Case Law[2023] ZAWCHC 65South Africa
Kenjani and Others v Minister of Police (21234/11) [2023] ZAWCHC 65 (30 March 2023)
High Court of South Africa (Western Cape Division)
30 March 2023
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Kenjani and Others v Minister of Police (21234/11) [2023] ZAWCHC 65 (30 March 2023)
Kenjani and Others v Minister of Police (21234/11) [2023] ZAWCHC 65 (30 March 2023)
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sino date 30 March 2023
FLYNOTES:
LOSS OF SUPPORT AND JOINT INSTRUCTIONS TO ACTUARIES
ACTUARIAL
– Loss of support – Students losing father – Not
married to mothers of two children – Actuary
correctly using
apportionment ratio of 2:1:1 between father and two children –
NSFAS bursary under State’s duty
for Constitutional right to
education and not double compensation – Effect of joint
instructions to actuaries –
Defendant could not at very late
stage disagree with assumptions used by plaintiff’s actuary.
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
number: 21234/11
In the matter between:
THANDI
KENJANI
First
Plaintiff
THANDILE
RAMANGOANE
Second
Plaintiff
SYDNEY
SIPHIWO NCATE
Third Plaintiff
And
THE
MINISTER OF POLICE
Defendant
Date of hearing: 22
November 2022
Date of Judgment: 30
March 2023 delivered electronically to the counsel
JUDGMENT
HENNEY,
J
Introduction:
[1]
On 15 March 2009 the deceased, father to the first and second
plaintiffs and the son
of the third plaintiff, was killed by members
of the defendant during the course and scope of their employment.
Subsequently, the
three plaintiffs instituted separate claims for
damages in this court. The issues of liability and quantum were
separated for adjudication
by agreement between the plaintiffs and
defendant.
[2]
The first and second plaintiffs’ claim were for loss of support
and maintenance,
and the third plaintiff’s claim were in
respect of damages suffered for funeral expenses incurred by him. The
proceedings
to determine the issue of liability in respect of the
first and second plaintiffs’ claim were dealt with by Samela J,
who
handed down a judgment on 14 May 2019 in which he made the
following order: ‘
The Defendant is found liable to the
plaintiff’s loss of support occasioned by the shooting and
killing of the deceased, Mazizandile
Terence Ncate, by members of the
South African police services that relate to on 15 March 2009
.’
[3]
In the proceedings before this court, only the quantum in respect of
the damages suffered
by the first and second plaintiffs need to be
determined. The first and second plaintiff seeks to be compensated
for damages in
respect of past and future loss of support in the
amount of R958 350.00 each, together with the costs incurred during
the determination
of the defendant’s liability and all
associated costs of that proceedings, as well as the costs associated
with these proceedings
on taxed or agreed High Court costs of the
plaintiffs’ counsel and the associated costs related thereto.
[4]
Although the defendant does not dispute that the plaintiffs are
entitled to an amount
of damages, it does dispute liability for the
amount of damages that the plaintiffs have set out in their
respective claims. Mr.
Botha appears for the plaintiffs and Mr.
O’Brien appears for defendant.
Undisputed
and common cause facts
:
[5]
It is common cause that the deceased was employed at Correctional
Services Department
since 8 September 2000. At the time of his death
he was earning on salary level 5, Notch 5, R79 287.00 per annum. It
is not in
dispute that both the plaintiffs and the defendant
appointed Industrial psychologists. The plaintiffs appointed Lindy
Emsley and
the defendant appointed Bernard Swart.
[6]
Furthermore, the Industrial psychologists appointed by both parties
prepared a joint
minute, which was accepted as undisputed evidence by
the plaintiffs and the defendant. Wherein the experts agreed that the
deceased
would have continued earning as such and progressed a notch
each year until he reached the top notch of where he would have
continued
to work until he would have been promoted to the next
Salary Grade, and so forth until he would have retired at the age of
60.
It is not in dispute that based on the joint minute, joint
instructions were prepared by the legal representatives for the
plaintiffs
and the defendant, and provided to Munro to calculate the
plaintiffs’ loss of support. The joint instructions consisted
of
the following:
‘
a)
Kindly use the assumptions as
per the joint minute of the industrial psychologist, specifically
the
consideration as outlined in paragraphs 2.1.7.1 to 2.1.7.5.
b)
Calculate the
Plaintiffs losses, to the age of 23, for both the Plaintiffs.
c)
Apply a 5%
contingency deduction for past losses. No contingency deductions for
future losses.
d)
Use the standard
apportionment of family earnings of two shares to the deceased and
one share to each child whilst dependant.’
[7]
It is furthermore common cause that based on these joint
instructions, Munro Actuaries
prepared an Actuarial Report dated 17
May 2022, which formed the basis and the subject matter of the
evidence presented by Boshoff.
