Case Law[2024] ZAWCHC 6South Africa
Rautini v Passenger Rail Agency of South Africa (19132/2014) [2024] ZAWCHC 6 (22 January 2024)
High Court of South Africa (Western Cape Division)
22 January 2024
Judgment
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## Rautini v Passenger Rail Agency of South Africa (19132/2014) [2024] ZAWCHC 6 (22 January 2024)
Rautini v Passenger Rail Agency of South Africa (19132/2014) [2024] ZAWCHC 6 (22 January 2024)
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IN THE HIGH COURT OF
SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
No: 19132/2014
In
the matter between:
MASIBULELE
RAUTINI
Plaintiff
And
PASSENGER
RAIL AGENCY OF SOUTH AFRICA
Third
Respondent
Heard:
20 November 2023
Delivered
(electronically): 22 January 2024
JUDGMENT
LEKHULENI
J
Introduction
[1]
This case involves two legal issues for determination.
Firstly
,
it concerns the legal ramifications of a joint pre-trial minute that
parties signed before the trial hearing.
Secondly
,
it raises the question as to whether this court can make a draft
order an order of court pursuant to a joint pre-trial minute
where
one of the parties failed to obtain the requisite mandate from its
client to settle the matter.
The
Background Facts
[2]
The plaintiff is an adult male, born on 10 January 1990, and is
currently 33 years old. On 19
November 2011, at or near the railway
line between Du Toit Station and Lynedoch Station Cape Town, the
plaintiff was seriously
injured when he was pushed out of a moving
Metrorail train operated by the defendant. In his summons, the
plaintiff pleaded that
the incident was caused by the sole negligence
of the defendant or its employees acting within the course and scope
of their employment
with the defendant.
[3]
Plaintiff further contends that the defendant's employees were, among
other things, negligent
in allowing the train to travel between
stations without ensuring that the doors were closed. Moreover, the
lack of adequate maintenance
of the train doors contributed to the
train becoming overcrowded. In addition, the plaintiff alleges that
the defendant failed
to post security guards on the train when it
should and could have done so.
[4]
As a
result of the accident, the plaintiff suffered serious injuries, such
as severe left ankle fractures, severe right tibia fibula
fractures,
as well as spinal fractures, bruises, and abrasions all over the
body. In the amended summons, the plaintiff claimed
a total of R10
121 285.00 in damages, inclusive of R1 600 000 for general damages,
R1 531 495 for loss of earnings, and R6 489
790 for estimated future
medical and related expenses.
The
plaintiff’s claim for general damages is based on the treatment
that the plaintiff has received in the past and will have
to receive
in the future. It is also based on the fact that the plaintiff has
suffered loss of amenities of life, experienced pain,
suffering,
disfigurement, and disability in the past and will continue to
experience in the future on a permanent basis.
[5]
In accordance with rule 33(4) of the Uniform Rules, the parties have
agreed to bifurcate the issues
of liability and quantum. The issue of
liability has been resolved. The High Court dismissed the plaintiff's
claim on liability,
but on appeal to the Supreme Court of Appeal, the
plaintiff's case was successful. The Supreme Court of Appeal has
ordered that
the plaintiff be compensated for 100% of his
still-to-be-proven damages resulting from the train accident. This
court is only enjoined
to determine the amount to be awarded for
general damages, past and future loss of earnings, and estimated
future medical and related
expenses.
[6]
Several expert reports, including orthotists, industrial
psychologists, orthopaedic surgeons,
and occupational therapists for
both the plaintiff and the defendant, as well as Actuarial reports,
have been obtained. Subsequent
thereto, the parties’ respective
experts of similar vocation, in turn, prepared joint minutes. As far
as future medical expenses
are concerned, the plaintiff's orthopaedic
surgeon, Dr Jaffe, in the joint expert report, expressed a view that
differed from the
orthotists that there was a possibility that the
plaintiff may require to have an amputation of his lower limb. In the
joint expert
report, Dr Jaffe was reluctant to advise amputation of
the plaintiff's right lower limb. The defendant's orthopaedic expert,
Prof
Vlok, did not foresee amputation of the plaintiff's lower limb
but instead, suggested corrective osteotomy and repair of the
non-union.
[7]
On 15 November 2023, Doctor Jaffe filed an addendum report wherein he
revised his previous opinion
concerning whether he would support a
below-the-knee amputation of the plaintiff's right leg. Further, Dr
Jaffe recorded in his
addendum that he supports corrective surgical
procedures. Dr Jaffe's conclusion in his addendum report contradicted
his opinion
as recorded in the joint expert report between the
orthopaedic surgeons, where he expressed a reluctance to advise on
amputation.
