Case Law[2024] ZAGPPHC 261South Africa
E.C.C obo J.V v MEC for Education, Gauteng Province (36071/19) [2024] ZAGPPHC 261 (18 March 2024)
High Court of South Africa (Gauteng Division, Pretoria)
18 March 2024
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## E.C.C obo J.V v MEC for Education, Gauteng Province (36071/19) [2024] ZAGPPHC 261 (18 March 2024)
E.C.C obo J.V v MEC for Education, Gauteng Province (36071/19) [2024] ZAGPPHC 261 (18 March 2024)
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sino date 18 March 2024
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IN
THE HIGH COURT OF SOUTH AFRICA,
GAUTENG
DIVISION, PRETORIA
CASE
NO: 36071/19
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED.
DATE:
18 March 2024
SIGNATURE
In
the matter between
E.C
C[...] OBO J.
V[...]
Plaintiff
and
MEC
FOR EDUCATION, GAUTENG
PROVINCE
Defendant
# JUDGMENT
JUDGMENT
COWEN
J
1. The
plaintiff instituted an action on behalf of her minor child for
damages against the defendant, the Member
of the Executive Council
for the Department of Education, Gauteng (the MEC). The damages
claimed arose from an incident which
occurred at the child’s
school, the B[...] Primary School (the school) and which led
ultimately to the amputation of the
child’s left big toe. The
child was only seven years old at the time of the injury. The
dispute was ultimately
settled by way of a payment made by the
school’s insurer, but the insurer refused to pay the litigation
costs, which were
ultimately reserved.
2. The
costs dispute came before me on the trial roll on 13 March 2024. In
order to facilitate the
determination of the dispute, both parties
delivered affidavits setting out their contentions and related
facts. The defendant
also delivered brief heads of argument.
I heard oral argument from both parties’ counsel.
3. The
plaintiff submits that she is entitled to the costs of suit, on an
attorney and client scale, effectively
on the principle that costs
should follow the result and the claim was successful. The
defendant submits that each party
should pay their own costs because
the litigation was wholly unnecessary and would have been avoided had
the plaintiff furthered
the claim against the insurer prior to the
commencement of the litigation. The defendant also contended
that the settlement
did not entail any concession on the merits.
4. The
incident occurred on 12 October 2015. Shortly thereafter, and
on 21 October 2015, the school lodged
a claim under its insurance
policy with its insurer and notified the plaintiff’s then
attorney that it had done so, supplying
the claim number. The
e-mail dated 28 October 2015 read: ‘
A public liability claim
with Santam was lodged with claim number 1[...], regarding [the minor
child].
’
5. It
appears that shortly thereafter, the plaintiff’s family left
South Africa and emigrated to the United
States of America and there
was no further contact between the school and the plaintiff regarding
the claim. On 8 January
2016, some three months after the
incident, the plaintiffs’ attorneys sent the defendant a notice
of intention to institute
legal proceedings in terms of the
Institution of Legal Proceedings against Certain Organs of State Act
40 of 2002.
It appears that nothing further happened
until the action was then instituted some three years later on 22 May
2019.
6. The
Court’s attention was drawn to the provisions of section 59(1)
and 60 of the Schools Act 84 of 1996
(the Schools Act) which provide:
’
59.
Duty of schools to provide information
(1)
A
school must make information available for inspection by any person,
insofar as such information is required for the exercise
and
protection of such person’s rights.
(2)
…
60.
Liability of State
(1)
(a)
Subject to paragraph (b), the State is liable for any delictual or
contractual damage or loss caused as a result of any act
or omission
in connection with any school activity conducted by a public school
and for which such public school would have been
liable but for the
provisions of this section.
(b) Where a public
school has taken out insurance and the school activity is an
eventuality covered by the insurance policy, the
liability of the
State is limited to the extent that the damage or loss has not been
compensated in terms of the policy.
(2) The provisions of
the State Liability Act [20 of 1957] apply to any claim
under subsection (1).
(3) Any claim for
damage or loss contemplated in subsection (1) must be instituted
against the Member of the Executive Council concerned.
(4) …’
7.
The Court’s
attention was also drawn to the provisions of the Regulations for
Safety Measures at Public Schools
[1]
(the Regulations), specifically Regulation 8A(2) and (4) which
provide:
‘
8A(2)
A public school must take measures to ensure the safety of learners
during any school activity,
including –
(a)Insuring against
accidents, injuries, general medical expenses, hospitalisation, and
theft that may occur, depending on the availability
of funds.
