Case Law[2022] ZAGPPHC 845South Africa
Ndobe v Minister of Police (14/22926) [2022] ZAGPPHC 845 (21 October 2022)
High Court of South Africa (Gauteng Division, Pretoria)
21 October 2022
Headnotes
Summary: Members of the South African Police Services (SAPS), seized a motor vehicle belonging to the plaintiff and kept it under their care and registered it in SAPS 13 register. Plaintiff was charged with a criminal offence. In due course, charges against the Plaintiff were withdrawn. That notwithstanding, members of the SAPS continued to keep the motor vehicle registered in SAPS 13 in their custody. Seven months later, the vehicle was damaged by fire that gutted the police impound.
Judgment
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## Ndobe v Minister of Police (14/22926) [2022] ZAGPPHC 845 (21 October 2022)
Ndobe v Minister of Police (14/22926) [2022] ZAGPPHC 845 (21 October 2022)
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sino date 21 October 2022
SAFLII Note:
Certain
personal/private details of parties or witnesses have been
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FLYNOTES: LOSS OF INCOME –
USE OF VEHICLE
Police seizure of vehicle –
Lost in fire at impound – Vehicle used for informal
transport business – Documentary
proof of income lacking –
Testimony for plaintiff not contested – Proving monthly
income on balance of probabilities
– 30% contingency
deduction.
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: 14/22926
In
the matter between:
# ZIMELE
MAXWELL NDOBEPLAINTIFF
ZIMELE
MAXWELL NDOBE
PLAINTIFF
and
# THE
MINISTER OF POLICE
DEFENDANT
THE
MINISTER OF POLICE
DEFENDANT
Summary:
Members of the South African Police Services (SAPS), seized a motor
vehicle belonging to the plaintiff and kept it under
their care and
registered it in SAPS 13 register. Plaintiff was charged with a
criminal offence. In due course, charges against
the Plaintiff were
withdrawn. That notwithstanding, members of the SAPS continued to
keep the motor vehicle registered in SAPS
13 in their custody. Seven
months later, the vehicle was damaged by fire that gutted the police
impound.
The
Plaintiff instituted this action seeking to hold the Minister of
Police liable for the damages
(consequential
loss)
he suffered following the loss of the motor vehicle. The issue of
liability was conceded. What this Court was required to
determine was
the quantum of damages. The Minister is factually and legally the
cause of the loss suffered by the Plaintiff. This
Court is satisfied
that the Plaintiff lost income and continued to lose income into the
future after the loss of the vehicle. Held:
(1) The Minister is
liable to pay the Plaintiff's proven damages for the loss of income.
Held: (2) The Minister is to pay all the
costs associated with this
action.
# JUDGMENT
JUDGMENT
MOSHOANA,
J
Introduction
[1]
When
members of the South African Police Services (SAPS) seize goods
pursuant to an arrest, within the contemplation of section
23 of the
Criminal Procedure Act (CPA)
[1]
,
the
SAPS attracts a legal duty of care with regard to the seized goods.
This becomes so because if no criminal proceedings are instituted
the
seized goods must be returned to the person from whom it was seized.
When the SAPS loses the seized goods, the SAPS breaches
a legal duty
of care, which entitles the looser to a delictual claim as a
consequence
of
the loss.
[2]
In this case, the Minister has admitted
a breach of the legal duty and liability towards the plaintiff's
proven damages. In seeking
to prove his damages, the plaintiff led
his own testimony and that of two other witnesses. One of the witness
tendered
opinion
evidence. Surprisingly, the Minister chose not to lead oral evidence.
This despite a denial that the plaintiff suffered
past and future
loss of income consequent upon the loss of his motor vehicle.
Background
facts and evidence
[3]
It is worth mentioning upfront that this
Court is faced with one uncontested version. The Plaintiff, Mr
Maxwell Ndobe (Ndobe), is
a man born in 1980 who conducted an
informal business of a shop colloquially referred to as a
Spaza
shop and a transportation outfit.
