Case Law[2023] ZAGPJHC 472South Africa
Dlamini obo Sifundo v Road Accident Fund (2021/24199) [2023] ZAGPJHC 472 (12 May 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
12 May 2023
Judgment
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## Dlamini obo Sifundo v Road Accident Fund (2021/24199) [2023] ZAGPJHC 472 (12 May 2023)
Dlamini obo Sifundo v Road Accident Fund (2021/24199) [2023] ZAGPJHC 472 (12 May 2023)
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sino date 12 May 2023
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REPUBLIC
OF SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA,
GAUTENG LOCAL
DIVISION, JOHANNESBURG
Case Number:
2021/24199
NOT REPORTABLE
NOT OF INTEREST TO
OTHER JUDGES
REVISED
12.05.23
In the matter between:
SIBUSISO
BRIAN DLAMINI obo MBHELE SIFUNDO
PLAINTIFF
And
ROAD
ACCIDENT FUND
DEFENDANT
NEUTRAL
CITATION:
Sibusiso Dlamini obo
Mbhele Sifundo
(Case No: 24199/2021)
[2023] ZAGP JHC 472 (12 May 2023)
This judgment was
handed down electronically by circulation to the parties/and or
parties’ representatives and uploading on
CaseLines. The date
and time of hand-down is deemed to be 12 May 2023 at 10h00.
JUDGMENT
JORDAAN AJ
INTRODUCTION
[1] On the 7
th
of September 2019 at approximately 19h30 a motor vehicle with
registration numbers and letters […](the insured vehicle)
driven by Manana Alice, collided with the plaintiff, as a pedestrian,
whilst he was crossing Grasmere Road, Weller’s Farm,
at
approximately 19h30. The plaintiff was transported by ambulance to
the Chris Hani Baragwanath Hospital where he was admitted,
treated
and later transferred to Edenvale Hospital for rehabilitation.
[2]
The Plaintiff instituted action for damages
against
the Road Accident Fund (RAF) in terms of s17(1)(a) of the Road
Accident Act 56 of 1996, as amended, as the statutory insurer.
In
paragraph 9 of his particulars of claim, the plaintiff claims damages
in respect of:
2.1
General damages for pain and suffering, loss of amenities of life,
disability and
damages
R2 200 000.00
2.2
Future medical expenses Undertaking
2.3
Past and Future loss of earnings R2 401 145.50
[3]
This matter served before me
as a default trial pursuant an order by Victor J dated the 15
th
of March 2022, in terms of which the plaintiff was
granted leave to approached the Registrar to seek a date for default
judgment
as the Defendant failed to enter an appearance to defend
having been duly served with the combined summons by the Sheriff. The
Plaintiff sought judgment against the defendant for general damages,
future loss of earnings and an undertaking for future medical
expenses of the plaintiff.
[4] The merits became
settled on the basis of joint negligence as RAF conceded liability
for 70% of the negligence vis-a-vie the
occurrence of the collision
and apportioned 30% negligence to the plaintiff, in terms of the
agreed settlement of merits.
[5] A curator ad litem
had been appointed for the plaintiff.
ISSUES FOR
DETERMINATION
[6] The only heads of
damages for determination by this court is the issue of the
plaintiff’s general damages, future loss
of earnings and future
medical expenses.
THE EVIDENCE OF THE
EXPERTS
[7] In establishing that
as a consequence of the accident the patient sustained injuries and
the sequalae of same, evidence was
presented through the reports of
the expert witnesses who consulted with and examined the plaintiff by
counsel for the plaintiff:
ORTHOPEADIC SURGEON
[8]
Dr NGOBENI
reports that the plaintiff suffered poly trauma as a result of a
pedestrian vehicle accident on the 07
th
of September 2019
and was admitted to Chris Hani Baragwanath Hospital where he was
treated for:
1.
Head injury
-
He was admitted to intensive care unit with a
Glasgow Coma Scale (GCS) of 6/15
-
He has an L-shape scar from his forehead
stretching into his scalp
-
He has a global weakness on the right side of his
body and walks with a hemiplegic gait
-
He was referred for neurologist or neurosurgeon
assessment and further treatment
2.
Bilateral pneumothorax
-
He was treated with a bilateral intercostal drain
-
He received chest physiotherapy
3.
Grade III liver injury and retro peritoneal
hematoma
-
A laparotomy was done and even though the abdomen
is soft and non-tender the plaintiff complains of pains, defer to a
general surgeon
4.