It needs to be mentioned no such joint
instructions were given to the actuaries employed by the defendant.
Only the plaintiffs
presented evidence in respect of the
determination of the quantum. The following witnesses were called,
the actuary, Willem Boshoff,
the first and second plaintiff, as well
as the mother of the first plaintiff, Moekie Kenjani and the mother
of the second plaintiff,
Nomvuyo Ramangoane.
The
evidence
:
[8]
Willem Boshoff, an actuary in the service of Munro Forensic
Actuaries, testified that
Munro Forensic Actuaries prepare
calculations for approximately 2000 loss of support cases per year.
He has worked as an actuary
for approximately 10 years and in his
entire career, has only come across approximately 3 or 4 cases where
the apportionment deviates
from the norm of 2:2:1:1 and in all of
these cases he thought it was not justified. According to his
expert opinion the 2:2:1:1
apportionment proves to be fairly accurate
as it is derived from scientific research based on large population
groups, he however
conceded that it could be seen as a blunt
instrument. According to him, it is difficult to work with exact
figures because the
needs of children change as they become older. He
has applied this formula to the deceased salary and he also included
inflationary
increases and for each year: According to this
norm 2 shares would be awarded to the parents and 1 share for each
child.
He also calculated the loss of support to the plaintiffs over
the period he was requested to. He came to a figure of a R958 350.00
for each, calculated from the date of the death of the deceased until
they reached the age of 23 years; which he stated is a conservative
assumption as young people usually struggle to find employment after
they concluded their studies.
[9]
During cross examination by Mr O’Brien, he was questioned under
which circumstances
a 3:1:1 apportionment would be used and he
explained that it would be used when the family income is excessively
large, which would
result in the children not being able to utilise
all the money a larger apportionment would entail i.e. 2:1:1. He
further stated
that the formula he used is not arbitrary, but was
scientifically determined and it is based on the deceased’s
duty of support.
He also considered that the deceased also
worked overtime, which increased his salary by 30%, to meet his
family’s
needs. The calculations were based on the deceased’s
salary which included his annual salary increases. It was agreed that
the calculations should be based on the salary he would have earned
until he reached his retirement age of 60 years.
[10]
Moekie Kenjani is the biological mother of the first plaintiff and
the deceased was the biological
father. She testified that the
deceased supported her and the first plaintiff since her birth until
his death. He was a good
father, and he would have financially
supported her to study further and make a life for herself. She
testified that up to the
death of the deceased, they were involved in
a relationship. He gave her R1500. 00 per month and if he was
by the means he
would sometimes give her up to R2000. 00 per month.
In addition to this payment he made, there was also a garnishee order
compelling
his employer to pay R450.00 per month into her account
towards maintenance.
[11]
In a rather bizarre and extraordinary testimony when questioned as to
why she would have gone
to the maintenance court and asked for
R450.00 if the deceased in any event gave her R1500.00 per month, she
explained that she
was “jealous” and wanted to “spite”
him, as she was aware of another woman which the deceased was
involved
with. It was put to her during cross-examination that this
was unrealistic. Nothing however, turns on this rather bizarre
evidence,
because it would have no influence on the question whether
the deceased had a duty to support the first plaintiff. In any
event, the defendant in its submissions concedes that on the
evidence, it is reasonable to accept that the deceased would have
been liable to pay maintenance in the amount of R2000.00 per month
for each of the plaintiffs.
[12]
Although the mother of the first plaintiff testified that she was
earning R2400.00 per month
at the time of the death of the deceased,
I agree with the submission of Mr Botha that this is irrelevant for
purposes of determining
the plaintiff’s damages for loss of
support, as confirmed by Willem Boshoff during his evidence.
[13]
Nomvuyo Ramangoane is the biological mother of the second plaintiff,
Thandile Ramanoane, of which
the deceased was the biological father.
She also testified that the deceased maintained and supported her and
the second plaintiff.
The deceased was a good father to the second
plaintiff and they had a good relationship with each other.
Since the second
plaintiff’s birth and until the death of the
deceased, she never worked. During this time the deceased supported
them and
provided them with what they needed. The deceased gave her
R450.00 cash per month and he also bought them enough groceries to
last
for herself, the second plaintiff and her mother for a month.
She estimated that the amount that the deceased would spend on
groceries,
would be about R1300.00 per month.
[14]
The deceased would also on occasion have taken the second plaintiff
to the Spur. The evidence
of this witness in respect of the
fact that the deceased supported them was not contested. It was also
uncontested that the deceased
would have continued to support the
second plaintiff with his studies.
