Case Law[2025] ZAGPPHC 52South Africa
Road Accident Fund v E.M obo M.G.M (63528/2017) [2025] ZAGPPHC 52 (21 January 2025)
High Court of South Africa (Gauteng Division, Pretoria)
21 January 2025
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Road Accident Fund v E.M obo M.G.M (63528/2017) [2025] ZAGPPHC 52 (21 January 2025)
Road Accident Fund v E.M obo M.G.M (63528/2017) [2025] ZAGPPHC 52 (21 January 2025)
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sino date 21 January 2025
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: 63528/2017
1.REPORTABLE:
NO
2.OF
INTEREST TO OTHER JUDGES: NO
3.REVISED:
NO
21
January 2025
Judge Dippenaar
In
the matter between:
ROAD
ACCIDENT FUND
APPLICANT
AND
E
M[...] OBO MG M[...]
RESPONDENT
JUDGMENT
Delivered:
This judgment was handed down electronically by circulation to
the parties’ legal representatives by e-mail and by uploading
it on the electronic platform. The date and time for hand-down is
deemed to be 10h00 on the 21st of JANUARY 2025.
DIPPENAAR
J
:
[1]
The applicant, the RAF, sought the
rescission of a default judgement granted by Bokako AJ on 31 May
2023. The judgment pertained
to the claim of a minor child,
represented by his guardian, arising from injuries sustained in a
collision on 7 August 2016. The
liability claim had previously been
settled at 100% in favour of the respondent during June 2017 and the
hearing proceeded on the
issues relating to the quantification of the
claim. The minor, Mr MG M[...] turned 18 on 1 October 2023 and
no longer requires
the assistance of his guardian in the litigation.
[2]
One of the significant orders granted on 31
May 2023 was an award of R5 812 555 in respect of loss of
income. Numerous
other ancillary orders were granted as well as
costs. The claim for general damages was postponed
sine
die
and was to be referred to the HPCSA
tribunal for consideration.
[3]
The applicant sought condonation for the
late delivery of its rescission application and sought rescission
under r 42(1)(a) alternatively
the common law. Costs were sought in
the event of opposition.
[4]
The application was opposed on the basis
that the applicant had not sufficiently explained the period of the
delay, given that the
application was only launched some four months
after the applicant became aware of the judgment. It was submitted
that the founding
papers in broad terms only referred to “internal
procedures” which resulted in the delays. Despite the challenge
to
the proper explanation for the delay, the applicant did not
deliver any replying affidavit clarifying the issue.
[5]
The applicant submitted that a proper case
for condonation and rescission was made out. The respondent on the
other hand, contended
that no proper case for rescission was made out
on either basis as the judgment was not erroneously sought or granted
and the applicant
did not establish any good cause for rescission. It
submitted that the applicant was effectively attempting to appeal the
judgment
of Bokako AJ. It was submitted that the Court took into
account all the facts and properly exercised its discretion to grant
the
respondent judgment in the amount determined, based on a 50% post
morbid contingency. On that basis it was submitted that the
application
should be dismissed with costs, including the costs of
two counsel on Scale C.
[6]
The background facts were not contentious.
A notice of set down for the trial was served on the applicant on 19
October 2022. The
trial date allocated was 30 May 2023. Ms Sibran of
the State Attorney (‘the state attorney) was appointed to
represent the
applicant on 10 April 2023.
[7]
It was undisputed that the applicant,
represented by the state attorney, intended to be present at the
hearing and make submissions
to the Court based on the plaintiff’s
expert reports.
It was common cause that the state attorney
and the respondent’s legal representatives had a telephonic
discussion on 30 May
2023, during which she was advised that the
matter was not on the trial roll due to reasons unknown to the
respondent. She was
advised
by the respondent’s
representatives that she did not need to attend the hearing on 30 May
2023 as the matter was not on the
roll. Shortly thereafter and at
about 12h00, she received news that her father had unexpectedly
passed away and she left for Kwa
Zulu Natal.
[8]
At 14h21 that afternoon the state attorney and the
applicant’s claims handler dealing with the matter, Ms Selesho,
received
an email with a notice of set down attached reflecting the
trial date as 31 May 2023. The claims handler assumed that the state
attorney had received the email and would be attending to the matter.
It was not disputed that the state attorney did
not receive the email in time and was unaware of the fact that the
matter was proceeding
on 31 May 2023. According to the respondent,
his legal representatives attempted to make contact with Ms Sibran,
but she could
not be contacted. That is not disputed.
