We have had numerous complaints from the medical fraternity, and personal experience, about the Commissioner's systems, or lack thereof, and, with your assistance, aim to recover your fees and encourage an increase in efficiency and productivity for the future benefit of the profession and the community at large.
Mooney Ford proposes by way of legal action, to collect outstanding amounts owed to the Workmen's Compensation Commissioner on your behalf in a focused, structured, co-ordinated and consistent manner.
The opinion of Senior Counsel, who is an expert in administration law and Government structures, has been obtained in respect of the proposed method.
It is proposed, on instruction, to address a letter of demand to the Minister of Labour who is the person ultimately responsible for the functioning of the office of the Workmen's Compensation Commissioner.
The letter of demand will demand payment in full of all outstanding invoices within thirty days from date of demand.
In the event of payment not being forthcoming, an Application will be instituted on your behalf in the appropriate court.
It is envisaged that, if we are able to represent sufficient practitioners, the Minister will ultimately be held accountable for the inadequacy of the current administrative system in place at the office of the Workmen's Compensation Commissioner, which may ultimately lead to the system being amended or streamlined for your future benefit.
A recent practical example of this is the Minister of Health and Social Welfare in KZN personally being called to account, in Court, for his department's failure to deal adequately with the backlog of pension payments and social grants. This was achieved by thousands of applications being issued by numerous attorneys. He was given a deadline to submit reasons as to why he should not be personally held liable for the costs of the various actions, as well as assure the Court that steps were being taken to rectify the obvious deficiencies in his department, and was obliged to go on affidavit in this regard. The Minister suffered considerable embarrassment and, as a result, every effort has been made to sort out the backlog. We are confident that this can be achieved in our instance too.
Upon signing of the mandate, you will be presented with a standard form spreadsheet which your secretaries or bookkeepers need to complete in respect of all outstanding amounts due to you.
In the event of the claim not being paid on demand, and Mooney Ford launching an application on your behalf, you will be required to sign a confirmatory affidavit setting out, in brief detail, the basis of your claim and annexing the appropriate unpaid invoices and spreadsheet.
In the event of the Commissioner making part payment before the application is finalised, you may be required to sign a supplementary affidavit confirming the amended schedule of amounts outstanding.
What will it cost?
Mooney Ford proposes to charge SAMA members a flat rate of 7% (plus VAT) for all amounts recovered after the letter of demand has been sent but before the application is launched, and 8.75% (Plus VAT) after action has been instituted by means of the application. VAT is reclaimable in your hands and has therefore been excluded in all the examples illustrated hereunder.
(Different rates apply to non SAMA members*)
Fees are only charged by Mooney Ford on accounts handed over by you to them, and only when payment of these invoices has made by the Commissioner.
All fees and disbursements associated with the letter of demand and application will be for Mooney Ford's account, and you will be exposed to no more than the agreed contingency.
For Example -. Dr. Bloggs has an amount of R100 000 outstanding.
Mooney Ford are able to recover R90 000. (Lets say R10 000 is not allowed because these claims are not valid, e.g. not a WCC Accident).
Mooney Ford recovers R10 000 by way of letter of demand and a further R80 000 after the application has been launched.
Mooney Ford will charge Dr. Bloggs a fee of R700 (7% on recovered amount), and a further R7 000 (8.75% on recovered amount). The fees of the sheriff, Advocates and any experts used to prove the claim will be for Mooney Ford's account.
At present, interest does not run on your outstanding invoices.
You will be able to recoup interest, from demand, from the Commissioner and your exposure in respect of fees should therefore be well below the 8.75% contingency if Counsel is correct.
For example, Dr Bloggs is owed R100 000. Mooney Ford recoups the full amount 6months, R10 000 after letter of demand, and the balance (R90 000 after the application has been instituted).
Mooney Ford's charge would be 7 % of R10 000 - R700.00, and 8.75% of R90 000 - R7 875, i.e. a total fee of R8 575.
However, the legal rate of interest is currently 15.5% per annum. Over 6 months, this equates to R7 750, resulting in a total cost to Dr Bloggs of not of R8 575 but rather R825 If the matter would run longer, it is conceivable that there may be no actual cost and Dr Bloggs may recover some interest.
What is the risk to you?
