Case Law[2025] ZAWCHC 56South Africa
Botha N.O obo Mienie v Road Accident Fund (4933/2021) [2025] ZAWCHC 56 (19 February 2025)
High Court of South Africa (Western Cape Division)
19 February 2025
Headnotes
in SCA in Medi-Clinic v Vermeulen.[3] Furthermore, the SCA in NSS obo AS held;
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Botha N.O obo Mienie v Road Accident Fund (4933/2021) [2025] ZAWCHC 56 (19 February 2025)
Botha N.O obo Mienie v Road Accident Fund (4933/2021) [2025] ZAWCHC 56 (19 February 2025)
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IN THE HIGH COURT OF
SOUTH AFRICA
(WESTERN CAPE
DIVISION, CAPE TOWN)
REPORTABLE
CASE NO. 4933/ 2021
In the matter between:
ADV S BOTHA N.O
on behalf of
MICHAEL
JAMES
MIENIE Plaintiff
and
ROAD ACCIDENT
FUND Defendant
JUDGMENT
PARKER, AJ:
Introduction
[1]
Prior to hearing the matter in respect of quantum, Plaintiff filed an
interlocutory
application seeking an order for leave to be granted
for the evidence of certain of its experts to be given on affidavit.
The Defendant’s
opposition was withdrawn on the day of the
hearing. In the exercise of my discretion, I deemed it prudent
given the nature
of the proceedings and the evidence on affidavit to
be led, I found it to be fair to allow such evidence on affidavit
[1]
for the purposes of quantum, bearing in mind that there was very
little in dispute between the parties. I am of the view
that
the application, which attracted additional costs, could have been
conceded by the Defendant earlier than at the day of the
hearing and
erased the need for Plaintiff to have brought such application.
[2]
The evidence adduced via affidavit related to the following expert
witnesses namely:
2.1
Dr Rael Jaffe - Orthopedic Surgeon
2.2
Professor Tuviah Zabow – Psychiatrist;
2.3
Dr Zane Domingo – Neurosurgeon;
2.4
Ms N Hugo - Occupational Therapist;
2.5
Ms B Grobelaar - Industrial Psychologist; and
2.6
Ms A Valentine - Munro Forensic Actuary.
Background
[3]
The Plaintiff instituted action against the Defendant following a
collision which
occurred on 9 August 2018 when Mr. Michael James
Minnie (the patient) was injured. He suffered a brain injury
and orthopedic
injuries.
[4]
Since the merits have been conceded all that remained in dispute is
in respect of
the Plaintiff’s loss of earnings.
[5]
The patient was assessed by the experts enumerated above including an
expert report
filed by the Defendant, namely that of Dr Zandile
Madlabana-Luthuli, who is an Industrial Psychologist.
Joint minutes
[6]
Both Plaintiff and Defendant’s Industrial Psychologists
concluded a joint minute
and further, an addendum joint minute. The
Industrial Psychologists were in agreement that based on the opinions
of the Occupational
Therapist, the Neurosurgeon and the Psychiatrist,
the patient’s psychiatric impairment is to a serious degree and
that the
patient would be unable to perform the work role of a CNC
programmer. His deficits are in the physical, cognitive and emotional
behavioral domains. It was reported that the patient was accommodated
by a sympathetic employer post morbidly. However, eventually
the
employment ended in a dismissal on 15 May 2023 following incidents in
March and April 2023 owing to misconduct and tardiness.
[7]
The further findings were that the patient did not achieve matric
however he progressed
to be a CNC programmer.
[8]
The patient would be unable to perform the role of a CNC programmer
given his dismissal
now, and in the future, and accordingly, has been
rendered unemployable.
[9]
Both Industrial Psychologists agreed that a total loss of earnings
has now occurred
given that the patient is no longer suited for the
physical, cognitive and emotional/ behavioural perspectives to
perform his work
role.
[10]
In a nutshell, this is one of those matters where the Industrial
Psychologists are in agreement
save that they are not able to
pronounce on contingency deductions. The Plaintiff correctly argued
that the parties are bound by
the agreements reached between their
respective experts.
[2]
However,
that does not mean that judicial officers accept the opinions of
experts blindly, even when such experts agree.
The experts reasoning
must still be sound and logical as held in SCA in Medi-Clinic v
Vermeulen.
[3]
Furthermore,
the SCA in NSS obo AS held;
“
However,
the wise judicial officer does not lightly reject expert evidence on
matters falling within the purview of the expert witness’s
field”
Loss of earnings
[11]
Both Industrial Psychologists agree in respect of the patient’s
pre and post-morbid career
paths.