The
circumstances of the first and second Plaintiff
:
The
first plaintiff
:
[15]
She was in her 4th year of studies at Nelson Mandela University after
having completed her Diploma
in Accountancy, and was studying towards
her advance diploma, during the time of her testimony. During the
first 3 years of her
studies it was funded with a NSFAS bursary. She
is currently studying from home and her studies is funded by another
bursary from
a different institution. At the time of her giving
evidence (November 2022) she did not have a bursary for 2023 and she
endeavours
to study towards her CTA 1 and the year after that, her
CTA 2. She will be 23 years of age when she completes her
formal
studies. From her evidence, it is apparent that she had a very
good relationship with the deceased and he regularly took her on
outings.
The
second plaintiff
:
[16]
He took a gap year after school and testified that he earned R3400.00
per month for 6 months
during that period. In 2021 he started
studying Electrical Engineering at Northlink College, also on a NSFAS
bursary and is currently
studying towards the completion of his N4
level. In 2023 he plans on studying his N5 level which he hopes to
finalise by July 2023,
and progress onto his practical training N6.
The N6 practical training is for a further 18 months. He will also be
23 years of
age when he completes his studies. He testified that the
deceased was a good father and that he remembers him fondly. The
deceased
would buy him clothes on occasion.
The
Submissions of the parties:
[17]
The dispute in this case turns on the question whether the quantum
for damages for loss of support
should be assessed in the manner as
submitted by the plaintiffs, based on the actuarial report of
Boshoff. Mr. Botha submitted
that he was surprised that the
defendant disputed the actuarial report, after the plaintiffs as well
as defendant’s attorneys
agreed on 5 May 2022 to issue joint
instructions to the actuaries as set out above.
[18]
In the joint instructions issued to the actuaries, the parties agreed
that they should use the
assumptions as per the joint minutes of the
industrial psychologists as set out in paragraphs 2.17.1 –
2.1.7.5 of that joint
minute. In the joint minute of the industrial
psychologists under paragraph 2.1.7 the following is stated: ‘
Based
on all the considerations outlined above, the following pre-traumatic
career postulation of the deceased is offered for the
deceased in
this matter:
1)
securing employment
with the Department of Correctional Services on 8 September 2000-as
had been the case;
2)
continuing employment
at the Department of correctional services and earning on Notch
R79287 per annum in 2009-as had been the case;
3)
as a government
employee, his annual increases would consist of CPI increases in the
remuneration tables (OSD) each year AND a notch
increase each year.
His annual increases will hence be CPI plus notch be annum;
4)
usual government
benefit must be added and to be found in Koch Quantum Yearbook (2020,
page 120);
5)
retiring age at 60
years of age.’
[19]
They also agreed that the first and second plaintiffs’ losses
should be calculated to the
age of 23. That a 5% contingency
deduction for past losses should be taken into account and that no
contingency deductions for
future losses should be calculated.
They furthermore agreed that the standard apportionment of family
earnings should be:
two shares to the deceased, and one share for
each child whilst dependent. The industrial psychologists
prepared the joint
minute which was accepted as undisputed evidence
by the plaintiffs and the defendant.
[20]
On 18 May 2022, the actuarial report by Munro Forensic Actuaries was
sent to the defendant’s
counsel. Thereafter nothing else
was forthcoming from the defendant since the receipt of the actuarial
report, except that
they will be not be making a settlement offer.
[21]
On 7 November 2022, one day before the trial, the defendant’s
counsel informed the plaintiff’s
counsel through a WhatsApp
message that they will be accepting the joint IP report
and the calculations of the actuaries
except the ratio 2:1:1.
[22]
Mr. O’ Brien submits that that there is no dispute that the
plaintiffs’ loss must
be ascertained until they reach the age
of 23 because both of them are students and are performing
exceptionally well in their
respective courses. He further
submits that there is no dispute about the actuarial method of
calculating the value of the
plaintiffs’ loss. However, the
assumptions upon which actuarial calculations are based is in issue.
And in this regard
the plaintiffs rely on the evidence of Boshoff.
Boshoff bases his calculations on an apportionment of 2:1:1, although
he concedes
that he has seen larger apportionments in cases of the
exceptionally high earning families because expenses cannot go below
a certain
amount in low income families.
[23]
Mr. O’Brien further submitted that Boshoff’s assumptions
are inconsistent with the
evidence presented in this matter.
His assumption is based on a family where two shares are apportioned
to each adult, and
one share for each child. According to him
in this matter, the plaintiffs’ mothers were not married to the
deceased.
In this regard, he submits that Boshoff’s
evidence that it will not make any difference is not based on fact.
He also
did not give the court the reasons why the position is
different in this case given the fact that the mothers of the
plaintiffs
were not married to the deceased. He submitted that
an expert must set out a factual basis for the acceptance of his
opinion,
otherwise it does not hold any value.
[24]
Mr O’Brien submitted that the defendant’s actuaries in
their report dated 3 November
2020, apportioned the income as three
parts to the deceased, and one portion to each claimant while in
receipt of parental support,
bearing in mind the economic
circumstances of the single parent. This according to Mr.
