Revolutionising non-payment of advocate billing with a collaboration between Auxcon and the GCB

The landscape of advocate billing has undergone significant evolution, marked by trial-and-error processes and the resolution of complex challenges. To grasp the current state, it’s imperative to delve into the intricacies of the past and the transformative collaboration between Auxcon and the General Council of the Bar (GCB).

Auxcon, a trusted advocate billing software and service provider, has joined forces with the General Council of the Bar (GCB) to address these challenges head-on, bringing a new era of transparency and accountability to the legal billing landscape. Read on as we explore this collaboration further in this article.

The evolution of non-payment issues

The evolution of advocate fee non-payment is a nuanced journey that has undergone significant changes. Pre-2001, the legal landscape grappled with the sensitive issue of “blacklisting,” where advocates were barred from accepting work from defaulting attorneys. This rule, encapsulated in Rule 7.7.5 of the General Council of the Bar (GCB), faced deletion in 2001 following Roos J’s judgement in the case of The General Council of the Bar of South Africa v The Commissioner of the Competition Commission.

On April 26, 2001, Roos J, in his judgment regarding the Defaulters’ list, concurred with specific submissions highlighting that this rule was impeding access to specialist services for clients whose Attorneys had previously defaulted, even if it was in connection with another client. This scrutiny led to a rejection of an exemption attempt by the Bar Society, intensifying tensions between the GCB and the Law Society of South Africa. Ultimately, Rule 7.7.5 was deleted during the 2001 AGM resolution, marking a pivotal moment in the ongoing development of handling advocate fee non-payment.

The Legal Practice Act and the Code of Conduct

The enactment of the Legal Practice Act (28 of 2014) by Meyer J in the case of Solomon v Junkeepersad marked a significant milestone in legal regulation. Section 36 of the Act mandated the creation of a comprehensive Code of Conduct, applicable to all Legal Practitioners, Candidate Legal Practitioners, and Juristic Entities. This Code, published on 29 March 2019, carries a crucial provision in paragraph 18.18, emphasising the timely payment of fees for advocates.

Meyer J’s confirmation of this Code further clarified the stance of the Legal Practice Act. The Act, along with the Code of Conduct, does not seek to restrict; instead, it aims to establish accountability measures. Paragraph 18.18 explicitly holds attorneys accountable for timeous payments, framing non-compliance as misconduct.

Before the implementation of the Legal Practice Act (LPA) and the Code of Conduct, there existed ambiguity concerning the liability of an attorney to pay advocate fees, particularly when the attorney had not received payment from the client. The Code of Conduct and the Junkeepersad case transformed the prior professional practice of trade usage, wherein the attorney’s liability for the fees charged by the advocate was somewhat uncertain, into a more stringent rule of law.

While the legal framework provides the necessary rules and measures, the key challenge lies in effective enforcement to ensure widespread compliance within the legal community. This challenge prompted the General Council of the Bar (GCB) to collaborate with Auxcon, utilising its advocate billing software and services to enhance transparency and accountability, effectively addressing non-payment challenges.

Auxcon’s collaboration with the GCB

The once-effective ‘blacklisting’ system, which denied non-paying attorneys access to other advocates, underwent a transformation into an ineffective approach. Instead of preventing defaulting attorneys from engaging with advocates, the revised system involved reporting these attorneys to all advocates. A mere letter was then dispatched to inform attorneys of their inclusion on the Defaulters’ list, a notification that frequently went unheeded. This shift marked a departure from a robust mechanism to a less impactful one, allowing defaulting attorneys to evade consequences more easily.

The collaboration with Auxcon brought about a paradigm shift. Non-payment reports to constituent bars now trigger a letter of demand, and persistent non-payment cases are escalated to the GCB. Simultaneously, a complaint is lodged through the Auxcon system to the Legal Practice Council (LPC).

Enter Auxcon, a recognised advocate billing software trusted by the legal community to streamline billing processes with precision. In a move to combat non-payment challenges, the GCB engaged Auxcon’s services, leveraging their existing database of payment trends. Rule 7.7.3 of the GCB rules a member must report non-payment of fees to the Bar Council, which can, according to Rule 7.7.9, publish attorney details on a list of defaulters. This list is now managed electronically through the Auxcon system, providing a live, automatically updated registry restricted to members of constituent bars and the GCB. The implementation of this electronic system commenced on July 29, 2023.

Navigating the Auxcon system

Auxcon’s software, widely adopted in the legal industry, is the linchpin in this collaboration. It captures crucial industry and payment trends, allowing the GCB to entrust Auxcon with their Defaulters’ list. Through our software, advocates receive comprehensive industry reports on law firms, including average days to pay, offering valuable insights and warnings. Advocates are now empowered to report non-payment issues seamlessly through the Auxcon system. Demands, where necessary, can also be submitted through the platform.

A new dawn for legal accountability

This collaborative venture signifies a new era in legal billing accountability. By harnessing the power of Auxcon’s advocate billing software, the GCB envisions improved transparency, accountability, and the effective resolution of non-payment issues. Firms are now more accountable, and consequences for non-payment are addressed promptly, fostering a stronger and more trustworthy legal community.

As the legal landscape embraces transparency and accountability, seize the opportunity to stay ahead with Auxcon. Empower your practice with our cutting-edge advocate billing software. Join us in revolutionising the way legal billing is managed. Stay informed, stay empowered—register with Auxcon today.