Right knee soft tissue injury
-
An above the knee circular plaster of Paris was
initially applied
-
No particular findings are treatment indicated
[9] The plaintiff
suffered acute pain for three weeks and still reports right side body
weakness. He was treated at Chris Hani Baragwanath
Hospital and
continued his rehabilitation at Edenvale Hospital. His leisure of
watching television and his life expectancy was
not affected by his
orthopaedic injury. He passed grade 12 and was doing piece jobs at
the butchery prior to the accident. He has
right dominant side
hemiplegia. He will have difficulty in securing employment or
competing for employment with his peers and he
will need assistance
for daily living activities. The plaintiff has permanent impairment
of the right upper and lower limb function-a
post traumatic right
hemiplegia. He has chronic abdominal pain and forgetfulness. Dr
Ngobeni concluded that the plaintiff suffered
19% whole person
impairment qualified the plaintiff for general damages under the
narrative test.
SPECIALIST NEUROSURGEON
[10]
Dr SEGWAPA
reports that on a study of the hospital records the plaintiff
sustained the following injuries:
1.
Head injury
-
He had a GCS of 6/15
-
He had a cerebral oedema
-
He suffered a subarachnoid haemorrhage
-
He suffered a subdural hematoma
-
He suffered multiple brain contusions
2.
Chest
-
Bilateral pneumothoracs
3.
Abdomen
-
Grade 3 liver laceration
4.
Musculoskeletal
-
Soft tissue injury to the right knee
[11] The plaintiff was
healthy prior to the accident and it was the only accident that the
plaintiff was involved in. It was reported
that the plaintiff
suffered immediate loss of consciousness from which he recovered
after two weeks. His admission GCS was 6/15
and after a month it was
14/15 where it remained. The opined that these are features of a
severe diffused brain injury with multifocal
brain damage. The
plaintiff has right upper and lower body weakness, neurocognitive
impairments, suffered acute pains for two weeks
post the accident and
chronic pains for approximately six months. The injuries did not
impact the longevity of the plaintiff’s
life. Dr Segwapa
concluded that the plaintiff suffered significant persistent
neurocognitive deficits and concluded that the plaintiff
suffered 20%
whole person impairment and qualified the plaintiff for general
damages under the narrative test.
NEUROLOGIST
[12]
Dr MUDAU
found that the plaintiff suffered poly-trauma with head, chest and
abdominal injuries. The plaintiff was admitted with a GCS of
6/15 and
remained in a coma from admission until the 03
rd
of
October 2019 when his GCS was 9/15. The plaintiff presented memory
deficits, a change in personality and poor concentration.
The injury
has resulted in change in personality, moderate to severe cognitive
difficulties and post-traumatic stress disorder
(PTSD). The plaintiff
walks with a hemiplegic gait. The plaintiff sustained a severe head
injury which resulted in a change in
personality, moderate
neuro-cognitive impairment, post-traumatic headaches, moderate to
severe physical limitations. Risk of developing
epilepsy has
increased by 12%. The plaintiff is not employable in the open labour
market.
PLASTIC SURGEON
[13]
Dr BERKOWITZ
on examination found that the plaintiff had a right hemiparesis and
further made the following findings on closer examination:
1.
A small scar is noted overlying the
occipital scalp.
2.
There is a sinuous scar measuring 60 mm x5 mm
overlying the left frontal scalp and
extending onto the left
side of the forehead.
3.
There is a scar measuring 50 mm x25 mm on the
lateral aspect of the left hemithorax.
4.
Multiple small scars are noted on the
lateral aspect of the left side of the abdomen.
5.
There is a left paramedian laparotomy scar
measuring 280 mm x 10 mm with cross
hatching.
6.
The proximal portion of scar number 5) measures 40
mm in diameter.
7.
There are multiple post-abrasion scars noted
on the upper abdomen and lower anterior chest.
8.
There is a scar measuring 30 mm x8 mm with cross
hatching lying horizontally in the left upper quadrant of the
abdomen.
9.
There is a scar measuring 25 mm x8 mm lying
horizontally across the suprasternal notch.
[14] Dr Berkowitz
concluded that the plaintiff has reached maximum medical improvement
yet he remains with permanent disfigurements
as a result of the
accident which require surgical intervention.
