Case Law[2026] ZAGPJHC 14South Africa
E.B.M.M. obo S.M, H.M, X.M v Road Accident Fund (2025/057581) [2026] ZAGPJHC 14 (1 January 2026)
High Court of South Africa (Gauteng Division, Johannesburg)
1 January 2026
Headnotes
in Trust and administered in accordance with the provisions of this Trust Deed. It is hereby confirmed that the creation of this trust is not a donation but a payment for compensation as a result of an action against the ROAD ACCIDENT FUND.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## E.B.M.M. obo S.M, H.M, X.M v Road Accident Fund (2025/057581) [2026] ZAGPJHC 14 (1 January 2026)
E.B.M.M. obo S.M, H.M, X.M v Road Accident Fund (2025/057581) [2026] ZAGPJHC 14 (1 January 2026)
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sino date 1 January 2026
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THE
HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
CASE
NO
.
2025-057581
(1)
REPORTABLE:
YES
/NO
(2) OF INTEREST TO
OTHERS JUDGES:
YES
/NO
(3) REVISED
In
the matter between:
E[…]
B[…] M[…] (M[…])
OBO
S[…] M[…],
H[…]
M[…],
X[…]
M[…]
PLAINTIFF
and
ROAD
ACCIDENT
FUND
DEFENDANT
JUDGMENT
BHOOLA
AJ,
Introduction
[1]
The plaintiff, Ms E[…] B[…] M[…] who acts on
behalf of her three minor children, S[…] M[…],
H[…]
M[…] and X[…] M[…], institutes action against
the Road Accident Fund (RAF) seeking damages arising
from a motor
vehicle collision which occurred on 3 March 2022, near Konig Street
and Sir George Grey Street, Roodepoort, Johannesburg,
Gauteng
Province, where the biological father of the plaintiff’s minor
children sustained severe bodily injuries of which
he died.
[2]
The plaintiff seeks relief on behalf of the minor children are-:
2.1.
past loss of earnings
2.2
future loss of earnings
2.3
funeral expenses.
[3] The issue of
funeral expenses is postponed
sine die
.
[4]
The summons was served on the defendant on 30 April 2025. The
dies
for filing a notice of intention to defend has expired and the
plaintiff proceeds by way of default judgment in terms of Rule 32,
read with Rule 38(2) of the Uniform Rules.
[5]
The parties have reached a settlement agreement, which they request
to be made an order of court.
Legal
Principles
[6]
The Constitutional Court in
Eke
v Parsons
[1]
established that a settlement agreement may be made an order of court
if:
(a)
litigation is pending;
(b)
the agreement relates directly to the dispute between the parties;
and
(c)
the agreement is competent and proper, serving the interests of
justice.
[7]
In RAF matters, the Supreme Court of Appeal has confirmed that once
litigation is pending, a settlement agreement resolving
the dispute
should ordinarily be made an order of court, unless it is incompetent
or contrary to public policy.
[2]
[8]
More recently, the Constitutional Court in
Mafisa
v Road Accident Fund
[3]
emphasised that courts must respect the terms agreed by the parties
and may not rewrite them.
[9]
Liability had previously been settled at 100% in favour of the
plaintiff. The issue of general damages has also been settled.
The
present settlement agreement, quantifies damages for loss of earning
capacity, provides for an undertaking in terms of
section 17(4)(a)
of
the
Road Accident Fund Act 56 of 1996
, and deals with costs. It is
directly connected to the dispute, lawful in its terms, and
consistent with the statutory framework.
Conclusion
[10]
I am satisfied that the agreement meets the criteria set out in
Eke
v Parsons
[4]
and subsequent RAF authorities. It is therefore competent and proper
to make the settlement agreement an order of court.
Order
[11]
As a result, I make the following order-:
1.
The application in terms of
Rule 38(2)
is granted.
2.
The settlement agreement entered into by agreement between the
parties, is made an order of court as follows.
3.
Merits are conceded 100% in favour of the Plaintiff’s proven
damages.
4.
That the defendant shall pay the plaintiff’s attorneys of
record the sum of R 1 845 876.00
(ONE
MILLION EIGHT HUNDRED AND FORTY-FIVE THOUSAND EIGHT HUNDRED AND
SEVENTY-SIX THOUSAND RANDS.) in respect of the plaintiff’s
claim of past and future loss of support of the minor children
namely:
4.1
S[…] M[…] – R 440 853.00
4.2
H[…] M[…] – R 547 918.00
4.3
X[…] M[…] – R 856 105.00
5.
