Case Law[2023] ZAGPPHC 684South Africa
S.T.N obo S.T.M v Member of the Executive Council for Health and Social Development of the Gauteng Provincial Government (Y69426/2019) [2023] ZAGPPHC 684 (16 August 2023)
High Court of South Africa (Gauteng Division, Pretoria)
16 August 2023
Headnotes
no instructions to settle the claim. QUANTUM [8] The quantum of the plaintiff's claim on behalf of S[....], is for damages in respect of future medical and related expenses, future loss of earnings, past loss of caregiving services and general damages. [9] For the purposes of addressing the issue of quantum, counsel on either side referred the Court to the following documents namely:
Judgment
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## S.T.N obo S.T.M v Member of the Executive Council for Health and Social Development of the Gauteng Provincial Government (Y69426/2019) [2023] ZAGPPHC 684 (16 August 2023)
S.T.N obo S.T.M v Member of the Executive Council for Health and Social Development of the Gauteng Provincial Government (Y69426/2019) [2023] ZAGPPHC 684 (16 August 2023)
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IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
Case
Number: Y69426/2019
1.
REPORTABLE: NO
2.
OF INTEREST TO OTHER JUDGES: NO
3.
REVISED: NO
DATE:
16 August 2023
In
the matter between
S[....]
T[....] N[....]
PLAINTIFF
O.B.O
S[....]
T[...] M[....]
AND
THE
MEMBER OF THE EXECUTIVE COUNCIL DEFENDANT
FOR
HEALTH AND SOCIAL DEVELOPMENT
OF
THE GAUTENG PROVINCIAL GOVERNMENT
This
judgment is issued by the Judge whose name is reflected herein and is
submitted electronically to the parties/their legal representatives
by email. The judgment is further uploaded to the electronic file of
this matter on Caselines by the Judge or her Secretary. The
date of
this judgment is deemed to be 16 AUGUST 2023.
JUDGMENT
COLLIS
J
INTRODUCTION
[1]
This is an action for damages instituted by the Plaintiff on behalf
of her minor child, S[....] T[....] M[....]
(''S[....]"),
against the Defendant.
[2]
On 6 September 2010 the Plaintiff, pregnant at the time with her
unborn baby S[....], was admitted to Pholosong
Hospital in Gauteng
for the monitoring, assessment and management of her pregnancy.
[3]
At the time of her admission she was in the latent phase of labour.
During the active phase of labour and
foetal monitoring which
followed, foetal deterioration and distress was observed, which
resulted in near total destruction of the
baby's brain caused by
partial prolonged hypoxic ischaemia, which probably occurred
intrapartum.
[4]
It is alleged by the plaintiff that the defendant breached her legal
duty to the plaintiff and her baby by
causing harm to the baby by the
negligent conduct and or omissions of the medical and nursing staff
of the defendant's hospital
which resulted in the baby suffering
severe brain damage and disablement in respect of which a damages
claim has been instituted.
MERITS
[5]
On 16 August 2021, Basson J separated the liability and quantum in
terms of Rule 33( 4) on the basis that
the Defendant is liable for
and shall compensate the Plaintiff for 90% of the proven or agreed
damages of S[....].
[1]
[6]
At the commencement of the proceedings before this Court, I was
informed that the Defendant being liable for
90% of the Plaintiff's
damages is not as a result of any liability apportionment, but rather
a risk discount that was negotiated
and agreed upon between the
parties.
[7]
This trial was set down for a ten (10) day period. Prior thereto this
Court conducted a case management meeting,
wherein the parties
informed the Court as to how the proceedings will be conducted. In
essence, it was agreed that the they will
prepare Joint Heads of
Argument for the hearing, that the respective expert reports prepared
by the parties, will be admitted into
the record as exhibits and that
they will admit the contents and the correctness of these reports.
During such meeting further
the Court was also informed that the
defendant holds no instructions from client, albeit that the State
Attorney has engaged client
on several occasions. The plaintiff
further informed the court that where the defendant and plaintiff's
experts differed on the
course of treatment and potential awards to
be made by the Court, that the plaintiff has accepted the stance
adopted by the defendant's
expert in order to facilitate that
finalization of the matter. Apparent from the above, it became clear
to the Court that the parties
had reached a settlement in
toto
of the plaintiff's claim but for the fact that the defendant held no
instructions to settle the claim.
QUANTUM
[8]
The quantum of the plaintiff's claim on behalf of S[....], is for
damages in respect of future medical and
related expenses, future
loss of earnings, past loss of caregiving services and general
damages.
[9]
For the purposes of addressing the issue of quantum, counsel on
either side referred the Court to the following
documents namely:
9.1 Plaintiff's Quantum
Schedule;
9.2 With regards to
future medical expenses: Appendix A to the Quantum Schedule;
9.3 The Actuarial Report
marked "GRS1", to be read with Appendix A;
9.4 With regards to
future loss of earnings: Appendix B to the Quantum Schedule;
9.5 With regards to past
caregiving services: Appendix C to the Quantum Schedule;
9.6 The Actuarial Report
marked "GRS2", to be read with Appendices Band C;
9.7 With regards to
general damages: Appendix D to the Quantum Schedule; and
9.8 With regards to the
protection of the award, Appendix E to the Quantum Schedule.
[2]
[10]
These documents referred to in the Joint Heads of Argument were
provided to the Defendant's legal representatives for
their
consideration of the quantum of the claim. At the Third- Pretrial
Conference of 10 January 2023 the parties agreed that these
documents
be uploaded onto Caselines and used or referred to by counsel during
arguments.
[11]
At the hearing and by agreement between the parties this Court
admitted into the record the following exhibits:
11.1 Plaintiff's
Expert Reports-Exhibit A
11.2 Joint Minutes
Bundle-Exhibit B
11.3 Actuarial
Report by Plaintiff-Exhibit C
11.4 Affidavit
deposed to by Actuary-Exhibit D
11.5 Schedule of
Loss-Exhibit E
11.6 Defendant's
Expert Reports-Exhibits F and G respectively.
EVIDENCE
[12]
In anticipation of the presentation of the case, both parties
appointed experts for purposes of the determination of
all aspects of
the quantum of the claim. The reports of these experts were all
uploaded onto Caselines. Paragraph 3.1 to 3.3 of
the Plaintiff's
Quantum Schedule sets out the list of experts that were appointed by
the Plaintiff and the Defendant. As mentioned,
these reports were
handed in as exhibits before this Court.
[13]
As for the Joint Minutes, both parties agreed and accepted into
evidence the contends of the Joint Minutes prepared by
the respective
expects and relied on the decision of Bee v Road Accident Fund
2018
(4) SA 366
(SCA) in support thereof.
[14]
The plaintiff submitted into evidence three actuarial reports in
respect of S[....]'s future medical expenses and future
loss of
earnings. In this regard the Plaintiff appointed the actuarial firm,
i.e GRS Actuarial Consultants. Three actuary reports
uploaded onto
Caselines, i.e.:
(a) GRS Actuarial
Consulting - Future medical expenses, dated 30 November 2022 (item
1);
(b) GRS Actuarial
Consulting - Loss of Income, dated 9 November2022 (item 2); and
(c) Updated Actuarial
Calculation in respect of future medical expenses, dated 10 January
2023 (item 3).
[15]
The Defendant admits the actuarial assumptions and the correctness of
all calculations in the mentioned reports, subject
to the Defendant
reserving the right to argue contingencies.
[3]
[16]
In respect of the actuarial calculations the parties agree to also
refer the Court to the actuarial report dated 30 November
2022
regarding the claim for future medical expenses which is marked
"GRS1" and is annexed to Appendix A, and (b) the
actuarial
report regarding the claims for loss of future earnings and past
caregiving which is marked "GRS2" and which
is annexed to
Appendix B and is also relevant to Appendix C.
The
significance of "GRS1" is that the report reflects the
contingencies that were debated at each of the 276 cost items
for
future medical expenses.
VARIOUS
ANTICIPATED EXPENDITURES
LIFE
EXPECTANCY
[17]
In respect of S[....]'s life expectancy the evidence of Dr. Rob
Campbell was placed before this Court. This expert examined
and
assessed S[....] on 8 September 2021, and he prepared a full
medico-legal report on the patient. The expert has experience
in
rehabilitation medicine and the care of brain damaged children
suffering from cerebral palsy. In addition to this, the plaintiff
also presented the evidence of Dr Pearce who examined S[....] on 7
March 2022.
[18]
Based on their clinical findings, the two experts opined in their
joint minute dated 1 November 2022, that S[....] profile
of
impairment and disability is associated with a significant reduction
in long-term survival and life expectancy to the extent
that his life
expectancy is now 22% of that of his general population peers. This
equates to an additional 12 years with total
expected survival time
to age 24.
[4]
[19]
In respect of the total expected survival time, the plaintiff's
actuary assumed that S[....] future chance of survival
is similar to
Life table 2 (Males) Quantum Yearbook 2022. This implies a future
life expectancy of 11,64 years (up to age 24) as
opposed to 57,1
years for the unadjusted life table 2. The defendant agrees with the
plaintiff that Koch's Life Table 2, is the
correct table to use.
[20]
S[....] life expectancy which was used by GRS Actuaries for purposes
of calculating his claim, is thus common cause between
the parties
and no disputes arise therefrom.
FURTURE
HOSPITAL, MEDICAL AND RELATED EXPENDITURE
[21]
In this regard the Plaintiff relied and referred this Court to
Appendix A to the Plaintiff's Quantum Schedule. In this
regard
paragraphs B3 to B11 contain the plaintiff's submissions regarding
the approach to be adopted when upward - or downward
contingencies
are considered in the determination of the amounts to be awarded for
the costs of each of the future medical and
related recommendations
made by the experts.
[22]
The Defendant acknowledges the caselaw and approach referred to by
the Plaintiff in paragraphs B3 and B11, and does not
oppose same.
Where the Defendant however do hold a different view on a specific
contingency to be applied by the Plaintiff, the
Defendant's stance
and submissions will be traversed in what follows hereunder.
22.1 The
Plaintiff's submissions regarding Mobility are discussed at Paragraph
C13.
22.2 The
Plaintiff's submissions regarding Adaptations and maintenance to
S[....]'s accommodation are discussed at Paragraph
C14;
22.3 The
Plaintiff's submissions regarding dental expenditure are discussed at
Paragraph ClS;
22.4 The
Plaintiff's submissions regarding urology expenditure are discussed
at Paragraph C16;
22.5 The
Plaintiff's submissions regarding pulmonology are discussed at
Paragraph Cl 7;
22.6 The
Plaintiff's submissions regarding orthopaedic expenditure are
discussed at Paragraph C18;
22.7 The
Plaintiff's submissions regarding neurological and general medical
expenditure are discussed at Paragraph C19;
22.8 The
Plaintiff's submissions regarding physiotherapy are discussed at
Paragraph C20;
22.9 The
Plaintiff's submissions regarding speech therapy (and speech
assistive devices, etc.) are discussed at
Paragraph C21;
22.10 The
Plaintiff's submissions regarding dietary expenditure are discussed
at Paragraph C22;
22.11 The
Plaintiff's submissions regarding orthotic expenditure are discussed
at Paragraph C23;
22.12 The
Plaintiff's submissions regarding occupational therapy and related
costs are discussed at Paragraph C24;
22.13 The
Plaintiff's submissions regarding maxillofacial and oral surgery are
discussed at Paragraph C25; and
22.14 The
Plaintiff's submissions regarding biokinetic expenditure are
discussed at Paragraph C26.
