Case Law[2023] ZAGPJHC 855South Africa
F.P.M obo Z.N.M v Road Accident Fund (8854/2022) [2023] ZAGPJHC 855 (13 June 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
13 June 2023
Headnotes
Summary:
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## F.P.M obo Z.N.M v Road Accident Fund (8854/2022) [2023] ZAGPJHC 855 (13 June 2023)
F.P.M obo Z.N.M v Road Accident Fund (8854/2022) [2023] ZAGPJHC 855 (13 June 2023)
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sino date 13 June 2023
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
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SAFLII
Policy
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
CASE
NO: 8854/2022
REPORTABLE
OF
INTERST TO OTHER JUDGES
In
the matter between:
F
P M on behalf of Z N. M
Plaintiff
and
ROAD
ACCIDENT FUND
Defendant
Summary
:
JUDGMENT
KATZEW,
AJ:
[1]
This is the trial of an action that was instituted on
2
nd
March 2022 by the Plaintiff on behalf of her minor daughter, Z N M
(“Z”), against the Road Accident Fund (“the
Fund”)
for compensation for loss of support arising out of the death of Z’s
father, R M D (“Mr. D”), in
a motor collision that
occurred on 1
st
July 2019 with a driver insured by the
Fund.
[2]
The Plaintiff and Mr. D were married at the time of Z’s
birth
in 2015 but got divorced in the same year. There is no claim in this
matter by the Plaintiff against the Fund in her personal
capacity.
[3]
On 30
th
April 2022 the Fund pleaded a bare denial to all
elements of the cause of action in the summons, which included
negligence of its
insured driver, paternity and
quantum
. No
attempt was made to narrow down these issues by way of a request for
further particulars for trial or by any other formal means
to make
for accurate identification of issues.
[4]
At the first pre-trial conference that was held on 22
nd
May 2022, the Fund admitted Mr. D’s paternity of Z, but did not
amend its plea to eliminate paternity as an issue on the
pleadings.
Moreover, in the
Minutes
Of
Pre-Trial
Conference
dated 8
th
June 2022, the Fund contended that the duty of
support of Mr. D to Z “
was
not
unconditional
”
but “
was
limited
to
R1
000
.
00
per
month
as
well
as
medical
aid
contribution
only
”. Once again, this
contention of a conditional duty of support owed by Mr. D to Z was
never made an issue in the Fund’s
plea by way of an amendment
to bring it into line with the admission of the conditional duty of
support that was raised in the
pre-trial minute. The result hereof is
that paternity and duty of support have remained issues on the
pleadings throughout the
proceedings.
[5]
This notwithstanding, on 10
th
February 2023, 18 days
before the trial that was due to commence on 28
th
February
2023, the Fund abandoned reliance on its plea in the
JOINT
PRACTICE NOTE FOR TRIAL ON THE 28 FEBRUARY 2023,
which
inter
alia
records the following agreement between the parties
regarding the conduct of the trial
(“the
agreement”
):
“
UNDISPUTED
ISSUES
There
is no dispute about the liability of the [Fund] to pay the
Plaintiff’s proven damages. There is no dispute regarding
the fact that [Mr. D] had other children which … have been
considered in two actuarial reports commissioned by the Plaintiff.
DISPUTED
ISSUES
Based
on the aforesaid, the Plaintiff to specifically admit that the
following are disputed issues upon which a decision from the
trial
court will be sought:
(a)
The extent to which the maintenance order
[explained
by
the
Court
in
paragraphs
8
,
9 and
10
below]
has a bearing on the compensability and claim.
(b)
Age of dependency.
(c)
Contingencies.”
[6]
On the eve of trial, the parties orally varied
the
agreement
to include the setting of contingencies at 5% for past loss of
support and 15% for future loss of support.
[7]
From a procedural point of view, therefore, despite the
retention of
the bare denial of all elements of the claim in the plea
,
the
dispute in the trial as determined by
the
agreement
distilled to the admission of all issues, save for the extent to
which the maintenance order has a bearing on the compensability
and
claim, and age of dependency, coupled with a request to the Court to
decide these issues in a final Judgment.
[8]
The maintenance order referred to in
the
agreement
is
an Order of the Maintenance Court made against Mr. D in December 2015
when Z was 10 months old. Mr. Sixhiba, who appeared
for the
Plaintiff, advised the Court that the Plaintiff had included the
maintenance order in her discovery affidavit for the sole
purpose of
advancing her case on Mr. D’s paternity of Z, which he said was
necessitated by the Fund’s denial of Mr.