SPECIALIST PHYSICIAN
[15]
Dr BOTHA
reported that the plaintiff sustained polytrauma in a PVA that
occurred on 7 September 2019 of which a severe diffuse head injury
was the most significant injury. He also sustained bilateral chest
trauma, blunt abdominal trauma and an injury to the right knee.
In terms of outcome there
is clinical evidence of significant cognitive impairment, residual
right-sided hemiparesis and extensive
scarring on the anterior
abdominal wall. The plaintiff has difficulties with cognitive
functioning, behavioural issues, neuro-physical
deficits, hemiplegic
gait, residual speech and communication difficulties. It was the
finding of Dr Botha that the plaintiff has
no prospect of returning
to the labour market in any capacity due to the organic brain
syndrome which was caused by the severe
focal and diffuse head injury
with hemiplegia and severe memory deficit. Dr Botha opined that when
the alteration in mental status
evaluation and integrative
functioning is combined with the hemiparesis and scarring, the 30%
threshold will be reached and there
are significant additional
narrative issues in that he has permanent loss of enjoyment of life,
loss of independent living and
no prospects of future employment.
CLINICAL PSYCHOLOGIST
[16]
Mrs MATLOU
found that the plaintiff is depressed and his depression is linked to
the changes that he has had to adapt to after the accident.
Part of
the changes is with regard to his partial paralysis, as he has
general weakness of his right side of the body. He has a
lot to
adjust to, pertaining to the occurrence of the accident in his life.
He would thus benefit from Psychotherapy, particularly
to look at
strategies of improved impulse control. His family would also need
Family therapy, for assistance on how to manage with
him. A total of
30 sessions are recommended in this regard. Furthermore, in light of
the findings of the current assessment, his
organic brain syndrome
does mean that he is likely to suffer depletion in his previously
enjoyed amenities and prospects. The combined
effects of his
neurocognitive deficits, his emotional difficulties and physical
difficulties are expected to jeopardize his prospects
of attaining
employment in the open labour market, and his ability to maintain
that employment once secured. The plaintiff displayed
marked
behavioural changes that have been reported since the accident, as he
is now described as withdrawn and quite around the
house, he is
irritable, and shout tempered. His social and personal functioning is
affected by these changes, as he is also very
disinhibited since the
accident. It is reported that he leaves the house and knocks at
neighbours' houses and he is gets physically
aggressive with others
when there are disagreements. This means he poses a danger to himself
and others. Recommendation is made
to a Clinical Psychologist in
order to assist with adjustment to the accident and coping skills.
OCCUPATIONAL THERAPIST
[17]
Mrs ZETHU NKOSI
found that the plaintiff ambulated with an ataxic gait with a
consistent but slow pace. He does not have functional mobility and
agility skills. He has spasticity in his right leg which affects his
balance and coordination. His right upper limb is numb and
he has
reduced grip strength, poor pen grip and writing abilities His
cognitive test scores, indicated that the plaintiff has extremely
low
cognitive function. During the evaluation, he presented with
significant memory deficits and he was not oriented to date, time
and
place. Although he did not display any mood disturbances, he was
overly familiar with the writer and this confirmed poor social
behaviour that his mother reported. This has led to the plaintiff
losing his friends and the family often has to intervene in fights
with neighbours. This clearly indicates that the plaintiff will not
be able to behave in a socially acceptable manner in a place
of work.
When considering his residual physical capacity, cognitive fallout
and poor interpersonal relations with others, the plaintiff
is deemed
not suited for any work in the open labour market. The writer notes
that the physical symptoms which are a result of
the motor vehicle
sequelae will have a significant impact on his overall workability.
He would not be able to execute tasks that
require manual handling of
material, bilateral hand function, mobility and postural tolerance.
And given his educational level,
it is reasonable to presume that his
job required manual operations, he is now precluded from this. In
addition, although he is
young and could have been reskilled for
administrative positions, his cognitive fallout precludes him from
learning new skills.
Given the time that has lapsed since the injury
as well as the severity of his injuries, no further improvement is
expected. The
writer opines that the plaintiff is deemed a candidate
for sheltered employment, this would improve his use of free time
during
the day, instead of his family having to worry about where he
is. The plaintiff will benefit from occupational therapy to assist
him with life skills, socialization and assertiveness.
INDUSTRIAL PSYCHOLOGIST
[18]
Mr PEET VORSTER
opines
that the plaintiff will struggle to secure office-based/ sedentary
types of employment due to his lack of office-based work
experience
and level of education (i.e., Grade 12). Most sedentary type of work
is clerical and administrative in nature, and roles
are typically
found in the formal sector. The plaintiff would have to compete with
others that are more qualified and experienced
than him in such
roles. Additionally, the plaintiff's accident-related sequelae will
negatively affect him if not adequately managed.