The issue of Funeral Expenses is postponed
sine die
.
6.
The above-mentioned amount shall be paid within 180 days from the
date of court order into Maphaha Attorneys’ trust
account as
follows:
ACCOUNT
HOLDER: MAPHAHA ATTORNEYS
TRUST
NAME
OF THE BANK: FIRST NATIONAL BANK
ACCOUNT
NUMBER: 6[…]
BRANCH:
W[…]
PLAINTIFF’S
REF:
RE0312/M[…]
7
The Plaintiff’s attorneys (MAPHAHA ATTORNEYS) are
ordered:
7.1
To cause a trust (“the TRUST”) to be established in
accordance with the Trust Property Control
Act No. 57 of 1998 on
behalf of the minor children, upon receiving payment from the
defendant.
7.2
The Plaintiff’s attorneys (MAPHAHA ATTORNEYS) must keep the
monies received on behalf of
S[…] M[…],
H[…] M[…] and X[…] M[…]
, as set
out in clause 5.1 of this order in an interest bearing Trust account
for the benefit of
S[…] M[…], H[…]
M[…] and X[…] M[…]
and shall only be
allowed to pay such monies over to the Trustee of the Trust to be
created in terms of clause 5.1 of this order,
once the Master of the
High Court has issued the Trustee with the necessary letter of
authority;
7.3
The Plaintiff in her representative capacity on behalf of
S[…]
M[…], H[…] M[…] and X[…] M[…]
attorneys of record (MAPHAHA ATTORNEYS) shall attend to the creation
of an inter vivos Trust in order to protect the awarded funds
to the
exclusive benefit of
S[…] M[…], H[…]
M[…] and X[…] M[…]
, The Trustee shall be
obliged to furnish security to the Master in accordance with
paragraph 2 supra.
7.4
The Defendant is ordered to pay the costs in respect of the creation
and future administration of the
said Trust to be formed in order to
manage and administer the compensation payable to
S[…]
M[…], H[…] M[…] and X[…] M[…]
(in terms of Trust Property Control Act, 57 of 1988) as referred to
in paragraph 1 of this order, which costs shall include the
fees of
the Trustee, and which costs of administration shall be limited to
the amount of costs and fees chargeable by
Curators Bonis
in
terms of the Administration of Estate Act, Act 66 of 1965, as
amended.
7.5
Upon establishment of a Trust and opening of a bank account of the
Trust, the Plaintiff’s Attorneys
shall pay the capital amount
as referred to in paragraph 1 above, into the Trust’s said bank
account for the benefit of
S[…] M[…],
H[…] M[…] and X[…] M[…].
8. The Plaintiff is
liable for the payment of all the reasonable costs of the Trustees
appointed, in respect of the establishment
of the Trust and any other
reasonable costs that the Trustees may incur in the administration
thereof which may include and ne
subject to the following:
8.1
The Fees and administration costs shall be determined in accordance
with the Trust Property Control
Act, 57 of 1988 (the Trust Act), as
amended from time to time, and shall include not be limited to
disbursements incurred.
8.2
The costs associated with the yearly audit of the Trust by a
chartered accountant as determined in the Trust Deed.
8.3
The reasonable costs of furnishing of security in obtaining required
by the Master of the High Court,
or to meet the requirements of the
Master of the High Court.
9.
The terms of the trust are as follows:
9.1
The TRUSTEES of this trust are ABSA TRUST LIMITED as represented by
its nominee from time to time and
the minor children’s mother,
E[…] B[…] M[…] as the second Trustee. The
nominee an employee of ABSA TRUST
LTD, whose written consent to act
as Trustee in the Trust and trust deed are annexed hereto marked "M1"
and “M2”
respectively.
9.2
The TRUSTEE shall be entitled to resign from his office after having
given at least 30 (thirty) days
written notice of such resignation to
the FOUNDER, before the resignation takes effect.
9.3
Should the TRUSTEE for any reason whatsoever no longer fulfil the
office of trustee, the FOUNDER
shall be entitled to appoint another
person as trustee, who shall then occupy the office subject to the
provisions of this Deed.