O’Brien shows that the 2:1:1,
standard is not cast in stone. I,
however agree with Mr Botha, this was not presented as evidence and
cannot form part of the record
for consideration.
[25]
Mr O’Brien further submitted in this regard that this approach
was rejected in the case
of
Reay
& Another v Netcare (Pty) Ltd. t/a Umhlanga Hospital &
Others
[1]
where
Koen
J
said the following: ‘
This
is a crucial point of departure to the calculations. The
determination of any loss of support suffered by the plaintiffs by
virtue of the death of Mrs Reay should be determined firstly on the
basis of objective evidence, which should be available, of
the actual
financial support they enjoyed and were accustomed to receive, and
which they were deprived of by her untimely death.
It is an
issue on which specific evidence should be available and which should
have been adduced. The plaintiffs did not adduce
such evidence.
Instead, they have in the main simply contented themselves with
apportioning the joint income of Graeme and Mrs
Reay available from
time to time in the proportions of 2 parts for Graeme, 2 parts to Mrs
Reay and 1 part each to Jarred and Tyrone,
often used and adopted in
support and maintenance claims. That is not desirable and should at
best have been a fall-back position,
and then only provided the
limitations of adopting such an approach are clearly understood.
Whilst such an apportionment might
in some instances not be
inappropriate, for example where the total available income would be
depleted by the needs of those dependant
on that joint income, it
permits of no savings and would result in an inaccurate calculation
of loss of support where the actual
costs of support of Graeme,
Jarred and Tyrone amounted to less than 4/6ths of the total combined
incomes of Graeme and his wife. The
defendant, perforce, because
no alternative evidential basis presents itself, has had to conduct
its own calculations also on that
basis. The plaintiffs are fortunate
that such an approach was adopted by the defendant because no reason
was advanced why objective
evidence of the actual support Mrs Reay
provided
and the actual support Graeme and his two sons were accustomed to
receive, were not placed before this Court.’
[26]
Boshoff conceded that there are other methods to calculate like 1/6,
1/7 and 1/8 that are used
but stated that these methods were found
not be acceptable. Mr. O’Brien further submitted that the
figure of R958 350.00
does take into account living and travelling
expenses.
[27]
According to Mr. O’Brien the amount of maintenance the
plaintiffs would have received from
the deceased depends on the
relationship between the parties, the actual amount of maintenance
and support he had paid before his
death, the requirements of the
deceased and the general circumstance of the case.
[28]
He submits that given the many imponderables in this matter, which
includes the fact that the
parties were living apart, the maintenance
order, the evidence of the mothers and the mathematical calculation
proposed by Boshoff,
the so-called standard assumption should not be
applied. According to him, if the standard assumption is
applied, it cannot
be contrary to the plaintiffs’ evidence.
[29]
In respect of the maintenance Mr. O’Brien submits that in
considering the general equities
of this case and the imponderables,
the court should find the figure as maintenance the deceased paid
before his death as R2000.00
per child. According to him, this
accords with the legal principles set out in the cases that
established his income immediately
before his death and further
submits that this figure of R2000.00 should be annually adjusted from
time to time at the prevailing
interest rate. )
[30]
Regarding deductions, he submitted that is common cause that the
first plaintiff received NSFAS
financial assistance in relation to
her studies. He submitted that based on the principles as laid down
in
Zysset
& others v Santam Ltd
[2]
and
Road
Accident Fund v N F Timis
[3]
,
it was stated that where payments are made at the expense of
taxpayers, it would amount to double compensation. He submitted that
the NSFAS payments falls into this category and needs to be deducted.
[31]
In respect of the first plaintiff, her expenses were paid from this
scheme and she received an
amount of R1500.00 per month for the
period 2019 and 2022. She furthermore received a bursary from the
University in 2022, which
covered her tuition fees. She was
further dependent on her mother for support.
[32]
In respect of the second plaintiff, he took a gap year in 2020 for
which he should receive no
support, and for a period of six months in
2020, he received an income which was more than the actual support.
[33]
Regarding contingencies, Mr. O’Brien submits that the deceased
had a motor vehicle, he
lived with his mother and he had to travel to
work at Pollsmoor prison. It therefore must be inferred that he
had living
expenses because he lived with his mother. What also
needs to be considered as a contingency was the possibility of the
deceased
getting married.
[34]
He therefore submits that the 5% contingencies are too low if regard
should be had to all the
factors he had referred to. According
to him, a contingency factor of 40%, although a thumbs-suck will give
effect to the
imponderables referred to earlier.
Issues
for consideration:
[35]
a) Whether the defendant, based on the joint instructions given to
the actuaries- Munro, is bound
thereto and cannot disavow that
instruction under the circumstances and if so;
b) Whether joint
instructions given to the expert have the same evidentiary status of
a joint minute to which a party can
be held bound to; and
c) Whether such agreement
to the issuing of joint instructions constitutes an admission, for
the purposes of the calculation of
the damages upon which the
actuaries based its report and if so;
d) Whether bursaries paid
by National Student Financial Aid Scheme deductible and can be
regarded as double compensation.