After completing grade 11, Ndobe gained employment as a general
worker at Pick-it-Up in Johannesburg
from 2006 up and until 2007.
Whilst so employed, he purchased a 1 ton Nissan Bakkie with
registration letters and numbers [....]
(Bakkie). From 2007 up to and
including 2011, he was employed at a Mine as
a
general
worker until
when
he
was
dismissed for incapacity.
[4]
Owing to his unemployed status, he
invigorated his supplementary
small
business that has been running since the acquisition of the Bakkie.
The Bakkie was the asset he used to conduct the two business,
viz;
Spaza
and the transportation outfit.
On 29 January 2012, Ndobe was arrested for possession of dagga and
members of the SAPS seized the
Bakkie that was allegedly transporting
the dagga during the arrest. The Bakkie was registered and kept in
SAP13 register. On 31
January 2012, Ndobe appeared before a
magistrate in Ficksburg and was admitted into bail and released from
custody. On 17 September
2012, charges against him were withdrawn. As
expected, the SAPS were to release the Bakkie back to his possession.
At that time,
when the charges were withdrawn, the Bakkie was kept
away from him for a period of almost 9 months. The Bakkie was not
returned
to him despite his incessant demand for its return.
[5]
In
April 2013, Ndobe was informed that the Bakkie was damaged and lost
at the impound where the Bakkie was kept, as the place was
gutted by
fire. As a result, on or about 14 March 2014, Ndobe instituted the
present action seeking payment of the material damages
to the Bakkie
and past and future loss of profit. Ultimately, on or about 04 April
2018, the Defendant, Minister of Police, through
the office of the
State Attorney conceded the merits of the claim and requested that
the action be determined on the remaining
issue of quantum.
[2]
Additionally, the parties held a pre trial conference and
emerged with an agreement that this Court has to decide the
following:
(a) the amount of damages to be awarded for the value of
Ndobe's motor vehicle, which was damaged whilst being impounded by
the
defendant; and (b) whether the plaintiff has proven his claim for
loss of income. If so, what is the amount to be awarded for the
Ndobe's purported loss of income.
[6]
I interpose to mention that Ndobe, for
reasons that do not require further edification in this judgment,
jettisoned his claim for
the material damages of the Bakkie. What
remains for determination are two questions, namely; (a) has Ndobe
proven his loss of
income, and (b) what amount is to be awarded?
[7]
In support of his case, Ndobe tendered
the evidence of Mr Lawrence Nkosi. He confirmed that Ndobe owned the
Bakkie, which he used
to conduct the
Spaza
and transport goods for his
customers. Nkosi himself was a customer at the
Spaza
shop. In cross-examination, he
testified that Ndobe used to load goods for people at outlying areas
like Matatiele, but he stopped
doing so after the Bakkie was taken
away from him.
[8]
The gist of Ndobe's testimony is that
the purpose of purchasing the Bakkie in 2006 was to transport goods,
buy items and sell them
using it and to look after himself once he
stops formal employment so as to generate income. Whilst in
employment, he used the
Bakkie to generate extra income. He amassed
clientele for the goods transportation business. In addition, he
started the
Spaza
business.
The
Spaza
business
had ran for two months and generated around R6000.00 in that period.
In relation to the
Spaza
business,
he later testified that he managed to run it in the absence
of
the
Bakkie
until
2020.
Based
on
this
evidence,
the
loss
of
income
attached to the
Spaza
business
has correctly been abandoned. I interpose and state that for the
purposes of this judgment, the loss in relation to the
Spaza
business will not be determined. He
testified further that the transportation business netted around
R8000.00 for two months. He
listed his clientele and indicated the
estimated income he generated from each. He listed about five
customers. It is not necessary
for the purposes of this judgment to
enumerate them.
[9]
It suffices to state that cumulatively,
he was receiving about R23 500.00 from those listed clienteles. He
testified that he has
since lost contact with his clientele and did
not
know
their
whereabouts.
Ndobe
was
not
challenged
that
he
received
money
from
his clientele owing to the services he offered them using the Bakkie.
