Govt’s cigarette wars: Estimated fees for advocates will be R7.5 million
The ongoing court battles over the lockdown tobacco ban could cost taxpayers R7.5 million in legal fees, should Fair Trade Independent Tobacco Association (Fita) succeed in their appeal bid.
The High Court in Pretoria is expected to give judgment this week on whether Fita will be granted leave to appeal the ruling which stood by government’s tobacco ban. Fita’s court bid to have the tobacco ban lifted was dismissed with costs for three counsel last month. The association wants to appeal that ruling to the Supreme Court of Appeals.
The estimated legal bill could be R7.5 million. Cost consultant at VZLR attorneys Annelize Dixon said three counsel usually comprise a senior advocate and two junior advocates. Senior counsel on average charge R6,500 per hour or a day fee of R65, 000.
“Counsel charges per hour and then a day fee which is equal to 10 hours. More senior or specialist counsel are more expensive and would charge anything between R6,500 to R8,500 per hour. Junior counsel would charge two-thirds of the senior counsel’s fees,” she said.
Dixon estimated it could take up to 100 hours for counsel to peruse documents, research, draft and settle papers, which could total about R1.5 million for the three counsel. When Cooperative Governance and Traditional Affairs Minister Nkosazana Dlamini-Zuma filed her answering affidavit at the beginning of June, these costs escalated with counsel charging fees for drawing up of affidavits, perusal of the application and documents in support of the minister’s position.
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This could have added at least 100 hours to the advocate’s fees, Dixon said. As the matter was heard over two days, on 9 and 10 June, taking into account the estimated R65,000 daily rate of the senior advocate and two-thirds of that fee for the two junior advocates, the state’s lawyers could bill government R304,200.
The cost of the perusal of the 3,647 pages of submissions by Dlamini-Zuma of government’s records which influenced their decision to ban tobacco increased costs tremendously. Counsel usually read about 20 pages per hour, which in this case was 184 hours of reading.
Reading the submissions could cost taxpayers R2.8 million, should Fita succeed. And even if they do not, the minister is still liable to pay the costs of the advocates. Senior advocate Marumo Moerane is representing Dlamini-Zuma and President Cyril Ramaphosa, who are the first and second respondents in the case.
Moerane is from KwaZulu-Natal and costs for flights and travel to and from Pretoria were likely to be added to his account, Dixon said.
“If Fita wins at the end of the day, they are not going to pay any of the costs. But the minister will be liable to pay about R5 million considering the time spent in preparation of documents for court and court attendances.”
If Fita wins the application for leave to appeal and then the appeal, about R2.5 million would be added to the legal fees payable by the minister. Advocate Moerane said he could not disclose how much he would bill, in accordance with the rules of professional conduct and etiquette of the Society of Advocates of KwaZulu-Natal.
Dlamini-Zuma is also embroiled in a court case with British American Tobacco SA, which was delayed to 5 August. According to UCT’s Research Unit of Economics of Excisable Products, illicit cigarette traders hiked prices 457% during lockdown and more smokers were now five times more likely to share a cigarette.
– rorisangk@citizen.co.za
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