Case Law[2023] ZAGPJHC 160South Africa
Fisher obo TS.M and Another v Road Accident Fund (2010 /34001) [2023] ZAGPJHC 160 (14 February 2023)
Headnotes
SUMMARY
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Fisher obo TS.M and Another v Road Accident Fund (2010 /34001) [2023] ZAGPJHC 160 (14 February 2023)
Fisher obo TS.M and Another v Road Accident Fund (2010 /34001) [2023] ZAGPJHC 160 (14 February 2023)
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sino date 14 February 2023
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
CASE NO: 2010 /34001
1.
REPORTABLE: YES
2.
OF INTEREST TO OTHER JUDGES: YES
3.
REVISED: NO
DATE: 14/02/2023
In the matter between:
ADV MICHAEL ALEX
FISHER obo TS. M PLAINTIFF
and
ROAD ACCIDENT
FUND DEFENDANT
In Re
TS.
M PLAINTIFF
and
ROAD
ACCIDENT FUND DEFENDANT
SUMMARY
Rescission
and setting aside of order appointing curator ad litem acting for a
mentally incapacitated patient in a claim against
the Road Accident
Fund.
Curator ad litem removed
for compromised independence.
Conduct of attorney and
the curator referred to the Legal Practice Council and the General
Bar Council respectively
for further investigation.
ORDER
1.
The order granted on 20 October 2022
appointing Adv Michael Alex Fisher as curator ad litem is rescinded
and set aside.
2.
Adv Fisher is removed as curator ad litem
acting on behalf of the plaintiff.
3.
Adv Fisher may not charge any fees relating
his role as curator ad litem.
4.
Ms. Aarthi Thumbiran and her firm may not
charge any fees relating to the application for curator ad litem on
the 24
th
October
2022; and 14
th
December 2022 appearances.
5.
The order granted on 7
th
December 2022 is void ab initio.
6.
The Registrar of this Court is directed to
refer this judgment to the General Bar Council to nominate curator ad
litem fluent in
the IsiZulu language within 30 days of receipt of
this judgment.
7.
The curator ad litem is hereby directed to:
i.
Investigate and prepare a report about the
steps and actions taken by the Plaintiff’s attorneys, and in
particular report
on whether such steps and actions should be
ratified, which investigation should cover the reasonability of the
fees charged to
date;
ii.
Investigate and report on whether expert
fees and costs of counsel were paid or not by the Fund in 2014; and
if not, whether the
Plaintiff’s attorneys took any steps to
recover their expert fees, disbursements, and costs of counsel from
the Fund. This
report is to include a determination whether any
expert fees and disbursements should have been levied to the client
and therefore
deducted from the capital award.
iii.
Investigate and report on the Plaintiff’s
mother ability to understand the implications of the Special Power of
Attorneys’
signed, fee agreements, and whether such
implications, were in fact, explained to her in a language in which
she is fluent in.
iv.
Investigate and submit a report on the
validity and enforcement of the Special Power of Attorneys’
signed, fee agreements
entered into by Plaintiff’s attorneys
and the client;
v.
To prepare a report on the appropriate
vehicle to house the award to be made to the client.
vi.
To investigate and make any other
recommendation which s/he may so deem fit in view of the facts and
concerns raised in this judgment.
8.
The curator ad litem’s report must be
delivered to the Master of the High Court, Johannesburg Division for
his/her comment
within 30 days of receipt of the curator’s
report.
9.
The Master’ is to comment on any
aspect of the curator’s report which s/he may so deem fit to do
so and also on the
appropriate vehicle to house any funds to be
awarded to the Plaintiff.
10.
The curator ad litem is to take any such
steps as s/he may deem fit to ensure the expeditious delivery of the
Masters’ report.
11.
The curator’s report, with that of
the Master is to be delivered to this Court and the Plaintiff’s
attorneys within
10 days of both being available.
12.
Upon receipt of the curator’s and
Masters’ report, the Plaintiff’s attorneys and counsel
shall within 15 days
file any further submissions or replies thereto
if they so wish.
13.
Costs of counsel are to be paid by the
attorney.
14.
The conduct of Ms. Aarthi Thumbiran is
referred to the Legal Practice Council for further investigation.
15.
The conduct of Adv. Michael Alex Fisher is
referred to the Legal Practice Council and the General Bar Council
for comment should
they wish to do so.
16.
A copy of the judgment should be
provided to the Legal Practice Council, Bar Council of Pretoria,
Johannesburg Society of Advocates,
PABASA and the Independent Bar
Association.
17.
Pending receipt of the reports and submissions indicated
herein, this matter is reserved before me.
18.
Any party may approach this Court for further directives, if
so, should the need arise.
JUDGMENT
FLATELA
J
[1]
This is an action for damages brought on
behalf of the plaintiff against the Road Accident Fund. The Plaintiff
is TS.M born on 9
th
April 2002. The Plaintiff was involved in an accident with an insured
vehicle on 17
th
December 2007 at approximately 18H45. He was only 5 years old at the
time of the accident. As a result of the accident, he sustained
diffuse brain injury, multiple scalp and facial lacerations, soft
injury to the cervical spine. He developed headaches, upper back
pain, post traumatic epilepsy but at the time of trial the epilepsy
seizures had ceased. In the long and short of it, Mabaso suffered
a
traumatic brain injury (TBI) with consequent sequalae which is not,
at present, relevant to this judgment.
[2]
In 2008 the Plaintiff’s mother BG. M
instructed attorneys Raphael David Smith Attorneys to claim damages
from the Road Accident
Fund (the defendant). Ms. Aarthi Thumbiran was
the attorney of record then and now.
[3]
On 24 May 2011 merits were settled and the
defendant was ordered to pay 100% of the Plaintiff’s proven
damages. On 29 May
2014 the general damages were awarded at R600 000.
On 11 June 2014 the Fund made an offer in the amount of R600 000
for
the settlement of general damages. The offer was accepted on
behalf of the Plaintiff. A settlement amount was paid into the his
attorney’s trust account on 17 June 2014.
[4]
On 26 October 2021, the plaintiff’s
mother was substituted as a Plaintiff with the patient as he had
obtained the age of majority.
A notice of substitution in terms of
rule 15 was served.
[5]
On the 20 October 2022 the matter was set
down for hearing for determination of quantum in respect of loss of
earnings only.
[6]
On 24 October 2022 the matter was allocated
to me in the default trial court. The matter was heard virtually. The
Plaintiff was
represented by Adv. Sewpersath and the Defendant was
represented by Ms. Ameersing from the office of the State Attorney.
The Plaintiff’s
counsel informed me that despite several
attempts from their side to settle the matter, the matter remains
unsettled and so it
was to proceed on default judgement. I was also
informed by the Plaintiff’s counsel that an ex parte
application for the
appointment of Adv. Michael Alex Fisher as
curator ad litem on behalf of the Plaintiff had to be determined
first.
[7]
The applicant and the deponent to the
affidavit in support of the application was the plaintiff’s
attorney, Ms. Aarthi Thumbiran.
In support of Adv Fisher’s
appointment she stated that Adv Fischer was admitted as an advocate
of this court and has been
practicing for 33 years. The applicant
sought an order in the following terms:
7.1.
to grant Adv Fisher all the powers and
authority to enable him to prosecute the said action to the final
determination thereof and
without limiting the generality of such
powers and authority, directing he shall be entitled to:
i.Ratify
the steps that have already been taken in respect of said action
referred to above;
ii.File
all documentation and to do all such acts and all things as may be
required necessary, expedient, or desirable to recover
the full and
proper due amount to the Plaintiff;
iii.Negotiate
all settlement of said action subject to the approval of the Judge in
chambers or open court;
iv.Apply,
if necessary, on behalf for a curator bonis in the event of said
action being successful;
v.Directing
the costs of this application be costs in the main proceedings.
[8]
Ms. Thumbiran relied on the experts
reports who examined the patient and recommended that curator ad
litem be appointed for him.
[9]
A statement of consent from Adv Fisher was
attached wherein he accepted the appointment. He stated that:
9.1
He is aware of the duties and obligations
of a curator ad litem;
9.2
He has acted as curator Ad litem
before and are well versed with the duties and obligations expected
of him;
9.3
He was familiar with the experts
reports filed in the matter.
[10]
In her affidavit the plaintiff’s
attorney contended that it was necessary for the curator ad litem to
be appointed in order
to institute legal proceedings on behalf of the
plaintiff. I raised concerns about the application which was brought
on the day
of the trial when the appointment of curator ad litem was
suggested as far back as 2009 by the Plaintiff’s experts. I
specifically
asked why the Plaintiff was not represented by his
mother. I was advised that the Plaintiff is no longer a minor and
almost all
the experts recommended that curator ad litem be appointed
for him and curator ad litem should be someone who is legally
qualified
because of their duties and obligations. In addition, the
Plaintiff’s counsel stated that they do not want the funds of
Plaintiff
to be squandered.
[11]
I granted an order and appointed Adv Fisher
as curator ad litem. I considered the fact that the matter has been
before the courts
since 2010 and almost all the experts recommended
that curator ad litem be appointed for the Plaintiff.
