The Impact of Litigation Funding: Vodacom’s Ongoing Battle in the Please Call Me Case
Supreme Court of Appeal Gives Vodacom 30 Days to Compensate Please Call Me Inventor
In a long-standing legal battle, the Supreme Court of Appeal (SCA) has given Vodacom a deadline of 30 days to come up with a reasonable compensation package for Please Call Me inventor Kenneth Nkosana Makate. This decision comes after 15 years of legal disputes and mounting legal bills for both parties involved.
Makate’s journey in this case has been supported by the Sterling Rand Litigation Fund, which has reportedly provided millions of rands to back his legal campaign. The fund stands to receive a significant payout once the case reaches its conclusion, pending a potential appeal by Vodacom to the Constitutional Court.
Litigation funding, although a relatively niche area in South African law, has been gaining traction globally, with estimates suggesting it is a $17 billion industry annually. This form of funding allows individuals with limited resources to take on large corporations and pursue legal action.
Third-party funders typically take a percentage of the winnings, ranging from 25% to 50%, and set limits on the amount they are willing to invest in a case. This model enables litigants to pursue justice without the financial burden of legal fees.
The Please Call Me case dates back to 2000 when Makate, then an employee at Vodacom, came up with the idea to allow users to send free text messages requesting a call back. The dispute arose over the compensation Makate believed he was entitled to for his idea, leading to years of legal battles.
With the SCA ruling in Makate’s favor, Vodacom now faces the prospect of a substantial payout, with the initial compensation demands differing significantly between the two parties. The court ruled that Makate is entitled to a percentage of the revenue generated by Please Call Me over the years, plus interest.
As the case continues to unfold, the outcome could have far-reaching implications for future litigation funding in South Africa. Should Makate receive the compensation he believes he is owed, it may pave the way for others to seek justice through similar means.
Overall, the Please Call Me case highlights the role of litigation funding in leveling the playing field between individuals and powerful corporations, setting a precedent for future legal battles in the country.