Mobility
[23]
In this regard this Court was referred to the report of Mr.
Rademeyer, the contents of which was admitted by the defendant.
The
Court was further referred to paragraph C13 on pages 15 to 18 of
Appendix A.
[5]
[24]
In respect of the calculations in respect of this special head of
damage this Court is referred to paragraph 4.1, items
1 to 7 of
"GRS1" annexed to Appendix A (Caselines pp 0012-80 to 81).
[25]
In respect of this calculation, counsel for the plaintiff had
submitted to the Court, that the Defendant considered each
of the
items and recorded at the Third Pre-trial conference that the
Defendant does not have a basis to oppose the recommendations
as
discussed in paragraph 13 of Appendix A to the Schedule of Loss.
[6]
[26]
As a result the amount for mobility costs that is thus not in dispute
between the parties is an amount of Rl'000'977.00.
This much counsel
for the defendant had conceded at the hearing and ass result this
court deems it fair and reasonable to award
this amount in respect of
this this special head of damage.
Adaptations
to the home and maintenance thereof.
[27]
In this regard, this Court was referred to the reports of Ms Eybers
and Mr Sirmon, the contents of which were both admitted
by the
defendant. This court was also referred to paragraph C14 of Appendix
A.
[7]
[28]
In respect of this calculation, counsel for the plaintiff had
referred this court to paragraph 4.2, items 8 and 9 of
"GRS1"
annexed to Appendix A (Caselines pp 0012-81).
[29]
In this regard, counsel for the plaintiff had submitted that the
plaintiff had applied a 10% contingency to the costs
of the
adaptations at item 8 and a generous contingency of 20% to item 9,
being the anticipation costs for the maintenance to the
adaptations.
[30]
Albeit, that counsel for the defendant had argued, that certain of
the adaptations included by Mr. Eybers are not necessary
and as a
result had argues that an amount of R1’000’000.00 is a
fair and reasonable award in respect of items 8 and
9.
[8]
[31]
This amount so argued by the defendant, the Plaintiff accepted and as
such the amount for adaptations to the home and
maintenance of the
adaptations that is thus not in dispute between the parties, and
which is considered fair and reasonable by
this Court, is an award of
R1’000’000.00.
Dental
Expenditure
[32]
In respect of this special head of damage, this Court was referred to
the report of Dr Lofstedt, which was admitted by
the defendant as
well as the report of Dr. Mmako. This court was also referred to
paragraph C15 of Appendix A.
[9]
[33]
In respect of the calculation of this expenditure, the plaintiff also
referred this Court to paragraph 4.3, items 10
to 24 of "GRS1"
annexed to Appendix A, on Caselines pp 0012-82 to 84. In addition,
this Court was further referred to
paragraph 4.15, items 295 to 317
of the updated actuarial calculation as it appears on Caselines pp
0007-86 to 88.
[34]
In respect of this expenditure, the defendant had filed its own
expert report that of Dr. Mmako, on 6 January 2023 and
noted that the
costs of the recommendations by Dr. Mmako, as calculated by GRS
Actuary in the updated actuarial report, amounts
to R417'863.00,
whereas the costs of the recommendations by Dr Lofstedt, amounts to
R345'776.00. On this basis the plaintiff had
argued that as a result
thereof, the defendant therefore has no basis to oppose the amount of
R328'640.00 as proposed by the plaintiff
at paragraph C.15 of
Appendix A, as this amount so claimed is even further than the
defendant's own expert.
[35]
In the circumstances this Court is satisfied to award an amount of
R328'640.00 for the plaintiff's dental expenditure
as this award is
considered to be fair and reasonable.
Urology
Expenditure
[36]
In respect of the plaintiff's claim under this heading the Court was
referred to the report of Prof Mutambirwa, which
was admitted by the
defendant, and paragraph C16 of Appendix A.
[10]
[37]
In respect of this expenditure's calculations the Court was referred
to paragraph -4.4, Items 25 to 42 of "GRS1"
annexed to
Appendix A on Caselines pp 0012-85 to 86. In his report Prof
Mutambirwa indicated that the percentage chance of S[....]
requiring
the various recommended treatment, interventions and equipment. In
this regard, the actuary already had applied the necessary
contingencies in the calculation to address the probabilities of the
expenditure at each item being required in future and it is
for this
reason that counsel for the plaintiff had admitted it is therefore
unnecessary to allow any further contingency deduction.
[38]
In respect of this expenditure, the defendant accepted the
recommendations and is satisfied with the contingencies already
applied by Prof Mutambirwa and also accepts the 25% contingency that
is applied to the diapers at item 27, as discussed in paragraphC16.4
of Appendix A.
[39]
As such the amount for urological expenditure that is thus not in
dispute between the parties and therefore counsel submitted
a
reasonable award is an amount of R519'038.00.
[11]
This award this court also considers fair and reasonable under the
circumstances.
Pulmonology
[40]
In respect of this future medical expenditure, this Court was
referred to the joint minute prepared by Prof Goussard
and Dr.
Roux.
[12]
In respect of the
calculation in respect of this expenditure, the Court was referred to
paragraph 4.15, items 277 to 294 of the
updated Actuarial Report in
respect of medical expenses.
[13]
[41]
Subsequent to Appendix A being finalized, the pulmonology joint
minute became available. Dr A Roux on behalf of the defendant
and
Prof Goussard on behalf of the plaintiff agreed on all the
recommendations and costs. These were calculated by GRS Actuaries
and
amounts to R212'135.00 in total. The Plaintiff counsel suggested that
there is no room for contingencies and that this amount
is fair and
reasonable and should be awarded by this Court.
[42]
Counsel appearing on behalf of the defendant accepted the
recommendations and costs agreed upon in the joint minute but
submits
that a 10% contingency deduction should apply to the total amount,
reducing it to R190'921.00.
[43]
This stance adopted by the defendant, the plaintiff accepted and
consequently this Court considers the amount of R190'921.00
as an
award for future pulmonary expenses as fair and reasonable under the
circumstances.
[14]
Orthopaedic
Expenditure
[44]
For this expenditure, the Court was referred to the Joint Minute of
Dr Potgieter and Dr Simmons.
[15]
In respect of this calculations, the Court was referred to paragraph
4.6 and items 54 to 57 of the updated Actuarial Report. This
updated
report appears on Caselines pp 0007-56.
[45]
In respect of this expenditure and subsequent to Appendix A being
finalized and the costs of the recommendations by Dr
Potgieter being
calculated, the orthopaedic surgeons compiled a joint minute. During
this meeting they agreed on the costs of the
required surgeries and
the present value of these costs were calculated by GRS Actuaries,
rendering the total amount for orthopedic
intervention of
R241'068.00.
[46]
In respect of the orthopedic interventions, the surgeons opined that
S[....] should urgently undergo surgery to his lower
limbs to be able
to sit. This is so as he is spastic with shortened and spastic
hamstrings and cannot be seated due to the constant
extensor spastic
reflex which results in him sliding out of the chair.
[47]
Once undergone, he would benefit of the surgery in that he will be
able to wear shoes after minimal soft tissue releases
of the ankle
muscles. It is important for a wheelchair ridden patient to be able
to wear shoes with proper comfortable support
on the footplate of the
chair as well as for comfort during cold weather.
[48]
All of the above could be addressed through
single-event-multiple-level surgical releases of spastic and
contracted
muscles of the hips, (adductor releases), the knees
(hamstring lengthening) and the feet (relevant lengthening of
tendons), at
an agreed cost of RS0'000.00.
[49]
In respect of his upper limbs and due to the position of S[....]'s
arms almost being fixed against his body, the same
principle of
release of contracted muscles of his shoulders and elbows will
improve his caregivers' ability to wash and dress him
as well as
improving his sitting posture in a wheelchair with the necessary arm
support.
[50]
On his left wrist S[....]'s has a fixed flexion deformity and
thumb-in-palm deformity which should ideally be corrected
with soft
tissue releases of the forearm muscles, a proximal row carpectomy and
a wrist fusion. This procedure leads to an open
hand, ease of
dressing, especially long-sleeved garments, and maintaining hygiene
of the hand. It is opined that this will be a
single-event surgery at
an agreed cost of R80'000.00. These above surgical interventions of
S[....]'s upper and lower limbs should
be performed as a matter of
urgency after reasonable weight gain post the Mic Keytube insertion.
With delay, the magnitude of surgery
as well as the prognosis for a
good result deteriorates. Dr Potgieter states that the deformities
are relentless and constantly
increasing in cerebral palsied
patients.
[51]
Although S[....]'s general condition will have to improve before he
can undergo the surgery, it is foreseen that he will
be ready for the
surgery within 6 to 12 months of the funds from the claim becoming
available. In this regard there is an 80% probability
that S[....]
would need surgical correction of his scoliosis due to the unbalanced
nature of the deformity, and to facilitate a
proper sitting posture
in a wheelchair. The scoliosis also poses a risk for his lungs.
[52]
Here the actuary already applied a 20% contingency to address the
probability of the surgery being required and the agreed
costs is
again R80'000.00. In addition, S[....] should receive lifelong
activated Vitamin D supplementation as a precaution against
pathological fractures due to decreased bone density secondary to
lack of sun exposure (institutionalization) and inactivity.
[53]
Since the surgeries are required immediately and will probably be
performed as soon as S[....]is strong enough to undergo
surgery, the
parties submit that there is no room for any contingency deduction.
It is for this reason that it was submitted by
the parties that an
award of R241'068.00 for future orthopedic expenditure would be fair
and reasonable.
[16]
This Court
considers this award as fair and reasonable and will award same.
Neurological
and General Medical expenditure
[54]
For this expenditure, the Court was referred to the report of Dr
Lombard, which was also admitted by the defendant as
per paragraph
C19 of Appendix A.
[17]
[55]
In respect of the calculations, the Court is referred to paragraph 4.
7, items 58 to 61 of "GRS1" annexed to
Appendix A on
Caselines pp 0012-89. The defendant in respect of this expenditure
noted the Plaintiff's recommendations and has
no basis to oppose
same. The Defendant further noted that the actuary applied an 80%
contingency to each of items 60 and 61 as
discussed at paragraph 19.5
of Appendix A.