[12]
The matter proceeded on default as the
defendant’s defense was struck from the roll.
Main Action
[13]
Mr. Sewpersath proceeded to address me on
loss of earnings and applicable contingencies thereof. After he
concluded his argument
on the loss of earnings, he proceeded to
addressed me on general damages. He sought an award in the sum of
R1 200 000
(one million, and two-hundred thousand rands)
for general damages.
[14]
I enquired from plaintiff’s counsel
if the general damages were not settled and paid in 2014. The
plaintiff’s counsel
informed me that his instructions were that
an offer of R600 000 was made by the defendant long time ago and
that offer was
rejected by the plaintiff’s representative.
[15]
I suggested that the general damages should
be postponed sine die as it was not before me.
[16]
Adv Fisher argued vigorously that I should
hear the general damages as the postponement would cause much
prejudice to the patient.
He proceeded to address on his role as
curator ad litem. Concerning the award, he said the award was under
settlement and he rejects
it. He urged me to take a robust approach
and allow plaintiff’s counsel to address me on general damages
because even if
the general damages are postponed
sine
die,
the defendant will not participate
still because their defense has been struck out.
[17]
I proceeded to hear counsel on general
damages and I reserved the judgement.
[18]
Further investigations regarding this issue
revealed that the offer was accepted and the amount of R600 000
was paid to attorney’s
trust account on 24 June 2014 and the
award has been diminished. The attorney paid herself fees of about
R129 157.13, she
also paid the experts an amount of R231 493.91,
repaid loans taken by the plaintiff’s mother in the amount of
R3 3000.
In 2017 three years after the award was paid an amount of
R236 048,96 was paid to the plaintiff’s mother.
[19]
There is also no contingency fee agreement
in this matter.
[20]
The plaintiff’s mother lodged a
complaint regarding the general damages award.
[21]
On 7
th
December 2022 Adv Fisher informed me in chambers on that he is no
longer pursuing the general damages claim on behalf of the plaintiff.
At that time, it was too late as the information regarding the
handling of the plaintiff’s damages award was coming in bits
and pieces. I had concerns that the attorney who is handling this
matter was very careful in her responses to my directives. I
needed
to get more information and I figured out that I could get answers in
open court.
[22]
On 7 December 2022 I asked the plaintiff’s
attorney to show me the proof that the experts were indeed paid as
she stated in
her affidavit. Ms. Thumbiran gave me an email which was
a response to the LPC’s queries. In this email she listed the
names
of experts and the amounts that were paid to each. I kept the
copy of that email to include in the judgement because the handling
of the matter formed a bigger part in the judgement.
[23]
On 7 December I granted an awarding
the R2 131 32 .00 in respect of loss of earnings, the judgement
to follow on 15 December
2022. However, this case, has since taken
certain twists and turns.
[24]
Upon consideration of the email from the
plaintiff’s attorneys, I noticed that there was one Fisher and
Naidoo who were listed
as one of the experts that were paid for their
services. When I considered the matter there were no experts by the
names of Fisher
and Naidoo, I issued further directives calling upon
expert notice and summary of evidence.
[25]
Ms. Thumbiran confirmed under oath that
that Fisher and Naidoo are not medical experts but are Advocates that
were briefed on merits
in 2014 and 2019 respectively. She also
confirmed that Adv Michael Alex Fisher, the curator ad litem was
briefed on merits in 2014.
[26]
On 14 December 2022 I issued further
directive to Mr. Fisher asking why he should not be removed as
curator ad litem in light of
the information that had come to my
attention. In the light of the irregularities that I noticed in the
handling of this matter,
tentatively I was of view that this may
compromise Adv. Fisher independence and execution of his duties as
curator ad litem.
[27]
The plaintiff’s attorneys were
given opportunity to address me on this issue.
[28]
This judgment only proceeds on one issue,
The appointment of Adv. Fisher as curator ad litem; and whether such
appointment should
be rescinded.
General Damages
[29]
In addressing the issue of the appointment
of Adv. Fisher, it serves to start from the beginning of the case.
[30]
After an order was granted for Adv. Fisher
to be appointed as curator ad litem, Adv. Sewpersath proceeded to
address me on loss
of earnings and applicable contingencies thereof.
Thereafter, he sought an award in the sum of R1 200 000
(one million,
and two-hundred thousand rands) for general damages.
[31]
I enquired from the counsel if the general
damages were not settled already because when I was reading the
pleadings, I came across
a statement that said general damages had
already been awarded in the sum of R600 000(six hundred thousand
rands) in 2014.
[32]
Adv Sewpersath was adamant that the
damages claim was still in issue. He went on as far as to say, and
confidently I must add, that
he had spoken to his instructing
attorney and her instructions were that the R600 000 settlement
that I was referring to was
a proposed settlement which was made long
time ago. The offer was not accepted.
[33]
Mr. Sewpersath further argued that even if
the settlement proposal was accepted, Mr. Fisher, now as curator ad
litem will have a
say on the settlement that was accepted on behalf
of the Plaintiff.
[34]
The Plaintiff’s practice note
prepared by Mr. Sewpersath for trial of 20
th
October 2022 and uploaded on caselines on 14
th
October 2022 stated that the issue to be determined was loss of
earnings ONLY. Not only did it state that quantum on the loss of
earnings was the only issue remaining to be determined, it said so in
capitalized bold letters.
[35]
I enquired from the counsel why in his
practice note he stated in bold and in capital letters that the issue
for determination was
loss of earnings ONLY. He submitted that it was
a clerical error, a mistake on his part not to include the general
damages. He
apologized for the error. He submitted to demonstrate he
made a mistake on his part; the pleadings and the joint settlement
document
sent to the offices of the Fund on 17 October 2022, as well
as numerous emails prior, including proposed settlements for general
damages. His heads of arguments also mention the general damages.
[36]
I was not convinced by counsel’s
explanation as he had been seized with this matter for quite some
time. There were two practice
notes that were uploaded on caselines.
The first one which he prepared referred to both merits and quantum
as issues to be determined
and the final practice note omitted the
merits and general damages.
[37]
A proper look on pleadings on how
this matter was handled suggests irregularities. My suspicions are
informed by the following activities:
Amendment of Pleadings
[38]
On 6 October 2022, exactly two weeks before
the trial, a notice of intention to amend was served by hand to the
defendant’s
offices and electronically. The suggested amendment
increased the claim from R1 650 000 to R3 673 100.
[39]
The original particulars of claim dated 20
July 2010 claimed damages to the amount of R1 650 000.00
calculated as follows:
i.Estimated
future medical expenses R100 000.00
ii.
Costs of special schooling R100 000.00
iii.Loss
of earning capacity R1 000 000.00
iv.General
damages for pain and suffering, loss of amenities of life,
disfigurement and disability R450 000.00
[40]
According to this amendment, the general
damages claim (which was settled and paid in 2014) was increased from
R450 000 to
R1 500 000 and loss of earning capacity
from R1 000 000 to R2 173 100.
[41]
On 14 October 2022 before the lapse of the
period allowed for an objection of the proposed amendment, counsel
for the Plaintiff
served by email amended pages to the Fund’s
officials.
[42]
The effect of the amendment is that the
already settled general damages were increased by R1 500 000.00
whilst loss of
income was increased by R1 173 100.
[43]
On Monday 17 October 2022 counsel for the
Plaintiff sent a document named “joint submissions and
settlement proposal”
to RAF claims handlers and officials and
requested them to revert to him regarding a settlement prior to the
trial set down for
20 October 2022. A proposed “Joint
Submissions Document” in support of settlement drafted by the
Plaintiff’s
counsel and sent to defendant’s official
suggested a settlement to an amount of R3 648 600 which would be
deemed acceptable
as final sum and settlement of the claim calculated
as follows:
i.Loss
of earning capacity = R2 487 480.00
ii.
General damages = R1 200 000.00
[44]
I raised concerns about the hurried
amendment of pleadings just two weeks before trial. The amendments
were affected before the
lapse of the 10-day objection period
provided for by the rules. Counsel for the Plaintiff and Mr. Fisher
argued that since the
defendant’s defense was struck out, it
was not even necessary to serve them with the notice of intention to
amend the pleadings.
Serving them was a matter of courtesy. It was
further submitted that the defendant did not object to their amended
pleadings.
[45]
These
submissions are clearly wrong. The Plaintiff’s attorneys are
required to comply with the rules relating to the amending
of
pleadings.
[1]
In this matter the
counsel failed to comply with ordinary requisites to the amending of
pleadings and suggested that serving amended
pleadings amending the
original claim by over R2 million rand was a matter of courtesy, this
I rejected. It can never be said,
or reasonably suggested that to
serve the defendant with a notice to amend and giving them
opportunity to object thereto as per
the rules is a matter of
courtesy.
[46]
I suggested that the general damages should
be postponed as I was made to believe that only loss of earnings will
be argued. This
suggestion was opposed by counsel and by Mr. Fisher.
It was argued that this would cause prejudice to the finalization of
this
claim on behalf of the minor child. (I should pause to highlight
that the Plaintiff, was throughout referred to as “the minor
child” although he had attained majority age on 26 October
2021.)
