Case Explained: Legal Practice Council recommends suspension for lawyer linked to class action against the major banks – Legal Perspective

The Gauteng arm of the Legal Practice Council’s (LPC) is of the opinion that lawyer Douglas Shaw not only brought the legal profession into disrepute but committed a criminal offence when he appeared in the High Court without a Fidelity Fund Certificate.

The Investigating Committee of the LPC, after investigating the matter, recommended that an urgent application be brought to suspend Shaw from the roll of legal practitioners. In a report filed with the Gauteng High Court, Johannesburg, Gauteng director of the LPC, Ignatius Briel, said the fact that Shaw has tried to rectify “his transgressions” after the fact does not assist him as the “offending conduct” is a matter of public record.

The report by the LPC followed an order delivered by Judge Leonie Windell in February, which was due to be the start of a week-long session to hear arguments as to whether hundreds of applicants could certify a class action against the major banks.

At the start of the proceedings, one of the banks dropped the proverbial bomb that a whistleblower revealed that Shaw does not have a Fidelity Fund Certificate. This hearing was set down after nearly six years of preparation for the case, in which the applicants claim that they had previously lost their homes at the hands of the banks in cases where this drastic step was not necessary.

Others complained that they were severely shortchanged as their homes were sold for far below their market price to recover outstanding debt.

The banks are contesting the application and in lengthy court papers stated that they do everything possible to protect default homeowners.

Judge Windell in February made it clear that Shaw cannot represent the applicants without the compulsory certificate. He explained in turn that he has applied for the certificate but has been battling for months to obtain it.

The LPC has set out in its report that Shaw, who was admitted as an advocate in 2010, was given permission in 2024 to convert to an attorney. He held a Fidelity Fund Certificate, according to the LPC, until the end of 2025.

Shaw told the court in February that his certificate was extended for a month, thus until the end of January. The LPC disputed this and said in terms of the law, it cannot be extended as a new one has to be issued each year.

It acknowledged that Shaw had submitted an audit report for his practice, as required, but said this was only received on February 24 and approved on March 11. Another audit report was submitted on March 6 and has not yet been approved. It said his 2026 certificate could not be issued as there are outstanding issues, including with one of his audit reports and that he failed to submit an opening audit report.

While Shaw said he is trying his best to supply the LPC with all the necessary documents, the legal watchdog organisation said this is no excuse for appearing in court in February without the certificate.

Shaw in turn said he did not mislead anyone and that he did not address the court in February as a lawyer regarding the certification application. He said he merely pointed out the situation to the court and the arguments he did deliver pertained to personal costs orders the banks wanted him to face.

While Shaw and some of the other parties obtained the services of senior counsel to represent them further in the matter, Shaw is confident that his woes with the LPC will soon be sorted out. In his opinion, the LPC report is moot, as there is an understanding between him and the organisation that he will supply the outstanding documents.

He pointed out that he had a certificate each year and questioned why it’s a battle to obtain one this year. He, meanwhile, gave the assurance to all the applicants in the certification application that the new “top” legal team will prepare and be ready for the class action which is now due to be heard in November.

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