D’s paternity of
Z in its plea.
[9]
The maintenance order directed Mr. D in 2015 to pay the
Plaintiff R1
000.00 per month as a contribution towards maintenance for Z, and to
retain Z on a medical aid.
[10]
The terms of the maintenance order were not expressly included in
the
agreement
, and neither was the order of the Maintenance Court
formally placed before the Court. There was, however,
consensus
in the Court proceedings between Mr. Sixhiba and Mr. Khan, who
appeared for the Fund, as to the terms thereof.
A
fortiori,
no prejudice will be caused to either party by the
Court having regard to the terms of the maintenance order as
communicated by
their legal representatives in Court. The terms
of the maintenance order also appear in one of the two actuarial
reports
that form part of
the
agreement
.
[11]
No evidence under oath was presented by the parties, their mutual
view
as expressed in
the
agreement
being that the
Court’s findings on the disputed issues in its Judgment would
be dipositive of the matter, without the need
for evidence.
[12]
The two actuarial reports referred to in
the
agreement
were formally placed before the Court. They were compiled by Ndumiso
Mavimbela of Manala Actuaries at the request of the Plaintiff.
Pursuant to
the
agreement
, the contents of the two
actuarial reports include different scenarios of calculation
compatible with the two disputed issues in
the
agreement
.
There is no dispute between the parties relating to the methodology
of the reports, the sources and correctness of the assumptions
made
in the reports and the accuracy of the calculations of the different
scenarios in the reports, the dispute between the parties
being
confined to which of the scenarios should be adopted by the Court in
its Judgment.
[13]
The following is a summary of the two reports:
[13.1]
dated 5
th
August 2022 containing an actuarial calculation
of Z’s
and her co-dependants’ one child’s share each of Mr. D’s
net lost income for past and future loss of support
until age 18
years (in Z’s case totalling R696 441.00 excluding
contingencies) and until age 21 years (in Z’s case
totalling
R641 837.00 excluding contingencies), on the assumption in both
scenarios, recorded in clause 13 of the report, that
the net of tax
income of Mr. D will be shared two parts to Mr. D and one part to
each of his children dependant on him (the anomaly
of Z’s share
measured to 18 years exceeding her share measured to 21 years by R54
604.00 was not raised by either of the
parties – the tables of
measured losses for the two scenarios reveal fluctuating
co-dependencies in calculations of past
and future losses which are
the reason for the anomalous discrepancy – in view of the
parties’ admissions of all methodology,
assumptions and
calculations in the reports, nothing turns hereon, except of course
for the anomaly that the Plaintiff and Z would
be better off by R54
604.00 if the Court decides that age of dependency is to 18 instead
of 21) ; and
[13.2]
dated 31
st
August 2022 containing an actuarial calculation
of Z’s and her co-dependants’ one child share each of Mr.
D’s
net lost income for past and future loss of support
calculated until age 18 years (in Z’s case totalling R230
629.00 excluding
contingencies), and until age 21 years (in Z’s
case totalling R253 381.00 excluding contingencies), on the
assumption in
both scenarios, recorded in clause 13 of the report,
that the net of tax income of Mr. D would be shared two parts to Mr.
D and
one part to each of his children dependant on him, except for
Z, who is assumed for the purpose of this report to be limited to
a
calculation based on the R1 000.00 per month in the maintenance
order, plus an assumed medical aid contribution of R500.00 per
month
(the R500.00 to be adjusted with inflationary increases every
January)
.
[14]
The Court is called upon to incorporate
the
agreement
into the Judgment and to craft its findings on the disputed issues
into the Judgment in accordance with
the
agreement
.
[15]
Due to some
uncertainty regarding the interpretation of
the
agreement
that will be canvassed in more detail, the Court first needs to
establish the exact terms of
the
agreement
,
and then render Judgment on the disputed issues with due regard to
the
agreement
.
[16]
Although
the
agreement
does not constitute a settlement agreement that is sought to be made
an order of court, the principles applicable to the settlement
of
entire litigation, or components thereof, are analogous to the
principles applicable to the implementation of
the
agreement
by the
Court
.
These
principles have been stated as follows by Van der Merwe, JA in
The
Road
Accident
Fund v
Taylor and other matters
[1]
:
“
[40]
When
requested
to
do
so
,
a
court
has
the
power
to
make
a
compromise
,
or
part
thereof
,
an
order
of
court
.
