Case Law[2023] ZAGPJHC 257South Africa
Tshabalala v Road Accident Fund (12133/2018) [2023] ZAGPJHC 257 (23 March 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
23 March 2023
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Tshabalala v Road Accident Fund (12133/2018) [2023] ZAGPJHC 257 (23 March 2023)
Tshabalala v Road Accident Fund (12133/2018) [2023] ZAGPJHC 257 (23 March 2023)
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sino date 23 March 2023
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
Case No: 12133/2018
NOT REPORTABLE
NOT OF INTEREST TO
OTHER JUDGES
In the matter between:
MBALI
TSHABALALA
Plaintiff
and
ROAD
ACCIDENT FUND
Defendant
JUDGMENT
This
judgment is deemed to be handed down upon uploading by the Registrar
to the electronic court file.
Gilbert AJ:
1. The plaintiff
instituted action against the Road Accident Fund arising from an
incident that the plaintiff pleads occurred on
26 November 2016 at
approximately 22h30 along Mooki Street in Orlando West, Soweto when
she as a pedestrian was struck by the insured
vehicle “
outside
the road
”.
2. The particulars of
claim provide for the following heads of damages:
2.1. an estimate
for past hospital expenses of R5 000.00;
2.2. an estimate
for past medical expenses of R5 000.00;
2.3. the usual
undertaking in terms of
section 17(4)(a)
of the
Road Accident Fund
Act, 1996
in respect of estimated future medical expenses;
2.4. an estimate
of R250 000.00 for past loss of earnings;
2.5. an estimate
of R2 500 000.00 for estimated future loss of earnings and
loss of earning capacity;
2.6. general
damages in respect of pain and suffering, loss of amenities of life
and disability of R1 500 000.00.
3. When the matter was
called before me on 9 March 2023, but before plaintiff’s
counsel made an opening address and commenced
proving her claim in
terms of Uniform
Rule 39(1)
, I enquired of the plaintiff’s
counsel whether the matter was ripe for hearing on trial and that it
would not become a part-heard
trial before me. I was, amongst other
things, concerned that there were no affidavits uploaded to the
electronic court file in
which the plaintiff or any other witness
sought to adduce factual evidence, whether related to the merits of
the matter (such as
how the collision occurred) or to found a factual
basis for the expert reports that had been filed and which expert
reports the
plaintiff intended to introduce into evidence by way of
affidavit.
4. Insofar as the merits
were concerned, and while the matter was waiting to be allocated for
trial on 9 March 2023, the Fund made
an offer in relation to the
negligence aspect of the merits, which the plaintiff accepted. That
settlement of the merits is expressly
stated to be limited to the
element of negligence (i.e. that the insured driver was solely
negligent for the collision) and does
not include, for example, the
element of causation. Nonetheless, this offer by the Fund
demonstrated that the Fund was satisfied
that the collision as
pleaded by the plaintiff had occurred and was caused entirely by the
negligence of the insured driver. This
then was sufficient to satisfy
me on this aspect of the matter, and that the plaintiff need not led
evidence on that aspect of
the merits.
5. As my interaction with
the plaintiff’s counsel continued before the commencement of
his opening address, it transpired
that the plaintiff was seeking a
reduced amount of R500 000 for general damages but significantly
larger amounts in respect
of past loss of earning of R290, 818 and
future loss of earnings of R9, 941, 286.00. This notwithstanding that
the claim in the
summons was for significantly less, being only
R250,000 and R2 500 000 respectively. There is clearly a
very large disconnect
(nearly fourfold) between the total claimed by
the plaintiff in her summons for past and future loss of earnings and
that which
she now is claiming, based upon an actuarial report dated
8 March 2023 and which had been uploaded to CaseLines the day before.
6. During the course of
this interaction with plaintiff’s counsel, he informed me that
as far as he was aware there was an
amendment to the pleadings to
address this disconnect.
7. As this interchange
progressed between plaintiff’s counsel and the court, the
plaintiff’s attorneys at 14h26
[1]
uploaded a document entitled “Notice of Intention to Amend in
terms of
Rule 28
”.
[2]
This document gives notice that the plaintiff intends at the hearing
of the trial action on 9 March 2023 to amend her particulars
of claim
by substituting the amount claimed in respect of past loss of
earnings in the particulars of claim of R250 000.00
with an
increased figure of R290 818.00 and a similar substitution of
the amount claimed in respect of future loss of earnings
and loss of
earning capacity of R2 500 000.00 with a revised sum of
R9 941 286.00. This was to align these
claims for loss of
earnings with that reflected in the revised actuarial report dated
8 March 2023. This document is dated
8 March 2023 and appears to
have been stamped by the Fund acknowledging receipt on 9 March 2023.