The
matter was enrolled for hearing by the registrar on 31 May 2023 as a
result of the error in that office. The matter was allocated
to
Bokako AJ by the Deputy Judge President, who heard the matter and
granted a judgment by default.
[9]
A copy of the order of 31 May 2023 was sent to the claims
handler on 5 June 2023, on which date the applicant became aware of
the
judgment. Pursuant to a request from the state attorney and
the claims handler to launch a rescission application, the
applicant’s
rescission committee approved the application on 8
June 2023. On 21 June 2023, the state attorney was instructed that
she should
attend to the rescission application. On 5 July 2023, the
state attorney sought consent to instruct counsel in the matter due
to
the complexities involved. Pursuant to compliance with various
policies and procedures, an application to instruct counsel was
generated on 30 August 2023, was approved on 8 September 2023.
According to the applicant ‘
the
approval to appoint counsel is not a simple one, and unfortunately
does not happen overnight. Due to the administration of public
funds,
there are various policies and procedures that need to be adhered to,
as well as various approvals up the chain of command,
before an
appointment can be made’.
The application was
eventually launched on 3 October 2023.
[10]
The respondent conceded that the applicant
was not in willful default of not attending the hearing of the matter
on 31 May 2023,
given the state attorney’s unexpected
bereavement on 30 May 2023. That concession was well made.
[11]
It
is trite that condonation is not there for the taking but that a
proper case must be made out.
[1]
I
agree with the respondent that the grounds advanced in explanation of
the applicant’s delay were in somewhat flimsy terms
and that
the full period of the delay was not meticulously explained.
Considering the timelines involved, it appears that
various of
the delays occurred in the offices of the state attorney, which is
regrettable. The delays were not however so
extensive that it
justifies dismissal of the condonation application on this basis
alone. It is clear from the uncontested facts
that the applicant at
all times since becoming aware of the existence of the judgment,
intended applying for its rescission.
[12]
In considering whether condonation should
be granted, it is also necessary to consider whether the applicant
has established grounds
for rescission. If such grounds are strong,
they may compensate for a weak explanation for the delay.
[13]
It
is well established that a court has a discretion whether to rescind
a judgment under r 42, which must be exercised judicially.
[2]
Under
r 42(1)(a) an applicant must establish that the order was granted in
its absence and that it was erroneously sought or granted.
The
mistake may either be one which appears on the record of the
proceedings or one which subsequently becomes apparent from the
information made available in the rescission application. A
subsequently disclosed defence that was not known or raised at the
time of the default judgment cannot lead to a conclusion that the
judgment was granted erroneously.
[3]
Under
r 42(1)(a) an applicant is not required to illustrate good cause for
the rescission.
[14]
In the answering papers, deposed to by the respondent’s
attorney of record, the respondent did not elaborate on what exactly
transpired before court on 31 May 2023. It remains unclear whether
the court’s attention was drawn to the different notices
of set
down and whether the court was notified that the state attorney
intended to appear and oppose the matter at the hearing
by presenting
argument.
[15]
The respondent submitted that it could not
be said that the respondent’s representatives sought
finalisation of the matter
in error as the matter was properly
enrolled and finalised.
According to the respondent, the
matter was not on the roll for 30 May 2023 due to an error on the
part of the registrar. The re-enrolment
of the matter on the roll for
31 May 2023 was with the concurrence of the registrar. The
respondent’s correspondent attorney
and counsel attempted to
communicate with Ms Sibran by calling her several times. The deponent
states:
‘
It was assumed
she was attending to another matter
’…
The matter
thus proceeded on an unopposed basis. This is not an unusual
scenario. It often happens because of the understaffing
of the State
Attorney (and the RAF’s policy of not having outside legal
representation), the at the State Attorney designated
to the matter
abandoned ship in favour of another matter. This is apparently a
daily occurrence”.
[16]
These statements are remarkable and not supported by any
primary facts. Neither was the source of this ‘information’
disclosed the affidavit. To deflect from the respondents’
duties in the circumstances, it was emphasised that the applicant
did
not advise the respondent’s representatives of Ms Sibran’s
unavailability. The contention lacks merit. Considering
that the
reason for her unavailability was not known to any of the parties,
and she was herself unaware of the set down for 31
May 2023, it is
unclear how the applicant such notification could have occurred.