I will now deal with the
issues in turn.
Discussion:
[36]
I agree with the submission of Mr. Botha, that there’s no
evidence that was placed before
this court to come to the conclusion
that a 40% contingency factor should be considered. The plaintiffs on
the other hand, firstly,
presented an expert report based on the
joint instructions given to the actuaries and secondly, based on the
actual evidence of
Boshoff, presented evidence to the court about the
amount to be determined as the quantum for the loss of support
suffered by them.
[37]
The difficulty I have for the defendant’s position adopted in
this case was that they agreed
with the plaintiff that the actuaries
should apply a 5% contingency deduction for past losses and secondly,
to use the standard
apportionment of family earnings being two shares
to the deceased, and one share to each child, whilst dependent. They
also agreed
that the calculations of the plaintiffs’ losses be
calculated to the age of 23.
[38]
The report of Munro actuaries was presented to the defendant’s
counsel on 18 May 2022,
after the joint instructions agreed to
between the two parties were sent to actuaries on 5 May 2022.
It was only on 7 May
2022, a day before the trial that the
defendant’s counsel stated that they have difficulty with the
calculations of Boshoff,
and in particular, the standard of
apportionment of 2:1:1 and the 5% contingency deduction.
[39]
It is not open to the defendant at this late stage to disavow their
agreement which amounted
to admitting the evidence given by Boshoff
that was tendered by the plaintiffs, especially in the absence of any
evidence presented
by it to disprove the case presented by the
plaintiffs. In
McWilliams
v First Consolidated Holdings Pty Ltd
[4]
it
was said under certain circumstances:
“
[A]
party’s silence and inaction, unless satisfactorily explained,
may be taken to constitute an admission by him of the truth
of the
assertion, or at least will be an important factor telling against
him in the assessment of the probabilities and in the
final
determination of the dispute. And an adverse inference will the more
readily be drawn when the unchallenged assertion had
been preceded by
correspondence or negotiations between the parties relative to the
subject-matter of the assertion
”
.
[40]
The law with regards to joint minutes of experts which amounts to an
agreement and are regarded
as common cause facts in our law of
evidence, is well established. It is in my view of equal application
in certain cases where
parties agree to jointly give instructions to
an expert. In my view, the status and evidential value of such a
joint instruction
based on an agreement, at the very least in this
case, are similar to those where parties agree to a joint minute in
respect of
expert witnesses. And can be regarded as an admission of a
prejudicial fact,
Schmidt
and Rademeyer: Law of Evidence
[5]
thus
states: ‘
A
n
admission must be a communication confirming a prejudicial
fact. The communication may be by words or conduct. Conduct
that does
not amount to a communication but from which a prejudicial fact may
be inferred, is not an admission but circumstantial
evidence.
Such conduct is admissible simply because it is relevant and does not
have to be tested against the admissibility requirements
for
admissions.’
[41]
Rogers AJA (at that point in time) in
BEE
v Road Accident Fund
[6]
the
learned judge with reference to
Thomas
v BD Sarens (Pty) Ltd
[7]
said
the following:
‘
[64]
This raises the question as to the effect of an agreement recorded by
experts in a joint minute. The appellant's counsel referred
us to the
judgment of Sutherland J in Thomas v BD Sarens (Pty) Ltd [2012]
ZAGPJHC 161. The learned judge said that where certain
facts are
agreed between the parties in civil litigation, the court is bound by
such agreement, even if it is sceptical about those
facts (para 9).
Where the parties engage experts who investigate the facts, and where
those experts meet and agree upon those facts,
a litigant may not
repudiate the agreement “unless it does so clearly and, at the
very latest, at the outset of the trial”
(para 11). In the
absence of a timeous repudiation, the facts agreed by the experts
enjoy the same status as facts which are common
cause on the
pleadings or facts agreed in a pre-trial conference (para 12). Where
the experts reach agreement on a matter of opinion,
the litigants are
likewise not at liberty to repudiate the agreement. The trial court
is not bound to adopt the opinion but the
circumstances in which it
would not do so are likely to be rare (para 13). Sutherland J's
exposition has been approved in several
subsequent cases, including
in a decision of the full court of the Gauteng Division, Pretoria, in
Malema v Road Accident Fund [2017]
ZAGPJHC 275 para 92.’
[42]
In this particular case, there was an agreement on the following
aspects:
1)
the assumptions as per the
joint minute of the industrial psychologists, referred to earlier on;
2)
that the plaintiffs
losses be calculated to the age of 23;
3)
at a 5% contingency
deduction for past losses should be used, and that no contingency
deductions could be used for future losses;
4)
that the standard
apportionment of family earnings which are two shares to the deceased
and one share to each child of dependent
should be used.