Furthermore, most
work in the informal sector requires individuals to rely on their
physical strength. The writer opines that the
plaintiff will struggle
to secure light type of work as there are few positions in the
informal sector that are of a light nature.
The writer also opines
that he will struggle to find an accommodative employer in the
informal sector.
[19] The writer's
research further suggests that it is unlikely that Mr Mbhele will be
able to secure a place in sheltered employment.
There are only 12
Sheltered Employment Factories (SAF) nationally (i.e., the factories
are based in Bloemfontein, Cape Town, Durban,
East London,
Johannesburg, Kimberley, Pietermaritzburg, Port Elizabeth,
Potchefstroom, and Pretoria). The factories manufacture
furniture,
textiles, metal work, leather work, book binding, and screen printing
among other products. Prospective candidates are
required to have
some experience in a trade and, with Mr Mbhele's physical,
functional, emotional, and cognitive limitations (as
outlined in all
experts' reports), as well as the extensive waiting lists, it is
unlikely that Mr Mbhele will be considered and
his chances of being
placed in such an environment is poor.
[20] Mr. Vorster
therefore opines that the plaintiff will not be able to compete in
the South African labour market, given the high
South African
unemployment rate, the competitive South African labour market, his
limited vocational options, level of education,
employment history,
and accident-related sequelae. With regard to future loss of earnings
(as per expert opinion), the writer opines
that although the
plaintiff is still relatively young, he has been deemed practically
unemployable in the open labour market.
ACTUARY
[21]
Mr. WHITTAKER
performed calculations to determine the capitalised value of the
plaintiff’s loss of income. On the basis of payslips provided
to Mr. Whittaker he calculated the basic salary of the plaintiff as
R20 per hour with an average of 88.23 hours per fortnight.
The
plaintiff was a 25year old labourer at time of the accident and his
retirement age was set at 62
1
/
2
. In light of
Mr. Vorster’s report that the plaintiff has been rendered
unemployable and that plaintiff in fact did not take
up any
employment post the accident his post-accident earnings were taken as
nil. An uninjured contingency deduction for past loss
of income was
provided for at 5% and a 19% contingency deduction for future loss of
income, which calculation translated as following:
Past loss
Value of income
uninjured: R105,705
Less contingency
deduction: 5.00%
R 5,285
R100,420
Value of income injured:
R NIL
Less contingency
deduction: 0.00%
R NIL
R
NIL
Net past loss'
R100,420
Future loss
Value of income
uninjured: R2,840,401
Less contingency
deduction: 19.00%.
R 539,676
R2,300,725
Value of income injured:
R NIL
Less contingency
deduction: 0.00%
R NIL
R NIL
Net future loss:
R
2,300,725
Total net loss:
R
2,401,145
LEGAL FRAMEWORK AND
EVALUATION
[22] It was submitted by
plaintiff’s counsel that the plaintiff was a 23year old
picker/packer at the time of the pedestrian
vehicle collision on the
07
th
of September 2019.
[23] Counsel further
submitted that the plaintiff suffered injuries in the collision and
submitted that the sequalae can be linked
to the accident if regard
is had to the hospital records and expert reports and the fact that
the plaintiff had never been in a
collision before, enjoyed good
health and was able to work as a meat picker/packer at Lynca Meats.
[24]
It is trite that in order to succeed in a delictual claim, a claimant
would have to prove the following requirements: causation,
wrongfulness, fault and harm. A successful delictual claim entails
the proof of a causal link between a defendant's actions or
omissions, on the one hand, and the harm suffered by the plaintiff,
on the other hand. This is in accordance with the 'but-for'
test.
[1]
Legal causation must be established on a balance of probabilities.
There can be no liability if it is not proved, on a balance
of
probabilities, that the conduct of the defendant caused the harm.
[2]
[25]
The merits were settled on the basis joint liability 70/30%
apportionment in favour of the plaintiff. RAF hereby thus admitted
70% liability that the collision occurred as a result of the
negligence of the insured driver. In terms of the case of Minister
van Polisie v Ewels
[3]
wrongfulness in RAF cases is inferred from the fact that the insured
driver negligently caused the accident.
