Welcome to the first issue of Gillan & Veldhuizen’s Commercial Law Report.  We hope you enjoy this new way of keeping up-to-date with our latest news and changes to the legal landscape in South Africa.

In this issue we talk about Dispute Resolution Mechanisms, in particular, mediation.  The Rules Board for Courts of Law issued a draft rule proposing a new Rule that will compel South Africans to declare that they have considered mediation as a solution to any forthcoming legal matter and, if not, the court itself is obligated to manage cases effectively and recommend mediation as a dispute resolution if it deems it appropriate.  This new Rule has now been passed and will come into effect this month.

We also take a look at the advantages of fixed fee mediation vs uncertain litigation costs, and the duties and liability of company directors – it is worth noting that subject to The Memorandum of Incorporation of a company, a company may indemnify and/or alternatively pay for professional liability insurance for its directors.

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Yours in law.
PJ Veldhuizen