9.4
The donor hereby donates to the Trustees the sum R 1 845 876.00
(ONE MILLION, EIGHT HUNDRED AND FORTY-FIVE
THOUSAND, EIGHT HUNDRED AND SEVENTY-SIX THOUSAND RANDS)
, Less
any Fees, VAT, Disbursements and Costs, which shall vest in the
Trustees with immediate effect and is to be held in Trust
and
administered in accordance with the provisions of this Trust Deed. It
is hereby confirmed that the creation of this trust is
not a donation
but a payment for compensation as a result of an action against the
ROAD ACCIDENT FUND.
9.5
The BENEFICIARIES are:
S[…] M[…],
H[…] M[…] and X[…] M[…].
9.6
The beneficiaries will have immediate vested rights in the trust
fund.
9.7
For so long as any capital remains, or any portion thereof,
the TRUSTEES may in their sole discretion, make such payment of the
income, and in such amounts as they shall decide for reasonable
maintenance or for any other purposes which they may decide to be
in
the BENEFICIARIES' interest. If the income is not sufficient for the
purpose the trustees may utilise capital. Any surplus income
not
utilized for the purposes set out herein shall be capitalised.
9.8
The trust shall terminate by leave of the high court. The TRUST shall
exist for a period until each
minor child reaches the age of 18
years, respectively, where after the residue of the money of each
child in accordance with their
own portion of settlement held in the
Trust Fund will be deposited into their own respective bank accounts
of their choice.
9.9
To accept any further amounts or endowments on behalf of the
beneficiaries.
9.10
POWERS OF TRUSTEE: The TRUSTEE shall have unlimited and absolute
power, for the purposes of this
trust, in its sole and absolute
discretion, to:
9.10.1
Exchange, replace, re-invest, sell, let, insure, manage, modify,
develop, improve, convert to cash or deal in
any other manner with
any asset which from time to time form part of the TRUST FUNDS with
the consent of the beneficiary.
9.10.2
Provide for the day to day care of the beneficiary as and when such
needs arise. This includes, but is not limited,
to various aspects of
the health, educational, daily and social needs of the beneficiary.
9.10.3
Institute or defend any legal proceedings or otherwise to take any
other steps in any court of law or other tribunal
and to subject
controversies and disagreements to arbitration.
9.10.4 To
call up and/or collect any amounts that may from time to time become
due to the TRUST FUND.
9.10.5 Settle
or waive any claim in favour of the trust.
9.10.6
Exercise any option and to accept and exercise any rights.
9.10.7
Exercise any rights or to incur any obligation in connection with any
shares, stocks, debentures, mortgage bonds
or other securities or
investments held by this trust.
9.10.8 Open
accounts at any bank or other financial institution and to manage
such accounts and if necessary, to overdraw
such account.
9.10.9 Take
advice from any attorney or advocate or any other expert for the
account of the relevant trust account.
9.10.10 Appoint
professional or other persons on a temporary or permanent basis to
conduct the whole or any portion of the business
of the trust under
supervision of the TRUSTEE or to manage the investment of part or the
entirety of the funds of the trust and
to remunerate such persons for
their services out of the funds of the trust.
9.10.11 Accept any
disposal in favour of this trust and to comply with any conditions
regarding such disposal.
9.10.12 To all things and
to sign all documents required to give effect to the aims of this
trusts.
9.10.13 ACCOUNTING
The TRUSTEE shall keep
complete records, statements and accounts of all transactions and
shall prepare proper statements in connection
with all financial
activities in accordance with the Generally Accepted Accounting
Practice in South Africa.
9.10.14
REMUNERATION
The TRUSTEE shall be
entitled to a management fee of 1% (ONE PERCENT) per annum plus VAT,
calculated on the capital held under administration.
In addition, the
TRUSTEE shall be entitled to charge market related fees in respect of
specialized services which it may have performed
on behalf of the
trust.
9.10.15
REGISTRATION OF THE TRUST
The TRUSTEE undertakes to
register this trust deed at the office of the Master of the High
Court under the Trust Property Control
Act 1988 as amended and shall
be entitled to settle the costs payable in respect of such
registration, out of the income and if
necessary out of the capital
of the trust.
