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Retirees sue Nelly Mutti , accuse her of deducting legal fees from their packages without their consent

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High Court

MORE than 2,850 retirees have sued Lusaka lawyer Nelly Mutti accusing her of deducting more than 51.5 million in legal fees without their consent.

According to documents filed in the Lusaka High Court, the former civil servants, who were represented by Ms Mutti of Lukona Chambers, say in their statement of claim that the legal practitioner deducted K51,571,097.73 without their consent.

The retirees, who were under the Voluntary Separation Association of Zambia (VSAZ), have since sued Ms Mutti as the first defendant and Attorney General Mumba Malila as the second defendant demanding a refund.

According to the claim, the deductions by Ms Mutti were in three categories, namely, 10 per cent legal fees, 10 per cent handling fees and 16 per cent value-added tax (VAT).

The deductions were made from the K468,161,166.23 that was released by the Government for the retirees through Lukona Chambers after they had a 2002 judgment that went in their favour.

This is in a matter in which Siachoke Simeza and 2,858 others have sued Ms Mutti from the Lukona Chambers claiming for a refund.

Ms Mutti had successfully represented the workers as they fought for their terminal benefits from the Government in 2002 before winning the case.

However, the retirees stated that upon winning the case, Ms Mutti allegedly started making deductions of 12.5 per cent when the Government started paying the money through her legal firm.

“The defendant never signed any agreement with the plaintiffs for the deductions of 10 per cent legal fees, 10 per cent disbursement fee of the 10 per cent legal and 16 per cent VAT whether with the voluntary separation association of Zambia or individually,” stated the claim.

They said although the retirees had been awarded costs in the previous case in which Ms Mutti represented the retirees, the legal practitioner had neglected to agree with the second defendant about the costs.

The retirees further claimed that the second defendant should pay any money that might be due to the retirees after tax and release any money for the retirees that might have been held after the 2002 judgment which went in their favour.

The claim by the retirees comes barely a few days after Ms Mutti sued the Government demanding 12.6 per cent, in legal fees, of K54,000,000 payment the Government made to her former clients.

This is a matter in which Ms Mutti sued the State through the Attorney General and Ministry of Justice Permanent Secretary Josephs Akafumba as first and second defendants in a case in which she offered legal services to 3,523 retrenched workers.

According to the statement of claim filed in the principal registry on February 24, Mutti said she acted as advocate on behalf of the workers whose employment was terminated by the Government under the public sector reform programme.

On December 15, 2006, the High Court entered judgment in favour of all the retrenched workers and a consent judgment was signed under which the Government was to pay the affected workers.

16 COMMENTS

  1. Some lawyers are ready to sell their souls to the devil for few pieces of silver.How else can one explain this insatiable appetite for money by these ”learned” people.No wonder ZIALE makes most lawyers who attempt their exams fail because they are afraid of unleashing many criminals in the name of being ”learned” on society.If the allegation in this story is true,then some lawyers are making easy money.

    • Lol! You don’t engage a lawyer and expect not to be charged. Always look at the same print. Besides I have never met anyone who hates money!

  2. Conclave you’re right but look at the amount of money involved.Don’t you think it is too much, bearing in mind that she was representing retrenches?

  3. “According to the claim, the deductions by Ms Mutti were in three categories, namely, 10 per cent legal fees, 10 per cent handling fees and 16 per cent value-added tax (VAT)…”

    Maybe I just don’t understand legal jargon; what does “value-added tax (VAT)” got anything to do with legal/lawyer representation? And 16 percent of it! Also 10 percent handling fee? When did lawyers start charging fees only appropriate for Banks to charge? Maybe processing fee would make sense, and that is if the client is paying with a Credit Card. And mostly it is courts who charge these kinds of fees—and 10% is way too high!

    No wonder access to lawyers is beyond the reach of most Zambians. I know legal representation is not cheap anywhere in the world, but man; this is just so dispiriting!

    • She collects the VAT on behalf of boma due to the nature of her work. Read on VAT its not hers but for ZRA.

  4. The courts should throw out the this case because it is an abuse of court process.
    Attorney General please pay Nelly her fees before BA64 is enforced.
    Some of those retirees are just jokers. Where is the money they got from Malipenga and Co. They have ordered Noah’s from Japan and are already broke.

  5. Lawyers are jsut like that. They wont tell you the full charges at once. They can even get everything that they have helped you get. For instance you can hire a lawyer to settle say a house claim. Once you win and get it they will give you charges equivalent to the house price and if you fail they get the house. Real thieves. I hope they will survive in heven, maybe a few. Anyway i cant judge them, but otherwise most of them are real thieves.

  6. So Zambia must be the CHEAPEST in terms of legal fees. In the UK, there are cases where the Lawyers can charge 50% in No Win No Fee cases! Charging of VAT is statutory so where the Lawyer go wrong?
    The uneducated retiree bast.tards are being cheated by Siachoke, Akafumba and Malipenga and the courts MUST throw this STUPID case with COSTS to retirees to teach them a lesson!

  7. The best lawyer for the poor Zambian worker was the late Mr Mundia Sikatana of Veritas Chamber .Mr Sikatana had helped many retirees from form former Zambia Airways, Lenco and Maamba mines get their dues and charged a very nominal fees. Many of his client including myself miss this good and honest lawyer. Mr Sikatana we miss you shikulu please rest in peace.

  8. When a lawyer wins a case on behalf of a client, it is the defendant, in this case the government, that is supposed to pay the costs, and not the client, in this case the Voluntary Separated Association of Zambia members. In any case since when did ZRA start charging VAT on salaries? One pays VAT in Shoprite, not on salaries. As if that is not enough, the judgement, correct me if I am wrong, stated that the plaintiffs will continue receiving salaries and enjoy all increments until government pays them in full. However, a consent order obtained with the Ministry of Justice, was against this instruction by the court. Which plaintiff, would object to such a judgement allowing salaries until government pays in full?

  9. Another Lawyer who was fair on legal charges was the late Mr. Mabutwa. The man would represent you and ask how much you could afford to pay him. Those of us who needed a lawyer over government house sale when Mr. Sweta was grabbing houses in Kamwala Madras area. We rushed to so many of them including Mr. Mumba Kampumba who abandoned us, saying we had no money to hire him. But when we won the case the white head reappeared, saying he could mediate for us. we refused and boo at him. Mr. Mabutwa got his legal fees from the Government as we were awarded a win with costs. its true some lawyers are selfish.

  10. How many of these reitirees WIVES have committed adultery without their husbands CONSENT due to the poor husbands!! so first sue your WIVES before the officer

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