[26] Whether the
plaintiff sustained injuries in the undisputed collision, is found in
the undisputed expert reports that explain
the direct injuries which
were sustained by the plaintiff as recorded in the hospital records
and their expert opinions as:
1.
Head injury
-
He was admitted to intensive care unit with a
Glasgow Coma Scale (GCS) of 6/15
-
He has an L-shape scar from his forehead
stretching into his scalp
-
He has a global weakness on the right side of his
body and walks with a hemiplegic gait
-
He was referred for neurologist or neurosurgeon
assessment and further treatment
2.
Bilateral pneumothorax
-
He was treated with a bilateral intercostal drain
-
He received chest physiotherapy
3.
Grade III liver injury and retro peritoneal
hematoma
-
A laparotomy was done and even though the abdomen
is soft and non-tender the plaintiff complains of pains, defer to a
general surgeon
4.
Right knee soft tissue injury
-
An above the knee circular plaster of Paris was
initially applied
-
No particular findings are treatment indicated
[27] On a review of the
conspectus of evidence presented in the various expert reports, this
court finds on a balance of probabilities
that it was the pedestrian
vehicular collision that caused the head injury, bilateral
pneumothorax, the grade III liver injury
and retro peritoneal
hematoma and right knee soft tissue injury that the plaintiff
sustained.
[28] The expert reports,
which are uncontested evidence before court and accepted, indicate
the sequelae of his head injury is that
the plaintiff ambulated with
an ataxic gait with a consistent but slow pace. He does not have
functional mobility and agility skills.
He has spasticity in his
right leg which affects his balance and coordination. His right upper
limb is numb and he has reduced
grip strength, poor pen grip and
writing abilities. His cognitive test score, indicate that plaintiff
has extremely low cognitive
function, he has significant memory
deficits, he suffers from extreme irritability, lack of impulse
control and he was not oriented
to date, time and place. The
plaintiff still suffers with chronic pain on his abdomen and severe
scarring. The experts appraised
the injuries as serious injuries on
the narrative test.
[29] Having regard to the
expert reports based on consultation with the plaintiff and the
hospital records, this court finds on
a balance of probabilities that
the pedestrian vehicular collision that caused the injuries and the
sequalae of those injuries
was caused as a result of the injuries so
caused by the collision.
[30] In this instance, I
am satisfied that the plaintiff was able to proof on a balance of
probabilities that his earning capacity
has been compromised as a
result of the injuries he sustained in the accident in question.
Plaintiff
succeeded in proving his claim for loss of earnings.
[31] I have considered
that the plaintiff was 23years old at the time of the collision; that
he is no longer fit for employment
in the open labour market due to
the sequelae of the injuries. I had regard to the actuarial
calculations which are based on the
expert reports, which this court
had accepted. It is trite that the court has the discretion to
determine the contingency deduction.
[32] A 5% past contingency
deduction, and, having regard to the
sequelae
of the injuries
sustained in the accident, an increased 19% post-accident contingency
deduction is just and fair having regard to
the circumstances of the
case. I accordingly find no reason to interfere with the actuarial
calculations submitted less 30% apportionment.
[33] The plaintiff
qualifies for compensation for general damages for serious injury in
terms of the narrative test, in that he
suffered long-term impairment
or loss of a body function, permanent serious disfigurement, right
sided hemiplegia, severe long
term mental or severe long-term
behavioural disturbance, has cognitive deficits in multiple domains
tested and mild symptoms of
anxiety and depression, the risk of
developing epilepsy is at 8% according to neurosurgeon and at 12%
according to neurologist
and further that his injuries disadvantage
him and adversely affect his quality of life. He will have difficulty
securing employment
according to Orthopaedic surgeon and he is not
employable on the open labour market according to neurologist.
[34] The plaintiff
claimed an amount of R2 200 000,00 for general damages and
referred the court to a number of comparable
cases. General damages
are often determined by comparing cases under scrutiny and those
previously decided, it is generally accepted
that previously decided
cases are never similar and that their purpose stops at comparing
them to the current.
[35]
In Protea Insurance Co v Lamb
[4]
,
the court held that:
"In assessing
general damages for bodily injuries, the process of comparison with
comparable cases does not take the form of
a meticulous examination
of awards made in other cases in order to fix the amount of
compensation, nor should the process be allowed
to dominate the
inquiry as to become a fetter upon the Court's general discretion in
such matters. Comparable cases, when available,
should rather be used
to afford some guidance in a general way
towards assisting the
Court in arriving at such an award which is not substantially out of
general accord with previous awards in
broadly similar cases, regard
had to all the factors which are considered to be relevant in the
assessment of general damages.