Pre-morbid earnings
[12]
The Industrial Psychologists agreed that the patient had 39 working
years remaining and
given the nature of his employment, his
work experience, skills and vocation he could have reached his best
at age 45 (2037) earnings
(associated with Patterson grade B3 given
that he was performing skilled work tasks in a technical capacity) of
which the patient’s
earnings equated to R190 080.00 per annum.
[13]
The findings of the Industrial Psychologists agreed that the patient
would likely have continued
working in the same capacity until he
reached the retirement age of 65. In my view, this factor plays a
pivotal role when assessing
the percentage of contingencies to be
applied.
Post Morbid Earnings
[14]
The Industrial Psychologists addressed the post-morbid earnings in
their addendum report dated
6
th
of June 2023. They concur
that the patient's pre-morbid earnings based on the opinions of the
Occupational Therapist, the Neurosurgeon
and Psychiatrist, the
patient's impairment is to a serious degree and that they were clear
he would be unable to perform work as
a CNC programmer in the future.
Contingencies
[15]
During argument, both counsels correctly conceded that contingencies
are the prerogative of the
court and both counsel advanced different
percentages in respect of the patient’s uninjured and injured
state. In applying
my judicial discretion I had regard to Road
Accident Fund v Kerridge.
[4]
The
SCA articulated some general rules regarding contingency deductions,
one being the age of a claimant. Namely, the younger the
claimant the
more they may fall victim to the vicissitudes of life and other
reasons which are impossible to enumerate. In so far
as future loss
of earnings is concerned, factors such as the poor economy and ill
health are considerations. The longer the remaining
working life, the
more likely the possibility of an unforeseen event occurring –
to be considered.
[16]
The Plaintiff motivated the contingencies regarding Robert Koch in
the Quantum Yearbook 2024
[5]
using the sliding scale of a 0.5 percent contingency deduction per
year to the time and age, calculating it to be 25% for a child,
20%
for a youth and 10% for middle aged person respectively. It was
argued by the Plaintiff’s Counsel that the norm for a
deduction
of 5% is often applied for past loss of earnings and a 15%
contingency deduction in respect of future loss of earnings.
The
Defendant did not challenge the Koch methodology but argued for a
contingency deduction of 20% for past loss of earnings and
40% for
future loss of earnings. My discretion then centered around these
percentages.
Actuarial Calculations
[17]
The claim was actuarially calculated by Munro Forensic Actuaries in
its report dated 26
th
of August 2024. The Plaintiff,
in substantiating its argument for a 20% contingency deduction relied
on the Industrial Psychologists
who agreed that the patient was a
career starter, and, although considered as an unskilled worker he
was performing skilled work
and would have continued working in the
same capacity until retirement.
[18]
The Defendant argued that a higher contingency of 40% should be
applied given that the patient
did not achieve matric and would still
therefore fall into the unskilled category. The Defendant’s
argument was that the
patient changed jobs at various employers and
this factor was seen in a negative light by the Defendant. The
Defendant
lost sight that the court is bound by the findings of the
Industrial Psychologists who agreed that the patient would have
stayed
in the job position as a CNC. Their joint minute clearly
reflected that although “
considered an unskilled worker”
he “
was performing skilled work”
.
[19]
I do not accept that it is appropriate to “
punish”
the patient for not achieving a matric. I am acutely aware that a
matric in today’s times is not enough, and even if a matric
qualification is acquired, securing work is competitive, there is
likely to be a much bigger pool for job seekers to compete when
searching for work. I am mindful that despite the patient’s
education, his progress prospered, and his career growth
is
admirable. In relying on the factual basis and conclusions drawn by
experts whose reasoning guided the court; I was hard-pressed
to find
factors which would substantiate increasing the contingency deduction
significantly to 40% as suggested by the Defendant
for the uninjured
state. The Defendant did not advance arguments as to its reasoning
for a 20% contingency deduction
to be applied for the
past loss of income.
[20]
I do, however, lean in favour of an increased contingency deduction
due to the joint minutes
reflecting that the patient was going to be
at a disadvantage “
when compared to his counterparts with
the same work experience but higher level of education”
, of
which I take cognizance of, and I have alluded to the job
seeking market earlier, however, there is nothing to persuade
me to
venture higher than 30%.