The
power
must
,
of
course
,
be
exercised
judicially
,
that
is
,
in
terms
of
a
fair
procedure
and
with
regard
to
relevant
considerations
.
The
considerations
for
the
determination
of
whether
it
would
be
competent
and
proper
to
make
a
compromise
an
order
of
court
,
are
threefold
.
…
[41]
The first
consideration
is
whether
the
compromise
relates
directly
or
indirectly
to
the
settled
litigation
.
An
agreement
that
is
unrelated
to
litigation
,
should
not
be
made
an
order
of
court
.
The
second
is
whether
the
terms
of
the
compromise
are
legally
objectionable
,
that
is
,
whether
its
terms
are
illegal
or
contrary
to
public
policy
or
inconsistent
with
the
Constitution
.
Such
an
agreement
should
obviously
not
be
made
an
order
of
court
.
The
third
consideration
is
whether
it
would
hold
some
practical
or
legitimate
advantage
to
give
the
compromise
the
status
of
an
order
of
court
.
If
not
,
it
would
make
no
sense
to
do
so
.”
[17]
The
agreement,
although
vague in certain respects which will be addressed, satisfies these
considerations for its incorporation into the Judgment.
[18]
The
vagueness of
the
agreement
is
that it is lacking in certainty as to the legal consequence of a
possible finding by the Court that the maintenance order has
no
bearing on the compensability and claim. For reasons that will emerge
hereunder, the uncertainty is resoluble by virtue of certain
statements made by Mr. Khan in argument on behalf of the Fund (it is
important to bear in mind that Mr. Khan concluded
the
agreement
on behalf of the Fund).
[19]
Mr. Khan
correctly submitted that without proof of actual need for support of
a lost breadwinner, a claim for loss of support is
inchoate and
unsustainable. It was for this reason that he submitted that the
maintenance order, however inadequate for Z’s
present and
future needs (which inadequacy he conceded on behalf of the Fund), is
the only evidence of her actual need, and thus
should be relied upon
by the Court in the calculation of the value of her loss of Mr. D’s
support (this, by the way, is different
to the approach adopted by
the Fund in the pre-trial minute dated 8
th
June 2022 that ‘
the
duty
to
support
was
not
unconditional
and
that
same
was
limited
to
R1
000
per
month
as
well
as
medical
aid
contribution
only
”
– a defence of a limited conditional duty of support is
different to a defence of lack of evidence of actual need
for support
– this contradiction is once again an issue that the Fund could
have cleared up in an appropriate amendment to
its plea).
[20]
When the
Court asked Mr. Khan if the Fund is seeking the dismissal of the
Plaintiff’s claim as an alternative to a finding
that the
maintenance order has no bearing on the compensability and the claim
(which the Court pointed out to Mr. Khan would be
a logical request
in view of there being no other evidence showing actual need for
support), Mr. Khan replied that the Fund is
not seeking the dismissal
of the claim, but added that with hindsight he should have made
provision for higher contingencies to
be applied to the Plaintiff’s
claim with that risk in mind.
[21]
This
approach by Mr. Khan on behalf of the Fund assists the Court in
interpreting a tacit component to
the
agreement
that if it is found that the maintenance order has no bearing on the
compensability and the claim, the Fund accepts that the calculation
of loss of support must necessarily follow the actuarial report dated
5
th
August 2022, which does not rely on the maintenance order as a
criteria
for calculation of Z’s loss of support.
[22]
In
interpreting and giving effect to
the
agreement
,
the Court focuses on the intention of the parties as at the time
the
agreement
was concluded.
A
fortiori
,
the Court cannot have regard to the Fund’s
ex
post
facto
expression, which was not contemplated at the time of
the
agreement,
that it should have made provision for higher contingencies to
compensate the risk of a finding by the Court that the maintenance
order has no bearing on the compensability and the claim.
[23]
The very
essence of the concession made by Mr. Khan reveals that this
ex
post
facto
expression could not have been on his mind on behalf of the Fund, let
alone on the Plaintiff’s mind, at the time of the conclusion
of
the
agreement
.
[24]
The result
is that if the Court finds that the maintenance order has no bearing
on the compensability and the claim, the actuarial
report dated 5
th
August 2022 will become the operative
criteria
for determination of Z’s loss of support, complemented by the
contingencies as determined by
the
agreement
(see
paragraph [6] above).