(b)…
…
8A(4)
If an insurer is liable in the event of injury suffered by a learner,
the school must assist
the parent in claiming from the insurer on
behalf of the learner.’
8. The
first issue is whether the plaintiff achieved substantial success in
the matter. In this regard the
defendant submitted that the
plaintiff did not as there was no concession of liability and
acceptance of liability under the policy
is not tantamount to
liability under delict. In my view, this argument cannot
succeed in circumstances where the insurer
expressly consented to the
concession of liability on the basis that the insurer accepted that
the incident described in the particulars
of claim was caused by the
sole negligence of the school’s employees. This was in
correspondence dated 2 March 2021.
9.
In these
circumstances, costs would ordinarily follow the result.
However, the defendant submitted that the litigation was
wholly
unnecessary, without any compulsion, and litigation costs
unnecessarily incurred. In these circumstances, it was
submitted that costs should not be awarded against the defendant.
[2]
The argument was advanced on both a factual and a legal
premise, which are interlinked.
10. The factual premise
of the argument – as advanced on affidavit and in the heads of
argument – was that the plaintiff
was at all material times
aware that her claim for compensation had been lodged with Santam.
However, it was submitted, the
plaintiff adopted a lackadaisical
approach to prosecuting and finalising the insurance claim. The
plaintiff migrated and
at no stage asked for any assistance from the
school in prosecuting the insurance claim, which is regarded, on
affidavit, to be
the plaintiff’s insurance claim. In my
view this approach to the facts is flawed, because of its legal
premise, which
is that the insurance claim is the plaintiff’s
to pursue. It is not. The insurance contract is concluded
between
the school and the insurer, and the claim itself was
submitted by the school as the claimant. There is nothing in
the contract
itself or on the facts that could yield the conclusion
that any third party contract (or
stipulatio alteri
was
concluded. It was always the duty of the school to pursue the
claim. Indeed, there was no communication from the
school to
the plaintiff’s attorneys suggesting otherwise. The plaintiff’s
attorneys were merely informed that the claim
had been lodged.
11. During argument,
however, I queried why the plaintiff had at no time followed up with
the school about the claim. The
plaintiff was represented, was
aware that the insurance claim had been submitted and at least ought
to have known that compensation
might be forthcoming from the
insurer. Had the plaintiff made simple enquiries with the
school, before pursuing litigation,
it is likely that the matter
would have become settled at an earlier stage.
12.
However,
this on its own can only serve to limit the extent of any costs award
in the plaintiff’s favour, as it was ultimately
the
responsibility of the school to prosecute the insurance claim.
In arriving at this conclusion, I have considered the
import of
Regulation 8A(4) and sections 59 and 60 of the Schools Act. The
Supreme Court of Appeal has interpreted section
60, specifically
section 60(1) read with section 60(3) to place liability on the MEC,
not the school, at least where a claim falls
within the ambit of
section 60.
[3]
Furthermore, there is no contractual relationship in this case
between the plaintiff and the insurer. Regulation 8A(4),
in my
view, does not alter the contractual position between the insurer and
the school. What it does is impose a duty on
the school to
assist the parent by claiming under the relevant insurance policy.
13.
The legal
premise of the argument, however went further. In short, it was
contended that the effect of section 60(1)(b) was
to confer a right
on a plaintiff to pursue a claim against an insurer. I
disagree. The purpose of section 60(1)(b)
is to limit the
liability of the State to compensation that it cannot obtain from the
insurer. It does not alter the common
law contractual
relationship between insurer and insured. That
interpretation is consistent with the Supreme Court
of Appeal’s
decision in
Emeran.
[4]
Section 60(4) makes it clear that any claim is against the MEC.
Had the legislature intended to create some sort of
statutory third
party benefit it would have said so expressly and the presumption
that the legislature is presumed to have
Section
60(4) makes it clear that the claim is against the MEC. Had the
legislature intended to create a statutory
third party benefit it
would have said so expressly.
14. I am however
satisfied that a portion of the plaintiff’s costs should not be
recoverable as it is difficult to understand
why the plaintiff, after
migrating to the United States made no contact with the school to
follow up on the insurance claim.
However, that conduct does
not account significantly for what ensued. First, the school
itself appears to have done nothing.
Secondly, after receiving
the notice, the defendant did nothing to ascertain whether an
insurance claim had been lodged thereby
protecting it under section
60(1)(b). Had either the school or the defendant pursued the
matter as they ought to have, the
litigation would have been
avoided.