[56]
The amount for neurological and general medical expenditure which
counsel for the plaintiff submitted would be reasonable
to award, is
an amount of R74'953.00.
[18]
The defendant took no issue with this award and consequently, this
Court considers this award as fair and reasonable.
Physiotherapy
[57]
In respect of this expenditure, this Court was referred to the joint
minute of Ms. Churchill and Ms. Moele, and paragraph
C20 of Appendix
A.
[19]
For the calculations,
the Court is referred to paragraph 4.8, items 62 to 77 of "GRS1"
annexed to Appendix A, on Caselines
pp 0012-90 to 91.
[58]
Here to, the Defendant noted that all recommendations and expenditure
were agreed by the experts and the Defendant has
no basis to oppose
any of these recommendations. The Defendant can also not oppose the
contingencies as applied in paragraph 20
of Appendix A. It is on this
basis that counsel jointly submitted that it would be fair and
reasonable to award an amount of R522'835.00
for physiotherapy.
[20]
This award this Court also considers fair and reasonable and will
therefore also be awarded by this Court.
Speech
Therapy and Speech-Assistive Devices Etc.
[59]
In this regard, this Court w s referred to the joint minute of Ms Van
der Merwe and Ms Dikobe, Speech and Language therapists
and AAC
interventionist therapists and paragraph C21 of Appendix A.
[21]
[60]
For the calculations in this regard, the Court was referred to
paragraph 4.9, items 78 to 136 of "GRS1" annexed
to
Appendix A on Caselines pp 0012-92 to 99.
[61]
Under this expenditure, there is a huge difference between the
recommendations and costs estimates of the two experts
and the
Defendant's stance is that the difference should be fairly and
reasonably dealt with to avoid the costs to proof same before
this
Court. To this end, the Defendant accepts the Plaintiff's submissions
at paragraph 20 of Appendix A, but submits that a further
10%
contingency should apply to the proposed total amount of R350'238.00,
reducing it to R315'214.00.
[62]
This position adopted by the defendant the Plaintiff accepts the
Defendant's stance and on the above basis, counsel jointly
submitted
that it would be fair and reasonable to award the amount of
R315'214.00 for speech and language therapy and AAC
interventions.
[22]
This award
being agreed upon by the parties, this Court considers fair and
reasonable to be awarded to the plaintiff.
Dietary
Expenditure
[63]
In this regard the Court was referred to the joint minute of the
dieticians, Ms. Kloppers and Ms. Mojapelo and paragraph
C22 of
Appendix A.
[23]
[64]
In respect of the calculations, the Court was referred to paragraph
4.10, items 137 to 180 of "GRS1" annexed
to Appendix A on
Caselines pp 0012-99 to
103.
Here the defendant noted that the two experts agreed on all the
recommendations and costs and as such, has no basis to oppose
either
and accepts same as agreed between the experts and discussed at
paragraph 22 of Appendix A.
[65]
It is on this basis that counsel requested the Court to award the
amount of of R987'792.00 for dietary expenses. This
award this Court
considers fair and reasonable and as such same will be awarded by
this Court.
[24]
Orthotics
ANS Equipment
[66]
In this regard this Court is referred to the joint minute of Mr.
Grimsehl and Mr. Terry and paragraph C23 of Appendix
A.
[25]
In respect of these calculations the Court was referred to paragraph
4.11, items 181 to 203 of "GRS1" annexed to Appendix
A,
Caselines pp 0012-104 to 107.
[68]
The Defendant noted that all recommendations and expenditure were
agreed by the experts. The Defendant's stance, as recorded
in the
Third Pre-trial minute, is nevertheless that items 192 and 193 of
"GRS1", which allows for a lightweight travel
buggy and its
maintenance, are unnecessary due to the costs of a vehicle and
primary wheelchair included in the award.
[69]
Counsel for the plaintiff had argued that a lightweight travel buggy
would be required in circumstances where public
transport is used and
this will not be necessary for S[....]. The Defendant is of the view
that the total costs of R102'684.00
for these two items should be
deducted from the total of R1'737'505.00, reducing it to
R1'634'821.00. Hereto the plaintiff accepted
the defendant's stance
and counsel requested that the Court awards the amount of
R1'634'821.00 for orthotics and orthotic equipment
and devices. This
award this Court considers fair and reasonable under the
circumstances and awards same.
[26]
Occupational
Therapy and Related Costs
[70]
In this regard the Court was referred to the joint minute of the
occupational therapists, Ms. Greeff and Ms. Montwedi
and paragraph
C24 of Appendix A.
[27]
In
respect of the calculations, the Court was referred to paragraph
4.12, items 204 to 243 of "GRS1" annexed to Appendix
A on
Caselines pp 0012-107 to 112.
[71]
In respect of these costs the defendant noted that most
items/recommendations were agreed between the experts and accepts
the
agreed recommendations by the experts.
[72]
Where disagreements occurred between the experts such as items 209
and 210 (block therapy) which were only recommended
by Ms Greeff, and
item 210 where the Plaintiff applied 25% contingency. Considering the
report of Dr Simmons, the Defendant's orthopedic
surgeon, the
Defendant accepts the need for immediate intervention (item 209)
since S[....] has had no intervention to date and
his condition is
very poor, requiring immediate intensive therapy. The Defendant's
stance is though that the cost of R506'625.00
that the Plaintiff
allowed at item 210 should not be allowed at all and should be
deducted from the total of the occupational therapy
costs.
[73]
In respect of this expense the defendant also noted the difference
regarding case management during the first year and
that the
plaintiff proposed that an average should be used for items 211 and
212 (case management in the first year), rendering
an amount of
R29'691.00. This approach was accepted by the defendant.
[74]
In relation to item 237 (rocker chair), although the Plaintiff only
allowed the amount of R5'378.00, the Defendant's
stance is again that
this item is unnecessary and should be discarded. Lastly, the
Defendant considered that it is impossible to
predict whether S[....]
would receive space at Little Gems Facility by the time that his
condition allows him to attend, and is
therefore submits that it is
reasonable to use the average between the two caregiving options.
[75]
In this regard, the plaintiff accepts the defendant's stance which
reduces the total amount for occupational therapy
suggested by the
plaintiff at paragraph 24 of Appendix A from R4'922'441.00 to
R4'410'438.00. The request is that the Court to
award the amount of
R4'410'438.00 for occupational therapy, including future caregiving
services.
[28]
This award this
Court considers fair and reasonable and will award such in respect of
this expenditure.
Maxillofacial
And Oral Surgery Costs
[76]
In this regard the Court was referred to the report of Dr Muthray,
which report was admitted by the Plaintiff. See here
paragraph C25 of
Appendix A.
[29]
In respect of
the calculations, the Court was referred to paragraph 4.13, items 243
to 261 of "GRS1" annexed to Appendix
A on Caselines pp
0012-85 to114.
[77]
Although Dr. Muthray was appointed by the Defendant, the Defendant
submits that his recommendations are mostly not required
and there is
no basis therefore.
[78]
Hereto, the parties considered each item to determine which items are
indeed necessary. After a lengthy discussion, the
Defendant's stance
was that only items 251 to 253 (management of apnoea), items 255 to
258 (control of Sialorrhea) and item 259
(chronic lip chewing) are
required. The Defendant noted that the Plaintiff applied a 50%
contingency to each of these items (except
for item 259) and accepts
these contingencies.
[79]
As a result, in accordance with the defendant's mentioned stance, the
plaintiff's proposed amount of R561'223.00 for
Maxillofacial and oral
surgery is therefore reduced to R241'150.00. As the plaintiff
accepted the defendant's stance counsel submitted
that it would be
reasonable and fair if the Court awards the amount of R241'150.00 for
maxillofacial expenditure.
[30]
This amount this Court considers fair and reasonable and is
accordingly awarded by this Court.
Biokinetic
Expenditure
[80]
Under this expenditure the Court was referred to the joint minute of
the orthotists, Mr. Grimsehl and Ms. Bloemhof and
paragraph C26 of
Appendix A.
[31]
For the
calculations in this regard, the Court was referred to paragraph
4.14, items 262 to 276 of "GRS1" annexed to
Appendix A on
Caselines pp 0012-114 to 116.
[81]
In respect of this expenditure, the plaintiff applied very liberal
contingencies of 25% to all exercise sessions as well
as further
contingencies to other items. The defendant noted that the experts
agreed on all recommendations and costs and as such
the defendant has
no basis to dispute the agreements that were reached or the
contingencies that were applied by the Plaintiff
at paragraph 26 of
Appendix A.
[82]
It is on this basis that counsel thus jointly submitted that it would
be fair and reasonable for the Court to award an
amount of
R633'422.00 for biokinetics.
[32]
This amount to be awarded this Court considers fair and reasonable
and it will be awarded by this Court.
Past
Medical Expenses and Future Dietary Expenses
[83]
During the hearing the plaintiff, Ms N[....], testified that S[....]
was admitted to the Parkland hospital on 22 December
2.022 for the
treatment of his constipation. This treatment included the placement
of a feeding tube (PEG).
[84]
As at the commencement of the trial, the cost for the initial
placement of the PEG was claimed as a future medical expense
in the
total amount of R29'232.00 as the parties were not aware of S[....]'s
hospital admission as testified to by Ms. N[....].
[85]
In respect of this calculation, parties referred this Court to
paragraph 4.10, items 158 to 166 of "GRS1" annexed
to
Appendix A Caselines pp 0012-102.
[86]
As past and future medical expenses .w re claimed under one heading
in the Particulars of Claim, constituting one total,
given the
evidence of Ms N[....] on point it became clear that the costs for
the placement of the PEG is actually a past medical
expense and not a
future medical expense.
[87]
Ms N[....] provided the parties with a POLMED statement reflecting
the costs of the placement of the PEG at the Parkland
hospital in the
total amount of R22'213.00. By agreement between the parties, this
statement together with a short summary (schedule)
was uploaded onto
caselines for consideration by the Court. This amount is not in
disputed by the parties.
[88]
Consequently, the parties deducted the amount of R29'232.00 from the
total of the future medical expenses recommended
by the dieticians
(items 158 to 166 of "GRS1" and number 4.10 in the table at
paragraph 26 above), and instead added
number 4.15 (past medical
expenses) with the amount of R22'213.00 in the mentioned table.
[89]
As a result the plaintiff moved for an amendment to the totals in the
table at paragraph 26 above under the heading "Future
medical
and related expenses" to read "Past and Future medical and
related expenses" with the total being reduced
from
R12'101'269.00 to R12'094'250.00.
[90]
Therefore, the sub-total of the claim before deducting the 10%
liability discount, is reduced from RlS'l78'180.00 to
RlS'l71'161.00
and the sub-total of the claim after deducting the 10% li9bility
discount, is reduced from R13"660'362 to Rl3'654'045.00.