Instead, contradictions were sought to be extracted using
hearsay
evidence, as recorded in a report, the defendant refused to admit
during pre-trial meeting.
[10]
When challenged about proof of generating any income, he contended
that as proof, he managed to buy assets,
build a house and maintained
his family whilst he had the Bakkie. He further testified that he
relied on his memory aided by the
hearsay version introduced by the
defendant's counsel to testify about the average income he received
from the transportation business.
He contended further that members
of the SAPS did not know that he had any business.
[11]
On 17 July 2019, Mr Nqapela, a qualified
Industrial Psychologist, produced a psycho-legal report in respect of
Ndobe. He confirmed
the contents of that report to be true and
correct. He testified about the informal sector of the so-called
'township' business;
and highlighted that the goods transportation
business is big in the townships and often operates without keeping
formal records.
He himself is a consumer of the transportation
services in his other life as a Disco Jockey (DJ). In his
professional view, an
income of R8000.00 is very low and placed at a
conservative bar. Generally, such businesses as that of Ndobe expand
over a period
of
time.
The business of
Ndobe
had a
growth
potential, he
further
testified.
His
crucial
testimony
of R8000 being a conservative figure and the transportation business
being big in the township was not challenged in cross-examination.
[12]
For reasons best known to the defendant
and its legal team, no testimony was led to controvert
the version of Ndobe and his witnesses.
Argument
[13]
Both counsel furnished this Court with a
set of helpful written submissions. Mr Van Onselen, who appeared for
Ndobe submitted that
Ndobe succeeded in proving the loss of income
claim in respect of the transportation business. He submitted further
that this Court,
guided by the calculations by G W Jacobson
Consulting Actuaries, (Jacobson) must award Ndobe fair and reasonable
damages.
[14]
It was argued on behalf of the
defendant, by Mr Mashaba, that Ndobe has failed to prove his loss, on
the basis that his evidence
was not of value without that of an
expert.
Mashaba
continued and argued further that Ndobe has failed to establish the
causation test (factual and legal). He also argued that
the SAPS did
not foresee, at the time when they impounded the Bakkie, that it
would be lost in a fire accident. Therefore, on application
of the
legal causation leg, the damages suffered by Ndobe were remote and
not foreseeable. He averred further that, as a result,
Ndobe has
failed to prove any loss. In the alternative, he argued that should
the Court find that Ndobe has proven the damages,
a high contingency
of 50% should be applied, instead of 15-30% suggested by Jacobson.
This Court debated at length with Mashaba
but he remained dutifully
firm that Ndobe is not entitled to any damages award since he failed
to prove same.
Analysis
[15]
As indicated above, two issues merit determination in this trial.
Firstly, (a) whether Ndobe
has proved loss of income in respect of
the transportation
business;
and (b) what will be a fair and reasonable award for such a loss? The
issue of costs would naturally follow the results.
Before I deal with
those issues, I must confirm the following trite legal principles.
Where a Court is faced with one version,
as it is the case in this
matter, a Court is bound to accept that version as being true and
correct, since there is no countervailing
version. Absent conflicting
versions a Court may not engage in the exercise suggested in the much
celebrated
Stellenbosch
Farmers' Winery Group Ltd v Martell et Cie SA and Others
[3]
case.
In
Ex
Parle Minister of Justice: In re V v Jacobson and Levy
[4]
the
Court stated the following:
'Prima
facie
evidence in its usual sense is
used to mean
prima facie
proof
of an issue, the burden of proving which is upon the party giving
evidence.
In the absence
of further evidence from the other
side, the
prima facie
proof
becomes conclusive
proof
and the party giving it discharges his
onus.
'
(Emphasis added).
[16]
In
Francois
v Van Zyl
[5]
,
Molahlehi
J
aptly
concluded thus:
"[14]
It is equally trite that the defendant
can avoid liability by adducing evidence showing no negligence on his
or her part.