[47]
Adv.
Fisher questioned the legal status of the practice note in the light
of the amended pleadings which clearly show that general
damages were
an issue. He submitted that if the attorney agreed on the amount
suggested, he would review it as on the face of it,
it is an under
settlement. Adv. Fisher did not mince his words in expressing his
dissatisfaction about the purported under settlement
of the general
damages award. In fact, he went as far as to say that now he has been
appointed curator ad litem, he rejects the
award. Heward LCJ in
S
v Sussex Justices, ex parte McCarthy
[2]
suggests
that he may very well be within his rights to do so. His
dissatisfaction about this goes all to the more point as to why
curators’ ad litem should be appointed timeously as soonest it
becomes apparent that a Plaintiff would be incapacitated to
act on
their own behalf or give proper instructions to their attorneys.
[48]
He submitted that if the general damages do
not proceed, the defendant will still not participate as their
defence has been struck
off. Mr. Fisher submitted that I should apply
a robust approach and allow counsel to address me on general damages.
[49]
In our back-and-forth engagement with Adv.
Sewpersath, Ms. Ameersing interjected and advised the Court that she
sought clarity about
this contentious issue from the Fund. She was
then advised that the Fund had indeed settled and awarded to the
Plaintiff’s
attorneys general damages in the amount of
R600 000. She undertook to give proof of this transaction in due
course (and this
was done).
[50]
I adjourned the proceedings to allow the
defendant to provide the court and the Plaintiff proof that this
amount was paid in full
and final settlement of general damages.
Counsel for the defendant submitted a document titled “Financial
enquiry”
with attachments. According to this document, the Fund
paid to the Plaintiff’s attorneys R600 000 in settlement amount
of
general damages on 17 June 2014. Amongst the attachments was an
undated and unsigned draft order which,
inter
alia,
suggested that the defendant
shall be liable for 100% of the plaintiff’s proven or agreed
damages. This was also accompanied
by an unsigned offer and
acceptance of settlement which was prepared by one Sipho Muroa on
behalf of the defendant on 10 June 2014.
Interestingly, a request was
made on 11 June 2014 for the payment of the settlement amount to
applicant’s attorney’s
account. On 17 June 2014 the
settlement amount was paid by the Fund to the plaintiff attorney’s
trust.
[51]
Responding to this information, Mr. Fisher
submitted that there might be a practical problem with this; he must
consider whether
he should review the accepted general damages or not
and suggested that there is nothing that suggest that he cannot.
[52]
Ms. Ameersing took issue with Mr. Fisher’s
“practical problem”. She submitted that the issue was
more than a “practical
problem” but an ethical issue as
Plaintiff’s counsel insisted on arguing general damages which
were already settled
and paid over in 2014. I agree.
[53]
The documents that were submitted by
defendant’s attorney included an unsigned draft order. Adv
Sewpersath contested the authenticity
of the documents . I suggested
that he must take instructions from his attorney regarding the
matter. He submitted that he was
not able to contact his instructing
attorney because she was in hospital and has no access to her
computer to confirm whether the
damages were paid or not. He then
suggested that the issue of damages should be postponed. I refused
this suggestion as counsel
had earlier strenuously been opposed to
the suggestion that general damages should be postponed citing
prejudice to the “minor
child” and in the light of Mr
Fisher’s submissions that he was rejecting the award.
[54]
Counsel for the plaintiff proceeded to
address me on awarding the Plaintiff’s general damages to the
amount of R1 200 000.00
as a fair and reasonable amount.
Adv Fisher agreed.
[55]
A draft order was presented to me that
should I be with the plaintiff then:
By agreement between
the parties, it is hereby ordered that:
1.
The Defendant shall pay the Plaintiff the
amount of R 3 648 600.00 (THREE MILLION SIX HUNDRED AND FORTY-EIGHT
THOUSHAND AND SIX
HUNDRED RANDS ONLY), 180 days from 20 October 2022.
2.
The Defendant shall provide the Plaintiff
with a certificate of undertaking in terms of Section 17(4) (a) of
Act 56 of 1996, for
the costs of the Plaintiff’s future
accommodation in a hospital or nursing home or treatment of or
rendering of a service
or supplying of goods to him arising out of
the injuries sustained by him in the motor collision of 17 December
2007, after such
costs have been incurred and upon proof thereof,
such undertaking to include:
2.1.
the reasonable (taxed or agreed) costs
incurred in the establishment of a TRUST as contemplated in paragraph
4 below and the appointment
of trustee(s);
2.2.
the reasonable costs incurred in the
protection, administration and/or management of the award and the
statutory undertaking furnished
in terms of Section 17(4) (a) of the
Act, which costs shall be limited to the prescribed tariff applicable
to curators as reflected
in Government Notice R1602 of 1 July 1991,
specifically paragraphs 3(a) and 3(b) of the Schedule thereof;
2.3.
the reasonable costs incurred in providing
security to the satisfaction of the Master of the High Court of South
Africa for the
administration of the award and the annual retention
of such security to meet the requirements of the Master in terms of
section
6(2)(a) of the Trust Property Control Act 57 of 1988 (as
amended).
3.
Payment of the amounts referred to in this
draft order shall be made by the Defendant to the Plaintiff's
attorneys, Raphael 8 David
Smith Incorporated, which details are as
follows…
4.
The attorneys for the plaintiff, RAPHAEL &
DAVID SMITH INC are ordered:
4.1.
to cause a trust ("the TRUST") to
be established in accordance with the Trust Property Control Act NO
57 of 1988, stipulated
in paragraph 3 above,
within
six months of date of granting
of this
order and shall
approach the above
Honourable Court for condonation and further should the trust not be
established within the said period of six
months;
(my emphasis)
4.2.
To deposit all proceeds in terms hereof in
an interest-bearing account, for the benefit of the injured, as
contemplated in the Legal
Practice Act, pending the establishment of
the trust;
4.3.
To pay all monies held in trust by them for
the benefit of the injured to the TRUST
[56]
On the matter of the trust, a letter from
Tshepo Mosimenge, a nominee of ABSA Trust Limited was uploaded on
caselines on the 25
th
of October 2022, in which he consented to being trustee of the trust
to be caused. In the letter, he disclosed that his administration
fee
of the trust is to be 1% of the capital amount to be held under
administration of Trust plus VAT. This was prior to a subsequent
draft order which incorporated being forwarded to my registrar after
I already had in my possession the main draft order.
[57]
Regarding general damages the Plaintiff’s
counsel confirmed that an amount of R600 000 as final settlement
was paid to
the attorney’s trust account. In an email he sent
to my Registrar on 25
th
October 2022, the day after strenuously arguing for general damages,
he said, ‘
There
was some confusion with this as my attorney has been in hospital for
an operation and I was unable to confirm whether the
fund paid the R
600 000.00 for General damages. Please alert the Learned Judge that
there was in fact a payment of R 600 000 on
the General damages so
that the
Learned
Judge may take this into consideration in her judgment, which was
reserved.’
[58]
I issued directives to Ms. Aarthi Thumbiran
to confirm on affidavit whether the settlement amount was accepted
and deposited to
her firm’s account in 2014, eight years ago
before trial date or not. Ms. Thumbiran was also directed to account
for this
settlement money that was paid to her firm 8 years ago.
[59]
Ms. Thumbiran filed an affidavit in which
she confirmed that she is employed as a professional Assistant at
Raphael and David Smith
Inc and she is an attorney of record in this
matter. She confirmed:
1.
She is the attorney in charge of dealing
with the claim of BG. M obo TS. M against the Fund
2.
She confirms that an offer in the amount of
R600 000 in respect of general damages was received and duly accepted
by the Plaintiff,
being the mother of the minor at the time.
3.
This offer was fair at the time and its
capitalized value adjusted for inflation would be in the region of R1
000 000 in 2022.
4.
Loss of earnings was postponed.
5.
The sum of R600 000 was paid to Raphael and
David Smith Inc on the 17
th
of June 2014.
6.
Disbursements were paid including but not
limited to medical experts.
7.
A portion of the money in the sum of R236
048-96c was paid to the Plaintiff on the 10 May 2017 by cheque
bearing number 40068, with
the balance to be paid upon finalization
of the entire matter and the receipt of the costs
.
8.
On the date of the trial this detailed
information was not available to counsel as she had no access to her
computer.
[60]
The attorney’s explanation that this
information was not available at the time of trial is untenable. Her
attorney’s
affidavit conflicted with counsel’s statement
in court on 24
th
October 2022 when he addressed the issue of settlement of general
damages. He said, and I quote, “
I’ve
spoken to my attorney, she confirmed that an offer was made long time
ago and was rejected
”.
[61]
I noticed that the handling of this matter
is marred with irregularities. And so, I took a robust approach to
uncover what really
happened to the Plaintiff’s award. The
information came in drips and drabs.
[62]
I issued further directive to Ms. Thumbiran
on the 9
th
of December 2022 in these terms:
PLEASE BE ADVISED that
I intend to refer the judgement to the LPC due to the manner in which
the issue of general damages was pursued
through amendment of
pleadings despite the fact that they were settled and paid over 8
years ago.