At the same time, it may be
permissible, in an appropriate case to test any assessment arrived at
upon this basis by reference
to the general pattern of previous
awards in cases where the injuries and their sequelae may have been
either more serious or less
than those in the case under
consideration.”
[36] This court had
regard to the following cases:
In M v
Road Accident
[5]
the Plaintiff
sustained severe head injuries, neurobehavioral deficits and multiple
lacerations and abrasions. The Plaintiff was
awarded R1,900,000.00 in
2018 for general damages, this will equate R2,125,600.00 in 2021
monetary terms.
In
Megalane N.O. v Road Accident Fund
[6]
,
the Plaintiff sustained severe brain injury with diffuse and focal
brain damage in the form of a subdural hematoma resulting in
cognitive impairment characterised by poor verbal and visual memory,
poor concentration and distractibility, impaired executive
function
characterised by frontal lobe disinhibition causing inappropriate
behaviour, speech difficulties characterized by dysarthria
and word
retrieval difficulties, bilateral hemiparesis with severe spasticity
of all four limbs and facial paralysis as well as
aphesis. Confined
to a wheelchair. Intelligence level that of a young child. Although
limited, he still had insight into his predicament.
An above average
scholar before the accident, who would probably have undergone
tertiary education, left with permanent severe
physical and mental
disabilities rendering him unemployable. The Plaintiff was awarded
R1,000,000.00 in 2006 for general damages.
This will equate to
R2.285,000.00 in 2021 monetary terms.
In the unreported case of
VW v RAF by Mbhele J, heard on 29 October 2018 and delivered on the
1st February 2019, Justice Mbhele
awarded an amount of R2,100,000.00
for general damages, 2022 value R2,372, 266.07. The Plaintiff's
injuries were described by Dr
Oelofse, the orthopaedic surgeon, as a
traumatic brain injury with a base skull fracture, pons bleed,
mandible fracture, and right-lower
leg - tib/fib fracture. The
Patient was in a coma and transferred to ICU, ventilated on a T-piece
and had a GCS of 4/15. The Plaintiff's
current symptoms were
headaches and behavioural and emotional disorders.
[37] Having regard to the
injuries suffered by the plaintiff
in casu
, the aforementioned
comparable case law, which all find application, and inflation, this
court finds that the amount of R2 200
000.00 for general damages
would be fair and reasonable under the circumstances less the 30%
apportionment.
[38] The plaintiff's
experts have made a compelling case that the plaintiff will, in the
future, be required to undergo medical
treatments and/or surgical
procedures. Consequently, the plaintiff has made out a proper case
for an undertaking for future medical
expenses in terms of section
17(4) of the RAF Act.
[39] I accordingly make
the following order:
1.
The Defendant shall pay the Plaintiff R
1 540 000.00 (One Million Five Hundred and Fourty Rand)
after deduction of 30%
apportionment from R2 200 000.00(Two
Million Two Hundred Thousand Rand). This amount is in respect of
General Damages
suffered as the result of the motor vehicle accident
that occurred on the 07
th
September 2019.
2.
The Defendant shall pay the Plaintiff R1 680 801.00 (One Million
Six Hundred andEighty Thousand and Eight Hundred and One
Rand) after
deduction of 30% apportionment from R2 401 145.00 (Two
Million Four Hundred and One Thousand One Hundred
and Fourty Five
Rand). This amount is in respect of Past and Future loss
of earnings suffered as
the result of the motor vehicle accident that occurred on the
07th September 2019.
3.
Defendant shall pay the capital amount of R
R3 220 801.00(Three Million Two Hundred and Twenty Thousand
and Eight Hundred
and One Rand) on or before the 03
rd
of June 2023.
4.
The aforesaid capital sum of R R3 220 801.00(Three
Million Two Hundred and Twenty Thousand and Eight Hundred and One
Rand)
shall be paid on or before 03
rd
of June 2023, directly into the Trust Account of
the Plaintiff's attorneys of record NT MDLALOSE INCORPORATED, with
the following
account details:
Name of account holder
: NT Mdlalose Incorporated
Account
held : [...]
Branch
code :[...]
Account
No : [...]
5.