Failure to adduce such
evidence presents
the
risk that the defendant may be held liable for damages suffered by
the plaintiff."
[Emphasis
added].
[17]
The
defendant was duly and dextrously represented by a senior counsel who
should and must have appreciated the risk of not leading
countervailing testimony. Even in an instance where the learned
counsel may have held a view that Ndobe did not present a
prima
facie
case,
an application for absolution from the instance would have been
launched shortly after the close of Ndobe's case. Failure
to cross
examine a witness(es) is fatal to a party who is legally
represented.
[6]
Contradictions
are not a basis to reject the testimony
of
a witness in its entirety.
[7]
Did
Ndobe prove loss of income in respect of the transportation business?
[18]
In
civil matters, the standard of proof is that of preponderance of
probabilities. Differently put, do the probabilities favour
a
conclusion that Ndobe proved a loss consequent upon the loss of
undoubtedly an income-generating asset- the Bakkie? The testimony
of
Ndobe that he generated income using the Bakkie remained uncontested.
The fact that he gave contradictory evidence with regard
to the
estimated amounts does not detract from the uncontested testimony
that he conducted a business using the Bakkie and earned
on average
some money. It must follow as day follows night that once the Bakkie
is lost, symbiotically, the revenue that was generated
by the Bakkie
will axiomatically be lost. Cardinal testimony of Nqapela was not
contested, which was to the effect that the transportation
business
is big in the townships and that Ndobe had the potential to have
grown exponentially. His version that an amount of R8000.00
is on the
conservative side and actually low remained uncontested. Some 89
years ago, the Cape Provincial Division in
Mossel
Bay Divisional Council v Oosthuizen
[8]
upheld
a claim for loss of income arising from the loss of use of a taxi. In
that case, the Court stated that a taxi-driver should
adduce evidence
as to his average daily income. In the instance, Ndobe adduced
evidence as to his average income from the transportation
business
and such evidence has not been controverted. That evidence stubbornly
stands.
[19]
There
can be no doubt in the mind of this Court that a loss of a Bakkie
which was used to generate income will result to a loss
of income
claim. The argument by Mashaba that Ndobe, in the absence of expert
testimony failed to prove a loss is better answered
with reference to
what the erudite Nicholas JA stated in
Southern
Insurance Association Ltd v Bailey.
[9]
Ndobe
testified and he was not challenged that he used to earn on average
around R23 500.00 a month from the transportation business.
More
importantly, he was not challenged
when
he testified
that
it was a cash business and as proof of liquidity, he managed to buy
assets; build a house and sustained himself and his family.
The fact
that he kept no records does not of itself transmute into making no
profit at all. Nkosi corroborated the fact that Ndobe
ran a
transportation business. It was never suggested to Ndobe that he ran
that business at a loss. In fact, when the uncontested
evidence of
Nqapela is taken into account, the version that the business ran at a
loss will come to naught. The transportation
business is big in the
township economy, so this Court indisputably heard. The estimation of
R8000.00 a month is very low and actually
conservative, Nqapela
indisputably testified. The evidence of Nqapela must be accepted that
most businesses in the townships operate
on an informal basis. Even
if they may be registered with CIPRO, they often times fail to keep
financial records.
[20]
On the objective evidence, this Court
cannot conclude that even though Ndobe serviced a clientele in the
transportation business
he made no profit or earned no income out of
that outfit. Presence of records assist a party to prove some inflow
of cash into
the business. Is Ndobe making it up that he used the
Bakkie for business purposes? In my view, not. The evidence of Nkosi
corroborates
that of Ndobe. Above all, there is no countervailing
evidence. On the preponderance of probabilities, it must be so that
Ndobe
generated an income using the Bakkie. A 1 ton Bakkie is
undoubtedly a utility vehicle. It is not improbable that it could be
used
to generate income by ferrying goods and other related material.
Ndobe's version that even at the time when he was gainfully employed,
he used the Bakkie to generate extra income remained unchallenged.