[17]
The respondent’s submissions miss the point. In an
opposed matter, where the plaintiff is fully aware of the defendant’s
intention to appear and oppose the granting of a judgment in the
terms sought, the respondent’s representatives clearly had
a
duty to ensure that Ms Sibran was actually aware that the matter
would proceed to trial the following day. Simply sending an
email
with a notice of set down was not sufficient, more so as the attempts
to make telephonic contact with Ms Sibran were unsuccessful.
[18]
The respondent was also clearly obliged to inform the Court of
all the relevant facts. The respondent’s version was not that
the Court was so informed, specifically, that the state attorney was
opposing the matter and intended to appear and make submissions
on
the applicant’s behalf. The fact that the applicant had not
filed its own expert reports, is irrelevant. The applicant
was
entitled to make submissions and to be present at the hearing. The
respondent’s representatives were well aware that
the state
attorney intended to do so. They should have provided the Court with
all those facts. They did not under oath confirm
that they had
done so.
[19]
It does not appear from the papers that the
Deputy President who allocated the matter or the Judge allocated to
hear the matter
was advised that the state attorney intended to
appear at the hearing. Had the relevant judges been so advised, the
proceedings
may well have had a different outcome, specifically the
trial proceedings which proceeded before the court on a default
judgment
basis.
[20]
Although the respondent contended that it
was not a proper basis to oppose the proceedings to “take
potshots” at the
expert reports of the respondent, the fact
remains that the respondent was deprived of its right to
audi
alteram partem
. It was open to the
applicant to make submissions based on the respondent’s papers.
It would amount to speculation to guess
as to what the outcome would
have been if those submissions were made. There is nothing to gainsay
the applicant’s version
that it would have made submissions as
to the deficiencies in the respondent’s reports regarding the
issue of loss of earnings.
A settlement offer had been made which was
rejected and the state attorney was armed with an argument as to why
the respondent’s
claim should not be granted as sought. The
failure to advise the trial court of the relevant facts pertaining to
opposition is
material and of itself justifies the granting of a
rescission order.
[21]
There are further procedural irregularities
apparent from the record. The respondent had sought to amend its
particulars of claim
shortly before the hearing by way of a notice of
amendment delivered on 24 May 2023. That notice was accompanied by
amended pages,
despite the 10 day period envisaged by r 28 not having
expired. The amendment sought to increase the claim for loss of
earnings
from R5 500 000 to R5 650 000. An earlier notice
of amendment was delivered on 23 February 2023, increasing the claim
for loss of earnings from R150 000 to R5 500 000 and
increasing general damages to R1 million. The amendment was
not
opposed and the amendment was effected on 9 March 2023 by the
delivery of amended pages. It was not contended by the respondent
that the later amendment was granted at the commencement of the
hearing. The judgment and order of Bokako AJ, similarly does not
reflect that any amendment was granted. According to the notice of
amendment, the applicant was afforded 10 days to oppose the
amendment. The amendment was thus never effected. The plaintiff’s
actuarial report presented at the hearing utilised a 40
% post morbid
contingency and quantified the loss of earnings at R5 648 462.
That actuarial report was only served on
the applicant on 25 May
2023, entirely outside the time periods envisaged by R36(9).
[22]
It was argued by the respondent that the
late amendment brought shortly before the trial was ‘
neither
here nor there’
as the applicant
had opted not to deploy any expert calculations at all’. It was
contended that there was no indication of
any impropriety on the part
of the applicant and the judgment was not sought or granted in error,
but was granted by the judge
after due consideration of the matter
and in unique circumstances.
[23]
At the hearing, the trial court awarded an
amount of R1 812 555.00 as loss of earnings, utilising a
50% post morbid contingency.
That amount exceeded the amount claimed
by the respondent in his pleadings by more than R300 000 and
exceeded the amount calculated
by the actuary in his expert report by
some R200 000. The respondent argued that this was “technical”
and there was
no prejudice to the applicant as it was within the ball
park claimed and was only ‘
a few
hundred thousand rands
’. The
respondent’s arguments are in my view untenable.
[24]
It is trite that a party is limited to what
is has claimed in its pleadings. It is unclear whether the Court’s
attention was
drawn to the recent purported amendment or the fact
that it would be granting judgment for an amount exceeding that
claimed by
the plaintiff. It was incumbent on the respondent’s
counsel to have done so. The judgment also exceeded the amount
contended
for in the respondent’s expert reports, including
that of its actuary. What evidence was placed before the trial court
to
justify the application of a higher contingency of 50 % was not
explained by the respondent. The judgment was thus tainted
by a
further substantial procedural irregularity. That fortifies my view
that the judgment was erroneously sought and erroneously
granted.