The
costs of the trust is as a result reduced from R897'774.00 to
R897'348.00 and the total amount of the claim is reduced from
R14'558'136.00 to R14'551'393.00.
Future
Loss of Earnings
[91]
In turning then to the future loss of earnings the Court was firstly
referred to the joint minutes of the educational
-and the industrial
psychologists.
[33]
In addition
the Court was referred to "GRS 2" - the actuarial report of
GRS Actuarial Consultants that is annexed to
Appendix B.
[92]
The Court was further referred to Appendix B to the Plaintiff's
Quantum Schedule. Herein paragraphs B3 to B8 contain
the plaintiff's
submissions regarding contingencies and in paragraph 9 thereof co u n
s e I submitted that the reasonable amount
to be awarded for future
loss of earnings, is R827'098.00.
[93]
In their joint minute, the educational psychologists differed in that
Ms De Rooster opined that S[....]would have been
able to complete
Grade 12 (NQF4) with at least higher certificate endorsement. Taking
the socio-economic circumstances of the family
into account,
S[....]would probably have entered the labour market with a Grade 12
qualification and then have progressed with
occupationally focused
modules, accumulating credits and ultimately functioning with an NQFS
qualification in the labour market
whereas Dr. Ngonyama-Ndou opined
that had it not been but because of the traumatic event, S[....]could
have been an average child
and could complete Matric and achieve at
least a Diploma i.e. NQF Level 6. This opinion is based on the birth
history, the family's
educational levels and the socio-economic
circumstances of the family.
[94]
On that basis, the industrial psychologists agreed on seven
pre-morbid career and earnings scenarios for S[....]. In
this regard
the industrial psychologists have not indicated that one of the seven
scenarios is more probable than the rest. As
the incident occurred at
birth there is therefore no pre-morbid history of S[....], other than
the family history and circumstances
that the educational- and
industrial psychologists already considered.
[95]
In Appendix 8, the plaintiff suggested that the best manner to
address the multiple scenarios, is to allow for the average
between
them, which calculated the amount of R827'098.00. to be awarded.
[96
J In contrast the defendant's stance is that the two most probable
scenarios are scenarios 18 (NQFS with employment after school)
and 2C
(NQF6 with employment after school). In this regard, counsel for the
plaintiff had argued that it is not realistic that
S[....] would have
had the funds to study full-time immediately after school or that he
would have become an artisan. In addition
the
defendant argued that it would be reasonable to use the average
between the probable scenarios 18 and 2C and to apply a 10%
contingency to the total. This approach will reduce the proposed
amount of R827'098.00 to R676'911.
[97]
The Plaintiff accepts the Defendant's stance and counsel submits that
it would be reasonable and fair for the Court to
award the amount of
R676'911.00 to the Plaintiff for S[....]'s loss of future earnings.
This amount this Court considers fair and
reasonable under the
circumstances and it will be awarded by this Court.
Past
Caregiving Services
[98]
In respect of this expense, this Court was firstly referred to
Appendix C to the Plaintiff's Quantum Schedule. In this
regard
paragraphs 1 and 2 contains the plaintiff's submissions regarding the
principle underlying a claim by S[....] for fair compensation
to the
plaintiff for her past caregiving of S[....]; and paragraphs 3 to 5
deal with the amount to be awarded.
[99]
In this regard Mr. Potgieter from GRS .Actuaries was requested to
calculate a fair figure for compensation based on the
following two
scenarios:
Scenario 1:
(i) The
minimum hourly rate of a domestic worker, working 24 hours a day, 7
days a week from when S[....] was 12 months
of age until February
2021; and
(ii) From March
2021 (when he started to attend Sibusisu), working 24hours a day on
weekends only from 16h00 on Friday until
06h00 on Monday mornings and
on public holidays and
Scenario 2:
(iii) A monthly
salary of R6'500 in current terms from the age of 12months to
February 2021; and
(iv) From March 2021
(when he started to attend Sibusisu) to date, a salary of R2'500 per
month in current terms.
[34]
[100]
With reference to "GRS2", page 3, the actuary calculated a
figure for fair compensation for past caregiving based
on Scenario 1
of R1'097'586 and based on Scenario 2 of R603'835.00. Herein the
defendant considered the caselaw in Appendix B and
cannot oppose the
claim in principle but does not agree to the amount of R543'452.00 as
proposed by the plaintiff and adopts the
stance that in view of the
disability grant that was paid to the plaintiff since 2016, an amount
of R400'000.00 is reasonable.
[101]
The position so adopted by the defendant the plaintiff accepted and
counsel submitted that the amount of is a fair award by
the Court for
compensation to the Plaintiff for past caregiving and should be
awarded. The amount this Court considers as fair
and reasonable and
will be awarded by this Court.
General
Damages
[102]
In this regard this Court is referred to Appendix D to the
Plaintiff's Quantum Schedule. In this regard paragraphs B1 to BS
deal
with the disabilities and sequelae as a consequence of S[....]'s
severe brain damage.
[35]
[103]
In this regard S[....]'s injuries and sequelae as discussed at
paragraphs 1 to 5 of Appendix D are admitted as common cause
between
the parties. With reference to paragraphs B8 to B10 of Appendix D,
and considering the caselaw discussed in Appendix D,
the Plaintiff
suggested the award of R2'000'000.00 for general damages.
[104]
The Defendant considered the authority referred to in Appendix D and
accepts that the proposed amount is in accordance with
the caselaw
and cannot oppose the amount. It is on this basis that counsel
therefore jointly submitted that it would be appropriate
and
reasonable for the Court to award an amount of R2'000'000.00 for
general damages. This award this Court considers fair and
reasonable
having regard to the appropriate caselaw and accordingly, same is
awarded to the Plaintiff.
Protection
of the Award
[105]
S[....] it is common cause is still at a young age and given the
quantification of the award it is practice that this award
should be
protected once paid out.
[106]
In this regard the parties referred the Court to Appendix E to the
Plaintiff'sQuantum Schedule. On point it was submitted
that there can
be no doubt about the need for protection of the award, and in fact,
the parties agreed at the third pre-trial conference
that, subject to
the Court's approval, a Trust should be established for S[....].
[107]
In this regard the parties jointly submitted that a more flexible and
more investment-friendlyalternative to a curator bonis,
i.e. a
professional trust, is preferable and is better crafted to serve the
interests of S[....].
[36]
[108]
It is common for Courts to award 7.5% of the total amount of the
claim to cater for the costs of the administration of the
trust. This
was also already agreed between the parties at the third pretrial
conference.
[109]
From the final award made by the Court the parties, requested that
the Court deduct the amount for past caregiving services
and not
include same when the cost for the administration of the trust is
determined. This amount should then be paid directly
to Ms. N[....],
S[....]'s mother, and does not form part of the trust. This Court
will accede to this request.
Award
[110]
Consequently the following award is made to the plaintiff:
CLAIM
AMOUNT
1. General
damages
R2'000'000.00
2. Future
loss of earnings
R676'911.00
3. Past
caregiving services
R400'000.00
4. Past and
Future medical and related expenses R12'094'250.00.
4.1.
Mobility Rl'000'977.00
4.2. Home
Adaptations and Maintenance R1’000’000.00
4.3. Dental
expenditure R328'640.00
4.4.
Urology R519'038.00
4.5.
Pulmonology R190'921.00
4.6. Orthopaedic
expenditure R241'068.00
4.7. Paediatric
and R74'953.00
Neurological
expenditure
4.8.
Physiotherapy R522'835.00
4.9. Speech and
language therapy R315'214.00
And assistive devices
4.10. Dietary
expenditure R958'560.00
4.11. Orthotic
expenditure R1'634'821.00
4.12. Occupational
therapy and R4'410'438.00
Related
costs
4.13. Maxillofacial and
oral surgery R241'150.00
4.14. Biokinetic
expenditure R633'422.00
4.15 Past medical
expenses (PEG) R22'213.00
SUB-TOTAL
R15'171'161.00
Minus
10% liability discount R1'517'116.00
SUB-TOTAL
AFTER 10%
R13'654'045.00
DEDUCTION
Costs
of protection of the award R997'053.00
(7.5%
of the sub-total, excluding -10%
R360'000
(R400'000 - 10%) for =
R897'348.00
past
caregiving) = R13'294'045.00
TOTAL
AMOUNT OF CLAIM R14'551'393.00
============
[111]
The parties further addressed this Court on the establishment of a
trust and presented before this Court. the proposed trust
deed and
the consent of the trustee. The court was also referred to the
Contingency Fee Agreement concluded between the plaintiff
and the
instructing attorney and is satisfied that same applies with the
Contingency Fee Act.
ORDER
[112]
Consequently the following order is made:
112.1 The Defendant
is ordered to pay the amount of R 14 551 393. 00 to the Plaintiffs
attorneys of record. Joubert Attorney,
in final settlement of the
Plaintiff's claim on behalf of S[....] T[....] M[....] ('S[....]").
112.2 The Defendant
is ordered to pay the capital amount of R 14 551 393.00 by direct
transfer into the trust account of O
Joubert Attorney, details of
which are as follows:
Bank:
First
National
Bank Account number:
6[....]9
Branch number:
22
20 26
Branch name:
Pretoria
Ref:
O
JOUBERT/
JN0389
112.3 The aforesaid
amount in paragraph 112.1 and 112.2 will not bear interest unless the
Defendant fails to effect payment
thereof within thirty calendar days
of the date of this Order, in which event the capital amount will
bear interest at the legally
prescribed rate of interest per annum in
accordance with the provisions of the
Prescribed Rate of Interest
Act, 55 of 1975
, as amended by the Judicial Matters Amendment Act, 24
of 2015, and which rate of interest will be referred to hereinafter
as "the
mora rate"), calculated from and including the
thirty-first calendar day after the date of this Order to and
including the
date of payment thereof.
112.4 The Defendant
is ordered to pay the Plaintiff's taxed or agreed party and party
costs in respect of the quantum of the
claim and the quantum trial
from 16 to 25 January 2023, including the following costs:
112.4.1 The
costs of employing counsel;
112.4.2 The
costs consequent upon obtaining the medico legal quantum reports and
actuarial reports, as well as any addendum
reports that were provided
to and/or served on the Defendant in terms of Rule 36(9)(b), and the
costs of counsel's consultations
with these experts relating to the
quantum trial;
112.4.3 The
reasonable preparation/qualifying and reservation fees (if any) of
the experts of whom notice were given
in terms of Rule 36(9)(a) and
(b), including the costs of consultations (if any) with the legal
team, relating to the trial of
16 to 24 January 2023;
112.5
The costs of obtaining the following expert joint minutes:
112.5.1 Ms
Churchill and Ms Moele - physiotherapists;
112.5.2 Ms De
Rooster and Ms Nontsikelelo - educational psychologists;
112.5.3 Ms
Kloppers and Ms Mojapelo - dieticians;
112.5.4 Mr
Grimsehl and Mr Terry - orthotists;
112.5.5 Ms
Greeff and Ms Montwedi - occupational therapists.