[43]
The plaintiffs were clearly placed under the impression, until a day
before the start of the
trial, that these facts are common cause and
would not be disputed by the defendant. There was no timeous
repudiation by the defendant
of the above-mentioned facts agreed upon
between it and the plaintiffs were clearly taken by surprise when the
defendant, a day
before the commencement of the trial only, stated
they do not agree with points 3 and 4 of the agreed facts, as
mentioned above.
This is exactly what Rogers AJA in
BEE
with reference to the
Thomas
judgment of Sutherland J which he
referred to, said should be avoided where he said at:
‘
[65]
…
A fundamental
feature of case management, here and abroad, is that litigants are
required to reach agreement on as many matters
as possible so as to
limit the issues to be tried.... Effective case management would be
undermined if there were an unconstrained
liberty to depart from
agreements reached during the course of pre-trial procedures,
including those reached by the litigants'
respective experts. There
would be no incentive for parties and experts to agree matters
because, despite such agreement, a litigant
would have to prepare as
if all matters were in issue…’
And what is of importance
to this current matter is what Rogers AJA says further at [66]:
‘
Facts and opinions on which the litigants' experts agree
are not quite the same
as admissions by or agreements
between the litigants themselves (whether directly or, more commonly,
through their legal representatives)
because a witness is
not an agent of the litigant who engages him or her
.” (own
underlining)
In this particular case,
the parties agreed to give joint instructions to one expert, Boshoff
of Munro Actuaries, to report back
on an agreed set of facts and
criteria to determine the quantum. It was an agreement between the
parties or their legal representatives
not between witnesses or
experts. And the purpose of this joint instructions was to one
particular expert instructions in order
to limit the issues on which
evidence was needed in respect of the quantum.
[44]
I agree with Mr. Botha that when I engaged with Mr. O’Brien
during argument as to whether
these facts agreed to, work for the
purpose of settlement he said it was not, but it was merely to do a
calculation to see what
the figures would amount to. It was
never his argument that the reason why this evidence would not be
permissible was due
to the fact that it was an agreement or
concession made in the course of settlement negotiations. There was
also never any issue
about the admissibility of the agreed
instructions and throughout the trial there was no objection to any
reference made by the
plaintiffs to these joint instructions. This
was even presented through the evidence of Boshoff.
[45]
And in any event, this was also not the reason other than the reasons
cited during argument,
that was given for the repudiation of the
agreement reached between two parties. In this regard, what Rogers
AJA said in
BEE
is once again important, which is that, if a
litigant for any reason, does not wish to be bound by the limitation,
fair warning
must be given. And… ‘
In the absence of
repudiation (i.e. fair warning), the other litigant is entitled to
run the case on the basis that the matters
agreed between the parties
are not in issue.’
[46]
This is exactly what the plaintiffs believed up until a day before
the start of the trial and
they were entitled to run the trial on the
basis that the actuarial report was not in issue, because there was
no timeous repudiation.
The defendant is therefore bound by the
agreement concluded between it and the plaintiffs as to the criteria
and method for the
determination of the damages for loss of support.
This included a 5% contingency for past losses and no contingency
deduction for
future losses. And that the
standard
apportionment of family earnings of two shares to the deceased and
one share to each child whilst dependant
,
be applied in the
determination. This resulted in the determination of the amount by
Boshoff of R958 350.00 for each plaintiff.
This was in essence
admitted by the defendant. This should be the end of the matter. I
however need to address some of the
other issues Mr O’Brien
raised in argument
[47]
The defendant’s reliance on the
Reay
case in my view is
misplaced, purely based on the fact that there was other reliable
evidence, which justified the court not to
rely on the two parts to
each adult and one part to each child in order to determine the
quantum.
[48]
The court said in
Reay
that this was usually the method used
to determine quantum in loss of support cases and were it not for the
evidence in that case,
the 2:2:1:1 method “
should have been
the fall-back position
”, which is in line with what Boshoff
said regarding the use of this method in the ordinary course.
And in this particular
case, the method used was
two parts to
the deceased and one part to each of the plaintiffs
and the
reason therefore is justified, which is that it was not an ordinary
family that consisted of a father, mother and two children
which the
parties agreed upon. This was common cause between the parties when
they agreed to the actuarial method to be used.
[49]
No evidence was presented to contradict the reasons why Boshoff used
the 2:1:1 method of calculation
in this particular case. He
stated firstly that it was based on the standard practices used by
actuaries in South Africa.
He further stated that this is the
default position and method used, unless there are exceptional
circumstances to justify a difference
in the manner of
apportionment.
[50]
He further testified that based on his experience and expertise he
has seldom seen a large apportionment.