[25]
Turning now
to the extent to which (if any) the maintenance order has a bearing
on the compensability and the claim, at the outset
it needs to be
emphasized that a distinction should be drawn in principle between
the delictual basis of loss of support and the
duty of support. The
maintenance order belongs to the last mentioned and is not
necessarily evidence of the first mentioned.
[26]
This
distinction needs to be kept in mind in considering the submissions
of the parties.
[27]
Mr. Sixhiba
on behalf of the Plaintiff was dismissive of the requirement for
evidence of Z’s actual needs for Mr. D’s
support. He
contended that there is no need for reliance on the maintenance order
in the determination of the calculation of Z’s
loss of Mr. D’s
support. He submitted in his
PLAINTIFF’S
HEADS
OF
ARGUMENT
dated 1
st
March 2023, and in oral submissions before the Court, that by virtue
of the actuarial report dated 5
th
August 2022 (which makes no reference to the maintenance order and
which is
inter
alia
based on the assumption that the full extent of Mr. D’s net of
tax income would be devoted to the upkeep of his dependants),
the
Plaintiff is entitled to an order directing the Fund to be liable to
the Plaintiff in the sum of R565 135.15, made up as to
R195 737.00
for past loss of support, less the agreed contingency of 5%, which
comes to R185 950.15, plus R446 100.00 for
future loss of
support, less the agreed contingency of 15%, which comes to R379
185.00, which are the product of calculations in
the actuarial report
dated 5
th
August 2022 until age 21.
[28]
Mr. Khan,
on the other hand, in his undated
DEFENDANT’S
HEADS
OF
ARGUMENT
and in oral submissions to the Court, contended for the Court’s
adoption of the actuarial report dated 31
st
August 2022 (which incomprehensibly distinguishes between the losses
of support suffered by Z and her co-dependants due to the
invoking of
the maintenance order as the sole
criteria
for the calculation of Z’s loss) in view of the absence of any
evidence by the Plaintiff of the actual needs of Z for Mr.
D’s
support (it needs to be emphasized in this regard that the
incomprehensible actuarial distinction between the otherwise
identical one part loss of all Mr. D’s dependants was included
by the actuary at the instance of the Fund, and cannot in
any way be
attributed to the actuary). The result, according to Mr. Khan
on behalf of the Fund, is that the Court must restrict
itself in its
measurement of Z’s loss of Mr. D’s support to the value
of the maintenance order of R1 000.00 per month
plus the R500.00
per month provision for medical aid (to be adjusted with inflationary
increases annually every January),
which evolves into a past loss of
support of R65 666.00 less the agreed contingency of 5%, equalling
R62 382.70, and into a future
loss of support calculated to age 18 of
R164 963.00, less the agreed contingency of 15%, which comes to R140
218.55, together totalling
R202 601.25.
[29]
One of the
anomalies of this submission by Mr. Khan for selective bias in the
calculation of the value of Z’s claim for loss
of support is
that if any of Z’s co-dependants have pending claims against
the Fund, the Fund’s promotion of
the selective bias between Z
and her co-dependants in the actuarial report dated 31
st
August 2022 would unaccountably (and unfairly to Z) result in Z’s
co-dependants being treated more favourably by the Fund
in the
settlement of their claims, which, save for the maintenance order,
are otherwise identical in the assumptions upon which
they are based.
[30]
As already
alluded to, the Court accepts as trite generally requiring no
citation of authority the submission made by Mr. Khan that
a
dependant in an action for loss of support must establish actual
patrimonial loss, accrued and prospective, consequent upon the
death
of the breadwinner.
[2]
In
response to this submission, Mr. Sixhiba mistook as a general
assumption for all cases the case-specific assumption made
by the
Court in
RAF
v
Monani
[3]
that the net income of the breadwinner in that case would have been
devoted in its entirety to the upkeep of his family.
[31]
But the
enquiry does not end there. Mr. Sixhiba has also submitted that the
manner of the Fund’s raising of the issue of absence
of
evidence of Z’s actual need for support (save for the
maintenance order) is irregular and flawed.
[32]
It needs to
be emphasized that the Court is bound by the Fund’s
acknowledgement of liability in
the
agreement
specifically for the Plaintiff’s “
proven
damages
”,
and by the Fund’s regard for all aspects of the matter to be
regarded as undisputed, save for the extent to which
the maintenance
order has a bearing on the compensability and claim and on the age of
dependency.
[4]
[33]
The Court
regards itself as so bound because its normal powers of adjudication
of disputes are limited to adjudication within the
parameters of
the
agreement
,
which specifically identifies the undisputed issues and the disputed
issues on which alone decision from the Court is required
as a
precursor to a final award by the Court for payment of the
Plaintiff’s “
proven
damages
”
for loss of support.