8. I raised my concern
with plaintiff’s counsel with the timing of the uploading of
notice of intention to amend. I raised
with plaintiff’s counsel
that if left unexplained by the plaintiff, an inference could be
drawn that the notice of intention
to amend was only uploaded because
of my line of enquiry as to the disconnect between that claimed in
the summons and that claimed
on the day of trial and that but
for my having pursued this line of enquiry, my attention would not
have been drawn to this
disconnect or even that there was a pending
application for leave to amend the particulars of claim. Plaintiff’s
counsel
assured me that this inference was not justified and that it
was coincidental that in the cut and thrust of my interactions with
him that the document was uploaded. Other than recording a sense of
unease, I take this issue no further.
9. But what remains to be
considered is the lateness of this intended amendment and whether the
matter could be said to be ready
for trial in light of such a
substantial amendment that had not yet been effected and of which the
Fund had only been informed
the day before. Plaintiff’s
counsel’s submission was that the plaintiff could not be
faulted for the lateness of the
amendment as the revised actuarial
report was only provided by the actuarial expert the day before, on 8
March 2023, as appears
from the date of that document, and that
report in turn was based upon a revised expert report of the
industrial psychologist,
which itself had only become available on 7
March 2023, as appears from the date of the report.
[3]
10. I raised with
plaintiff’s counsel why the revised industrial psychology
report only materialised on 7 March 2023. The
submission was that the
experts in Road Accident Fund’s matters were not readily
available and that a consultation needed
to be arranged in advance
with an expert to enable them to do interviews and follow-up
interviews, and render the appropriate expert
reports. This naturally
led to my further enquiry, which was when were interviews with the
experts, particularly the industrial
psychologist, requested. The
experts could hardly be faulted for delivering expert reports late if
they were not approached timeously.
11. I specifically stood
down the matter for plaintiff’s counsel to take instructions on
this aspect. Having taken instructions,
plaintiff’s counsel
informed me that the interviews had been arranged by telephone and
there was no readily available record
as to when these were arranged.
I have some difficulty in appreciating this explanation as typically
an attorney would make file
notes, even if in manuscript, as to when
telephone calls were made and that it was therefore concerning that
this evidence was
not readily available. This was especially so as
plaintiff’s counsel was video-linking from his instructing
attorney’s
office.
12. The submission
continued that it was not at all unusual for updated expert reports
to be produced and which then necessitated
amendments to the
pleadings in that reports became stale as the trial dates were
awaited. Although I accept that it may become
necessary to furnish
updated reports or addenda to reports as the matter progresses, this
does not adequately explain in my view
why in this particular
instance updated reports only materialised in the week before trial,
at least in relation to the industrial
psychologist..
13. The trial date in
this matter had already been allocated on 8 July 2022.
[4]
This is after the court on 11 May 2022 struck out the Fund’s
defence and directed that the plaintiff may approach the Registrar
for an allocation for a default judgment trial date. Revised
Directive 1 of 2021, as it then was as at May 2022, provides in
paragraph
23 that a plaintiff may only seek of the trial
interlocutory court a referral to the Registrar to obtain judgment by
default in
the default judgment trial court “
when
all necessary preparation to present the relevant evidence is
accomplished
”
.
The plaintiff’s expert evidence should have been ready, and any
amendments effected to her pleadings, before the plaintiff
even
approached the trial interlocutory court in May 2022 for a referral
to this default judgment trial court.
14. The plaintiff still
did not address the deficiency before applying for a trial date, and
persisted with that deficiency, once
the trial date was allocated,
until the day of the trial before me.
15. What further detracts
from the plaintiff’s explanation is that an actuarial report
had already been obtained on 25 November 2021,
[5]
which showed then already the amounts for loss of earnings had
increased to R6 585 652 and R7 532 190, depending
on which scenario was adopted. It was clear then already, in
November 2021 that there was a significant disconnect between
what had been claimed in the particulars of claim and the actuarial
report. But no amendment to the pleadings was done and the
plaintiff
went ahead and sought a trial date on the basis the matter was trial
ready.
16. The prejudice to the
Fund arising from this belatedly intended amendment is self-evident.
The plaintiff’s intended claim
for loss of earnings increased
fourfold from R2.75 million to over R10.2 million, on the eve of the
trial with less than one day’s
notice. Plaintiff’s
counsel, to his credit, readily acknowledged this prejudice. This
prejudice exists even if the Fund’s
defence was struck out
because the Fund was at the very least entitled to adequate notice
that there would be such a large increase
in the claim.