112.5.6 Mr
Moodie and Mr Hopkins - industrial psychologists;
112.5.7 Dr.
Campbell and Dr. Pearce - life expectancy experts;
112.5.8 Ms Vd
Merwe and Ms Dikobe - speech language therapists and AAC
interventionists;
112.5.9 Mr
Herbst and Ms Bloemhof - biokineticists;
112.5.10 Prof Goussard
and Dr. Roux - pulmonologists; and
112.5.11 Dr. Potgieter
and Dr. Simmons - orthopedic surgeons.
113.
The Court attendance fees for Mer Ben Moodie for 23 January 2023;
114.
The reasonable costs and expenses of accommodation and of
transporting the Plaintiff, S[....], and a family member or
helper,
in attending all medico-legal examinations by the Plaintiff's
experts, at a fee equivalent to that of a candidate attorney,
subject
to the discretion of the Taxing Master.
115.
The costs of making up and distributing the trial bundles, if any,
and uploading the bundles onto Caselines;
116.
Counsel's and attorney's reasonable fees relating to the preparation
for and attendance of any pre-trial conferences
as well as counsel's
fees for the drafting of the pre-trial agendas and minutes, the
special trial note and all practice notes;
117.
The costs of Counsel for drawing up the Schedule of Loss together
with its various appendices and for drafting instructions
to the
actuary for the calculation of the claim; and
118.
The costs attendant upon the obtaining of payment of the amounts
referred to in this Order.
119.
The following provisions will apply with regards to the determination
of the aforementioned taxed or agreed party and
party costs:
119.1 The
Plaintiff's Attorneys shall serve the Notice of Taxation on the
Defendant's Attorneys of Record;
119.2 The Defendant
shall be allowed thirty calendar days from date of settlement or of
taxation within which to effect payment
of the agreed or taxed costs;
and
119.3 Should
payment not be effected within the aforementioned period, the
Plaintiff will be entitled to recover interest
on the taxed or agreed
costs at the mora rate calculated from and including the thirty-first
calendar day after the date of settlement
of the costs or of
taxation, to and including the date of final payment thereof.
120.
The costs referred to in paragraphs 112.4 and 112.5 shall be paid
into the trust account of the Plaintiff's attorneys, O Joubert
Attorney, referred to in paragraph 112.2 above.
121.
The nett proceeds of the payments referred to above, after deduction
of the amount of R 360 000.00 (which is intended as compensation
to
Ms N[....] for S[....]'s caregiving to date) and of unrecoverable
attorney and own client costs (i.e. the excess of attorney
and own
client costs over party and party costs) (which nett proceeds will be
referred to hereinafter as "the capital amount"),
shall be
payable by the Plaintiff's Attorneys to a Trust, to be created within
3 (three) months of receipt of the amount referred
to in paragraph 1
above, which Trust will:
122.
Be created on the basis of the provisions as more fully set out in
the draft Trust Deed attached hereto marked "A";
123.
Have, as its main objective, the controlling and administering of the
capital amount on behalf of S[....]; and
124.
Have, as its professional Trustee, Nazneem Parker from SANLAM TRUST,
with the powers, duties and functions as set out in the
draft Trust
Deed attached hereto marked "A".
125.
Should the aforementioned Trust not be created within the
aforementioned period of 3 (THREE) months after receipt of the amount
in paragraph 1 above, the Plaintiff is directed to approach this
Court within 1 (one) month thereafter in order to obtain further
directives in respect of the manner in which the capital amount is to
be utilized in favour of S[....].
126.
Until such time as the professional Trustee is able to take control
of the capital sum and to deal with same in terms of the
Trust Deed,
the Plaintiff's Attorneys of Record:
126.1
Are authorised to invest the capital amount in an interest
bearing account with a registered banking
institution in terms of
Section 86(4)
of the
Legal Practice Act, 28 of 2014
, to the benefit
of S[....], pending the finalisation of the Trust;
126.2
Shall be prohibited from dealing with the capital in any other manner
unless specifically authorised thereto
by the Court, subject to
paragraph 9.3 hereunder; and
126.3
Are authorised and ordered to make any reasonable payments to satisfy
any of S[....]'s needs that may arise
and that are required in order
to satisfy any reasonable need for treatment, care, aids or equipment
that may arise in the interim.
127.
The appointment of the professional Trustees is subject thereto that
the professional Trustee furnish security to the satisfaction
of the
Master of the High Court, and that the Trustee's conduct is also
subject to the supervision of the said Master.
CJ
COLLIS
JUDGE
OF THE HIGH COURT
SOUTH
AFRICA
APPEARANCES
Counsel
for Plaintiff: ADV.
F PAUER
Instructed
by: O
JOUBERT ATTORNEYS
Counsel
for Defendant: ADV
NR NGOEPE assisted by ADV AH MOSHE
Instructed
by: OFFICE
OF THE STATE ATTORNEY
Date
of hearing: 26 JANUARY 2023
Date
of judgment: 16 AUGUST 2023
ANNEXURE
A
DEED
OF TRUST
of
the
S[….]
T[….] M[….] TRUST
WHEREAS
S[....] T[....] M[....] (hereinafter "Se/lo" or "the
Beneficiary") is a disabled minor suffering from
a severe
physical and mental disability, as a result of which he is severely
hindered in his ability to function and perform the
daily activities
of life, incapable of maintaining himself, and incapable of managing
his own financial affairs, as contemplated
in
section 1
read with
section 68 of the Income Tax Act, 58 of 1962;
AND
WHEREAS the Beneficiary is entitled to an award of damages
(hereinafter "the Beneficiary's award") in the action
instituted against the Gauteng Provincial Government referred to
below;
AND
WHEREAS there is agreement between the parties to the said action
that the net balance of the capital amount awarded to the
Beneficiary, that is the gross amount awarded less such fees and
disbursements attributable to the litigation undertaken and which
in
accordance with the court order may be deductible from such award,
should be held and administered in accordance with the provisions
of
this Deed of Trust, thereby to protect and manage it and for purposes
of the future administration thereof;
AND
WHEREAS the Founder intends to create a Trust for the sole benefit of
the Beneficiary upon the terms and conditions set out
below;
AND
WHEREAS the Trustee to be appointed, is willing to act as such, to
accept the donation of the Founder referred to herein below,
to
administer the Trust and to accept and administer 0013-8 any other
funds which may in future accrue to the Beneficiary and/or
the Trust
on behalf of and for the benefit of the Beneficiary and to utilise it
as it in its sole discretion may see fit, provided
that such
utilisation does not impugn the terms and conditions set out below;
AND
WHEREAS the Court has approved the terms of this Deed of Trust and
has ordered that the said net balance of the capital award
be paid to
the Trust, on behalf of and for the benefit of the Beneficiary, to be
dealt with as specified herein, thereby ensuring
that the purpose of
the award, the maintenance and support of the Beneficiary for the
rest of his life, be attained;
NOW
THEEFORE the parties to this Deed of Trust agree as follows:
1.
THE PARTIES
The
parties are
1.1. "The
Founder'' is the Beneficiary's biological mother, S[....] T[....]
N[....], with ID number 8[....]5; and
1.2. "
The
Trustee
" is Naaznien Parker from SANLAM TRUST as represented
by its nominee from time to time if such nominee has been appointed.
2.
DEFINITIONS AND INTERPRETATION
2.1.
In this Deed of Trust, unless it is stated otherwise or the contrary
appears from the context, the following words or
expressions shall
bear the meanings set out contra-positively below:
2.1.1. "
The
ACTION
" - Is the action for damages under case number
Y69426/2019 between the said biological mother of the Beneficiary,
0013-9 as
Plaintiff in her representative capacity, and the Member of
the Executive Committee for Health, Gauteng Provincial Government, in
his nominal capacity as Defendant, in the High Court of South Africa,
Gauteng Division, Pretoria;
2.1.2. "
The
AWARD
" - Is the damages awarded to or for the benefit of the
Beneficiary in terms of the court order granted in the action,
excluding
the amount awarded in respect of the trustee's remuneration
in terms of fees, disbursements and other expenses provided for
herein;
2.1.3. "
An
APPLICATION
" - If the context indicates same, a formal
application or action brought in a court of law, or, if the context
indicates this,
an informal application;
2.1.4. "
The
BENEFICIARY
' - Is S[....] T[....] M[....], a minor male born on 7
September 2010 (also referred to as "S[....]" herein);
2.1.5. "
The CASE
MANAGER
" - Is an appropriately experienced and knowledgeable
individual who is not affected by actual or potential conflict of
interest
and who is suitably qualified and able to diligently perform
his or her obligations, in particular the duties of a case manager,
who is appointed at the discretion of the trustee, and whose duties
include but are not limited to -
2.1.5.1.
investigating the type or nature of the therapies and equipment
reasonably required by the Beneficiary;
2.1.5.2.
coordinating, overseeing and monitoring the implementation and use
thereof from time to time;
2.1.5.3.
identifying appropriate and available therapists, service providers
and/or caregivers to be engaged or employed
by the Trustee for the
benefit of the Beneficiary;
2.1.5.4.
obtaining prior approval and/or facilitating the process of obtaining
prior approval from the Trustee for the
incurring of fees, the costs
of equipment, and caregivers' remuneration for the sole benefit of
the Beneficiary from time to time;
2.1.5.5.
providing advice to and reporting with appropriate regularity to the
Trustee on any aspect falling within the
ambit of his or her duties,
obligations and expertise;
2.1.5.6.
ensuring that the duties borne by any person towards the Beneficiary
are as diligently and comprehensively
performed as circumstances may
require; and
2.1.5.7.
performing any act he or she may be required to perform in the
discharge of his or her duties diligently and
with dispatch;
2.1.6. "
The
COURT
' - The Gauteng Division, Pretoria of the High Court of
South Africa, and only in the event that the Gauteng Division,
Pretoria
of the High Court does not have jurisdiction, any other
division of the High Court of South Africa that has competent
jurisdiction.
2.1.7. "
The COURT
ORDER
" - Is the court order or orders issued or to be issued
in the action, a copy/copies whereof will be annexed hereto;
2.1.8. "The
DEFENDANT' - Is the Member of the Executive Council for Health of the
Gauteng Provincial Government or his or her
successor in title, or
the designated representative of the said Member;
2.1.9. "
The
DISABILITY" or "The BENEFICIARY'S DISABILITY
"- Is
the cerebral palsy from which the Beneficiary suffers and all
physical, neurophysical, neurodevelopmental, neurocognitive,
psychological, psychiatric and medical consequences thereof of
whatsoever nature, whether temporary, intermittent or permanent;
2.1.10. "The
FOUNDER" - Is S[....] T[....] N[....], the Beneficiary's
biological mother, also referred to as "the
Plaintiff' herein;
2.1.11. "
The
FUNDS
" - Are all amounts accruing to the Trust and its
assets from any source of whatsoever nature, whether payments of
capital,
recovered costs including any party and party costs that may
be recovered, investment income or accrued interest;
2.1.12. "
The
INTERESTED PARTIES
" - Are the Plaintiff, S[....] T[....]