[8]
In light of Dr. Jaffe's revised conclusion, the plaintiff was
required to undergo an additional
examination by Prof. Vlok, the
defendant's orthopaedic surgeon. Prof. Vlok was tasked with providing
this court with his assessment
of whether he concurs with Dr. Jaffe's
conclusion or whether a corrective osteotomy and repair of the
non-union would be more suitable
to address the plaintiff's
orthopaedic injuries. Consequently, the involved parties reached a
consensus to defer the hearing of
future medical and associated costs
until the conclusion of a report authored by Professor Vlok.
[9]
The trial proceeded on the two remaining heads of damages only,
namely, general damages and loss
of earnings. Before the hearing of
this matter, the legal representatives of the parties, Mr Roux SC,
and Mr Salie SC (who was
absent at the hearing but was assisted by Mr
Abass), appearing for the plaintiff and defendant respectively,
debated the disputed
issues in particular the general damages and
loss of earnings and prepared a joint pre-trial minute that narrowed
down the issues.
In the pre-trial minute, the parties dealt with the
plaintiff's disputed heads of damages
ad seriatem.
For
completeness, I will summarise the parties' agreement as reflected in
the joint pre-trial minute.
General
damages:
[10]
Regarding general damages, the parties noted and considered the
agreement by the experts that the plaintiff
sustained grievous
injuries as a result of the accident. The parties recorded that at
the time of his injury, the plaintiff was
a young man of 21 and in
the prime of his life. He suffered severe injuries with lifelong and
life-changing consequences for a
young man. The joint pre-trial
minute also recorded that the plaintiff had been left with a severely
disabled leg and, as a result,
was in chronic pain.
An
imminent amputation of his lower limb is anticipated.
[11]
In addition, the pre-trial minute also recorded that the parties
debated the quantum of general damages with
reference to the
applicable case law and the joint expert reports. At the hearing of
this matter, the parties referred the court
to several comparable
cases dealing with the award of general damages, particularly for
amputated legs. The said cases are also
quoted in the joint pre-trial
minute. Considering all factors, the parties agreed in the joint
pre-trial minute that an award of
R1 100 000. 00 (one million one
hundred rand) would be equitable with respect to general damages. The
parties implored the court
to consider granting the proposed award as
envisaged in the joint pre-trial minute.
Loss
of Earnings
[12]
The parties referred the court to the joint minute of the Industrial
Psychologists, Ms Colley and Mr Malherbe.
As regards the plaintiff's
probable uninjured career, the two experts agree that the plaintiff
would probably have continued working
in unskilled and manual labour
roles for the remainder of his career. The two experts agree on the
plaintiff's probable pre-accident
earnings. I pause to mention that
in their individual reports, both recorded that the plaintiff worked
as a gardener at Spier Wine
Estate before the injury, earning R1500
per month.
[13]
Regarding the plaintiff's injuries sustained, they agreed that the
plaintiff had been rendered unemployable
in the open labour market.
The only issue in this regard was the appropriate contingencies to be
applied to the actuarial calculations
based on the joint minute. The
parties recorded in the joint pre-trial minute that they debated the
issue of contingencies. As
regards the contingencies to be applied to
the postulated uninjured earnings, the parties agreed that the
contingency of 10 per
cent should be applied for the past earnings.
[14]
Regarding the postulated future uninjured earnings, the parties
agreed that a 20 per cent contingency would
be fair. The parties
referred the court to the decision of
Rabie
v MEC for Education, Gauteng,
[1]
where Koen J referred to several cases in which a 15 per cent
contingency deduction was considered to be the standard contingency
to be applied in respect of a young claimant like the plaintiff. The
court nevertheless applied a contingency of 20 per cent to
the future
earnings to cater for any uncertainties. The parties recorded in
their joint pre-trial minute that a similar approach
was adopted in
the present case. The parties agreed that if the abovementioned
contingencies are applied, it results in a past
loss of earnings, of
R439 120,00 and future loss of earnings/ earning capacity of
R1004 880, 00.
The
legal effect of the joint pre-trial minute signed by the parties
dated 20 November 2023
[15]
As stated above, the plaintiff and the defendant’s legal
representatives reached an agreement on certain
admissions which were
reduced to writing and incorporated into a pre-trial minute. The
agreement reached between the two Counsels
is premised on Rule 37 of
the Uniform Rules read with the Practice Directives of this Division.