17. The matter stood down
before me overnight from 9 March to 10 March 2023.
18. Upon the resumption
of the trial on 10 March 2023, plaintiff’s counsel, having
taken instructions overnight, accepted
that the trial could not
proceed, at least in relation to the issue of loss of earnings and
earning capacity.
19. Further, overnight,
interactions had taken place between the plaintiff’s legal
representatives and the State Attorney
on behalf of the Fund and who
had reached agreement on certain issues.
20. Accordingly, a
revised draft order was uploaded to the electronic court file on
10 March 2023 in which the plaintiff
sought amended relief,
and which required the issue of loss of earnings and earning capacity
to be postponed
sine die
.
21. What had been
achieved overnight was that the Fund now acknowledged its liability
100% in favour of the plaintiff on the merits
and that the Fund was
agreeable to general damages of R500, 000 in favour of the plaintiff.
22. This does not address
the matter not being trial ready when it was called before me, and
that a trial date should not have been
sought where the plaintiff’s
expert evidence was outdated and the pleadings would have to be
amended. Plaintiff’s counsel
sought to persuade me again on 10
March 2023 that the matter was trial ready, but in light of what is
the common cause prejudicial
amendment sought to be made by the
plaintiff increasing her claim fourfold in respect of loss of
earnings and earning capacity,
I cannot find that this matter was
ready for trial.
23. Ordinarily then the
matter should have been struck from the roll. But plaintiff’s
counsel prevailed upon me to at least
grant the relief in the draft
order that that had uploaded.
24. I have closely
reflected upon whether I should accede to the request, and to this
end reserved judgment on 10 March 2023, particularly
as I did not
find the submissions persuasive in explaining the belated expert
evidence and intended amendment.
25. Nonetheless,
plaintiff’s counsel did submit that in the interests of
justice, the plaintiff should be entitled to at least
some relief at
this stage given her ongoing pain and suffering.
26. Although the manner
in which the plaintiff’s attorneys have gone about preparing
for this trial and more particularly
in ensuring the matter is trial
ready is seriously remiss, I am persuaded that the plaintiff, who
instituted her action five years
ago in March 2018, should have some
relief.
27. I turn to the draft
order that has been placed before the court by the plaintiff’s
counsel that the plaintiff seeks be
made an order of court.
28. In paragraph 1 of the
draft order, pursuant to the agreement reached between the plaintiff
and the defendant, an order is sought
that the defendant concedes
liability 100% in favour of the plaintiff. I am not inclined to
include this as part of the order.
The court has not interrogated
this concession by the Fund and there is no factual evidence, at
least not yet, to support the concession,
such as whether causation
should be conceded in relation to loss of earnings.
29. In paragraph 2 of the
draft order, the plaintiff seeks judgment against the defendant for
R500 000 in respect of general
damages payable within 180 days
from the date of the order. Plaintiff’s counsel informed me,
and this was confirmed by the
State Attorney on behalf of the Fund
who was granted limited audience to address me given that the Fund’s
defence had been
struck out,
[6]
that this had been agreed with the Fund. I however am not prepared to
accede to granting this relief at this stage. As will appear
below,
the matter is in any event to return to the trial court and that
court, having heard such evidence as may be led, will be
better
placed to decide whether general damages should be granted and in
what amount.
30. The recent reminder
by the Deputy Judge President of this division in a notice published
on 19 January 2023 is apposite:
“
It is appropriate
to remind practitioners of the rationale for these procedures. In all
the cases public money is being spent. It
is incumbent on the courts
not to be a rubberstamp either settlements or default judgments which
are not rationally premised. Regrettably,
experience has shown that
there are frequent settlements reached which are irrational.
Similarly, when an organ of state is remiss
in engaging with the
plaintiff and a default judgment per se is justified, it remains
appropriate that a court making an order
of court by default does not
inadvertently endorse opportunistic overreaching at the public
expense”
.
31. I do not suggest that
the claim for general damages constitutes an opportunistic
overreaching at the public’s expense
but rather that this issue
should be ventilated at the trial in due course rather than this
court rubberstamp the settlement that
has been reached between the
parties in relation to that head of damages.
32. The plaintiff in
paragraph 3 of the draft order, for the reasons set out above, seeks
that the issue of loss of earnings and
earning capacity be postponed
sine die
. As this means that this trial would have to commence
in relation to that head of damages in any event, the plaintiff’s
claim
for general damages can also be determined at that stage.