N[....], and (if she be unavailable) the next of kin, as defined
herein, and includes
any duly appointed curator ad person am or /item
to S[....];
2.1.13. "
The
MASTER
" - Is the Master of the High Court in Pretoria;
2.1.14. "
A
MEDICAL EXPENSE
" - Is any expense which flows from or is
incurred in consequence of the Beneficiary's disability and which
would not have
been incurred but for the Beneficiary's disability and
which is directly or indirectly related to hospitalisation, medical
treatment
and services, therapeutic services, caregiving services,
case management services, the adaptation of accommodation,
specialised
education, transport, the costs of acquisition of any and
all aids, devices or equipment as well as the maintenance costs
thereof:
Provided that any such expense incurred outside of the
Republic of South Africa (save disability-related emergency treatment
and
services required whilst the Beneficiary is travelling outside
the Republic) shall be quantified as an expense for the purposes
of
depletion of the Medical Fund, as being equal to the reasonable cost
thereof within Gauteng, Republic of South Africa;
2.1.15. "
MEDICAL
FUND
" - The amount of any award made in the action in
respect of future medical expenses (constituting the head of damages
relating
to future hospital, medical and related expenses) excluding
any lawful deductions from such amount for the pro-rated quantum of
legal fees and disbursements in the action, plus the proportional
costs recovered from the action, paid into the Trust and the
remaining balance thereof, from time to time, including any
supplementary payment to' such fund, as invested and managed by the
trustee and as calculated upon termination of the Trust;
2.1.16. "
The
NET CAPITAL AWARD
" - Is the total amount awarded as damages
to or for S[....], after deduction of lawfully deductible fees and
disbursements
arising from the litigation, plus such legal costs as
are recoverable from the Defendant in the action;
2.1.17. "
The
NEXT of KIN
" - Is the closest living family member of the
Beneficiary or, if such person is not his closest living family
member, the
person most closely involved in the Beneficiary's daily
care: Provided that no person employed as a salaried caregiver or
facilitator
is to be regarded as "next of kin";
2.1.18. "
A
NOTICE
" - Is any written notice delivered by either physical
or electronic means to an interested party or the Defendant when the
person who is obliged to give notice of a particular fact or
circumstance to such interested party or the Defendant and who bears
the onus of establishing that reasonable steps were taken to bring
that fact or circumstance as contained in the Notice to that
party's
or the Defendant's attention;
2.1.19. "
The
OBJECT'
- Is the object of the Trust as set out in clause 6
below;
2.1.20. "
The
PLAINTIFF
' - Is the said S[....] T[....] N[....], S[....]'s
biological mother;
2.1.21. "
The
PROPERTY
'' - Any immovable residential property which will
constitute the primary residence for the Beneficiary, and which is
purchased
by the case manager and/or plaintiff (or the Beneficiary's
legal guardian who has legal custody of the Beneficiary) fully or
partially
from the Funds, and over which a bond in favour of the
Trust shall be registered to the extent that Funds are utilised in
such
purchase. The value of such property shall not form part of the
Trust assets for purposes of either calculating the trustee's fees;
2.1.22.
"
RENOVATIONS
" - Any renovations to be made to the
property referred to in clause 2.1.21 above, or any property occupied
by the Beneficiary
as his/her primary residence in the event of it
not being necessary for a property to be purchased as contemplated in
clause 0013-14
2.1.21 for
the benefit of the Beneficiary;
2.1.23. "
SECURITY'
- Is the security to be furnished to the satisfaction of the Master
as envisaged in
section 77
of the
Administration of Estates Act, 66
of 1965
;
2.1.24. "
The
TRUST
' - Is a "Special Trust' as defined in section 1 of the
Income Tax Act, 58 of 1962, created in terms of this Deed of Trust to
protect and manage the award made in respect of his disability and
its consequences to S[....];
2.1.25. "
The
TRUSTEE'
- Is the original Trustee appointed and endorsed in
accordance with the provisions of sections 6(1) and 6(4) of the Trust
Property
Control Act, 57 of 1988 as well as where contextually
appropriate, any successor in title;
2.1.26. "
The
TRUST ASSETS
"- Shall include the net capital award
(including such costs as are recovered from the Defendant in the
action) and all assets
and investment property of whatsoever nature
howsoever acquired, as well as all moneys making up the gross income,
net income and/or
increases in capital, irrespective of source;
2.1.27. "
The
TRUSTEE'S REMUNERATION
" - Is the Trustee's fee referred to
in clause 10 below and which is paid into the Trustee Remuneration
Fund;
2.2.
Unless stated otherwise or the contrary appears from the context -
2.2.1 words
importing the singular shall include the plural and vice versa;
2.2.2. reference to one
gender shall include all other genders; and
2.2.3. reference to a
"person" shall include references to a natural person, a
juristic person or a body corporate.
2.3.
The headings of individual clauses in this Deed of Trust are for
convenience only and shall not be used for purposes
of interpretation
of this Deed of Trust.
3.
NAME OF THE TRUST
The
name of the Trust is the S[....] T[….] M[....] TRUST.
4.
ESTABLISHMENT OF THE TRUST
The Founder and the
Trustee herewith establish the Trust in accordance with that which is
contained in this Deed of Trust, it being
specifically recorded that
none of the Founder's Common Law and Statutory rights and obligations
as the biological mother of S[....](particularly,
without derogating
from the generality of those words, the rights and obligations
referred to in
section 129(4)
of the
Children's Act No 38 of 2005
),
are by virtue of anything contained in this Deed of Trust abrogated,
waived, renounced or diminished, save as expressly or by
necessary
implication provided for herein.
5.
DONATION
The Founder donates to
the Trust the sum of R250.00 (Two hundred and fifty Rand), for the
administration of the Trust in accordance
with the provisions of this
Deed of Trust.
6.
OBJECT OF THE TRUST
6.1. The object of
the Trust is
6.1.1.
to safeguard and administer the funds awarded as damages to the
Beneficiary in such a manner as to benefit
him by providing solely
for his general day-to-day maintenance and/or living expenses and/or
wellbeing, as was intended by the
Court when it made the award;
6.1.2.
to receive and manage the award.
6.2. The Trust is a
discretionary Trust insofar as the application, allocation and
appropriation of its assets are concerned
and the Trust assets shall
not vest in the Beneficiary save to the extent that the Trustee may
in its absolute discretion deem
appropriate.
7.
DURATION OF THE TRUST
The
Trust commences on the date that the Master of the High Court issues
the Letters of Authority, having regard to the court order
endorsing
this Deed of Trust, and shall terminate as provided for in clause 18
below. This does not derogate in any way from the
court order and the
rights and obligations arising therefrom.
8.
NUMBER, APPOINTMENT AND DISQUALIFICATION OF TRUSTEES
8.1. The Trustee
shall accept its appointment as the original Trustee by signing this
Deed of Trust and shall upon its appointment
being confirmed by the
Master of the High Court assume office as such.
8.2 No more
than one trustee shall at any one time be appointed.
8.3. A Trustee
shall cease to be a trustee
8.3.1. On
resignation, provided that prior notice of no less than two (2)
calendar months shall be given in writing
to the Master, all
interested parties, and the Defendant in order to clothe such
resignation with validity;
8.3.2. In the
event of the trustee becoming insolvent or is liquidated;
8.3.3. In the
event of being disqualified in terms of section 69 of the Companies
Act, 71 of 2008 (excluding the provisions
of sub-section (6) thereof)
to act as a director of any registered company;
8.3.4. In the
event of being so removed from office by the Master or by the Court;
8.3.5. In the
event of being placed under curatorship or is declared by a court to
be incapable of managing his, her
or its own affairs or is diagnosed
as suffering from a mental illness, as contemplated in the
Mental
Health Care Act, 17 of 2002
;
8.3.6. In the
event of being found guilty of a criminal offence of which dishonesty
is an element or is removed from
an office of trust due to misconduct
or dishonesty;
8.3.7. On
death or deregistration;
8.3.8
One being absent from the Republic of South Africa ("the
Republic") for more than three months
without having been
granted any leave of absence by the Master and without obtaining the
consent of all interested parties capable
of furnishing such consent;
8.3.9.
In the event of being absent from office and not readily contactable
by telephone or another effective
method of contemporaneous
communication for a period exceeding thirty (30) calendar days
without having duly appointed a nominee
to perform his, her or its
duties and execute his, her or its authority.
8.4. In the event
the Trustee intends to resign, the Trustee shall simultaneously with
his, her or its notice of resignation
nominate a willing successor
who is able to act as Trustee.
8.5. Every
appointment as Trustee shall be subject to confirmation by the Master
and to such conditions as the Master may
deem fit to impose, as well
as the approval of all interested parties as far as is practical,
provided that such approval shall
not to be unreasonably withheld:
Provided further that if a successor nominated to be the Trustee is
not able to assume the duties
of Trustee for any reason whatsoever,
the Master may appoint a Trustee after consultation with the
interested parties;
9.
DUTIES AND POWERS OF THE TRUSTEE
Without
derogating from the generality of the duties imposed and powers
conferred upon the Trustee elsewhere in this Deed of Trust:
9.1.