[34]
The
agreement
therefore precludes the Court from making an order at the behest of
one of the parties for payment of an amount less than “
proven
damages
”
for loss of support, especially when the Court has before it
actuarial calculations of Z’s loss of Mr. D’s support
which are undisputed and which include an assumption of full utility
of Mr. D’s net income for the upkeep of his family that
has not
been specifically refuted by the party which bears the evidentiary
burden of doing so, namely the Fund, in the pleadings
and in
evidence.
[35]
By agreeing
to the contents of the actuarial report dated 5
th
August 2022 in
the
agreement
,
the Fund could only venture beyond such contents upon a discharge of
the evidentiary burden to refute the validity of the assumption
in
clause 13 of the report “
that
the
net
of
tax
income
of
[Mr
.
D
]
will
be
shared
two
parts
to
[Mr
.
D]
and
one
part
to
each
child
”
[36]
The Fund
could only refute that assumption by specifically pleading facts that
would negate the assumption, coupled with the leading
of evidence
thereon, neither of which the Fund has done.
[37]
The Uniform
Rules of Court provide the machinery for the proper ventilation of
issues between parties, which are ultimately determined
by the
pleadings. Whereas a bare denial may be sufficient to create an issue
on the pleadings,
[5]
an
ex
post
facto
admission
of a fact which is at odds with a denial in a plea without an
appropriate adjustment to the plea to properly contextualize
the
admission, coupled with a consequential failure to lead evidence to
discharge an evidentiary burden attracted by the admission,
may leave
the party originally relying on the bare denial procedurally
embarrassed in an inappropriately formulated agreement that
involves
the dispensing of evidence and a request to the Court to decide only
certain specified issues to dispose of the matter.
[38]
The Fund in
this matter has ignored the role of the pleadings, including the
machinery of the Rules with regard to requests for
particulars for
trial, as a lever for the proper contextualizing of the issues
between the parties (which I observed to be a feature
of all the
matters involving the Fund that came before me during the same week),
which resulted in the Fund locking itself into
the
agreement
that includes (perhaps unintentionally) the unconditional admission
of the contents of the actuarial report dated 5
th
August 2022, without the cover of other terms in
the
agreement,
or specific allegations in its plea, coupled with any necessary
evidence, to qualify the admission.
[39]
Mr. Khan’s
contention in paragraph 5 of his undated
DEFENDANT’S
HEADS
OF
ARGUMENT
that the Court must utilize the actuarial calculation dated 31
st
August 2022 (referring to the actuarial report of the same date) in
making an award for loss of support, must fail at least by
virtue of
his concessions in argument that the maintenance order cannot be
regarded as a suitable guide to the Court for the assessment
of the
true i.e. proven monetary value of Z’s loss of Mr. D’s
support due to the relief therein of R1 000.00 per month
and
retention of Z on a medical aid at age 10 months being a totally
inadequate measurement of maintenance currently required by
Z at 8
years of age.
[40]
The Court
is fortified in its view of the unsuitability of the maintenance
order as a guide to the determination of a valuation
for loss of
support by the following extract from the judgment of Nienaber, JA in
Santam
Bpk
v
Henery
[6]
,
wherein
the Court was
inter
alia
similarly required to consider an order for the payment of
maintenance as a guide to the valuation of a claim for the loss of
support of a dependant ex-wife whose ex-husband had died in a motor
collision. Nienaber, JA is reported as follows at
431B-C
:
“…
Wat in
die besonder beklemtoon is, is dat haar eis, anders as dié van
ander afhanklikes, gegrond is op ‘n Hofbevel
wat ‘n
spesifieke bedrag vermeld, sodat die omvang van haar eis aan die hand
van daardie bedrag bepaal word en nie aan die
hand van haar
daadwerklike behoeftes nie. Die argument oortuig nie. Solank as wat
daar ‘n onderhoudsplig uit hoofde van ‘n
Hofbevel
bestaan, soos hier die geval is, sal die bedrag in die Hofbevel
stellig die eerste faktor wees by die bepaling van die
bedrag wat
uiteindelik aan ‘n eiseres in so ‘n geval toegeken word,
maar dit is nie die enigste of selfs ‘n deurslaggewende
faktor
nie. Die feitelike vraag bly telkens watter bedrag die eiseres by
wyse van onderhoud van haar gewese man sou ontvang het.
