Duties to his or her law society

The Legal Practice Council has received several complaints about the non-payment of Road Accident Fund awards and dishonoured cheques by Pam, an attorney practising for her own account in Grahamstown. In addition, there are several allegations by estate agents that Pam has spent monies in her trust account for her day-to-day business expenses. After correspondence between Pam and the Council, the Council decides to sends an auditor to Grahamstown to inspect Pam's books in line with the relevant Council's provisions. Pam objects to this, stating that the actions by the Council (viz. inspecting her financial records) amounts to administrative action as contemplated in section 1(1) of the Promotion of Administrative Justice Act 3 of

2000 ("PAJA"). As such, she submits that the Council has to comply with the requirements of PAJA, in particular, that she be afforded a hearing before the Council inspects her books.

Discuss whether the Council must afford Pam a hearing before inspecting her books. In the course of your answer, discuss the general duty of an attorney in handling trust money

Nb please include or refer to the following case law and legislation when answering

1. Lambert v Incorporated Law Society 1910 TPD 77 at 79
2. Hurter v Hough 1987 (1) SA 308 (C)
3. Law Society of the Cape of Good Hope v Budricks 2003 (2) SA 11 (SCA)
4. Law Society, Northern Province (Incorporated as the Law society of the Transvaal v Maseka and another 2005 (6) SA 372 (BH) at 378 ff