His evidence with regard to the purpose of purchasing the Bakkie
went
unchallenged and most importantly uncontroverted. Undoubtedly, Ndobe
was on the uncontested evidence a business man. In a
conventional
sense, formal businesses are able to demonstrate profit by way of
financial records. In an informal sector, a sole
proprietor does not
require expert testimony to tell a court that he generated some cash
from a particular outfit and or undertaking.
This Court received
objective evidence from Ndobe that he did generate some cash out of
the usage of the Bakkie. In the absence
of any countervailing
evidence, that should be sufficient to prove profit and/or income.
[21]
Armed with such uncontested testimony,
it shall be remiss of this Court to accept a nude submission that in
the absence of expert
testimony, no profit was made and as such no
loss was suffered. The answer to the question must be that on the
uncontested evidence,
Ndobe proved on the preponderance of
probabilities that he made the average profit, as testified to, and
the loss of the Bakkie
equated
a
loss of that profit. Resultantly, Ndobe suffered a loss.
[22]
The
submission by Mashaba that Ndobe failed on the causation test lacks
force and is devoid of merit. Causation seeks to create
a chain or
link between two events. A party will not succeed unless it can be
demonstrated that the negligent act of the defendant
caused or
materially contributed to the damage complained of. There are two
legs to causation. With respect to factual causation,
as aptly put in
AK
v Minister of Police
[10]
,
the determination thereof is through the evidence tendered at the
trial.
[23]
Factual causation as the name suggests
involves a factual enquiry. The question is whether the allegedly
negligent conduct played
a part in bringing about the harm in
question. A 'but for' test was developed over the years to determine
what the cause of a damage
is. In this case, there is no dispute that
the Bakkie was damaged by fire. The Defendant has conceded that the
Bakkie was damaged
because of the negligence of the members of the
SAPS. Such concession, as correctly argued by Van Onselen disposes of
the leg of
factual causation. Had the Bakkie not been damaged as a
result of the negligence of the members of the SAPS, Ndobe would not
have
suffered a loss of income. He would still have his Bakkie to
generate some income. It was as a consequence of the loss of the
Bakkie
that Ndobe lost income. There is a clear link between the
negligent loss of
the
Bakkie
and
the
loss of income.
[24]
The uncontested evidence perspicuously
established this on a preponderance of probabilities. Mashaba rightly
conceded that the SAPS
had a legal duty to take care of the asset
kept in the impound. He further conceded that the SAPS failed in that
duty. Having failed
in that legal duty, wrongfulness, which is tied
to the hip with factual causation, naturally arise. It will be a sad
day when Courts
conclude that a wrongdoer shall not be liable to some
form of damages simply because there are no financial records to back
the
receiving of an income. In
AK
case, the learned Tlaletsi AJ
writing for the majority stated the law as follows:
"[109]
The Minister misconceived the test for causation. The test for
causation is whether, but for the negligent conduct,
the applicant
would have suffered the harm...
The
Supreme Court of Appeal held in
Van Duivenboden
that:
"[A]
plaintiff is
not required to establish a causal link with
certainty
, but only to establish that
the wrongful conduct was
probably a cause of the loss, which calls for
a sensible
retrospective analysis
of what would probably have occurred,
based upon
the evidence and what can be expected to occur
in the ordinary course of human
affairs rather
metaphysics."
' (Emphasis added).
[25]
Seeking to rely on the legal causation
leg, Mashaba, with respect, incongruously argued that the members of
the SAPS would not have
foreseen that when the Bakkie was 'lawfully'
seized it would subsequently be damaged and cause Ndobe a loss. For
that reason, the
damages were too remote, so went the submission.