15. However, that is not
the end of the matter because, as submitted on behalf of the
plaintiff, what ensued after the litigation
commenced in 2019 is also
relevant to costs. More specifically, the evidence demonstrates
that Santam only became actively
involved shortly before the trial
was due to commence and once it became involved, the matter was
swiftly settled. That was
in 2021. The question thus
arises why it took so long before the matter was settled, during
which time extensive litigation
costs were incurred, not least in
respect of expert reports.
16. The defendant submits
that the plaintiff was at fault because it failed to join Santam to
the proceedings, an issue raised in
a special plea, which was
ultimately not determined. Had the plaintiff done so, it
was submitted, the matter would
have been swiftly resolved. The
plaintiff disputes any obligation to join the insurer, contending
that should the defendant
claim any indemnity for costs it was
incumbent upon it to join Santam and pursue its claim. On
this issue, and in accordance
with my findings in paragraph 13,
I agree with the plaintiff. Moreover, the plaintiff
submits that when regard is had to the defendant’s plea, the
defendant
not only joined issue with the plaintiff, but raised
substantive defences imputing responsibility for the amputation on
medical
negligence of the doctors. That in turn had an impact
on the incurrence of costs for the plaintiffs. The point is
well
made.
17.
In all of
the circumstances, I am of the view that the plaintiff is entitled to
90% of her costs on a party and party scale. The
request for attorney
and client costs was not persisted with in argument, and a draft
order was supplied without reference to such
an order, but it was not
abandoned, I have considered the request and have concluded there is
no basis for such an award.
[5]
18. The following order
is made:
18.1.
It is recorded that the issue of liability and quantum have been
settled between the parties and the quantum
has been paid to the
Plaintiff.
18.2.
The Defendant shall pay 90% of the plaintiff’s taxed or agreed
party and party costs for the action
on the High Court scale (subject
to the discretion of the taxing master), which costs may include, but
not be limited to:
18.2.1.
The trial costs for 8 March 2021 (the matter was removed by the
roll
by agreement with costs in the cause).
18.2.2.
The trial costs pertaining to 13 March 2024.
18.2.3.
The costs of senior-junior counsel which will include reasonable
preparation and trial costs (including drafting of affidavit
regarding the costs aspect).
18.2.4.
The reasonable costs of obtaining the medico-legal reports which
were
furnished to the defendant.
18.3.
In the event that the costs are not agreed:
18.3.1. The
plaintiff shall serve a notice of taxation on the defendant’s
attorneys on record.
18.3.2. The
plaintiff shall allow the defendant 30 (thirty) days from date of
allocatur
to make payment of the taxed costs.
18.3.3. Should
payment not be affected timeously, the plaintiff will be entitled to
recover interest at the relevant prescribed
rate
per annum
on
the taxed or agreed costs from date of
allocatur
to date of
final payment.
18.4.
The amounts referred to above
will
be
paid to the Plaintiff’s attorneys,
Werner Boshoff
Incorporated
, by direct transfer into their trust account, the
details of which are as follows:
Account holder
:
WERNER BOSHOFF INC TRUST ACCOUNT
Bank:
Standard Bank, Lynnwood Ridge
Branch Code:
0[...]
Account no:
0[...]
Reference:
REF: W[...] B[...]
.
S
J COWEN
JUDGE
OF THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION
PRETORIA
Delivered:
This judgment was prepared and authored by the Judge whose name is
reflected and is handed down electronically by circulation
to the
Parties / their legal representatives by email and by uploading it to
the electronic file of this matter on CaseLines. The
date of the
judgment is deemed to be 18 March 2024.
Date
of hearing:
13 March 2024
Date
of judgment:
18 March 2024
Appearances:
On
behalf of Plaintiff:
Adv.
C.R van Onselen instructed by Werner Boshoff Inc
On
behalf of Defendant:
Adv.
K Toma instructed by State Attorney
[1]
Promulgated
under Government Notice 1040 (GG 22754) of 12 October 2001, as
amended by GN R1128 in GG29376 of 10 November 2006.
[2]
Relying on
Chetty
v Louis Joss Motors
1948(3)
SA 329 (T) at 333;
Fletcher
& Co v Le Sueur
(1 CTR 2013);
Bester
v Van Niekerk
1960(2) SA 363 (ECD), AC Cilliers Law of Costs, para 3.12 & 3.13
issue 32;
Fleming
v Johnson & Richardson
1903
TS 319
at 325.
[3]
Parktown
High School v Emeran
2019(4)
SA 188 (SCA) (
Emeran
)
at paras 7 and 18 to 21.
[4]
Id.
[5]
Public
Protector v South African Reserve Bank
[2019]
ZACC 29
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