The Gauteng High Court (Johannesburg) has granted a lifeline to homeowners pursuing a class action lawsuit against banks, despite recent legal setbacks involving their lawyer, reports The Star.

The High Court’s order allows the class action, brought by those who claim the banks caused them to lose their homes, to proceed.

The court agreed to postpone the long-awaited R60bn class action between scores of mostly elderly people and banks such as Absa, Nedbank, Standard Bank, and First Rand.

This move by Judge Leonie Windell yesterday followed despite objections by the banks, who, through their legal counsel, said that while they have sympathy for the people who counted on this application to have a class action certified, enough was enough.

The parties blamed the applicants’ counsel, Douglas Shaw, for the predicament. Shaw had been assisting them for about seven years to at last reach the court but on the first day of proceedings it emerged he did not have a Fidelity Fund Certificate.

In February, Judge Windell ruled without the certificate, Shaw must withdraw as counsel.

It emerged while he has not issued a formal withdrawal notice, Lungelo Lethu Human Rights Foundation, which initiated the application said she told them in February Shaw can no longer appear in this case.

At the time, the court was told new counsel was ready to take over, but this did not happen.

Nkululeko Xhelithole, president of Lungelo Lethu, yesterday told the court it appears Shaw will not get his certificate soon.

In light of this, they terminated his services and got someone new to assist them. He urged the court to postpone the certification of the class action hearing.

Windell said everyone’s interests must be weighed up in allowing the postponement.

Full report in The Star