The Trustee shall
9.1.1.
perform all of the duties, discharge all of the obligations and
exercise all of the powers so imposed or granted
with the care and
skill reasonably to be expected of a person who manages the affairs
of another;
9.1.2. so
perform his, her or its duties and exercise its powers in the sole
interests of S[....]and solely for the
attainment of the objects of
the Trust;
9.1.3. keep
proper records of all of the affairs of the Trust, including -
9.1.3.1.
minutes of all meetings held;
9.1.3.2.
recordals of decisions taken by the Trustee;
9.1.3.3.
minutes of meetings with the case manager, where applicable; and
9.1.3.4.
recordals of instructions to the case manager, where applicable;
9.1.4. ensure
that proper records of all financial transactions and affairs of the
Trust are kept, so that it is practically
possible to establish with
dispatch whether there has been compliance with this Deed of Trust
and if such compliance is ongoing;
9.1.5.
appoint a case manager, if necessary; timeously submit 1such
information, reports, financial statements and any
other
documentation or information requested or required by the Master and
comply with any valid request of the Master pertaining
to the affairs
of the Trust;
9.1.7. comply
with and ensure compliance with the terms of any Court order or
orders;
9.1.8. apply
for the appointment of a curator ad persona for S[....] if and when
it becomes necessary after consulting
with the case manager if one
has been appointed, the Plaintiff or, failing her, S[....]'s next of
kin and inform the Defendant
of such appointment;
9.1.9. record
the current address and contact details of and maintain contact with
S[....]and the Plaintiff or, failing
her, S[....]'s next of kin;
9.1.10. subject to
receiving prior payment of the reasonable costs of complying with any
such request, if so requested furnish
the Defendant and any
interested party with a copy of the annual financial statements of
the Trust Funds and/or the updated record
of the expenses paid by the
Trust Fund and the accounting in relation to the Trustee Remuneration
Fund: provided that the Trustee
shall not be obliged to comply with
more than two such requests in any cycle of twelve (12) months and
any decision whether to
comply with any further requests in such a
cycle shall fall entirely within the Trustee's discretion;
9.1.11. subject to
clause 9.1.12 below, grant access to any interested party or the
Defendant in electronic or other format
to such documentation and
information as relates to the affairs of the Trust at any reasonable
time upon request by such interested
party or the Defendant;
9.1.12. grant
access to the Defendant only in electronic or other format to such
documentation and information as relates
to the affairs of the Trust
Fund and expenses incurred by the Trust Fund at any reasonable time
upon request by him or her;
9.1.13. having
regard to the time limits and procedures involved in the taxation of
the party-and-party and attorney-and-own-client
bills of costs,
within 90 days of the payment of the net capital award into the Trust
or alternatively, within the time required
for the taxation of the
party-and party and attorney-and-own-client bills of costs:
9.1.13.1.
assess the accounts rendered by the Plaintiffs attorney of record in
the action for compliance with the terms
of any fee agreement and any
applicable statutory provision (including the Contingency Fees Act,
66 of 1997);
9.1.13.2.
take steps including formal taxation and/or approaching the Legal
Practice Council to ensure that any amount
deducted from the award
which does not comply with such fee agreement or which offends
against any applicable statutory provision,
and is accordingly owing
to the Beneficiary, is identified and repaid and/or recovered;
9.1.13.3.
inform the Defendant of the amount constituting the net capital award
as paid into the Trust account within
seven days of such amount
having been paid into the Trust account, as well as inform the
Defendant of the subsequent payment of
the party and party costs, the
two amounts constituting the net capital award as finalised in order;
9.1.13.4.
subject to clauses 9.1.13.1, 9.1.13.2 and 9.1.13.3 above, ensure
compliance with any enforceable contractual
arrangement between the
Plaintiff, S[....] (duly represented by the Plaintiff) and her
attorney(s) and which may lawfully be deductible
from any award to
the beneficiary;
9.1.14. comply with
any valid request of the Master relating to the affairs of the Trust;
9.1.15. identify
all assets of the Trust and make an inventory thereof, ensuring that
all such assets are kept separate from
any trustee's assets;
9.1.16. take due
cognisance of, but not be bound to give effect to the reasonable
requests, wishes, views or preferences of
interested parties and the
Defendant concerning S[....] care and well-being; irrespective
whether such are made directly or through
the case manager;
9.1.17. invest all
monies in the possession of and/or paid to the Trust in profit
generating and/or interest-bearing
investments and deposit all monies
which have yet to be so invested in a bank account opened and held in
the name of the Trust;
9.1.18. give prior
notice of at least two calendar months in writing to all interested
parties, the Defendant and the Master
if he, she or it intends to
resign-or if he, she or it anticipates that he, she or it may become
disqualified to act as Trustee
by reason of a fact or circumstance
referred to in paragraphs 8.3.2 to 8.3.9 above;
9.1.19. where
required or appropriate, employ the services of
9.1.19.1.
financial and investment advisers and/or brokers to advise on
appropriate investment and employment of the
Trust funds and assets;
and
9.1.19.2. any
professional service provider to render a service or advice to
S[....]or to himself, herself or itself
concerning any asset of the
Trust;
9.1.20. on the
advice of the case manager, where applicable, appoint medical
attendants, and/or caregivers, where necessary
taking due cognisance
of the available funds and S[....]'s future and ongoing care;
9.1.21. timeously
pay any expenses incurred by the Trust, including any medical
expense, from its capital or income;
9.1.22. receive and
retain contributions, donations and inheritances due to S[....]or to
the Trust;
9.1.23. pay the
costs of the administration of the Trust;
9.1.24. ensure that
all financial transactions and transactions with financial
implications are conducted in accordance with
good business practises
and on terms which are as beneficial as possible to the Trust and
solely in S[....]'s best interests;
9.1.25. do
everything which is required to institute and/or defend legal
proceedings on behalf of the Trust;
9.1.26. attend
meetings of the creditors of any person indebted to S[....]or to the
Trust;
9.1.27. exercise a
voting right or any other right attaching to a Trust asset or Trust
business;
9.1.28. take out
appropriate short and/or long term insurance;
9.1.29. upon the
death of S[....]attend to payment of the Trust's liabilities and the
distribution of the Trust's assets in
accordance with this Deed of
Trust; and
9.1.30. perform any
act and execute any documents necessary for the successful
performance of the duties related to his office.
9.2.
May from the Trust funds -
9.2.1. provide the funds
to purchase a residential property to serve as S[....]'s primary
place of residence provided that the residential
property sought to
be purchased is suitable for S[....]'s needs and makes commercial
sense to purchase, regard being had to the
proposed purchase price of
the property, S[....]'s needs, the extent of renovations that may be
required in order to render the
residential property suitable for
S[....]'s needs; the monthly rates and taxes leviable in respect of
the property; the maintenance
and upkeep of the property and such
other considerations as may have a bearing on whether the residential
property sought to be
purchased will best serve S[....]'s physical
and financial needs in the foreseeable future; and
9.2.2. subject to clause
9.2.1 above, provide the funds for any renovations and maintenance
required to the residential property
purchased for S[....]'s benefit,
solely where such renovation is to make the property suitable for the
Beneficiary, to the extent
necessary;
9.2.3. and in doing so
shall -
9.2.3.1. ensure the
registration of a bond in favour of the Trust over the property, and
conclude a loan agreement with the person/s
in whose name/s the
property is to be registered for purposes of ensuring the protection
of the funds from the Trust used to purchase
and renovate the
property and to do so on such terms and conditions as the trustee
deems fit to protect the Beneficiary's future
interests;
9.3. In
the event that the aforementioned property is to be sold, ensure that
-
9.3.1. the Defendant is
notified of the intended sale of such property;
9.3.2. all required legal
procedures and protocols related to such sale, particularly (but not
limited to) the cancellation of the
bond and reversion of the Trust
funds as utilised for the purchase of the property, reverting to the
Trust on such terms and conditions
as embodied in the agreement
concluded between the trustee and the plaintiff or the Beneficiary's
legal guardian; and
9.3.3. the cost of the
registration of any bond over any other property, subsequent to the
first bond, shall be defrayed from the
proceeds of the sale of the
property;
9.3.4. at the time of the
sale, the Beneficiary has a suitable place to reside at;
9.4.
Save for the purpose of exercising the powers, duties and functions
of a Trustee, the Trustee shall not enter
into any other contract
with the Trust.
10.
REMUNERATION OF THE TRUSTEE
10.1. The Trustee
shall be paid an annual remuneration equal to one percent (1%) plus
VAT per annum taken monthly of the value
of the assets of the Trust,
such value to exclude the capitalised amount of the Trustee's total
remuneration which had been paid
by the Defendant and which is
retained in a separate account.
10.2. Each such
payment of remuneration to be calculated and paid monthly in arrears
from such account.
10.3. The value of
the assets of the Trust shall for purposes of calculating the
remuneration payable by the Defendant exclude
the value of the
Property and funds used from the Trust to purchase the Property or
the amount of Bond registered over the Property,
regardless of the
value thereof and the date on which it was acquired as well as the
cost of adaptations, alterations and improvements
to the Property
which may have been paid by the Trust.
10.4. In the event
that a bond is registered in favour of the Trust over the property,
the trustee would be entitled to include
that value of the amount
invested in the property in the calculation of its fees only in the
first year in which the transaction
has been concluded, then only in
a year where any subsequent bond is registered over any other
property.
10.5. It is
recorded that the cost of the registration of the first bond shall be
borne by the Defendant as an additional
cost to the trustee's fees,
as reflected in the court order, but any further and/or subsequent
bonds shall be paid for from the
proceeds of such property as
returned to the Trust on sale of the property.
10.6. The Trustee
shall receive no fees (including an acceptance fee and capital
reduction fee) other than that for which
provision is made in this
Deed of Trust for acting as the Trustee of the Trust.
10.7. That portion
of the award constituting the projected costs of administering the
Trust, duly capitalised, shall be held
by the Trust account
separately and referred to as "the Trustee's Remuneration Fund',
which funds, together with any interest
earned in respect thereof, is
to be used only to pay the remuneration due to the Trustee quarterly
in arrears: Provided that when
the value of the Trust's assets is
established for purposes of calculating the Trustee's annual
remuneration, any amount in the
Trustee's Remuneration Fund shall not
be included, for purposes of such calculation.
10.8. Should the
funds in the Trustee's Remuneration Fund become exhausted, the
Trustee may employ the other assets of the
Trust to pay the annual
remuneration payable in terms 9f clause 10.1.
10.9. A nominee
shall be regarded as the Trustee for purposes of remuneration and if
remuneration is due to or has been paid
to a Trustee no additional
remuneration shall be payable to him, her or it.
11.
FURNISHING OF SECURITY BY THE TRUSTEE
11.1. The
Trustee shall not be obliged to furnish security to the Master or to
any other public officer in respect of
his appointment, provided that
he, she or it, to the satisfaction of the Master, is at all material
times covered by adequate professional
indemnity insurance, proof of
which shall be furnished to the Master annually on the anniversary of
the Trustee's acceptance of
his, her or its appointment.
11.2. In the
event of the Trustee failing to maintain such indemnity cover during
the currency of his, her or its appointment,
or causing or permitting
such cover to lapse and/or be rendered ineffective for whatever
reason, then
11.2.1. the Trustee
shall be liable to make good any loss sustained in consequences of
any claim, if such loss would have
been recoverable in terms of such
insurance cover, including loss arising from a claim against it; and
11.2.2. the Trustee
shall become liable to be dismissed from his, her or its office.
12.
LIABILITY OF THE TRUSTEE
In accordance with the
provisions of section 9 of the Trust Property Control Act, 57 of 1988
the Trustee shall only be exempted
from or indemnified against
liability for the consequences of his, her or its act/or omissions if
he, she or it has acted in the
performance of his, her or its duties
and the exercise of his, her or its powers with the care and skill
which can reasonably be
expected of a person who manages the affairs
of another.
13.
ALLOCATION, PAYMENT OR TRANSFER OF TRUST ASSETS
Any payment, allocation
or transfer of a Trust asset may at the discretion of the Trustee be
effected in cash or in kind, either
directly to S[....], or to his
parent or guardian, or directly to a service provider, medical
professional or therapist and, where
appropriate and reasonably
possible, shall be effected in consultation with a case manager,
where applicable.