Paragraph 41 of the Practice Directives
of this Division provides
that ‘at a pre-trial conference the parties must genuinely
endeavour
to achieve the
objects of Rule 37 by defining triable issues and thereby curtailing
proceedings,
the minute must
reflect this’.
[16]
The
purpose
of rule 37 is ‘to promote the effective disposal of the
litigation.
[2]
It is intended to expedite the trial and to limit the issues before
the court.
[3]
The primary objective of Rule 37 is to reduce the length of a trial,
consolidate matters, minimise expenses, and facilitate settlements.
Parties are obligated to make a sincere effort to achieve a
settlement, either regarding matters that could potentially reduce
the duration of the proceedings or by resolving the primary
concerns.
[4]
[17]
The legal effect of a pre-trial minute in terms of Rule 37 was
clearly articulated by the Appellate Division,
as it then was, in
Price NO
v Allied-JBS Building Society,
[5]
in which a legal representative for the appellant conceded the
validity of a special plea of prescription. The aforementioned
concession was incorporated in the pre-trial minute. On appeal to the
Appellate Division, the appellant's Counsel sought to withdraw
that
concession and contended that Counsel at the trial had erred in
agreeing to amend the pleadings, the effect of which was to
concede
the validity of the plea of prescription and that it was permissible
for him to withdraw such concession on appeal.
[18]
This argument was rejected by the appeal court, which determined that
the parties were bound by their pleadings
and admissions at this
juncture. The court emphasised that a pre-trial conference in terms
of Rule 37 is designed to provide parties,
amongst other things, to
endeavour to find ways of curtailing the duration of the trial by
redefining the issues to be tried. One
of the methods of doing so,
the court noted, is by way of admissions of fact, which could lead to
eliminating one or more of the
issues raised in the pleadings.
[19]
In recent times, the Supreme Court of Appeal in
MEC
for Economic Affairs, Environment and Tourism, Eastern Cape v
Kruizenga and Another,
[6]
emphasised the fact that rule 37 was introduced to shorten the length
of trials, to facilitate the settlements between parties,
narrow
issues, and curb costs. The court also stressed that the admissions
of fact made under Rule 37 constitute sufficient proof
of those facts
and that a party or his legal representative may sign the minute of a
pre-trial conference. The court also noted
that Rule 37 conference is
thus of critical importance in the litigation process, and this is
the reason, the court observed, it
has held that in the absence of
any special circumstances, a party is not entitled to resile from an
agreement deliberately reached
at a Rule 37 conference.
[20]
In the present matter, the parties have provided a definition of the
issues in their joint pre-trial minute
dated 20 November 2023. The
legal representatives of the parties signed the joint pre-trial
minute. Significantly, it was incumbent
upon the legal Counsels of
both parties to promote the cause of their respective clients. A
legal practitioner acting in his professional
capacity owes a duty of
care and loyalty to his client. This duty requires the legal
practitioner to be diligent and be careful
in performing work for
clients.
[7]
[21]
As Mr Abass astutely noted, this enhances the credibility of any
pre-trial negotiations, provided that an
agreement is reached with
each party (Counsel) promoting the rights of their respective
clients. In
Road
Accident Fund v Shabangu and Another
(SCA),
[8]
Cloete JA, as he then
was, observed that 'the attorney-client relationship imposes a duty
on an attorney to advance the interests
of his client, even when that
course will cause harm to the opposite party; and in general, an
attorney will incur no liability
to the party on the other side in
doing so.'
[22]
The concession and the relevant admissions made by the parties in
this matter at the Rule 37 conference are
binding and constitute
sufficient proof of those facts. Both Counsels confirmed the minute
of the pre-trial conference in open
court and requested that the
admissions therein be made an order of court in terms of a draft
order. In my view, the joint pre-trial
minute addressed all the
issues in dispute between the parties. Their admissions recorded in
the pre-trial minute constitute sufficient
proof of those facts, thus
alleviating the need to lead evidence on the aspects where joint
admissions were recorded.
[23]
I have perused the experts' reports and their joint minutes, and I
was initially concerned with the revised
addendum of Dr Jaffe, which
differed from his view in the joint expert report. However, that
issue (future medical expenses) has
been postponed by agreement for a
hearing in due course. I have no issue with the joint expert reports
concerning general damages
and past and future loss of earnings. The
parties are bound by the agreements reached by the experts in the
joint minute, and this
court is certainly entitled to accept the
matters agreed upon by the experts.