33. In paragraph 4 of the
draft order, the plaintiff seeks the usual undertaking in terms of
section 17(4)(a)
of the
Road Accident Fund Act 56 of 1996
. This is
where I am persuaded that the plaintiff, in the interests of justice,
should be granted some relief, in the form of the
undertaking to
address the plaintiff’s needs for future medical
treatment.
34. In paragraph 5 of the
draft order, the plaintiff seeks agreed or taxed costs, including the
costs of all expert reports, preparation
fees and reservation fees,
if any, and the costs of counsel.
35. Having heard the
submissions on behalf of the plaintiff and notwithstanding that the
Fund is agreeable to paying these costs,
I find in my discretion that
it would not be appropriate or just to order that payment be made by
the Fund of these costs, at least
not at this stage. As I have
reasoned above, this matter was not trial ready and ordinarily would
have been removed from the roll,
with no order as to costs or
possibly a costs order that deprived the plaintiff’s legal
representatives of a recovery of
any wasted costs from their client,
the plaintiff.
[7]
36. Although I have been
persuaded that some relief is to be granted to the plaintiff in the
interests of the plaintiff, this limited
success in my view does not
justify the plaintiff being entitled to costs at this stage. Whether
the plaintiff should be entitled
to costs can be determined by the
trial court in due course.
37. No expert evidence
was adduced before me, as the trial did not commence proper, and as
the matter was not trial ready, the Fund
can been expected to pay for
the costs of the experts, and the like.
38. In the circumstances,
I intend reserving the issue of costs, other than for what is stated
immediately below, for determination
by the next court. That court
would be better placed having heard the relevant evidence and
dependent upon what evidence is led
to decide whether, and to what
extent, costs should be awarded in favour of the plaintiff. It is at
that stage that the usefulness
of the expert testimony will
materialise and so that court can decide upon the incidence of costs
in respect of the experts.
39. I am not denying that
the plaintiff, including her experts and counsel, are entitled to
costs but rather that those costs are
best assessed by the subsequent
court. That those costs cannot be recovered from the Fund at this
stage is a sufficient salve for
this matter not being trial ready.
40. What I do find in
relation to costs at this stage is that to the extent the court does
in due course find that the plaintiff
is entitled to costs, those
costs, insofar as relate to the hearing before me on 9 and 10 March
2023, should not include any costs
of experts relating to those days
(as no expert evidence was adduced before me), and, insofar as fees
are calculated on a daily
basis, should not exceed one day. Although
it would transpire that the matter unfolded before me over the course
of two days, being
9 and 10 March 2023, this matter was not trial
ready and should not have proceeded at all. That the plaintiff may
become entitled
to any costs for the hearing before me, in due
course, is as a result of the limited success that was achieved
before me primarily
through the plaintiff’s engagement with the
Fund, and not as a result of the plaintiff having the matter trial
ready. The
Fund, and the public purse, should therefore not be
prejudiced by the matter not being trial ready.
41. The plaintiff has
also sought in paragraph 7 of the draft order that I order that
“
there is no contingency fee agreement in this matter
”.
I expressed concerns as to whether it is appropriate for me to make
this order. It is not an order but rather a recordal
that the
plaintiff is seeking that the court make. In any event, I expressed
concern whether I could make such a recordal without
being satisfied
that it is factually correct, and relevant and necessary. To this
end, I afforded the plaintiff’s attorneys
an opportunity over a
week to file an affidavit addressing these concerns.
42. The plaintiff’s
attorneys did file an affidavit, in which they state under oath that
there is no contingency fee agreement
and attach the fee agreement
that is in place. That fee agreement does appear not to be a
contingency fee agreement as it records,
particularly in clause 3.3,
that the plaintiff will pay her attorneys’ attorney and own
client costs regardless of whether
she is successful or not.
43. But the plaintiff’s
attorneys in paragraph 2.14 of their affidavit state that their fees
will be deducted from the monies
received from the Fund, which
presupposes the plaintiff’s success. This is consistent with a
contingency fee arrangement
rather than a fee arrangement that the
plaintiff will pay the attorney and own client fees regardless of
success.
44. As the plaintiff and
her attorneys have not had an opportunity to fully consider and make
submissions on this issue, I do not
intend making any finding in this
regard and will leave it to the plaintiff and her attorneys to comply
with such practice directives
as may be applicable in due course with
the trial court.