With considerable regret, I do not agree. A basic rule of negligence
law is that
a negligent person will not be held liable for
unforeseeable consequences of their negligence. The foreseeability
does not arise
at a point where there is no negligence. When the
members of the SAPS seized the Bakkie, they were not acting
negligently. They
were acting within the prism of section 23 of the
CPA. All things being equal, once the criminal proceedings are
terminated, a
seized property may be returned. The point of
negligence is when the fire broke out. If the fire broke out as a
result of the negligent
conduct of the SAPS as conceded, the
foreseeability commenced at that time of the fire. When the fire
broke out it could not have
been unforeseeable that the fire will
damage goods kept at the impound. Those goods included the
Bakkie. It is so that once a person is
held to have behaved negligently, that person can in theory at least
be held liable for foreseeable
consequences
of that negligence even if the
consequences were of a very low probability.
[26]
The
determination of legal causation was admirably perfected by the
Constitutional Court. This Court can do no better than what
was said
in
Mashongwa
v Passenger Rail Agency of South Africa
[11]
and
approved in
AK
case.
This Court was not appraised of the circumstances of the fire
outbreak. Foreseeability must, as it should, commence at the
time of
the fire and not of the arrest and seizure. What would have cost the
SAPS to avoid the fire outbreak, this Court is not
appraised. It is
only the SAPS that would have exposed that evidence. Since negligence
is conceded, it must follow that legal causation
has been
established.
In
AK,
the
Court made it clear that what is required is a sufficient connection
between the negligent act and the harm suffered. It was
never the
case of the defendant that something else
(novus
actus interveniens)
other
than the fire which on the conceded case negligently arose, caused
the damage to the Bakkie. Thus, there is sufficient connection
between the negligently caused fire and the loss. In
H
L
&
H
Timber Products
[12]
,
Nienaber
JA had this to say about a fire situation:
"...
the failure to contain a fire when, in the absence of countervailing
considerations adduced by him,
he was under legal duty, by virtue
of his
ownership or control of the property, to prevent it
from escaping onto a
neighbouring property thereby causing
loss to others..."
(Emphasis added).
[27]
It
bares strong emphasis to repeat that this Court was not appraised of
the circumstances of the fire outbreak to determine what
the SAPS
members could and could not do to prevent the loss of the Bakkie.
Ndobe only received the sad news and does not and could
not tell the
Court what actually happened. At best in his particulars of claim, he
alleged negligence. Following a bare denial,
the allegation was
ultimately conceded. In
Bennet
v Minister for Community Welfare
[13]
,
Gaudron
J had the following to say:
"...generally
speaking, if an injury occurs within an area of foreseeable risk,
then
in the absence of evidence that the breach had no effect or
that the
injury would have occurred even if the duty had been
performed, it will be
taken that the breach of the common law
duty of care caused or materially
contributed to the injury."
Emphasis added.
[28]
I plentifully agree with the sentiments
of Gaudron J. This Court is not armed with any evidence to show that
(a) the damage would
have happened even if the members of the SAPS
carried out their duty of care or (b) that the fire outbreak
had no effect to the damage caused to
the Bakkie. Before I deal with the second issue, it suffices to deal
with a legal argument
of the duty to mitigate damages.
The
duty to mitigate a loss
[29]
As
a departure point, Van Onselen submitted that the issue of mitigation
of damages was not pleaded as it ought to have been
[14]
.
On
this basis alone, the defendant cannot rely on mitigation of damages.
In
Bernadis-Larrat
and Another v Custom Capital (Pty) Ltd
[15]
,
the
learned
Acting Justice Mngadi stated the following, to which this Court makes
common cause with:
"[21]
The essence of the mitigation of loss is that the respondent's
unreasonable failure to mitigate its damages after the
event is
a
ground for
reducing its recovery..
.
[23]
The
onus
is
on the appellants to prove that the respondent has unreasonably
failed to take measures to mitigate its loss.
The
duty arises
only
after the respondent has proved that it suffered damages.
Where the appellants
prove
an unreasonable failure to mitigate, it is for the respondent
to
prove what its damage would have been if it had mitigated, that is,
what
sum
it is entitled to recover from the appellants
.
[16]
(Emphasis added).