[25]
Considering
all the undisputed facts, I am persuaded that the applicant has
illustrated that, if the Court had been made aware of
all the
relevant facts which existed at the time, it would have resulted in
the Court not been inclined to grant the order and
that there were
irregularities in the proceedings.
[4]
[26]
The issues pertaining to the notices of set
down and the fact that the state attorney was not aware of the set
down of the matter
for 31 May 2023, is sufficient to grant
rescission. The fact that the notice of set down for 31 May 2023 was
served on the applicant’s
claims handler, does not assist the
respondent. At the time, the applicant was, to the knowledge of the
respondent, legally represented.
The respondent should have ensured
that as a fact, the enrolment came to the knowledge of Ms Sibran.
When the attempts to contact
her were unsuccessful, that should have
been conveyed to the Court at the hearing. Had all the facts been
fully disclosed to the
Court, it is most unlikely that the court
would have proceeded in the absence of the applicant’s attorney
of record.
[27]
As indicated, there were also other
irregularities which occurred. The respondent did not disclose
exactly what transpired before
Bokako J on 31 May 2023, despite the
respondent’s attorney of record having been the person best
placed in a position to
do so.
[28]
During
the course of argument, the respondent submitted that the applicant
was actually attempting to appeal the matter, given the
notation in
the respondent’s resolution for rescission that ’
the
LOE loss of earnings is overstated…not proven’
.
I am not persuaded that the submission is correct. The issues
raised, were aimed at illustrating that the applicant had
a
bona
fide
defence
to the respondent’s claim. The respondent’s view that the
applicant should have appealed, is misconceived. Recently
Neukircher
J In
RAF
v
P[...]
M[...] M[...] obo RM M[...]
,
[5]
considered
the issue and concluded that a rescission was the correct remedy,
albeit in the context of an application under r 30.
I am bound by the
judgment unless I am of the view that it is clearly wrong. I am not
and respectfully agree with the learned Judge’s
reasoning and
conclusion.
[29]
In my view, the applicant has established
that the judgment was erroneously sought and erroneously granted in
the absence of the
applicant as envisaged by r 42(1)(a). It follows
that the rescission application must succeed.
[30]
I am further persuaded that this conclusion
tips the scales in the applicant’s favour and that condonation
for the late delivery
of the rescission application should be
granted. Given that conclusion, it is not necessary to consider
whether the applicant has
established good cause under the common law
for rescission to be granted.
[31]
The applicant sought costs only in the
event of opposition. The respondent in the alternative
contended that his opposition
was not unreasonable, as it would take
four or five years before the matter could proceed to trial again and
that he thus should
not be mulcted in costs. Although the applicant
was tardy in the institution of the application, there are no
substantial reasons
to deprive it, as successful party, of its costs.
The opposition to the application was ill conceived. Costs follow the
result.
[32]
In the result I grant the following order:
[1] Condonation is
granted to the applicant for the late filing of the rescission
application;
[2] The order granted on
31 May 2023 under case number 63528/20017 is rescinded and set aside;
[3] The respondent is
directed to pay the costs of the rescission application.
EF DIPPENAAR
JUDGE OF THE HIGH
COURT
GAUTENG PRETORIA
DATE
OF HEARING
:
11 NOVEMBER 2024
DATE OF
JUDGMENT
:
21 JANUARY 2025
APPLICANTS’
COUNSEL
:
Mrs K Sibran
Heads of Argument
-Adv MP Fourie
APPLICANTS’
ATTORNEYS
:
State Attorney,
Pretoria
Mrs K Sibran
RESPONDENT’S
COUNSEL
:
Adv JO Williams SC
(with Adv L Eloff)
RESPONDENT’S
ATTORNEYS
:
PAS Attorneys,
Pretoria
Mr TC Stoffberg.
[1]
SA Express Limited v Bagport (Pty) Ltd 2020 (5) SA 404 (SCA)
[2]
Zuma v Secretary of the Judicial Commission of Inquiry into
Allegations of State Capture, Corruption and Fraud in the Public
Sector Including organs of State and Others
[2021] ZACC 28
para 53.
[3]
Kgomo and Another v Standard Bank of South Africa and Others
2016
(2) SA 184
(GP)
[4]
Promedia Drukkers & UItgewers (Edms) Bpk v Kaimowitz and Others
1996 (4) SA 411
(C) at 417G
## [5](18768/2020)
[2024] ZAGPPHC 1079 (31 October 2024)
[5]
(18768/2020)
[2024] ZAGPPHC 1079 (31 October 2024)
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