Daardie
bedrag verg, soos elke geval waar dié tipe eis gekwantifiseer
moet word, ‘n veelvoud van oorwegings en vooruitskouings
…”
[41]
Although this exposition of the law reinforces Mr. Khan’s point
about the need for proof of actual need for support, it
simultaneously confirms the inadequacy of the maintenance order as a
guide
to the Court for the determination of Z’s proven loss of
Mr. D’s support.
[42]
It follows that by virtue of the admitted total disconnect of the
maintenance
order with the current reality of Z’s age and
obviously vastly different needs to those that would be associated
with a baby
of 10 months 7 years Z’s junior, the maintenance
order cannot be regarded as having any bearing on the compensability
and
claim.
[43]
Significantly the validity and correctness of the contents of the
actuarial
report dated 5
th
August 2022 are not included in
the
agreement
as issues for decision by the Court. The
Court is accordingly entitled to infer from
the
agreement
that once it has decided that the Order of the Maintenance Court has
no bearing on the compensability and claim, the actuarial
report
dated 5
th
August 2022 should be utilized in making an
award for loss of support to the Plaintiff that accurately measures
the value of Z’s
actual loss of support from Mr. D.
[44]
This would
necessarily include the assumption in paragraph 13 of the actuarial
report dated 5
th
August 2022 that the net of tax income of Mr. D will be shared two
parts to Mr. D and one part to each of his children, including
Z.
[45]
There is
nothing before the Court that militates against the equity of such a
finding. There is no indication that Z is better off
financially as a
result of the death of Mr. D, like the husband and dependant son of
the deceased in
Lambrakis
v
Santam
[7]
.
To the extent that there are vagaries of proof of actual loss in this
matter, besides constituting an error of judgment on behalf
of the
Plaintiff, the vagaries are also attributable to the approach adopted
by the Fund, which on its own admission could at the
very least have
been addressed by suitable additional contingency adjustments
.
The
suitability of additional contingencies to redress these vagaries and
to thereby avoid any inference of a relaxation of the
requirement for
proof of actual need for support is not without precedent, having
been countenanced by the Court in
Reay
and
another
v
Netcare
(Pty)
Ltd
t/a
Umhlanga
Hospital
and
others
[8]
.
[46]
Finally on
this issue, by virtue of the binding effect of
the
agreement
on the Court, it is not open to the Court to independently increase
the contingencies to redress the vagaries of proof of Z’s
actual need for Mr. D’s support.
[47]
In
conclusion, the Court finds that the maintenance order against Mr. D
in December 2015 has no bearing on the compensability and
claim in
this matter.
AGE
OF DEPENDENCY FOR PURPOSE OF CLAIM –
18 OR 21?
[48]
The
admission by the Fund of the actuarial report dated 5
th
August 2022 can be relied upon as proof of dependency to 18, but not
21. This is because the report assumes two scenarios in the
alternative without making a commitment to either, namely one based
on dependency until 18, and the other based on dependency until
21.
[49]
The report
therefore cannot serve as proof that Z would have been supported by
Mr. D until age 21 without evidence by the Plaintiff
that Z would
have needed Mr. D’s support until age 21, including the extent
of such need.
[50]
Due to the
anomaly already alluded to of the actuarial calculation in the report
dated 5
th
August 2022 of Z’s pre-contingency loss of Mr. D’s
support to age 18 exceeding the actuarial calculation of her
pre-contingency
loss of Mr. D’s support to age 21 by R54 604.00
(see paragraph 13.1 above), the Fund’s contention for Z’s
age
of dependency to end at 18 portended the result of the Fund
unwittingly arguing for a higher liability than had it agreed to
being
liable for Z’s loss of support until age 21:
[51]
Fortuitously
for the Fund, however, the following extract from the Judgment by
Trengove, AJA in
Marine
And
Trade
Insurance
Co
Ltd
v
Mariamah
And
Another
[9]
underscores the argument on behalf of the Plaintiff for an assumption
that support by a breadwinner for a school-going dependant
would
probably continue until the dependant reaches the age of 21 years:
“
…
At
the
time
of
the
deceased’s
death
Puniasagran was 18 years old, and Granasagran 17 years. They were
still at school, the deceased was supporting them and the
Court a quo
was, in my view, justified in acting on the assumption that the
deceased would probably have continued to support his
sons until they
reached the age of 21 years.”