[30]
The
rule about mitigation is in essence a claim based on negligence -
neglect
to do what a reasonable
person
would
do
if placed
in
the position of a person
claiming
damages
[17]
. Ndobe was not a
business person of adequate means. The Bakkie was his only source of
income. He could not, absent any other source
of income, hire another
Bakkie in order to mitigate his losses. It was for that reason that
he incessantly demanded the return
of the Bakkie before the fateful
event. He certainly cannot
be
treated
like
the
businessman
contemplated
by
Clayden
J
in
Shrog
v
Valentine
[18]
.
Nevertheless, the prime difficulty for the defendant in this case is
that it failed
to
allege
and
prove
the
duty
to
mitigate.
Therefore,
cadit
quaesto
for
the
defendant.
What
will be a fair and reasonable amount to award for the loss?
[31]
Before this Court lay an uncontested
testimony that Ndobe was earning a conservative figure of R8000.00
per month from the transportation
business. The calculations by
Jacobson are based on this uncontested conservative figure. At this
juncture, I must state that there
is a marked difference between
challenging a testimony and controverting a testimony. In any
proceedings, versions put during cross-examination,
remain untested
versions until repeated in evidence. Similarly, a challenge to the
credibility of a witness would remain as such
and shall not morph
into countervailing testimony. The fact that Ndobe could have
contradicted himself about the estimated figures
during
cross-examination is of no moment, particularly in an instance where
no countervailing estimates are placed before Court
by way of
evidence. From 29 January 2012 up to 31 October 2022, if Ndobe still
had the Bakkie he would have continued to earn the
said conservative
amount. Jacobson in his report factored increases in line with the
Consumer Price Index. That led him to arrive
at a cumulative loss of
R1 310 816. Jacobson took into account unforeseen contingencies and
presented three scenarios, namely 15%;
20% and 30% deductions for
those unforeseen contingencies.
[32]
Mashaba did not have issues with the figures by Jacobson. Equally,
this Court in the exercise
of its own estimation, it concludes that
the amount of R1 310 816 is fair and reasonable to compensate Ndobe
for the loss. As it
is always the case in matters of this nature,
parties quibble over contingencies to be applied over a fair and
reasonable award.
Mashaba urged this Court to apply a 50%
contingency. In support of that urge, he submitted that because the
evidence of R8000.00
a month was not satisfactory, a higher
contingency deduction was warranted. With considerable regret, I
disagree with his submission.
As a general approach, contingencies
provide the means by which to blend the scientific and the equitable.
Such involves a process
of subjective impression or estimation rather
than objective calculation.
[19]
It is not based on the strength of the evidence seeking to prove the
loss. Generally, in determining contingency, the court is
required to
take into account both positive and negative contingencies.
[20]
[33]
In the circumstances of this case, the
positives are that the township business could have boomed to a point
that Ndobe earns twice
or triple the conservative figure. At the same
time, the negatives could have been the decline of the township
business, the mechanical
breakdown
or
loss of the Bakkie by other means. Having taken into account all of
that, I take a view that a contingency of 30% must be applied.
Therefore, the fair and reasonable award would be an amount of R893
859.00.
[34]
For all the above reasons, the following
order is made:
Order
1.
The defendant is liable to compensate
the plaintiff,
Mr
Ndobe, for an amount of R893 859.00.
2.
Interest calculated on the capital
amount referred to in paragraph 1 above will be payable at a
prescribed legal rate after 14 (fourteen)
days from the date of this
order.
3.
The capital amount is payable into the
trust bank account of the Plaintiff's attorneys; Dudula Incorporated,
Trust Cheque Account,
Standard Bank, Account no: [....], Branch Code:
000205, reference: Mr. Y Dudula/MT/N17
4.