The Defendant shall furnish the plaintiff and/or
the trustee referred to below, with an undertaking in terms of
section 17(4)(a)
of the Road Accident Fund Act 56 of 1996 (the
undertaking) limited to 70%, to reimburse the plaintiff and/or the
trustee for the
cost of the future accommodation of Mbhele Sifundu in
a hospital or nursing home, or treatment of, or the rendering of a
service,
or the supplying of goods to him, arising out of the
injuries he sustained, in the motor-vehicle accident that occurred on
the
7
th
of
September 2019, after such costs have been incurred and upon proof
thereof. In addition, the undertaking shall include costs
of the
creation of the trust referred to below, the costs of annually
obtaining a security bond as required and the cost of the
trustee in
respect of the administration of the trust.
6.
The defendant and shall be liable for:
6.1 the reasonable cost
of the creation of the Trust referred to infra and the appointment of
the Trustees,
6.2
the costs of the administration of such Trust on
behalf of Mr. Mbhele
Sifundo’s
estate, which liability shall not exceed the costs of a
curator
bonis
,
6.3
The reasonable costs for the furnishing of
security by the trustees.
7.
The Defendant shall pay the Plaintiffs taxed or
agreed party and party high court costs of the action to date, which
costs shall
include Counsel’s fees, on the applicable High
Court scale as well as the qualifying fees of the experts and actuary
(Algorithm
Consultants and Actuaries). The Defendant shall pay the
preparation and reservation fees and the costs of the plaintiff’s
experts, if any, and is allowed by the taxing master, subject to the
following conditions: -
7.1 In the event that
costs are not agreed, the plaintive shall serve the notice of
taxation on the Defendant’s attorney
of record; and
7.2
The Plaintiff shall allow the Defendant 14 Court
days to make payment of the
taxed costs.
8.
The plaintiff’s attorney of record NT
MDLALOSE Incorporated, shall take the requisite steps to establish
trust
inter vivos
in
accordance with the Trust Property Control Act 57 of 1988,
inter
alia
to administer and or manage the
financial affairs of Mr. Mbhele (“the trust”) and such a
trust shall be formed within
three (3) months of the payment of the
capital amount, alternatively, within such a period extended by the
Court. The said appointment
shall be subject to the approval of the
above Honourable Court.
9.
The trust instrument contemplated in paragraph 6
above shall provide the following:
9.1
That Mr. Mbhele is the sole beneficiary;
9.2
That the number of trustees should be prescribed
and in particular shall include Mr. Mbhele’s aunt, Manyeli
Nonkululeko Happiness,
and the bank representative
9.3
There should be a provision which prevents the
remaining trustee from acting otherwise than to achieve the
appointment of a replacement
trustee, in the event of their number
being reduced below that prescribed;
9.4
The composition and the voting rights of the
trustees should be such as to avoid deadlock;
9.5
Unless it is undesirable, a guardian should
participate as a co-trustee;
9.6
That a nominated employee and manager in trust
services of a financial or banking institution properly establish in
terms of the
banking laws of the Republic of South Africa, must
declare him or herself as available and willing to act as a trustee
of the trust
(as a trustee), be appointed as a professional trustee
of the trust with equal voting rights;
9.6.1
The trustees to be appointed in this capacity is
absent bank trusts represented by its nominee Mpho Pholosi, consent
letter attached.
9.6.2
The composition of the board of trustees and the structure of the
voting
right
of the trustee should be such that the independent trustee(s) cannot
be
overruled or out-voted in
relation to the management of the trust assets by
any trustee who has a
personal interest in the manner in which the trust is
managed.
9.6.3
The professional trustee of the trust to be formed to take all
requisite steps to secure an appropriate bond of security to
the
satisfaction of the Master of the High Court for the due fulfilment
of his/her obligations and to secure that the bond of security
be
submitted to the Master of the High Court at the appropriate
time as well as to all other interested parties.
9.6.4
The trust should be stated Johanne for the purpose of administering
the
funds in a manner which takes best
account of the interest of Mbhele
Sifundu.
9.6.5 The remuneration of
the professional trustee shall be at a rate prescribed by the banking
or financial institutions in the
Republic of South Africa as
determined by the Master of the High Court.
9.6.6 Proper provision
should be made for the calling and holding of meetings and the taking
of resolutions by the trustees.
9.6.7 All
resolutions must be in writing.
9.6.8. Provision should
be made for adequate procedure to resolve disputes
between the parties.