14.
FINANCIAL YEAR
The financial year of the
Trust shall end on the last day of February of each year unless the
Trustee with the approval of its auditors
determines otherwise, in
which event the interested parties and the Defendant shall be
notified thereof within one month of the
Trustee so determining.
15.
FINANCIAL RECORDS AND ACCOUNTS
15.1. The following
financial and/or accounting records shall be kept:
15.1.1. All source
documents (e.g. invoices, statements of accounts, delivery notes,
etc.) and at least one electronic copy
of each, adequately backed-up
for safekeeping elsewhere than on the premises occupied by the
Trustee;
15.1.2. Detailed
books of account reflecting all income, expenditure, assets and
liabilities
15.1.3. Detailed
records and books of account relating to the affairs of the Trust
Fund, setting out in respect of ec1ch respective
expense the date on
which it was incurred, the name and address of the service provider
or practitioner, the amount expended and
if appropriate the relevant
invoice number, as well as such other information as is reasonably
required; and
15.1.4. Any other
accounting records or books of account not listed above which the
Trustee is ordinarily to be kept;
15.1.5. Annual
financial statements which comply with generally accepted accounting
practices, shall be drawn up within six
months of the end of each of
the Trust's financial years, including at least
15.1.5.1. a statement of
income and expenditure; and
15.1.5.2. a balance
sheet, in respect of that financial year.
15.2. All source
documents, books of account, statements of income and expenditure,
balance sheets, auditor's reports and
other accounting records shall
be kept for at least five years in the original and in an electronic
format (the latter adequately
backed-up and stored on premises
separate from those occupied by the Trustee);
15.3. The original
Trustee shall ensure that the Trust is audited during its own
general, internal annual audit and may, in
addition and at its
discretion, appoint an external auditor to conduct an external audit
of the books and records of the Trust
at the Trustee's expense,
whilst any Trustee other than the original shall cause this Trust to
be audited when taking over as Trustee,
by a duly qualified external
auditor according to generally accepted accounting practices;
15.4. An interested party
or the Defendant may require an independent external audit to be
conducted, provided that the party requiring
such audit shall bear
the costs thereof.
16.
APPOINTMENT OF THE CASE MANAGER
The appointment of a case
manager lies solely in the discretion of the Trustee.
17.
TERMINATION OF THE TRUST
17.1. The Trust
shall terminate
17.1.1. upon the
death of S[....], after all its liabilities have been settled and all
its remaining funds and assets have
been distributed in terms of this
Deed of Trust; or
17.1.2. upon an
order of the Court terminating it and ordering its winding up.
17.2. Upon
termination of the Trust after the death of S[....]
17.2.1. the Medical
Fund (which will not include any motor vehicle acquired or immoveable
property, notwithstanding any expenditure
in respect of adaptations
thereto) and any and all moveable aids, equipment and devices
remaining at that time shall be paid and
be transferred to the
defendant without undue delay provided that any costs or fees
associated with such payment or transfer or
any taxes levied thereon,
shall first be deducted by the trustee and the balance remaining of
the Medical Fund so paid over;
17.2.2. any funds
not utilised in the Trustee Remuneration Fund shall be transferred to
the Defendant without undue delay,
any costs, or fees associated with
such transfer and/or taxes levied thereon first being deducted by the
Trustee; and
17.2.3. the balance
of the capital and all other assets not falling within the remit of
clause 17.2.1and 17.2.2 above shall,
after deduction of any costs or
fees associated with such payment or transfer or any taxes levied
thereon, be paid and/or transferred
to the heirs of S[....], either
in terms of any valid will made by him or, failing such will, in
terms of the law of intestate
succession;
17.3. In effecting
distribution of the assets held by the Trust as provided herein, the
Trustee shall be entitled to a distribution
fee of 2% (two per cent)
plus VAT calculated on the value of the assets so distributed.
18.
DISPUTE RESOLUTION
18.1. In the event
of a dispute arising of whatsoever nature the party wishing to have
the dispute resolved:
18.1.1. In the
event of a legal dispute shall be entitled to approach the incumbent
Chairman of the Pretoria Bar Council (or
his/her deputy) who shall
nominate a practising member of the Pretoria Bar with the requisite
experience to firstly, mediate, and
if unable to reach resolution, to
arbitrate the issues in dispute.
18.1.2. In the
event of a dispute relating to a treatment modality make
representations to the National Chairperson of the
Occupational
Therapy Association of South Africa, who shall decide, upon
consideratio11 of the ·representations, as to treatment
and
such chairperson would be entitled to consult with the requisite
medical professionals involved.
18.2. The question
of who bears the costs of mediating a dispute lies with the
mediator/arbitrator.
19.
AMENDMENT OF THE DEED OF TRUST
19.1. This Deed of
Trust may only be amended by an order of the Court on application by
the Trustee, an interested party,
the Defendant, or another party
with locus standi, after proper notice having been given to all
interested parties and the Defendant
as the case may be.
SIGNED
at on this the day of 2023
Name
of Signatory
Founder
Designation
of Signatory
SIGNED
at on this the day of 2023
Signature
Name
of Signatory
On
behalf of Trustee
Designation
of Signatory
[1]
Trial Bundle 0001-4
[2]
2 Joint Heads of Argument 0012
[3]
Caselines: Bundle 8: Pretrial minutes, Item 3 (Third Quantum
Pretrial), paragraph
4.1,
pp 0008-58
[4]
Caselines, Bundle 6: Joint Minutes, Item 7, pp 006-33.
[5]
See Bundle 0003: Plaintiff's Expert Reports, Item 31 pp 0003-87 TO
0003-97.
[6]
See Bundle 8: Pretrial minutes, Item 3 (Third Quantum Pretrial),
paragraph6.l, pp 0008-59 to 60.
[7]
See Bundle 0003: Plaintiff's Expert Reports, Item 1, pp 0003-1 to 5
8 AND ITEM 5,
pp
0003-105 TO 0003-143
[8]
See Bundle 8: Pretrial minutes, Item 3 (Third Quantum Pretrial),
paragraph6.2, pp 0008-60.
[9]
See Bundle 0003: Plaintiff's Expert Reports, Item 2, pp 0003-59 to
86; and Caselines
Bundle
0005: Defendant's Expert Reports Item 19, pp 0005-348 to 0005-358
[10]
See Bundle 0003: Plaintiff's Expert Reports, Item 42, pp 0003-98 to
104; and Bundle 0012: Joint Heads of Argument, Item 2,pp
0012-33 to
0012-34.
[11]
Caselines: Bundle 8: Pretrial minutes, Item 3 (Third Quantum
Pretrial) paragraph 6.4, pp 0008-61 to 62
[12]
Caselines: Bundle 0006: Joint Minutes, Item 10, pp 0006-55 to 56;
[13]
Caselines pp 007-85 to 86).
[14]
Caselines: Bundle 8: Pretrial minutes, Item 3 (Third Quantum
Pretrial),paragraph
6.5,
pp 0008-62 to 63.
[15]
Caselines Bundle 0006: Joint Minutes, Item 11, pp 0006-57 to 59;
[16]
Caselines Bundle 8: Pretrial minutes, Item 3 (Third Quantum
Pretrial),paragraph 6.6, pp 0008-63 to 64.
[17]
Caselines Bundle 0003: Plaintiff's Expert Reports, Item 6, pp 0003-
144
TO 147; Caselines Bundle 0012: Joint Heads of Argument, Item 2,pp
0012-40
TO
0012-41.
[18]
Caselines: Bundle 8: Pretrial minutes, Item 3 (Third Quantum
Pretrial),paragraph 6,7I pp 0008-64 to 65,
[19]
Caselines Bundle 0006: Joint Minutes, Item 1, pp 0006-1 to 4;
Caselines Bundle
0012:
Joint Heads of Argument, Item 2,pp 0012-44 to 0012-44.
[20]
Caselines: Bundle 8: Pretrial minutes, Item 3 (Third Quantum
Pretrial),paragraph 6.8, pp 0008-64 to 65.
[21]
Caselines Bundle 0006: Joint Minutes, Item
1, PP 0006-1
to 4 and
Caselines Bundle 0012: Joint Heads of Argument, Item 2,pp 0012-45 to
0012-56.
[22]
Caselines: Bundle 8: Pretrial minutes, Item 3 (Third Quantum
Pretrial),paragraph
6.9,
pp 0008-65 to 66.
[23]
Caselines Bundle 0006: Joint Minutes, Item 3, pp 0006-7 to 13 and
Caselines Bundle 0012: Joint Heads of Argument, Item 2, pp
0012-56
to 0012-59.
[24]
Caselines: Bundle 8: Pretrial minutes, Item 3 (Third Quantum
Pretrial),paragraph
6.10,
pp 0008-66.
[25]
Caselines Bundle 0006: Joint Minutes, Item 4, pp 0006-14 to18 and
Caselines Bundle 0012: Joint Heads of Argument, Item 2,pp 0012-59
to
0012-63.
[26]
Caselines: Bundle 8: Pretrial minutes, Item 3 (Third Quantum
Pretrial),
paragraph6.ll,
pp 0008-67.
[27]
Caselines Bundle 0006: Joint Minutes, Item
4, PP 0006-14
to18 and
Case/ines Bundle 0012: Joint Heads of Argument, Item 2,pp 0012-63 to
0012-69.
[28]
Caselines: Bundle 8: Pretrial minutes, Item 3 (Third Quantum
Pretrial),paragraph
6.12,
pp 0008-67 to 69.
[29]
Caselines Bundle 0005: Defendant's Expert Reports,Item 12, pp
0005-125 TO 148 and Caselines Bundle 0012: Joint Heads of Argument,
Item 2,pp 0012-70 TO 72.
[30]
Caselines: Bundle 8: Pretrial minutes, Item 3 (Third Quantum
Pretrial), paragraph 6.13, pp 0008-69 to 70.
[31]
Caselines Bundle 0006: Joint Minutes, Item 9, pp 0006-49 to54 and
Caselines Bundle 0012: Joint Heads of Argument, Item 2,pp 0012-72
to
0012-76.
[32]
Caselines: Bundle 8: Pretrial minutes, Item 3 (Third Quantum
Pretrial),
paragraph
6.4, pp 0008-570 to 71.
[33]
Caselines Bundle 0006: Joint Minutes, Item 2, pp 0006-5 to 6 and
Caselines Bundle
0006:
Joint Minutes, Item 6, pp 0006-26 to32;
[34]
Caselines Bundle 0012: Joint Heads of Argument,Item 6, pp 0012-151.
[35]
Caselines Bundle 0012: Joint Heads of Argument, Item 7, pp 0012-152
to 163.
[36]
Caselines Bundle 0012: Joint Heads of Argument, Item 8, pp 0012-164
to 171
sino noindex
make_database footer start
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