He makes mention that
this happened on three or four occasions, which according to his
opinion was not justified. In fact,
he stated that in cases
where there was a larger apportionment it would be in the case where
the earnings of the family would be
exceptionally high. And in
cases of lower income families, the method he used would be the
preferred method, because if you
should go lower, the amount that
would be apportioned would not be able to meet the expenses of the
person in need of support.
[51]
In determining the quantum, he used all the circumstances of the
deceased prior to the time of
his death, which included the salary,
salary increases which government employees of his rank and position
would receive on a yearly
basis, the yearly notch increases plus
inflationary increases that the deceased would have acquired whilst
he was still alive.
While he concedes that the ratio he used
can be regarded as a fairly blunt instrument, it nonetheless
overtime, has proven to be
fairly accurate. For the simple reason
being that the exact expenses cannot always be determined in the case
of children as their
needs change as they grow older. He
further explained in detail his reasons for his conclusion which
remain unassailable.
His evidence as to the reliability of this
method and its applicability in this case is overwhelmingly
convincing
[52]
The second issue I need to deal with whether a bursary provided by
NSFAS are deductible. I do
not agree that the bursaries provided by
NSFAS are deductible. In this regard, the approach of the
Constitutional Court in
Coughlan
v Road Accident Fund
[8]
can
be a useful guide in a matter like this. The scheme was enacted by
Parliament, as the National Student Financial Aid Scheme
Fund Act 59
of 1999 and in terms of section 2 the purpose of the Act is to
establish a financial aid scheme for students at public
higher
education institutions. A further aim is to provide financial
aid to eligible students admitted for admission to a
higher education
program.
[53]
In terms of the preamble the purpose of the Act is to redress past
discrimination and to ensure
representivity and equal access to the
human development of the nation. The NSFAS derives its funding
from the following
sources in terms of section 14 of the Act:
a)
money appropriated by
Parliament;
b)
the donations and
contributions;
c)
interest;
d)
money repaid and repayable
by borrowers;
e)
any other income received by
NSFAS.
[54]
The NSFAS Act is a piece of legislation enacted to give effect to our
rights as enshrined by
the Constitution, particularly the right to
education. It also seeks to give effect to our constitutional
values of dignity,
equality and freedom. In in this regard, it
can also be regarded to give effect to the right to social security
as stated
in section 27 of the Constitution, especially to those
young people who were previously disadvantaged.
[55]
The Constitution in terms of section 29(1) states
: ‘Everyone
has a right-
a)
to a basic education, including adult basic education; and(b) to
further education
which the state, through reasonable measures must make progressively
available and accessible’
.
Section 29 (2) says the following with regard to this obligation …
‘
In order to ensure
the effective access to, and implementation of, this right, the state
must consider all reasonable educational
alternatives, including
single medium institutions, taking into account-
a)
equity;
b)
practicability; and
c)
the need to redress
the results of past racially discriminatory laws and practices.’
[56]
In my view, the purpose of the scheme proposed in terms of the NSFAS
Act was for the state to
give effect to these rights in order to
fulfil its obligations in terms of the Constitution, which as a
result of racially discriminatory
laws and practices of the past, the
rights in the section were purposefully withheld from the majority of
South Africans.
[57]
The bursary payments made available to the plaintiffs is to give
effect to their right to education,
which the state, through
reasonable measures had made progressively available and accessible
to the plaintiffs in terms of the
NSFAS Act as an instrument. It
cannot be regarded as a form of compensation made to them by the
State. It is a right the
state had to fulfil in terms of the
Constitution.
[58]
In
Coughlan
at
[51]
the Constitutional Court said the
following albeit in the context of child support grants and foster
care grants but the
underlying principle in my view, remains
the same and is also applicable in this particular case: ‘
In
sum: the payment of compensation for loss of support to foster
children does not amount to double compensation: the nature and
purpose of the grant is different from compensation, these grants
arise from the constitutional obligations of the State to provide
for
the children in need of care, they are not paid to the children and
predicated in the death of a parent.’
[59]
This principle laid down in
Coughlan
,
is of equal application in this particular case where the state, by
making a financial contribution to the plaintiffs in exercising
its
obligation in terms of the Constitution to progressively give effect
to the realization of the right, such payment from the
State does not
amount to double compensation. In circumstances where the State has
to compensate from its coffers, that very same
person for damages as
a result loss of support, especially where the nature and purpose of
the payment in this particular case,
in the form a bursary, is
different from compensation.
Conclusion:
[60]
I therefore conclude for all of the reasons stated above, that the
plaintiffs had proven the
claim for damages on a balance of
probabilities, which damages were calculated and the amounts
contained in the Actuarial Report
of Munro Actuaries dated 17 May
2022.
Order:
[61]
In the result therefore, I make the following order:
Merits
1.
Defendant is liable to
compensate First, Second and Third Plaintiff for 100% of their
damages;
Capital
2.