[21]
Given that the parties are not far apart at all, the Defendant is
bound by its expert’s
joint minutes and therefore I am unable
to apply a higher contingency as argued by Defendant. I do, however,
think that 20% recommendation
by the plaintiff’s counsel is on
the low scale. Accordingly, the calculation is as follows:
Uninjured
Injured
Loss
Past
income
R
927 400
R
420 500
Less
contingencies
5.00%
0.00%
Net
past income
R
881 030
R
420 500
R
460 530
Future
income:
R5
404 300
Rnil
Less
contingencies
30.00%
0.00%
Net
future income
R3
783 010
Rnil
R
3 783 010
Total
loss:
R4
243 540
Costs
[22]
The Plaintiff argued for costs on scale B and the Defendant argued
for costs on scale A. For
the Plaintiff, considering the nature
of the injuries, the importance of this case to the patient and the
quantum, the costs are
justified to be awarded on the higher scale.
Mediation
[23]
This is one of such cases where there was so little in dispute that
the Defendant could have,
if it had applied its mind to the matter,
have mitigated its costs. This is an example of a matter where a
mediator could have
played a meaningful role, focusing on the narrow
and singular issue of contingencies only. Had that been a
consideration, time
and costs would have been saved.
[24]
As such, it was a golden opportunity for an earlier settlement, given
the length of time it took
for this matter eventually to be heard,
given that the matter was declared-trial ready by Cloete J in June
2023. It is a
pity that the Defendant did not consider
settlement earlier and left it to the court on the single and narrow
aspect of determining
the contingencies to be applied.
Order
[25]
Having heard the submissions made by counsel it is ordered:
a)
The Defendant shall pay the Plaintiff's attorneys the sum of R 4 243
540.00 ("the
capital"), by way of an electronic transfer to
the trust account, details whereof are set out hereunder, in respect
of the
Plaintiff's claim for loss of earnings.
b)
The Defendant shall pay the Plaintiff's taxed or agreed party and
party costs
on the High Court scale in respect of the matter set down
for 6 February 2025, including but not limited to the following:
(i)
The costs incurred after the date of this order in obtaining payment
of the
amounts referred to herein.
(c)
The qualifying and reservation (if any) fees of the following expert
witnesses, including
the costs attached to the procurement of
medico-legal reports and any addendum reports, joint minutes, X-rays,
MRI scans, and pathology
reports:
(i)
Dr Zayne Domingo (neurosurgeon)
(ii)
Dr Rael Jaffe (orthopaedic surgeon);
(iii)
Prof Tuviah Zabow (psychiatrist);
(iv)
Ms Nicolette Hugo (occupational therapist)
(v)
Ms Barbara Grobbelaar (industrial psychologist)
(vi)
Munro forensic actuaries.
(d)
The reasonable travelling and accommodation costs incurred by the
Industrial Psychologist
to be available at the hearing on 6 February
2025.
(e)
The fees of the Plaintiff's counsel, including for furnishing advice
on evidence, preparing
for trial and drafting heads of argument, on
Scale B.
(f)
Payment of the capital amounts, as set out in this order, must be
made within 14 calendar
days from the date of this order.
(g)
The Defendant will be liable for interest on the abovementioned
capital amounts calculated
at the legal rate from 14 calendar days
after the date of this or the taxing master’s allocator, in the
event of taxing the
bill of costs, whichever is applicable.
(h)
The plaintiff's attorneys' trust banking account details are as
follows:
Bank:
First National Bank
Account Holder:
De Vries Shields Chiat Inc.
Branch:
Portside
Account Number:
6[...]
Branch Code:
21065
PARKER AJ
Acting Judge of the High
Court
Appearances
Counsel for the
Plaintiff:
Adv Eugene Benade
Instructed
by:
DSC Attorneys
Mr
Daneil Botha
For the
Defendant:
Ms Claireese Thomas
RAF
State Attorney
Date of Hearing:
6 February 2025
Date of Judgment:
19 February 2025
This judgment was
handed down electronically by circulation to the parties’
representatives by email.
[1]
Madibeng
Local Municipality v Public Investment Corporation Ltd
2018 (6) SA
55
(SCA) at 61G.
[2]
Bee v
Road Accident Fund 2018 (4) SA 366 (SCA)
[3]
Medi-Clinic
v Vermeulen
2015 SA 241
at 250 para 25-27.
[4]
2019
(2) SA 233
(SCA) para 44
[5]
Publisher:
Van Zyl Rudd
sino noindex
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