9.6.9
No charges should be made by any trustee in relation to the receipt
of the
initial payment to the trust of the
proceeds of the litigation.
9.6.10.
The trust property should be excluded from any community of property
or
accrual in the event of the marriage of
the beneficiary.
9.6.11
The exclusion of the contingent rights of the beneficiary in the
event of session, attachment or insolvency of the beneficiary;
prior
to the distribution or payment thereof by the trustee to the
beneficiary.
9.6.12
The termination of the trust shall take place with the leave of the
Court,
when
Mr Mbhele recovers his memory, alternatively, upon the death of Mr.
Mbhele and in such event, the trust property shall pass
to the estate
of Mr. Mbhele, which ever event occurs first;
9.6.13
The amendment of the trust instrument is subject to the leave of the
Court
9.6.14 The trustees shall
be entitled, if they deem it necessary, to utilize the
income of the trust for
the maintenance of Mr. Mbhele; and
9.6.15 The trust property
and administration thereof is subject to annual
reporting
by an accountant
10.
The provisions referred to in paragraph 9 above
shall be in accordance with the provisions of the Trust Property
Control Act 57
of 1988, be subject to the approval of the Master.
11.
This Order shall be served by the Plaintiffs
attorney on the Master of the High Court and the nominated Trustee
within a reasonable
time of the granting of this Order.
12.
The professional trustee referred to in
paragragraph 9.6.3 shall be required to furnish security to the
satisfaction of the Master
in terms of section 6 (2)(a) of the Trust
Property Control Act of 1988, as amended.
13.
In terms of section 78(2)(a) of the Attorneys Act
1979 or the applicable provisions in the Legal Practice Act to the
extent to which
the provisions of the Attorneys Act have been
replaced, NT Mdlalose Incorporated shall invest the capital amount
mentioned in paragraph
3 above for the benefit of Mr. Mbhele, the
relevant interest thereon likewise accruing for the benefit of Mr.
Mbhele which investment
shall be utilized for the benefit of Mr.
Mbhele as may be directed by the Trustee of the Trust, when created,
and shall upon receipt
of the said capital amount, invest same within
seven(7) business days.
14.
The Plaintiff’s attorney of record, NT
MDLALOSE Incorporated shall render an attorney and client statement
of account to the
Trustee/s of the Trust to be formed in terms of the
fees contract entered into with the Plaintiff and shall deduct all
that is
due to them for their fees and disbursements only once they
have recovered all the costs due in the matter. The fees and the
disbursements
must be taxed and agreed with the bank trustee.
15.
The party and party costs referred to above in
respect of the Plaintiff’s action, as taxed or agreed shall be
paid by the
Defendant directly into the trust account of NT Mdlalose
Incorporated for the benefit of Mr. Mbhele. After the deduction of
legal
costs, consultants’ fees for drawing of the bill and
attending to its settlement or taxation, the balance shall be
invested
in terms of section 78(2)(a) of the Attorney’s Act 53
0f 1979 or the Legal Practice Act- as indicated in paragraph 13 above
or the benefit of Mr. Mbhele, the interest thereon, likewise accruing
for the benefit of Mr. Mbhele and shall be utilized as directed
by
the Trustee of the Trust when created.
16.
The Plaintiff and his attorneys Order have entered
into a Contingency Fee Agreement.
M.T. JORDAAN
ACTING
JUDGE OF THE HIGH COURT
SOUTH GAUTENG LOCAL
DIVISION
APPEARANCES:
Counsel
for the Plaintiff:
Adv R.L.
Malope-Madondo
Email:
molopemadondoatt@gmail.com
Instructed
by:
N.T. Mdlalose
Incorporated
Email:
derick@mdlaloseinc.co.za
Counsel
for the Defendant:
No
Appearance
Date of Hearing: 26
January 2023, 27 January 2023
Date of Judgment: 12
May 2023
[1]
International Shipping Co (Pty) Ltd v Bentley
1990 (1) SA 680
(A)
([1989]ZASCA 138) at 700F-I; Siman & Co (Pty) Ltd v Barclays
National Bank Ltd
1984 (2) SA 888
(A) at 915B - H
[2]
Lee
v Minister of Correctional Services 2013 (2) SA 144 (CC)
[3]
1975
(3) SA 590 (A)
[4]
1971 (1) SA 530
(SCA).
[5]
(12601/2017) [2018] ZAGPJHC 438 (18 June 2018)
[6]
[2006]
ZAGPHC 116
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