associated with personal injury claims
A group of more than 40 law firms has taken the Road Accident Fund to court, claiming that it is on the verge of cancelling their billion-rand contracts.
In papers filed 10 days ago at the high court, the first applicant, Pritzman Mabunda, stated that the RAF’s decision to cancel a tender process for the appointment of a new panel of lawyers was irrational and could cause substantial harm to the administration of justice and the public purse. that the entity is in a dire financial situation, and this has necessitated a review of its operating model, which has resulted in the conclusion that there is no need to have the panel of attorneys.
“Consequently, the RAF no longer requires the services which were specified in the [tender] invitation. The RAF’s model, including its litigation strategy, needs a review if not an overhaul,” said Letsoalo. Meanwhile, in the court papers, Mabunda claims that just before the law firms’ five-year contracts expired in November last year, they were approached by the fund to extend them until May.
But Mabunda said this request for a handover was unlawful and irrational, and so was the cancellation of the tender which was due to be “announced at any moment”. But the RAF is disputing this. Although the fund has not filed its responding papers as yet, Letsoalo told thethat in the past six months it had reviewed its operational model, and based on research and data, the fund concluded that it was not in the interests of the RAF or the claimant to pursue this litigation strategy. Letsoalo added that, although there are 6 714 matters on the trial roll from June 1 2020 to December 2021, the RAF will block settling the matters.
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