Defendant is liable to pay
the First Plaintiff, in respect of past and future loss of support,
the amount of R958 350.00;
3.
Defendant is to pay Second
Plaintiff, in respect of past and future loss of support, the amount
of R958 350.00;
4.
Defendant is to pay Third
Plaintiff, in respect of funeral expenses the amount of R12 450.00;
5.
It is accordingly recorded
that the capital amount due and payable by the Defendant is
R1 929 150.00.
Costs
6.
Defendant shall pay
Plaintiff’s taxed or agreed High Court costs;
7.
Plaintiff shall, in the
event that the costs are not agreed, serve the notice of taxation on
the Defendant’s attorneys of
record;
8.
Defendant in respect of the
expert witnesses listed herein below (the experts), shall pay the
taxed or agreed qualifying expenses
of the experts listed herein
below, if any, the attendance, travelling, waiting time and
reservation fees, if any, the reasonable
costs attached to the
procurement of the medical-legal and other reports inclusive of those
referred to, joint-minutes and consultation
between Plaintiffs’
attorney, counsel and expert witnesses.
9.
The experts are:
9.1.1
Lindy
Emsley, Industrial Psychologists;
9.1.2
Willem
Boshoff, Actuary.
10.
The Defendant shall be
liable to pay the reasonable taxed or agreed costs of the Plaintiff’s
legal representatives including
counsel in respect of consultations
held with expert witnesses for trial preparations, costs for
preparing and attending to pre-trial
conferences and pre-trial
conference minutes, pre-trial agendas, costs of the transcribed
record, judicial case management meetings,
inspections in loco at the
scene of the incident, preparation of the trial bundles, memoranda
prepared by counsel in respect of
the settlement of this matter,
heads of argument prepared by counsel, noting of the judgment, and
trial fees for the following
days: 4 September 2017, 5 September
2017, 26 November 2018, 27 November 2018, 28 November 2018, 29
November 2018, 11 December 2018,
12 December 2018, 11 February 2019,
12 February 2019, 08 November 2022, 09 November 2022 and 10 November
2022.
11.
Defendant shall be liable to
pay the following reasonable costs incurred subject to the discretion
of the Taxing Master:
11.1
The costs incurred by
Plaintiff, Plaintiff’s attorney, Plaintiff’s counsel and
in respect of the second inspection in
loco held at the scene of the
scene of the incident, which inspection in loco was directed by the
court in the merits trial;
11.2
The reservation fees of all
expert-witnesses as listed in paragraph 10 above at their respective
rates, to testify at the trial
as set down for hearing on 08 November
2022, 09 November 2022 and 10 November 2022;
11.3
In respect of all lay
witnesses, who testified in respect of both liability and quantum;
11.4
Costs related to the
procurement of the transcribed records;
12.
The taxed or agreed fees of
Plaintiff’s counsel, inclusive of consultations, preparation
for trial and attendances at the
trial of the matter, for the
preparation of Heads of Argument and for his attendances at the
inspection in loco.
Payment provisions
13.
With regard to the capital
amount, interest is to run at the prescribed rate
a
tempore morae
from 14
days after date of judgment;
14.
Payment of the capital
amount as reflected shall be effected within 14 (fourteen) calendar
days (“
the capital
due date
”) from
date of this order by way of electronic transfer into the Plaintiff’s
trust banking account, details of which
are listed below;
15.
Payment of the taxed or
agreed costs reflected above shall be effected within 14 (Fourteen)
calendar days of agreement or taxation
(“
the
cost due date”)
and
shall be effected by way of electronic transfer into the Plaintiff’s
attorney’s trust account, details of which
are listed below
.
16.
Interest will run at the
prescribed rate of interest, a tempore morae from 14 (fourteen)
calendar days after the said costs have
been agreed or allocated on
taxation.
17.
It is recorded that the
Plaintiff entered into a contingency fee agreement and that same
complies with the Act.
18.
Plaintiff’s attorney's
trust banking account details are as follows:
NAME OF BANK:
BRANCH:
NAME OF ACCOUNT:
ACCOUNT NO.:
BRANCH CODE NO.:
R.C.A.
Henney
Judge
of the High Court
Plaintiffs’
attorneys: Sohn and Wood attorneys, Cape Town
Defendant’s
attorneys: State attorney Cape Town
[1]
[2016]
4 SA All SA 195 KZP at para 11
[2]
1996
(1) SA 273
(C) at 278B-D
[3]
(29/09)
[2010] ZSCA 30 (26 March 2010)
[4]
1982(2)
SA 1(A) 10 E-G
[5]
May
2022 Edition S 1 20 at 19-7
[6]
2018
(4) SA 366
(SCA) at 384 paragraph 64
[7]
[2012]
ZAGPJHC
[8]
[2015]
JOL 33137
(CC)
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