You are given an
opportunity to make submissions if you wish on the reasons why the
general damages claim was pursued when it was
already settled.
Further submissions must reach me on or before Wednesday 14 December
2022.
Ms
Thumbiran responded with an email to my Registrar on 12
th
December 2022 and said, ‘
With
regard to general damages, the Notice to amend was purely an
oversight and not intended to mislead the Court… As soon
as
the error was noticed, Counsel did liaise with Defendant and
confirmed that the only issue remaining for settlement was loss
of
earnings. If the Court so directs the Notice to amend can be
withdrawn and rectified. We place ourselves in the Courts hands
for
guidance with regard to the oversight.
’
[63]
To give credence to this explanation that
this was indeed an oversight, she attached the email which she sent
to Defendant’s
former attorneys on 18
th
September 2019 wherein she was inviting them to a case management
conference. The email states in no uncertain terms that general
damages were settled on 29 May 2014 and the only issue remaining was
quantum in loss of earnings. She also attached a signed pre-trial
minute of a conference held on 11
th
October 2019 between herself, her then counsel, Adv. Naidoo and Mr.
Chepape, the former attorney for the defendant. In these pre-trial
minutes, it is recorded that the only issue remaining for
determination is loss of earnings. As far back as 2014 this
information
was known to Ms. Thumbiran.
[64]
Unfortunately for Ms. Thumbiran her
explanations is farfetched and untenable. It is not the case that
Adv. Sewpersath was hijacked
with the brief on the day of trial. He
had been corresponding directly with the Fund’s
representatives. He drafted the amendments,
inflating the claim for
general damages. His heads of argument, his joint settlement
submissions proposal to the Fund, its representatives
and the draft
order handed tell a different tale. It is important to appreciate
that counsel acts on the instructing’s attorney’s
brief.
[65]
The defense that the vigorous pursuit of
general damages was a mistake is clearly a desperate and farfetched
explanation which I
do not accept.
[66]
Ms. Thumbiran’s affidavit was
accompanied by a document headed Raphel & David Smith Inc History
Transactions prepared
by Davine Chetty on 12/06 /2022 at 1:44pm. The
status of this document is not explained in Ms. Thumbiran’s
affidavit. It
shows that a direct deposit to a trust account was
deposited on 17 June 2014.
[67]
On 10 May 2017 a trust cheque to the amount
of R236 048.96 was deposited into B.G M on 10 May 2017. In the
affidavit there
was no explanation why the amount of R236 048.98
was only deposited to the plaintiff’s mother only in 2017
three years after the Fund made its
first deposit; nor was there any indication that ‘
the
balance to be paid upon finalization of the entire matter’
is held in an interest-bearing account on behalf of the Plaintiff.
This is required by law.
[68]
With regards to experts, there was no
accounting detail of which experts were paid and how much was paid.
The same went for the
purported disbursements. There was no
accounting detail what these disbursements were, especially more so,
if in their sum, they
included more than just experts’
remuneration.
[69]
I was uncomfortable with the explanation
provided by Ms. Thumbiran. I then directed her to state under oath
how the award of plaintiff’s
general damages was spent. She was
to provide more information to court as to which experts were paid
and how much.
[70]
On the on 7
th
December 2022 Ms. Thumbiran provided me with a copy of an email which
was a response to the to the Legal Practice Council in a
complaint
lodged by the Plaintiff’s mother regarding the award for
general damages as far back as 19
th
November 2020.
The Complaint to the
Legal Practice Council
[71]
In 2019 the BG. M, the plaintiff’s
mother lodged a complaint against the plaintiff’s attorney
regarding the settlement
amount. In response to the LPC’s
enquiry, Ms. Thumbiran stated that she paid the plaintiff’s
mother an amount of R
236 048.96. She also listed the number of
experts that were paid R231 493.91 from the award and she paid
herself fees
to date R129 157.13, accordingly the award has been
diminished.
[72]
Ms. Thumbiran made glaring errors when
accounting for the general damages award to me. She omitted the fact
that she paid herself
an amount of R129 157.13 from the award.
In response to my directive she stated that there was a balance to be
paid upon the
finalisation of the entire matter. This could not be
further from the truth. After deductions of her fees, disbursements
and the
R 236 048.96 given to the Plaintiff’s mother, the
account came to zero.
[73]
It shall not do justice to the concerns I
raise in this judgment and orders I make herein if I do not reproduce
the contents of
this email in full. I clarify, the email was a
response from Plaintiff’s attorney to the LPC. Her response
read:
‘
RE:
Compliant BG M – Our ref: AT/MF 1793’.
‘
Good
day,
Unfortunately, we do not
seem to have received your correspondence of 29
th
September 2019.
In the interim we advise
as follows:
1.
On the 24
th
of June 2019 we provided a detailed explanation regarding what had
happened in the above matter (attached for ease of reference).
2.
We advise that at present, only the
merits and general damages of the claim are settled.
3.
We are currently busy preparing the file
for loss of earnings
.
4.
We have not charged the client a final
fee but an interim fee, pending finalization of the entire matter and
pending the drawing
up and taxing of our attorney client bill.
5.
The general damages were settled for an
amount of R600 000. (Attached find Draft Order)
6.
There is no final account as the matter has
not been finalized in its entirety.
7.
However, from the capital we paid the
following experts, the following amounts
a)
Angela
Fox – R6 935.
b)
Digby
Brown – R24 100.
c)
Osman
– R11 050.
d)
Fisher
- R25 200
e)
Shevel
– R22 572
f)
Trollip
– R23 204
g)
Digby
Brown – R23 830
h)
Schaid
– R3 080.16c
i)
Schnaid
– R8000
j)
Trollip
– R15 000
k)
Peverette
– R5 433.75c
l)
Peverette
– R22 609
m)
Shevel
– R20 240
n)
S.
Naidoo – R20 240
Total paid to experts
R231 493.91c
8.
Total loans taken by client to date -
R3 300
9.
Total paid to client to date –
R236 048.96c
10.
Fees to date R129 157.13c
‘
Total
paid to date – R600 000.00
[74]
When I directed the plaintiff’s
attorney to account about the general damages she stated under oath
that:
AD: para 6:
‘
Disbursements
were paid
including but not limited
to medical experts.’ AD: para 7: ‘A portion of the money
in the sum of R236 048-96c was paid to the Plaintiff on the
5
th
October by cheque bearing number 40068,
with the
balance
to be paid upon finalization of the entire matter and the receipt of
the costs.
If one adds the sum of
·
Total paid to experts R231 493.91c
·
Total loans taken by client to date -
R3 300
·
Total paid to client to date –
R236 048.96c
·
Fees to date R129 157.13c
·
Total is R600 000
The question which arises
is which ‘
balance
to be paid upon finalization
of the entire matter’
is she referring to as the amounts
above equate to, and deplete to zero the R600 000 paid into her
trust for general damages.
[75]
Clearly, the balance referred to her must
be the anticipated sum of loss of earnings claim and nothing of the
general damages. Now
two concerns immediately arise out of her. It is
usual practice in RAF litigation that were merits have been conceded
100% in favour
of the Plaintiff it is RAF that settles the expert
fees, and these amounts do not come out of the Plaintiff’s
award. If the
experts had to be paid prior to RAF settling the award,
then this would come out of the Plaintiff’s attorney especially
considering
that the victims of motor vehicle / pedestrian accident
are usually indigent people.
[76]
The second concern is whether the
Plaintiff’s attorney, in the absence of a contingency fee
agreement, submitted to the taxing
master a bill of costs before she
generously paid herself from the Plaintiff’s award. A dispute
arose herein between herself
and the plaintiff’s mother,
eventually leading to the LPC complaint.
[77]
AD: para 3 of her affidavit, she ‘
confirms
that an offer in the amount of R600 000 in respect of general damages
was received and duly accepted by the Plaintiff,
being the mother of
Themba, who was a minor at the time.’
This would have been in 2014.
[78]
RAF effected payment into the
Plaintiff’s attorney trust account on 17
th
June 2014. But payment to the Plaintiff was only affected on 05
October 2017. The three-year delay raised some more questions than
answers for me. But other than the most obvious question is why the
payment was made only three years later. I recalled reading
in the
2019 report of Dr Shevel, the Plaintiff’s psychiatrist that on
2 June 2014, when he consulted with the plaintiff who
was a minor
child at the time, he was accompanied by his grandmother. His
grandmother at the time reported that the plaintiff’s
mother
was ‘
mentally disturbed’.
[79]
Also, Dr Ormand-Brown’s 05 August
2013 report stated that the plaintiff was accompanied by his
grandmother who reported to
Dr Ormand-Brown that BG.M had a mental
health challenge as far back as 2011. She was identified as having a
traditional calling
and went to Mpumalanga for traditional healing
initiation. In 2013, she was back in the Johannesburg area but not
living with the
Plaintiff.
[80]
I questioned the delay of the three
years before the payment could be made. To this question Ms Thumbiran
stated that they could
not find her up until such time they had to
employ the services of tracers to locate her whereabouts, 3 years
later.