[52]
Applying
this principle to the common cause fact that Mr. D was at the time of
his death supporting Z while she was still at school,
the Court finds
that the Fund is obligated to the Plaintiff for damages in the sum of
R565 109.00 to compensate for Z’s loss
of Mr. D’s support
measured until age 21.
[53]
It remains
to consider the best interests of Z regarding the management and
protection of the award for her benefit. To this end,
the Court
proposes that the execution of the order for the payment of damages
be suspended pending the appointment of a curator
ad
litem
to investigate and report to the Court on the most suitable options
for protection of the award in Z’s best interests.
[10]
ACORDINGLY,
THE
FOLLOWING
IS
ORDERED:
(a)
The
Defendant is directed to pay the Plaintiff on behalf of Z N M R565
109.00 plus interest thereon a
tempore
mora
at
the rate
of
15
.
5%
per annum calculated from 13
th
June 2023 to date of payment.
(b)
The
Defendant is directed to pay the costs of the action (day costs
limited to 2
nd
March and 3
rd
March 2023), which costs are to include the costs of Ndumiso
Mavimbela of Manala Actuaries pertaining to the Actuarial Report
dated 5
th
August 2022 and to the Actuarial Report dated 31
st
August 2022.
(c)
Execution
of the order in paragraph (a) above is suspended pending the
implementation of recommendations of the curator
ad
litem
referred
to in paragraph (d) below in a report concerning the best interests
of Z N M in respect of the need for and most suitable
form of
protection of the award in paragraph (a) above.
(d)
The
Defendant is directed to request the Johannesburg Society of
Advocates affiliated to the General Council of the Bar to nominate
a
member of the Johannesburg society of not less than 5 years standing
for appointment as curator
ad
litem
as per paragraph (c) above and to deliver the society’s
nomination in writing and the nominee’s consent to act as
curator
ad
litem
to the Court (the Acting Judge’s Registrar Mr. Thapelo Senoko)
within 2 Days of the Defendant’s receipt of the nominee’s
consent to act.
(e)
The case is
postponed to 20
th
June 2023 at 10h00 for appointment of the curator
ad
litem
in
open Court in the presence of Mr. Sixhiba for the Plaintiff, Mr. Khan
for the Defendant and of the nominee for appointment as
curator
ad
litem
.
(f)
The costs
of the appointment of the curator
ad
litem
and of his/her report are to be paid by the Defendant.
#
#
# S M KATZEW
S M KATZEW
Acting
Judge of the High Court of South Africa
Gauteng
Local Division, Johannesburg
13
th
June 2023
This
judgment was handed down electronically to the parties legal
representatives by E-mail and by being uploaded to CaseLines.
The
date of this judgment is deemed to be 13
th
June 2023.
#
APPEARANCES
:
For
Plaintiff
:
S.
Sixhiba
Instructed
by:
Tengwa
Attorneys,
Cnr
Commissioner & Von Weilligh
Streets,
Klamson Towers, 2
nd
floor,
Suite
209, Marshalltown,
Johannesburg
For
Defendant:
Mr.
M. Khan
Instructed
by
:
State
Attorney
Date
of hearing: 28
th
February 2023
Date
of Judgment: 13
th
June 2023
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
CASE
NO: 8854/2022
In
the matter between:
F
P M on behalf of Z N. M
Plaintiff
And
ROAD
ACCIDENT FUND
Defendant
SUMMARY OF THE
JUDGMENT
KATZEW,
AJ:
[1]
Damages for loss of support – claim on behalf of dependant
minor for loss of support of breadwinner – unsupported
by
evidence of actual need for support of breadwinner – sole
evidence of need for support 7- year-old maintenance court order
against breadwinner – maintenance order belongs to duty of
support – in isolation unsuitable for measurement of claim
in
delict for loss of support – principles reaffirmed
[2]
Practice and procedure – agreement between parties on
undisputed and disputed issues and request to Court for decision
on
disputed issues in assessment of damages – factors determining
competency and implementation of settlement agreement between
parties
to litigation reaffirmed – Court bound by competent agreement -
partial vagueness and uncertainty of agreement objectively
soluble -
no scope for disregard of terms of agreement
[3]
Practice and procedure – plea - bare denial – competency
of - may be sufficient to create issue on pleadings - ex
post facto
admission by Defendant in conflict with unamended plea of bare denial
– agreement containing ex post facto admission
inappropriately
formulated leaving party making admission procedurally embarrassed
without corresponding amendment to plea to properly
contextualize
admission – actuarial calculation of loss of support based on
assumption that breadwinner would have devoted
full extent of net of