9.10.16
EXEMPTION FROM SECURITY
The TRUSTEE shall be
obliged to furnish security to the Master of the High Court or any
other authority for the proper compliance
of its duties as such.
9.10.17
INDEMNITY
The TRUSTEE and any
person in its employment, shall insofar it may be valid in terms of
the Trust Property Control Act, Act 57 of
1988, be indemnified
against liability for expenses, incurred in the execution of its
duties as trustee in terms of this trust
deed and against any loss
the TRUST FUND may suffer as a result of the depreciation of any
investment made by the TRUSTEE.
9.10.18
PROHIBITION AGAINST ENCUMBRANCE
No beneficiary receiving
benefits under this trust deed may utilize his or her interest in the
TRUST FUND as security for debt or
encumber it in any manner
whatsoever and should such event occur, shall the encumbrance of
benefits of those beneficiaries not
be recorded against the TRUST
FUND.
9.11.19
EXCLUSION FROM JOINT ESTATE
Any benefit accruing or
payable to any beneficiary in accordance with this trust deed, does
not form part of the joint estate of
that person and that person's
spouse and no husband of any female person, whether the marriage be
in or out of community of property,
shall have or receive any marital
power, control, power of alienation or administration in respect of
any benefit received by any
such female beneficiary under this deed.
9.11.20
AMENDMENT OF THIS DEED
The provisions of this
trust deed, excluding the appointment of the beneficiaries, may only
be amended in writing jointly by the
FOUNDER and the TRUSTEE of the
trust. If the Court has given consent to it.
10.
The Defendant is ordered to pay the Plaintiff’s taxed or agreed
party and party legal costs on a High Court Scale
on scale B, which
costs will include plaintiff counsel’s day fee and preparation
fees of 23 October 2025 and 24 October 2025.,
also to include but
will not be limited to, the following:
10.1
The reasonable taxable fees of consultation and preparation for
trial, qualifying and reservation fees (if
any and on proof thereof)
as well as the costs of the Plaintiff’s medico-legal reports
and medico-legal addendum reports;
including assessors report and
fees.
10.2
The costs of the Plaintiff’s counsel, including settlement
and/or professional fees (where applicable);
10.3
The costs in respect of the preparation, drafting and copying of all
of the bundles of trial documentation,
legal expert reports,
pleadings and formal notices, together with all indexes thereto;
10.4
The costs attended upon obtaining of payment of payment of the
amounts referred to in this order.
11.
The plaintiff shall in the event of the costs not agreed, serve the
notice of taxation on the defendant’s attorney
of record.
12.
The plaintiff shall allow the defendant 180 days to make payment of
the taxed costs.
13.
The contingency fees agreement between plaintiff and its attorney is
declared invalid. The plaintiff’s attorney
shall only be
entitled to recover from the plaintiff ordinary attorney and client
fees which may be taxed but shall not exceed
25% of the capital
awarded to the plaintiff.
CB.
BHOOLA
Acting
Judge of the High Court
Gauteng
Division of the High Court, Johannesburg
Delivered:
This judgment was prepared and authored by the Judge whose name is
reflected on 09 January 2026
and is handed down electronically by
circulation to the parties/their legal representatives by e mail and
by uploading it to the
electronic file of this matter on CaseLines.
The date for hand-down is deemed to be 09 January 2026.
APPEARANCES
Date
of hearing: 24 October 2025
Date
of judgment: 09 January 2026
For
the plaintiff: Adv. RR Mambani
(Tel:
083 767 4434)
Instructed
by: Maphaha Attorneys
(Tel:
011 333 0641, email-:
rudzani3@maphahaattorneys@co.za
)
For
the Defendant: State Attorney
Ms
N Mhlongo
(Tel:
072 452 7151, email
NkatekoM@raf.co.za
)
[1]
(CCT214/14)
[2015] ZACC 30
;
2015 (11) BCLR 1319
(CC);
2016 (3) SA 37
(CC) (29
September 2015)
[2]
PM obo TM v Road Accident Fund [2019] ZASCA 97
[3]
[2024] ZACC [4]
[4]
(CCT 156/22)
[2024] ZACC 4
;
2024 (6) BCLR 805
(CC);
2024 (4) SA 426
(CC) (25 April 2024)
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