[81]
Perhaps I should reiterate the timeline:
i.The
grandmother advised Dr Ormand-Brown on 24 June 2013 that the
plaintiff’s mother has been unwell as far back as 2011.
This
report is dated 5
th
August 2013, by which I assume this is the time the Plaintiff’s
attorneys came to be in possession of it.
ii.
On 2
nd
June 2014 the plaintiff’s grandmother tells to Dr Shevel that
her daughter the Plaintiff’s mother, and representative
litigant in these proceeding is ‘mentally disturbed’.
During this time, the Plaintiff was staying with his grandmother
and
not his mother. (The Plaintiff’s attorney claims not to have
had this report).
iii.On
10 June 2014 Sipho Muroa on behalf of the defendant makes an offer
for settlement to the Plaintiff’s attorneys.
iv.From
the attorney’s affidavit, the offer above must have been
accepted on the same or the next day by the Plaintiff’s
attorneys.
v.On
11
th
June 2014 a request for payment is made.
vi.This
payment is made on 17
th
June 2014.
[82]
This Court is then led to believe that in
between the 10
th
or 11
th
and the 17
th
of June 2014, the Plaintiff’s mother, having accepted the offer
of R600 000, and no doubt waiting for it to be deposited,
then
disappeared for a good three years and only could be located three
years later with the help of tracers.
[83]
Ms. Thumbiran also advised that the patient
and his mother were not in good terms due to the manner in which the
patient’s
mother used the part-payment of the patient’s
general damages . She informed me that the patient’s mother
used the
money to renovate the house and she needed more money that
is why she lodged the complaint to the Legal Practice Counsel.
[84]
The plaintiff’s mother was not in
court even though I directed that she should be present in court. I
was informed that the
patient’s mother could not be reached
because she does not have a cellphone. The patient attended alone.
[85]
I called the patient to the witness stand
to verify some information. I was informed that he has diminished
mental faculties so
I should exercise caution about the information I
might receive from him. The patient confirmed the following that:
i.He
denied that he was not in good terms with his mother.
ii.
His mother received the money, but she told
him that she only received about R150 000.
iii.She
bought him clothes and a music system,
iv.She
bought housing furniture, couches, and a bed.
v.He
still wanted his mother to be involved in the administration of his
monies.
[86]
I asked the patient if he knew Mr. Fisher.
He informed me that Adv Sewpersath told him about Mr. Fisher and what
his role was going
to be but Mr. Fisher has not spoken to him about
his role.
[87]
At this account, Adv Fischer could
not have been more appalled. He argued that extension of the house
and all else that Ms. Mabaso
did with the money was not in the best
interests of the Plaintiff. The money is supposed to be used to take
care of his needs for
life and not extend houses.
[88]
Mr. Fisher objected to the suggestion that
the patient’s mother be involved in the administration of the
patient’s monies.
He submitted that in his experience once the
family member is involved in the administration of the patient’s
monies it will
cause fights within the family . He argued vigorously
that only professionals must deal with the administration of the
patient’s
monies.
[89]
Upon perusal of the Ms. Thumbiran’s
response to the LPC I also took notice of payments made to experts
Fisher and Naidoo.
[90]
In the court bundle, there is no rule
36(9)(B) notice of these experts nor reference of them in any expert
report.
[91]
On 9 December 2022 I issued another
directive to the attorney in the following terms: -
…
You
provided a copy of an email to the LPC with the list of the experts
that were paid in response to the complaint lodged by Ms.
BG. M
regarding the payment of general damages.
With reference to that
email, I have noted payment to an expert Fisher and Naidoo. However,
the Court has not come across their
rule 36(9)(B) nor has it come
across their expert report. And neither has it come across three
other reports
(bolded below)
indicated in your experts’
evidence bundle.
Therefore, the Court
makes the further directives. Please furnish me with the following
expert notices and summaries. You are to
file on or before
Tuesday
13 December before 2022
the following:
1.
The rule 36(9)(B) notice and summary of
expert Fisher.
2.
The rule 36(9)(B) notice of and summary of
expert Naidoo.
3.
The rule 36(9)(B) notice and summary of
expert Dr Shevel
2
nd
of June 2014
report.
PLEASE BE ADVISED that
I intend to refer the judgement to the LPC due to the manner in which
the issue of general damages was pursued
through amendment of
pleadings despite the fact that they were settled and paid over 8
years ago.
You are given an
opportunity to make submissions if you wish on the reasons why the
general damages claim was pursued when it was
already settled.
Further submissions must reach me on or before Wednesday 14 December
2022.
Judgement will now be
delivered on Thursday 15 December 2022.
[92]
On 14 December 2022, the attorney filed an
affidavit confirming that Fisher and Naidoo were not medical experts
but advocates who
were appointed in 2014 and 2019 to represent the
plaintiff. An email dated 18 September 2018 to the Fund previous
attorneys and
to Adv Naidoo along with a signed Pre-Trial minute
dated 11 October 2019 was attached. Both documents confirmed that the
general
damages were settled on 29 May 2014 in the sum the sum of
R600 000 and that it is the loss of earnings that was an issue.
[93]
The attorney confirmed that Adv Michael
Fisher, the curator ad litem, was previously briefed in this matter
on merits and he represented
the plaintiff in court when the general
damages were settled on 29 May 2014.
[94]
In the light of this information, I did not
deliver the judgement again on 15 December 2022. I enquired from Adv
Fisher and the
attorney why this information was not disclosed when
the application for Adv Fisher to be appointed as curator ad litem
was moved.
Counsel for the plaintiff was not available, instead
another counsel was briefed to note judgement. Adv Fisher explained
that he
was unaware and had no recollection that at the time of his
appointment as curator ad litem he had acted as counsel for the
plaintiff.
He explained that he has been an advocate for the last 33
years and has been appointed as a curator in number of cases and he
could
not recall this matter. It only came to his attention that he
acted as counsel in this matter very recently.
[95]
He stated that there was no prejudice as he
has always acted for the plaintiff and the award for damages was fair
and reasonable
at the time. He consulted with senior judges who
confirmed that there was no prejudice.
[96]
Both these submissions do not suffice. In
his consent letter to be appointed as curator ad litem, Adv. Fisher
indicated that he
had read the full brief of the matter; was well
versed with the duties of a curator ad litem and obligations expected
of him. If
that is the case, I find it untenable that in his reading
of the brief, he would not have noticed that this is the same matter
he had been previously briefed in before. And even if one were to be
generous to his submission that he genuinely did not recall
the 2014
brief of the matter, can the same be said of the attorney of record
who had long been standing and acting on the matter?
In no
conversation or instruction did it ever come up between them that
this is the same brief she had previously briefed him on?
I think
not.
[97]
The attorney could not give any
plausible answer but instead she stated that Adv Fisher has always
represented the best interest
of the patient and there was no bias
shown.
[98]
I
issued further directives to Adv Fisher to state why he should not be
removed as curator ad litem in the light of the judgements
of this
division on the role of the curator ad litem. Adv Fisher was
specifically referred to the judgement of Bertelsman J in
JM
Modiba obo Slbusiswe Ruca
[3]
and the judgement of Haupt AJ in Stoffberg
[4]
.
[99]
Adv Fisher made submissions dated 17
January 2023 on why he should not be recalled as curator ad litem.
His submission can be summarised
as follows:
83.1.
He explains that he was appointed as
curator ad litem at the commencement of the trial on the
recommendation of the medical experts
and after it was established
that the general damages were settled the matter proceeded only on
future loss of earnings.
83.2.
Counsel for the plaintiff led the evidence
on the quantum followed by argument and the matter was postponed for
judgement.
83.3.
His appointment was to give locus standi in
order for the matter to proceed to completion on the outstanding
issue of loss of earnings.
He had no recollection that he represented
the plaintiff when the issue of general damages was settled in court.
83.4.
He had no role in the determination of the
loss of earnings award.
83.5.
Should his appointment be recalled such
recall would have an effect of being
ex
tunc
and not
ex
nunc.
This would render all the
proceedings and successive event to be a nullity and be of no force
and effect and the patient would
have no locus standi to proceed
unaided. This would enquire a new date to be sought and the matter to
be heard afresh would be
extremely prejudicial to the patient and the
patient would incur unnecessary costs.
83.6.
If his appointment remains in place, his
curatorship would automatically come to an end with the finalization
of the matter then
resulting in him being functus officio.
83.7.
No prejudice was suggested to him regarding
his appointment and conduct as his role was short and confined to the
actual hearing.
83.8.
He was not required to do a report as a
matter was heard in court and not settled between parties.
[100]
In his response Mr. Fisher noted the
judgement of Stoffberg and did not mention Ruca judgement.
Discussion
[101]
One of the important role players in the
administration of those who suffered from traumatic brain injuries is
the curator ad litem.
However contrary to the provisions of Rule 57
of the Uniform Rules and common law, many a times in this Court, the
applications
for the appointment of curators (both ad litem and
bonis) would be brought by the plaintiffs’ attorneys at the
very last
minute when monies are just about to be awarded to the
patients.