The Defendant shall pay the Plaintiff's
taxed or agreed party and party costs up to date on the High Court
scale, which party and
party costs shall include, but not limited to:
4.1
The reasonable costs in respect of the
preparation of the trial bundle, actuarial calculations, medico legal
and addendum reports;
4.2
Costs of counsel to date of the order,
including the preparation for and trial attendance on 12 and 13
October 2022, the preparation
and drafting of the written Heads of
Arguments;
4.3
The travelling costs of the Plaintiff to
and from all medico legal appointments and consultations;
4.4
The travelling costs of the Plaintiff
and witnesses for trial attendance on 12 October 2022;
4.5
Qualifying and or preparation fees and
testifying fees, if any, for the trial on 12 October 2022, as allowed
by the Taxing Master,
of Mr N Nqapela -
Industrial Psychologist (report);
4.6
The fair and reasonable fees for
obtaining the actuarial calculations of GW / Gerald Jacobson
Actuaries;
4.7
Any costs attendant upon the obtaining
of the payment of the capital amount referred to above as well as any
costs attended upon
the obtaining of payment of the taxed costs.
5.
The following conditions are to be
adhered to in respect of costs:
5.1
The Plaintiff shall, in the event that
costs are not agreed upon, serve the notice of taxation on the
Defendant's attorneys of record;
and
5.2
The Plaintiff shall allow the Defendant
14 (fourteen) Court days to make payment of the taxed costs;
5.3
No interest will be payable, except in
the event of default payment of such costs, in which case interest
will be payable at the
prescribed legal rate from the date of
taxation.
# GN
MOSHOANA
GN
MOSHOANA
# JUDGE
OF THE HIGH COURT
JUDGE
OF THE HIGH COURT
# GAUTENG
DIVISION, PRETORIA
GAUTENG
DIVISION, PRETORIA
APPEARANCES:
Counsel
for the Plaintiff: Mr C Van
Onselen
Instructed
by: Dudula
Inc Attorneys, Johannesburg
Counsel
for the Defendant: Mr G Mashaba SC
Instructed
by: The
State Attorney, Pretoria.
Date
of the hearing:
12-13 October 2022
Date
of judgment:
21 October
2022
[1]
Act 51 of 1977 as amended.
[2]
Letter dated 04 April 2018, under the hand of State Attorney Letsoko
M.O.
[3]
Stellenbosch Farmers' Winery Group Ltd v Martell et Cie SA and
Others 2003 (1) SA 11 (SCA).
[4]
Ex Parte Minister of Justice: In re V v Jacobson and Levy 1931 AD
466.
[5]
Francois v Van Zyl (Unreported judgment) (26612/2011) [2021] ZAGPJHC
(29 March 2021); 2021 JDR 2566(GJ) para 14.
[6]
President of the Republic of South Africa and others v SARFU and
others 2000 (1) SA 1 (CC).
[7]
See S v Mafaladiso en Andere 2003 (1) SACR 583 (SCA).
[8]
Mossel Bay Divisional Council v Oosthuizen
1933 CPD 509.
[9]
Southern Insurance Association Ltd v Bailey 1984 (1) SA 98 (A).
[10]
AK v Minister of Police (Unreported judgment) (CCT 94/20) ZACC 14 (5
April 2022).
[11]
Mashongwa v Passenger Rail Agency of South Africa 2016 (3) SA 528
(CC).
[12]
H L & H Timber Products 2001 (4) SA 814 (SCA).
[13]
Bennet v Minister for Community Welfare
[1992] HCA 27
;
(1992) 176 CLR 408.
[14]
See Maya v SA Eagle Co Ltd
1990 (2) SA 701
(A) and Amler's
Precedents of Pleadings 9th Edition 46.
[15]
Bernadis-Larrat and Another v Custom Capital (Pty) Ltd (Unreported
case) (AR 368/16) [2017] ZAKZPHC 63 (27 June 2017).
[16]
See Krugell v Shield Versekerings Maatskapy BK 1982 (4) SA 95 (T).
[17]
Hazis v Transvaal & Delagoa Bay Investment Co Ltd
1939 AD 372
at
388.
[18]
Shrog v Valentine 1949 (3) SA 1228 (T).
[19]
See Shield Insurance Company Limited v Booysen 1979 (3) SA 953 (A).
[20]
See Southern Insurance Association Limited v Bailey NO
1984 (1) SA
98
(A).
sino noindex
make_database footer start
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