[9]
[24]
All the disputed issues to be adjudicated at this stage have been
addressed, and no
lis
is pending between the parties. The
joint pre-trial minute is effectively evidence before this court. The
only outstanding issue
that remains is whether the court should make
the draft order following the admissions an order of the court.
Should
the draft order be made an order of court where the defendant’s
Counsel does not have a mandate for settlement?
[25]
The court was informed during the hearing of this matter that the
defendant's legal representatives do not
have a mandate to negotiate
a settlement for the claim against the defendant. They had the
mandate to represent the defendant in
court. Attempts were made to
get those instructions, but they were unsuccessful. It was argued on
behalf of the defendant that
the defendant's
organisational
framework includes a
hierarchical structure that governs the resolution of claims
surpassing particular thresholds. It was further
submitted that such
hierarchical structure serves a rational purpose in that it creates
oversight over expenditure, prevents settlement
of fraudulent or
baseless claims, and, most importantly, it ensures proper management
of public funds to which the defendant as
an organ of state has a
constitutional obligation to implement.
[26]
The failure to provide instructions for settlement, the contention
proceeded, is not indolent on the part
of the defendant. Any delay is
not indicative of indifference towards the plaintiff's claim, rather,
it is the result of specific
checks and balances that must be
satisfied, which could not be accomplished prior to the hearing of
this case. Additionally, Mr
Abass submitted that the damages outlined
in the draft order reflect the fair value due to the plaintiff for
loss of earnings and
general damages, as determined by the joint
reports of the expert witnesses. Mr Abass further submitted that the
draft order essentially
encapsulates the heads of damages detailed in
the joint pre-trial minute.
[27]
The Supreme Court of Appeal affirmed in
Hlobo
v Multilateral Motor Vehicle Accident Fund,
[10]
the authority and function of a legal representative during
settlement negotiations, provided that the legal representative
refrains
from settling a claim against the client's mandate. The
court also confirmed that the conduct of a party's case at the trial
of
an action is in the entire control of the party's Counsel.
Although the court dealt with the issue where a settlement was
reached,
it established the essential principle of the role of a
legal representative, the mandate under which a legal representative
operates,
and the authority he or she has to compromise a client's
case as long as they do not act contrary to instructions received.
[28]
In this instance, notwithstanding the defendant's Counsel's inability
to obtain a settlement mandate from
the client for the amount
specified in the draft order, in my view, the defendant's legal
representatives bear a responsibility
to both their client and this
court. Furthermore, the defendant's Counsel had instructions to
appear and to represent the defendant
in this court for the hearing
of the matter. They did not have the instructions to settle, but they
had the instructions to represent
the defendant. These instructions,
in my view, included the drafting of pleadings on behalf of the
defendant, attending pre-trial
proceedings, and attending court for
the hearing of the matter.
[29]
The instructions also involved the authority to make admissions and
concessions and often agree on compromises
and settlements. In the
absence of any instructions to the contrary, I am satisfied that the
defendant's Counsel was clothed with
the necessary authority to
discharge what was required of him at the pre-trial conference as he
did, which is making concessions
as are appropriate to narrow down
the issues between the parties to curb costs and expedite the
finalization of this matter.
[30]
To
summarise
,
the defendant's Counsel had instructions to represent the defendant
in these proceedings. Pursuant to those instructions, a pre-trial
was
held, and discussions between the legal representatives took place.
In accordance with those discussions, the defendant's Counsel
assessed the evidence before the court in terms of the joint minute
and applied his mind to the quantum. After duly considering
the
expert reports and the relevant case law, the defendant's Counsel
then engaged in negotiations with the plaintiff's legal
representatives and recorded in the joint pre-trial minute the
defendant's potential liability.
[31]
Crucially, all the amounts contained in both the pre-trial minute and
in the draft order are consistent with
what is contained in the joint
reports of the expert witnesses and the relevant case law applicable.
Furthermore, upon perusing
the joint pre-trial minute, it is evident
that both Counsels have applied their minds and considered the
relevant case law on general
damages, future loss of earnings and the
applicable contingencies to cater for the uncertainties. They have
considered the expert
reports filed on behalf of the plaintiff and
those filed on behalf of the defendant.
[32]
I am of the view that the Counsel for defendant acted in the
interests of his client. Based on the totality
of the evidence
presented to this court, the defendant's Counsel would not have
agreed to an amount in the joint pre-trial minute
if he had not been
convinced that the amount truly reflected what the defendant would be
liable for. I repeat, I have no reason
to doubt or question the bona
fides of the parties.