tax income to upkeep of his family included in admission –
requirement of proof of actual need for
support eclipsed by admission
[4]
Practice and procedure – request for further particulars for
trial – useful for leveraging and narrowing of issues
–
optimal use by Defendant could have clarified issues and avoided
uncertainty of inappropriately formulated admission in
agreement
[5]
Damages for loss of support – use of contingencies as a means
for leveraging vagaries in proof of quantum in the absence
of proof
of actual need for support – considered but not applied due to
inviolable agreement by parties on contingencies
[6]
Practice and procedure - award in excess of R500 000.00 to Plaintiff
on behalf of minor – stay of execution of judgment
pending
recommendations by curator ad litem concerning the minor’s best
interests in respect of the need for and most suitable
form of
protection of award
The
Plaintiff sued the Road Accident Fund on behalf of her minor daughter
for damages for loss of support of her father who had
died in a road
accident with an insured driver. After initially pleading a bare
denial of all elements of the claim, at a pre-trial
conference on the
eve of trial, all issues were settled in an agreement of undisputed
and disputed issues to be placed before the
Court for decision on the
disputed issues in a final judgment. The disputed issues were the
extent to which a seven-year-old maintenance
order against the
erstwhile breadwinner has a bearing on the compensability and claim,
age of dependency and contingencies. Settlement
on contingencies was
later included in the agreement.
The
agreement in terms whereof this partial settlement was recorded was
inappropriately formulated inasmuch as it omitted to record
the
consequence of the Court deciding that the maintenance order has no
bearing on the compensability and the claim, there being
no other
evidence before the Court showing the minor child’s actual need
for her late father’s support, and the Fund
not seeking the
dismissal of the claim in the event of the Court finding the
maintenance order of no evidential value in the assessment
of loss of
support.
Held,
the maintenance order is of no evidential value in the assessment of
loss of support.
Held
further, despite the inappropriate formulation of the agreement, the
vagueness and uncertainty caused thereby was objectively
soluble and
the agreement satisfied the requirements of competency for a partial
settlement agreement which is binding on the Court.
Held
further, the Plaintiff’s omission to tender proof of actual
need for support was redeemed by the Fund’s admission
in the
settlement agreement of an actuarial report solicited by the
Plaintiff in which loss of support was calculated inter alia
on an
assumption that the erstwhile breadwinner would have devoted the full
extent of his net of tax income to the upkeep of his
family.
The
inappropriateness of omitting to amend the bare denial in the plea to
properly contextualize the ex post facto admissions inconsistent
with
the plea and the value of requests for particulars for trial to
properly contextualize issues discussed.
Held
further, the Court was entitled to assume from the breadwinner’s
support of the minor child while still at school that
he would have
continued to support her after school until age 21.
Held
further, that it is necessary to suspend execution of the award to
the Plaintiff of in excess of R500 000.00 pending appointment
of a
curator-ad-litem by the Court to report on the need for and most
suitable form of protection of the award in the best interests
of the
minor child.
[1]
The Road Accident Fund v Taylor and other matters
(1136-1140/2021)
[2023] ZASCA 64
(8 May 2023) at paragraphs [40] and
[41]
[2]
See Evins v Shield Insurance Co Ltd
1980 (2) SA 814
(AD) at
838A-B
[3]
RAF v Monani
2009 (4) SA 327
(SCA) at 329G-H
[4]
See JOINT PRACTICE NOTE FOR TRIAL ON THE 28 FEBRUARY 2023
second page last paragraph and undated DEFENDANT’S’
HEADS OF ARGUMENT paragraph 1.2
[5]
See Sterling Consumer Products (Pty) Ltd v Cohen and other
related cases
[2000] 4 All SA 221
(W) at paragraph [11]
[6]
Santam Bpk v Henery 1999 (3) SA 421 (SCA)
[7]
Lambrakis v Santam Ltd
2002 (3) SA 710
(SCA)
[8]
Reay and another v Netcare (Pty) Ltd t/a Umhlanga Hospital
and others
[2016] 4 All SA 195
(KZP) at 203d-e
[9]
Marine And Trade Insurance Co Ltd v Mariamah And Another
1978
(3) SA 480
(AD) at 489B
[10]
See Master Of The High Court v The Pretoria Society Of Advocates
(1
st
amicus
curiae) and Others Case 35182/2016 – delivered 20
th
May 2022 at paragraph 147
sino noindex
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