45. I do record though
that it is concerning that the plaintiff’s attorneys did not
comply with the practice directive to
which they directed me in their
affidavit, being that contained in paragraph 63.1 of the judgment of
Mofokeng v Road Accident Fund
2012 JDR 1450 (GSJ), before
seeking that I make the draft order an order of court. That
directive, in part, reads:
“
Whenever
a court is required to make a settlement agreement or a draft order
an order of court, before the court makes such an order:
### 1.the affidavits referred to in section
4 of the Contingency Fees Act, 1997 must be filed, if a contingency
fees agreement as defined
in the Act, was entered into;
1.
the affidavits referred to in section
4 of the Contingency Fees Act, 1997 must be filed, if a contingency
fees agreement as defined
in the Act, was entered into;
2.
if no such contingency fees
agreement was entered into, the attorney and his or her client must
file affidavits confirming that
fact…”
(my
emphasis).
46. It was only when in
response to my concerns whether I could make the recordal in the
order that there was no contingency agreement
in place, and I
afforded the plaintiff’s attorneys an opportunity to file an
affidavit, that the plaintiff’s attorneys
sought to comply with
the directive and to file affidavits by the attorney, and the
plaintiff, confirming that there was no contingency
agreement in
place. But for my having raised my concerns, this practice directive
would not have been complied with. This is reminiscent
of the
uploading of the notice of intention to amend only after I raised
concerns as to the disconnect between the plaintiff’s
pleaded
case and her intended expert evidence.
47. I reiterate that this
matter could not have been, and was not, trial ready given the
substantial amendment that is outstanding.
The order that I
intend granting is to a considerable extent indulgent towards the
plaintiff and her attorneys as otherwise
the matter should have been
removed or struck from the trial roll, potentially with an
appropriate costs order adverse to the plaintiff
and/or her
attorneys.
48. I conclude by stating
that the trial did not proceed before me by way of the plaintiff
making opening submissions and by the
leading of any evidence as
envisaged in Uniform
Rule 39(1)
and (5). In the circumstances, this
matter is not a part-heard matter and so the relief that is to be
postponed
sine die
can and should be dealt with in the
ordinary course by obtaining the appropriate trial date from the
Registrar once the prevailing
practice directives have been satisfied
and the matter is trial ready.
49. The following order
is made:
49.1. the defendant is to
furnish to the plaintiff an undertaking in terms of
section 17(4)(a)
of the Road Accident Fund, 56 of 1996 for 100% of the costs of the
plaintiff’s future accommodation in a hospital or nursing
home
or treatment, or the costs of rendering of a service or the supplying
of goods to the plaintiff, arising out of the injuries
sustained by
the plaintiff in the collision which occurred on 26 November
2016, after such costs have been incurred and upon
proof thereof;
49.2. the balance of the
relief sought by the plaintiff is postponed
sine die
,
including the plaintiff’s claim for general damages and for
loss of earnings and earning capacity;
49.3. the costs incurred
for the hearing on 9 and 10 March 2023 are reserved save that if such
costs are ordered in favour of the
plaintiff in due course:
- those costs are not to
include any fees or costs relating to experts, including for
expert reports, preparation fees and reservation
fees, relating to
the hearings on 9 and 10 March 2023;
those costs are not to
include any fees or costs relating to experts, including for
expert reports, preparation fees and reservation
fees, relating to
the hearings on 9 and 10 March 2023;
- the plaintiff is not
be entitled to legal fees, including for counsel fees, where
calculated on a daily basis, for more than
one day in relation to
the hearing on 9 and 10 March 2023.
the plaintiff is not
be entitled to legal fees, including for counsel fees, where
calculated on a daily basis, for more than
one day in relation to
the hearing on 9 and 10 March 2023.
Gilbert AJ
Dates
of hearing:
9 and 10 March 2023
Date
of judgment:
23 March 2023
Counsel
for the Applicant:
L
Luvuno
Instructed
by:
S.S.
Ntshangase Attorneys
Counsel
for the defendant:
No
appearance, the Fund being in default
other
than a limited appearance by Adv E
Ndlovu
of the State Attorney for purposes of
confirming
that settlement had been
reached
on certain issues
Instructed
by:
State
Attorney
[
1]
This appears from a
record of document activity under the audit function on the
CaseLines file.
[2]
At CaseLines 28.1 to 28.3.
[3]
The report is at CaseLines 018-230.
[4]
This
appears from a widely shared note by the Registrar in the Caselines
file.
[5]
At CaseLines 018-124 to 018-128.
[6]
Uniform R
ule
39(2) provides that
when
a defendant has by his default been barred from pleading, and the
case has been set down for hearing, and the default duly
proved, the
defendant shall not, save where the court in the interests of
justice may otherwise order, be permitted, either personally
or by
an advocate, to appear at the hearing.
[7]
The Revised Directive 1 of 2021 expressly provides for a party’s
legal practitioners being disallowed from charging any
fees and
disbursements to their client.
sino noindex
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