Mooney Ford will only charge on amounts that are recovered. No charge will be rendered by Mooney Ford on any amounts not recovered even if the action is wholly unsuccessful, although, based on previous judgments obtained, we do not believe that this is a likely scenario.
Can the State sue you for costs? No - as long as you recover some of your debt they cannot. Taking an extreme example - Dr. Bloggs sues for R100 00. He is able to recover only R10 000 after the application has been instituted (The rest of the claims are proved not to be WCC claims). Mooney Ford would charge a fee of R875, and the State would have no claim against you for their costs.
The Commissioner would only be able to recover his costs if Dr. Bloggs's action is completely unsuccessful. This is not a likely scenario as previous parties have sued and obtained judgements. The issue is not a complicated one like with the Pharmacists and their lengthy legal battle dealing with issues such as public policy. In your case it is a simple case of medical services being performed by yourself and as long as these satisfy the criteria of the Commissioner and the work has legitimately been done, your prospects of success are excellent.
Can the Commissioner discriminate against you in the future? No - The Commissioner could never determine what doctors the injured persons must see. They are not in a position to control the flow of work.
Can the Commissioner discriminate against you for payment of future work?
Experience has shown that where the Commissioner was sued further claims were attended to on a preferential basis.
The benefit to you?
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You retain ownership of your debt. |
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There are no upfront or hidden costs. |
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You are not tied into a contract in terms of which all future services rendered by you are subject to a contingency. |
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You will no longer have to tolerate the Commissioners inefficiencies. |
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You remain in control of the process. |
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You do not have to appear in Court. |
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You will receive regular electronic reports advising you of progress. |
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Given Senior Counsel's opinion on interest, the cost to you may be substantially less than the 7% and 8.75% contingencies. |
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Your accounts will be attended to by a team of professionals who have the appropriate Fidelity Fund Insurance cover. |
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Your staff will be freed from the burden of constantly telephoning the Workmen's Compensation Commissioner to follow up on unpaid invoices. |
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The Minister of Labour may be held accountable for the inadequate systems currently in place in the office of the Workmen's Compensation Commissioner. |
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The systems may ultimately be streamlined or reformed resulting in future invoices being promptly attended to. |
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Workmen's Compensation work will once again be worthwhile and lucrative. Instead of, as happens in many instances, you writing off the debt as pro bono work, you can chose if, when and where you perform these acts of kindness. |
The team
Mooney Ford Attorneys and Kevin Duke Attorneys have combined their expertise and experience specifically for the collection of outstanding fees due by the Workmen's Compensation Commissioner.
Mooney Ford is one of Durban's oldest law firms, having been established in 1902.
Mooney Ford currently consists of eight partners, has a total professional staff compliment of fifteen attorneys and has access to a staff compliment of 90.
Mooney Ford has access to a state of the art information technology infrastructure, and through a subsidiary company, has established a national network.
Mooney Ford has, in its stable of clients, most of South Africa's financial institutions and many large corporate companies.
Mooney Ford also has experience in the medical profession, having acted for a large medical group as well as doctors and hospitals in various medical negligence claims.
Mooney Ford is BEE compliant.
Kevin Duke is an admitted attorney of 12 years experience, has had a long relationship with Mooney Ford, and is an expert with regard to personal injury matters and has considerable experience dealing with parastatals and, more specifically the Commissioner
Why Mooney Ford?
Mooney Ford has already invested time and expertise in developing the correct structure for a nationwide campaign.
Mooney Ford already has a successful track record of suing and recouping money from the Commissioner. ( Currently in excess of an average of 76% of unpaid invoices recovered within 8 weeks of the application being launched)
Mooney Ford is focused on changing the system through collective action, as well as collection your outstanding money.
Mooney Ford will be able to achieve maximum effect if doctors align themselves under a concerted and consolidated effort that seeks economic as well as administrative change.
Mooney Ford is able to service doctors in a number of South Africa's official languages, including English. Afrikaans, Zulu, Xhosa and Sotho.
We are willing to travel anywhere in the country to give presentations on request.
Conclusion
Individually, doctors can reclaim money due to them without having to undergo the time, expense and risk of pursuing every claim themselves
Collectively, through sheer weight of pressure from the Courts, the Commissioner may be forced to drastically overhaul and improve the infrastructure under his care and control, with the result that your profession and the greater community benefits as a whole.