[33]
To this end, I share the views expressed in
Denby
v Ekurhuleni Metropole Municipality,
[11]
a case sharing striking similarities with the present, where
the court observed that ‘
the
defendant’s legal representatives found themselves in the
invidious position that they were unable to obtain instructions
from
their client to agree to a consent order but in the discharge of
their professional legal duties both to the court and their
client to
engage constructively with the plaintiff’s legal
representatives in pre-trial proceedings, including in the making
of
appropriate concessions and admissions, had concluded there remained
no discernible
lis
between
the parties to be litigated.’
[34]
I have also observed that the amount agreed upon by the parties, as
reflected in the joint pre-trial minute,
is relatively lower than
what was claimed by the plaintiff in his amended summons. I am of the
view that the cumulative effect
of the joint pre-trial minute has
indeed saved the parties, particularly the defendant, the costs of
the trial. Several witnesses,
including expert witnesses, could have
been called to this trial to prove and disprove the plaintiff's
quantum of damages. The
trial of this matter on quantum would have
lasted for several days. The trial costs, in my view, have been
alleviated.
[35]
Furthermore, the expert witnesses’ conclusions were consistent
with one another. The actuarial report
and reports of the
occupational and industrial psychologists on the projected career
path of the plaintiff quantify the amount
for loss of earnings.
Regarding general damages, the orthopaedic surgeons have clearly
detailed the plaintiff's injuries and the
pain he would endure in the
future. Therefore, in terms of the joint pre-trial minute, which
falls within their mandate to record
either admission or concessions,
I am of the view that the defendant's Counsel acted within his
mandate and that the draft order
before this court is reflective of
the admissions and concession in the pre-trial minute. There is
nothing to suggest that what
the defendant’s Counsel has agreed
to is anything other than to act in the best interest of the
defendant.
[36]
Notably, the Supreme Court of Appeal made a distinction in
MEC
for Economic Affairs, Environment and Tourism, Eastern Cape v
Kruizenga and Another (supra),
between settlement agreements that were reached outside the context
of customary trial proceedings (during which parties generally
have
the ability to revoke agreements unknowingly entered into by their
solicitors) and settlements facilitated through rule 37
conference.
The court observed that the usual and customary powers associated
with appointing a legal representative by the defendant
would include
instructions to defend the claim, draft a plea, and to attend all
pre-trial proceedings. The pre-trial procedures
involve making
admissions and concessions and often agreeing on compromises and
settlements.
[37]
In the present matter, the parties signed a joint pre-trial minute,
which resolved all the disputed issues
between the parties.
Consistent with the pre-trial minute, the parties prepared a draft
order and implored this court to make it
an order of court. Based on
the aforementioned factors, I am of the view that the defendant's
legal representative had the authority
to attend the pre-trial
conference and to make the necessary concessions and admissions
incorporated in the joint pre-trial minute
to curtail the duration of
the trial and cut costs. I am further of the view that the
defendant's Counsel had the necessary authority
to conclude the joint
pre-trial minute with the plaintiff's Counsel and to jointly seek
that this court make the draft order an
order of this court.
Order
[38]
In the final analysis, an order is hereby made in terms of the
parties’ draft order marked “X”
LEKHULENI
JD
JUDGE
OF THE HIGH COURT
APPEARANCES
For
the Plaintiff:
Adv
J-H Roux (SC)
Assisted
by
A.J
Du Toit
Instructed
by
DSC
Attorneys
Cape
Town
For
the Defendant:
Adv
Y Abass
Instructed
by:
AMMM
Attorneys
[1]
Member
of the Executive Council of Gauteng Responsible for Education v
Rabie (A758/06)
[2008] ZAGPHC 71
(7 February 2008).
[2]
MEC for
Economic Affairs, Environment and Tourism, Eastern Cape v
Kruizenga.2010 (4) SA 122 (SCA) at 126E.
[3]
Hendricks
v President Insurance Co Ltd
1993 (3) SA 158
(C) at 166E.
[4]
Kriel v
Bowels
2012
(2) SA 45
(ECP) at 48J–49A.
[5]
1980 (3) SA 874
(A) at 882D-H).
[6]
2010 (4) SA 122 (SCA).
[7]
Honey
and Blanckenberg
1966 (2) SA 43
(R) at 46F-G.
[8]
[2004]
2 AII SA 356.
[9]
Bee v
RAF
2018 (4) SA 366
(SCA) at para 73.
[10]
[2001] 1 AII SA 322.
[11]
2021
(1) SA 190
(GJ), para 11.
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