[102]
Bertelsman J in Ruca stated that:
“
These
features represent a practice that appears to have developed over the
past few years which avoids or circumvents the provisions
of Rule 57
of the Uniform Rules of Court and the common law relating to
individuals who are, or may be, unable to look after their
own
affairs. By avoiding or circumventing the provisions of the Rule and
the common law principles established over decades, these
matters are
prevented from coming to the Master’s attention, avoiding the
latter’s supervision and scrutiny while the
potential need to
appoint a
curator bonis
or
curator bonis et personae
to the individual concerned is not considered properly or at all.
[103]
Fisher
J in Kedibone
obo
MK and another v Road Accident Fund (Centre for Child Law as Amicus
Curiae) and a related matter
[5]
observed that although the Fund willy-nilly settles claim of general
damages without judicial oversight, it stops short of doing
so in
claims of loss of earnings if curator ad litem is not appointed. It
would therefore seem that the appointment of the curator
is not to
serve any other real reason but to facilitate the settlement of the
claim. As better expressed by
Ruca,
this
goes against everything and anything of a purpose of a curator ad
litem to a Plaintiff.
[104]
In South Africa this important
responsibility is left to attorneys who chose their colleagues to be
the curator ad litem. Mostly
the curators are not able to communicate
meaningfully with the injured plaintiffs because of one or more of
the following reasons
(1) the language, (2) class, and race barriers.
[105]
Dealing with these challenges faced by the
people with diminished capacity and their inherent right to be
treated with dignity,
The South African Law Reform Commission Report
of December 2015, Project 122, noted that:
Making
decisions is an important part of human life. By exercising choice
through our decisions in matters relating to our personal
welfare and
financial affairs, we express our individuality and exert control
over our own lives. Impaired decision-making ability
can be the
result of mental illness, intellectual disability, brain injury,
stroke, dementia, a specific disease, or impairment
related to ageing
in general. A legitimate expectation for the law is that it should
establish a structure within which autonomy
and self-determination
are recognised and protected, while also protecting persons with
decision-making impairment from abuse,
neglect and exploitation.
South African law does not fulfil these requirements at present.’
[6]
The independence and
impartiality of the proposed curator ad litem
[106]
The
independence of the curator ad litem has been thoroughly addressed by
Bertelsmann J said in
JM
Modiba obo Slbusiswe Ruca
[7]
. He said:
…
.
One non-negotiable
quality of an advocate (or attorney) acting as curator must be
indisputable independence to ensure the integrity
of the professional
service that must be rendered to the patient: see Harms,
Civil
Procedure in the Supreme Court
at para.
B 57.9
;
Ex
parte Mallach
1921 TPD 514
, in which Mason J in a concurring
judgment said:
‘…
in
ordinary applications for the appointment of a curator
ad litem
to the property of any person
found to be of unsound mind the Court always requires that some
independent person, acting as curator
ad
litem
on behalf of the person supposed
to be insane, should independently investigate the matter
,
…’. (p 516).
In the context of
children who required representation by curator ad litem the
Appellate Division described the curator’s
duty as the ‘
…
vigilant protection of the rights of minors which our
system of law seeks to promote by the appointment, in an appropriate
case,
of a
curator-ad-litem.
’
See
Rein NO v
Fleischer NO & Others
[1984] ZASCA 102
;
1984 (4) SA 863
(A). Although the
Appellate Division was dealing with the protection of the interests
of minors in that matter, it could never
be argued that the same
vigilance must not be displayed when a curator is appointed to a
patient who may be unable to look after
his own affairs and to
understand the forensic issues in respect of a claim against the
defendant Road Accident Fund. See further
Kotze v Santam Insurance
Co. Ltd.
1994 (1) SA 237
(C) and authorities cited there at 244G
to 245D;
Ex parte Phillipson and Wells, NN.O. and Another
1954
(1) SA 245
(EDL).
[107]
I put to Mr. Fisher the question that in
view that he had been briefed by the Plaintiff’s attorneys in
2014, does this then
not compromise his independence as curator ad
litem? In response, Mr. Fischer argued that because he acted for the
plaintiff on
merits, there was no prejudice shown, he should not be
recalled as the curator ad litem. He always had been acting in the
best
interests of the Plaintiff.
[108]
In his submissions he expanded on that. He
stated that his role in this matter was short and confined to the
actual hearing and
he was not required to do a report as the matter
was heard in court and not settled by the parties. He submitted
further that I
should not remove him as curator as his curatorship
will come to an end upon the finalization of the matter rendering him
functus officio as curator ad litem.
[109]
This is not true, and it contradicts the
draft order submitted by the Plaintiff’s attorneys which this
Court appointed him
on the strength thereof. It negates the following
paragraphs of the draft order which read:
‘
2.
the said curator ad litem is granted all powers and authority to
enable him to prosecute the said action to the final end and
determination thereof and without limiting the generality of such
powers and authority, directing that he shall be entitled to:
1.1.
Ratify such steps as have already
been taken in respect of the action referred to in paragraph 1 supra
1.5. Apply for the
appointment of a Curator Bonis on behalf of the Plaintiff if
necessary, in the event of the said action being
successful.
[110]
If he was appointed to just give locus
standi for the award of loss of earnings and thereafter become
functus officio
,
how else then is he to scrutinize the actions and steps of the
attorney, or even apply for a curator bonis if necessary? If Mr.
Fisher’s submission were to be accepted it would therefore
follow that the attorney’s conduct in this matter, and
especially the investigation into her fees would go unchecked.
[111]
The need for unquestionable independence of
the curator ad litem cannot be overstated. In paragraph 36 in
Ruca
the court held
:
‘
The
need for an independent approach to the litigation is especially
significant in cases such as the present, in which the attorney
acting for the claimant accepted instructions from an individual
whose capacity to understand the processes of litigation and the
implications of the mandate given to the attorney may subsequently be
found to have been compromised. Vigorous vigilance and pronounced
independence are essential when issues such as the enforceability of
a contingency fee agreement and the validity of instructions
allegedly given by the patient in respect of the conduct of the
litigation must be examined to protect the patient’s interests.
Just as ‘ …
it is not
merely of some importance but is of fundamental importance that
justice should not only be done, but should manifestly
and
undoubtedly be seen to be done
..’
(per Hewart LCJ in
S v
Sussex Justices, ex parte McCarthy
[1923] All ER Rep 233)
, the
curator’s independence must not only exist, it must manifestly
be free of any semblance of bias or association with
any party having
an interest in the outcome of the matter. It is therefore
self-evidently unacceptable that a potential curator
ad litem
should have had any association with the plaintiff’s or
soon-to-be-patient’s legal representatives, let alone to have
been briefed by this team upon the merits and background of the
application for his appointment in preparation of his report.
Whenever a curator
ad litem
is appointed under circumstances
such as the present, he steps into the shoes of the former plaintiff
and continues the litigation
in his or her place. One of the aspects
that must be considered by the curator appointed at a late stage is
whether the steps taken
by the attorney and counsel who acted for the
patient as plaintiff until the curator was substituted as nominal
plaintiff, were
reasonable, correct and in the patient’s best
interest and should therefore be ratified:
Kotze v Santam
Insurance Co Ltd
.’
supra,
at 244F and further. This
process must include an investigation into the fees charged by
counsel and attorney up to that stage,
as set out above. Such
investigation is obviously compromised where the curator has been
consulting with these lawyers prior to
his appointment.
[112]
During the hearing Mr. Fisher understood
his role as curator ad litem very well especially the role of
rectifying the steps that
had already been taken by the attorney
before a curator was nominated. As it came to the attention of this
court, and by sheer
luck and rigorous investigation I should add,
there are glaring irregularities in how this matter has been
conducted. The concerns
expressed above, including but not limited to
the amendment of pleadings to include the award that had already been
paid, the attorneys’
inconsistencies when accounting for the
general damages claim, the absence of contingency fee agreement are
but some of the issues
that require an investigation by the curator
ad litem.
[113]
In
Stoffberg
[8]
, Haupt AJ
summarised the role of curator ad litem as follows:
“
Therefore,
the role of the curator ad litem becomes even more important. The
curator ad litem is the eyes and ears of the court.
This is achieved
by the curator investigating and reporting back to the Court and the
Master.
[9]
The report is there
to draw the court's attention to any consideration which in view of
the curator ad litem might influence the
court with regards to the
terms of the order sought.
The
provisions of the Rule therefore ensure a procedure with the
necessary checks and balances in place to protect the interests
of
the patient affected by the order, as well as the court's duty to
consider all the relevant facts before making an order.
[10]
The provisions of the Rule may only be dispensed with under the
circumstances envisaged in sub-Rule (4), which include by reason
of
urgency or certain special circumstances.
[11]
As the appointment of a curator has the practical effect of
interfering with the person's right to make his/her own decisions,
such interference can only be justified if the Rule is adhered
to.
[12]
[114]
For
an advocate who prides himself of being in practice for well over
thirty-three years and ‘
aware
of the duties and obligations of a curator ad litem’
[13]
it is clear from this submission that Mr. Fisher clearly does not
understand his role as curator ad litem. The Ruca judgement which
Adv
Fisher failed to refer to as directed provides a comprehensive
judgement on the interpretation of the provisions of Rule 57,
the
independent role of the curator and, the curator ad litem’s
duties and functions, the Masters’ role, and of the
early
appointment of curator ad litem.
Absence of a
contingency fee’s agreement
[115]
When I pressed for answers about why there
was no contingency fee agreement, it was Mr Fisher who explained that
most attorneys’
firms are no longer inclined to enter into
contingency agreements as they not do not reflect the actual work
done by the attorneys
as the attorneys are allowed to charge up to
25% of the award plus vat plus costs.
[116]
However, disturbingly noted is that the
fees that the attorney paid herself were not taxed or agreed upon
between the parties –
hence the plaintiff’s mother filing
a complaint with the LPC.
[117]
Realizing that the applicant’s
attorneys failed to account fully on how the plaintiff’s award
was utilized, I issued
a directive to the plaintiff’s attorney
to state under oath why her law firm and herself did not enter into
contingency fee
agreement. From her affidavit, these are her
pertinent claims:
‘
Ad
5: there is nothing in the contingency fees act which obliges
attorneys to use it and attorneys have the discretion to charge
on
one of three options [agreed fee; contingency fee; itemized bill].
Ad 6: in this case the
client signed a special fees power of attorney.
In these instances
an itemized bill is done, which is taxed by the taxing master…
The fees charged are a true reflection of the actual work done
and
the
taxing master is there to scrutinize the Bill to
ensure that the fees charged are fair and reasonable.
AD 7: with the
contingency fee, we have found that it is not an accurate reflection
of the amounts being charged for the actual
work done and it may
occur that the attorney receives more with a fee of 25% than the
actual value of the work performed. This
we feel is highly
prejudicial and unfair to clients.
AD 8: Furthermore, the
Contingency Fee Act is not as simple to understand, if one were to
have a proper understanding of same and
it is for these reasons
mentioned below that we opt not to use it:
a.
If the matter is not successful, the
attorney will not be paid… “the client usually pays for
expenses”. As a
majority our clients are indigent there would
be no prospect of obtaining any form of payment from the expenses
b.
Therefore, instead of sending a statement,
the attorney will receive a fixed amount determined by the amount
awarded. This can have
the result that the attorney can get higher
fees than she is entitled to…’
The Special power
of attorney
[118]
Ms. Thumbiran also submitted the Special
Power of Attorney referred to in her affidavit. There were three of
these annexed A to
C, all signed on the 10
th
of January 2008 between her firm and the client. From this annexed
powers of attorneys, I became more concerned
Special Power of
Attorney A
[119]
In the first annexure, the Plaintiff
authorizes and grants special power of attorney to Ms. Thumbiran’s
firm, Raphael &
David Smith Incorporated (the Firm) to recover
and receive on her behalf the capital and “party and party
costs” from
the defendant in respect of the claim; and deduct
the fees and disbursements from the capital amount of the claim
before payment
of the balance to her.
Special Power of
Attorney B
[120]
She shall at all times be liable for the
payment of the attorney fees and disbursements, including VAT, unless
otherwise agreed.
[121]
In the event of an order of costs being
granted in her favour, the attorneys shall proceed in order to
recover such costs: provided
however that the client shall in any
event remain liable for the payment of such an account in the event
of the costs for any reason
not being recovered from the defendant.
[122]
All disputes and difficulties arising
between the parties, whether in connection with the mandate given or
an ethical issue shall
be referred for arbitration to be resolved by
an arbitrator agreed between the parties and/or alternatively,
appointed by the Arbitration
Federation of South Africa.
[123]
Costs of the arbitration shall be borne by
the losing party.
[124]
In the event that it becomes the
attorney’s view that there are no reasonable prospects of them
recovering their costs in
respect of the arbitration should the
client be unsuccessful therein, then the attorneys are empowered to
demand security of costs
from the client, and such matter shall not
proceed to arbitration till such security is provided
[125]
The client understands and accepts that any
dispute arising shall not be referred to the LPC; and she shall not
in any way have
recourse to make a complaint against the attorneys to
the relevant law society; and will be precluded from doing so.
[126]
She warrants that she fully understands the
nature, contents, meaning and purports of the agreement which have
been fully explained
and translated to her in a language she is
fluent in.
Special Power of
Attorney C
[127]
The Plaintiff confirms that the difference
between “party and party” and “attorney and own
client costs”
have been explained to her. Such explanation says
that in “party and party”, should she be successful in
her case a
bill of costs will be drawn up and settled or taxed
against the defendant who will be liable for the payment.
Furthermore, “party
and party” bill only represents part
of the fees and disbursements of an attorney.
[128]
The agreed client and attorney fee is R350
per quarter of an hour on a time basis for all work done in
connection with her case.
This is exclusive of disbursements and VAT.
[129]
In view of the fact that the attorneys will
incur certain disbursements and fees in connection with her case, she
irrevocably and
in
rem suam
authorize the attorneys to recover and receive on her behalf the
capital and “party and party” costs from the defendant
and to deduct all fees and disbursements from the capital amount
before payment of the balance to her.
[130]
The attorney fees for services rendered and
disbursements incurred in connection therewith will not be based on
the applicable high
court or magistrate court tariffs, or on the
tariff applicable in any other court, but will be higher and will be
calculated on
the basis set out in this Special Power of Attorney.
[131]
All disputes and difficulties arising
between the parties, whether in connection with the mandate given or
an ethical issue shall
be referred for arbitration to be resolved by
an arbitrator agreed between the parties and/or alternatively,
appointed by the Arbitration
Federation of South Africa.
[132]
She warrants that she fully understands the
nature, contents, meaning and purports of the agreement which have
been fully explained
and translated to her in a language she is
fluent in.
[133]
Concerning to me in these special powers of
attorney is that the Client is precluded from bringing disputes to
the Law Society,
which are to be referred to arbitration –
which may itself be denied by the attorney if their view is that
there are no reasonable
prospects of recovering their fees should the
client lose in any arbitration proceedings. This demand of security
based on an own
self-assessment of the client’s prospects of
success in any arbitration proceedings makes them judge in their own
case.
[134]
The affidavit explaining why there is no
contingency fees agreement submitted by Ms. Thumbiran explicitly
says, ‘
Ad 6: in this case the
client signed a special fees power of attorney.
In
these instances an itemized bill is done, which is taxed by the
taxing master…
The fees
charged are a true reflection of the actual work done and
the
taxing master is there to
scrutinize the Bill to ensure that the fees charged are fair and
reasonable.’
Not only has
this not been done, but these special powers of attorney submitted to
me say nothing about the taxing master; and in
fact substitute the
taxing master with an arbitrator – which they may very well
deny to the client if she cannot provide
the pre-requisite security.
[135]
Of further concern is the exclusion of the
LPC’s authority to assist the client should she have any
complaint against the
attorneys.
[136]
The plaintiff’s mother then filed a
complaint with the LPC with regards to the award given to her. I do
not have before me
what was the outcome of that complaint, but
however it be, this provides for the very duty for the curator ad
litem to be independent
from the attorneys on brief.
[137]
Mr. Fisher’s argument in the face of
glaring irregularities on the handling of the award of the general
damages by the attorneys;
the attorneys’ fees; and his support
to the attorneys’ position on the no contingency fees agreement
being contracted
with them and the client; more so without him having
regard to the actual fees charged onto the client, the validity of
the special
power of attorney herein, and now, the complaint of the
plaintiff’s mother which has come to light, renders his
independence,
if put in modest terms, doubtful.
[138]
Mr. Fisher argument not to be
recalled is that it would be extremely prejudicial to the plaintiff
because it would render the orders
granted a nullity as the plaintiff
would not have the locus standi to proceed unaided is untenable. As
said by Hewart LCJ in
S v Sussex
Justices, ex parte McCarthy
[1923] All
ER Rep 233)
(quoted in Ruca)
It is therefore
self-evidently unacceptable that a potential curator
ad litem
should have had any association with the plaintiff’s or
soon-to-be-patient’s legal representatives, let alone to have
been briefed by this team upon the merits and background of the
application for his appointment in preparation of his report.
Whenever a curator
ad litem
is appointed under circumstances
such as the present, he steps into the shoes of the former plaintiff
and continues the litigation
in his or her place.
One of the
aspects that must be considered by the curator appointed at a late
stage is whether the steps taken by the attorney and
counsel who
acted for the patient as plaintiff until the curator was substituted
as nominal plaintiff, were reasonable, correct
and in the patient’s
best interest and should therefore be ratified:
Kotze v Santam
Insurance Co Ltd
.’
supra,
at 244F and further.
This
process must include an investigation into the fees charged by
counsel and attorney up to that stage, as set out above.
Such
investigation is obviously compromised where the curator has been
consulting with these lawyers prior to his appointment.
(my
emphasis)
[139]
Under no stretch of the imagination can it
be said, nor suggested, that Adv. Fischer can bear an independent
mind in the interests
of the Plaintiff, especially in scrutiny of the
steps taken by the attorney, her fees and that of counsel, in a
matter in which
he has already materially benefited from. Nor does he
seem to have any interest in undertaking such scrutiny because in his
own
words, ‘‘
[his] appointment as
curator ad
litem
was to give the Patient
locus standi
in order for
the matter to proceed to completion on the outstanding issue of loss.
I would respectfully submit that on final Judgment
if my appointment as
curator ad litem
remains in place would result in any
event in me becoming
functus officio
and
my curatorship to automatically come to an end with the finalisation
of the matter.”
[140]
On the matter of prejudice to the Plaintiff
should his curatorship be recalled; I am of the view that indeed
manifest prejudice
and injustice would result to the Plaintiff if his
curatorship were not to be withdrawn. As aforesaid in the case law
cited above,
‘
One of the aspects
that must be considered by the curator appointed at a late stage is
whether the steps taken by the attorney and
counsel who acted for the
patient as plaintiff until the curator was substituted as nominal
plaintiff, were reasonable, correct
and in the patient’s best
interest and should therefore be ratified..’
On Mr. Fischer’s own affidavit, this is not intended by him.
[141]
The facts of this case and the developments
arising thereto give much cause for concern and bring into doubt the
ethical conduct
of the attorneys. Whether they at all times acted in
the best interest of the Plaintiff questionable. Hence then the need
for unquestionable
integrity on the part of the curator ad litem to
make sure that at all material times, nothing but his best interests
were core
centered in the litigation rather than the self-enrichment
of his legal representatives.
[142]
In
rescinding my previous order appointing Adv. Fisher I fortunately
find myself in good company,
Tshaleti
v Mosungwa and Another
[14]
and
McNair
v Crossman and Another
[15]
.
In
the first matter,
Tshaleti,
the curator ad litem was removed by Manoim J on grounds of
incompetence and misconduct. In the second matter,
McNair,
the
Court said at paragraph 29:
“
The
court's power to remove a trustee though is not restricted to the
statutory grounds. Its powers to remove a trustee is derived
from its
inherent power which has been recognised in our law for over a
century and has now been entrenched in the law by s173
of the
Constitution of the Republic of SA, 1996 (the Constitution).
Exercising this inherent power, courts have traditionally removed
a
trustee for misconduct, incapacity or incompetence. Though it must be
said that each of these three grounds may also be a basis
for an
application for removal in terms of s 20(1) of the Act if it can be
proved that the alleged misconduct, incapacity or incompetence
imperils the trust property or the administration of the trust and
courts have often found this to be the case…”
Manoim J in
Tshalet
assures that the same principles apply in the removal of a
curator ad litem. In this case, the ground of removal is compromised
independence.
[143]
Fortunately for the plaintiff the
role played by Mr. Fisher in these proceedings was very short. It was
confined to trial and ‘
to give the Patient locus
standi in order for the matter to proceed to completion on the
outstanding issue of loss’.
[144]
In the circumstances the following order is
made.
1.
The order granted on 20 October 2022
appointing Adv Michael Fisher as curator ad litem is rescinded and
set aside.
2.
Adv Fisher is removed as curator ad litem
acting on behalf of the plaintiff.
3.
Adv Fisher may not charge any fees relating
his role as curator ad litem.
4.
Ms. Aarthi Thumbiran and her firm may not
charge any fees relating to the application for curator ad litem on
the 24
th
October
2022; 7
th
and 14
th
December 2022 appearances.
5.
The order granted on 7
th
December 2022 is void ab initio.
6.
The Registrar of this Court is directed to
refer this judgment to the General Bar Council to nominate curator ad
litem fluent in
the IsiZulu language within 30 days of receipt of
this judgment.
7.
The curator ad litem is hereby directed to:
i.Investigate
and prepare a report about the steps and actions taken by the
Plaintiff’s attorneys, and in particular report
on whether such
steps and actions should be ratified, which investigation should
cover the reasonability of the fees charged to
date;
ii.Investigate
and report on whether expert fees and costs of counsel were paid or
not by the Fund in 2014; and if not, whether
the Plaintiff’s
attorneys took any steps to recover their expert fees, disbursements,
and costs of counsel from the Fund.
This report is to include a
determination whether any expert fees and disbursements should have
been levied to the client and therefore
deducted from the capital
award.
iii.Investigate
and report on the Plaintiff’s mother’s ability to
understand the implications of the Special Power of
Attorney signed,
fee agreements, and whether such implications, were in fact,
explained to her in a language in which she is fluent
in.
iv.Investigate
and submit a report on the validity and enforcement of the Special
Power of Attorneys’ signed, fee agreements
entered into by
Plaintiff’s attorneys and the client;
v.To
prepare a report on the appropriate vehicle to house the award to be
made to the client.
vi.To
investigate and make any other recommendation which s/he may so deem
fit in view of the facts and concerns raised in this
judgment.
8.
The curator ad litem’s report must be
delivered to the Master of the High Court, Johannesburg Division for
his/her comment
within 30 days of receipt of the curator’s
report.
9.
The Master is to comment on any aspect of
the curator’s report which s/he may so deem fit to do so and
also on the appropriate
vehicle to house any funds to be awarded to
the Plaintiff.
10.
The curator ad litem is to take any such
steps as s/he may deem fit to ensure the expeditious delivery of the
Masters’ report.
11.
The curator’s report, with that of
the Master is to be delivered to this Court and the Plaintiff’s
attorneys within
10 days of both being available.
12.
Upon receipt of the curator’s and
Masters’ report, the Plaintiff’s attorneys and counsel
shall within 15 days
file any further submissions or replies thereto
if they so wish.
13.
Costs of counsel are to be paid by the
attorney.
14.
The conduct of Ms. Aarthi Thumbiran is
referred to the Legal Practice Council for further investigation.
15.
The conduct of Adv. Michael Alex Fisher is
referred to the Legal Practice Council and the General Bar Council
for comment should
they wish to do so.
16.
A copy of the judgment should be provided
to the Legal Practice Council, Bar Council of Pretoria, Johannesburg
Society of Advocates,
PABASA and the Independent Bar Association.
17.
Pending receipt of the reports and
submissions indicated herein, this matter is reserved before me.
18.
Any party may approach this Court for
further directives, if so, should the need arise.
L
FLATELA
JUDGE
OF THE HIGH COURT
This
Judgment was handed down electronically by circulation to the
parties’ and or parties’ representatives by email
and by
being uploaded to Caselines. The date and time for the hand down is
deemed to be 10h00 on 14 February 2023
Appearances
Counsel
for the Plaintiff: Adv
A Sewpersath
Adv MA Fisher (Curator ad
Litem)
Instructed
by: R
aphael
David Smith Inc
Ref: A Thumbiran
Attorney
for the
Defendant:
State
Attorney
Ms Shamine Ameersingh
Date
of hearing: 24
October, 7 December and
14 December 2022
Date
of judgment: 14
February 2023
[1]
Rule
28(1) of the Uniform Rules
[2]
S
v Sussex Justices, ex parte McCarthy
[1923]
ALL ER Rep 223
[3]
JM
Modiba obo Sibusiswe Ruca, dated January 2014 (case numbers
12810/2013 and 73012/2013 : North Gauteng Division)
## [4]Stoffberg
obo Xaba v Road Accident Fund; Keetse obo Matshidi v Road Accident
Fund; Keetse obo Miambo In re Miambo v Road Accident
Fund
(6199-2013; 7891-2006; 58068-2011) [2018] ZAGPPHC 514; [2018] 3 All
SA 145 (GP) (10 April 2018)
[4]
Stoffberg
obo Xaba v Road Accident Fund; Keetse obo Matshidi v Road Accident
Fund; Keetse obo Miambo In re Miambo v Road Accident
Fund
(6199-2013; 7891-2006; 58068-2011) [2018] ZAGPPHC 514; [2018] 3 All
SA 145 (GP) (10 April 2018)
[5]
Kedibone
obo MK and another v Road Accident Fund (Centre for Child Law as
Amicus Curiae) and a related matter [2021] JOL 50051
(GJ).
[6]
South
African Law Commission Report, December 2015, Project 122, at 2-3.
[7]
JM
Modiba obo Slbusiswe Ruca, dated January 2014 (case numbers
12810/2013 and 73012/2013 : North Gauteng Division)
[8]
Stoffberg
obo Xaba v Road Accident Fund; Keetse obo Matshidi v Road Accident
Fund; Keetse obo Miambo In re Miambo v Road Accident
Fund
(6199-2013; 7891-2006; 58068-2011) [2018] ZAGPPHC 514;
[2018] 3 All
SA 145
(GP) (10 April 2018)
[9]
Rule
57(5) and (6)
[10]
Rule
57(10)
[11]
Erasmus,
Superior Court Practice, Vol. 2 at 01·72Z and the reference
to applicable authorities as referred to in footnote
2-6; Harms,
Civil Procedure in the Superior Court at B-385, paragraph 857.7;
Ruca judgement at paragraph 32-33
[12]
Ruca
judgment at paragraph 37
[13]
Paragraph
3 of Adv. Fischer consent affidavit to be appointed as curator ad
litem
[14]
Tshalet
v Mosungwa and Another (118881/2021) [2022] ZAGPJHC 278 (3 May 2022)
[15]
McNair
v Crossman and Another
2020(1)
SA 192 (GJ).
sino noindex
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