Adams N.O v Road Accident Fund (1406/04) [2006] ZANCHC 23 (21 April 2006)
- Citation
- [2006] ZANCHC 23
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Northern Cape High Court, Kimberley
- Panel
- C.C Williams
- Case number
- 1406/04
More details
- Court
- Northern Cape High Court, Kimberley
- Panel
- C.C Williams
- Case number
- 1406/04
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the defendant's offer to settle the merits and pay costs was made at a very late stage, immediately before a long weekend, and without reasonable arrangements to ensure the plaintiff's attorneys received notice. The offer did not specify a cut-off date for costs, and the plaintiff's subsequent expenses were unavoidable and reasonable under the circumstances. The defendant assumed the risk of late communication and failed to take adequate steps to notify the plaintiff. Therefore, the plaintiff is entitled to costs up to and including 18 April 2006, the date of trial.
Court disposition
Plaintiff's claim for costs up to and including 18 April 2006 is granted.
Orders
- Defendant is liable for payment of the plaintiff's full (100%) proven or agreed damages.
- Defendant is liable for payment of the plaintiff's taxed or agreed party and party costs, on High Court scale, pertaining to the merits trial up to and including 18 April 2006.
02
Material facts
Parties
Johanna Adams N.O
Plaintiff Counsel: Adv. NortierRoad Accident Fund
Defendant Counsel: Ms. Lloyd03
Procedural history
Posture
Civil Trial / Merits Only; Quantum Reserved
04
Questions and positions
Legal issues
- 01
Whether the plaintiff is entitled to costs incurred after the defendant's offer to settle was made.
- 02
Whether the defendant's late offer and lack of reasonable arrangements justify awarding costs up to the date of trial.
Party arguments
- Applicant
- The plaintiff argued that she was entitled to her costs up to 18 April 2006, as the offer to settle was only received on the morning of the trial due to the timing of the defendant's communication and the long weekend. The plaintiff's attorneys and witnesses had already incurred expenses in preparation for trial, and the defendant's offer did not specify a cut-off date for costs.
- Respondent
- The defendant contended that costs should be limited to those incurred up to the date of the offer, 13 April 2006, and that any further costs should be determined by the Taxing Master. The defendant maintained that the plaintiff could have avoided additional expenses by accepting the offer earlier.
05
Court’s reasoning
Legal principles
- 01
Erasmus v Santam Insurance Ltd and Another 1992(1) SA 893(W) at 898B-C
Where costs have been settled by agreement, the trial court has no discretion to award costs beyond what the defendant has undertaken to pay.
- 02
Erasmus v Santam Insurance Ltd and Another 1992(1) SA 893(W)
A plaintiff may only accept what is offered in settlement; acceptance cannot create additional rights beyond the terms of the offer.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the defendant's offer to settle the merits and pay costs was made at a very late stage, immediately before a long weekend, and without reasonable arrangements to ensure the plaintiff's attorneys received notice. The offer did not specify a cut-off date for costs, and the plaintiff's subsequent expenses were unavoidable and reasonable under the circumstances. The defendant assumed the risk of late communication and failed to take adequate steps to notify the plaintiff. Therefore, the plaintiff is entitled to costs up to and including 18 April 2006, the date of trial.
Obiter and limits
- Even if the defendant's offer had stipulated costs up to the date of the offer, the circumstances would justify awarding costs incurred thereafter.
- The timing of settlement offers and the manner of communication can affect the reasonableness of subsequent expenses.
Court disposition
Plaintiff's claim for costs up to and including 18 April 2006 is granted.
- Defendant is liable for payment of the plaintiff's full (100%) proven or agreed damages.
- Defendant is liable for payment of the plaintiff's taxed or agreed party and party costs, on High Court scale, pertaining to the merits trial up to and including 18 April 2006.
Source and reliance status
Northern Cape High Court, Kimberley
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Northern Cape High Court, Kimberley
Judgment
Verslagwaardig: Ja / Nee
Sirkuleer aan Regters: Ja /Nee
Sirkuleer aan Landdroste: Ja /Nee
IN THE HIGH COURT OF SOUTH-AFRICA
(NORTHERN CAPE DIVISION)
KIMBERLEY
CASE NO.: 1406/04
DATE HEARD:18-04-2006
DATE OF JUDGMENT:21-04-2006
In the matter between:
JOHANNA ADAMS N.O PLAINTIFF
and
THE ROAD ACCIDENT FUND
DEFENDANT
CORAM: C.C WILLIAMS J:
J U D G M E N T
WILLIAMS J:
1. The plaintiff in this matter instituted an action against the defendant, in her personal capacity as well as in her representative capacity as mother and guardian of her minor son who was injured in a motor vehicle collision, for the damages sustained as a result of his injuries.
2. The trial was set to commence on 18 April 2006, it having been agreed between the parties at the Rule 37 conference held on 2 March 2006 that the Court only decide upon the issue of the merits, the issue of quantum to be determined later.
3. On Thursday 13 April 2006, the day before the Easter long weekend, thus effectively one court day before the trial was set to commence, the defendantâs correspondent attorneys locally, Haarhoffs Inc, received a telefax from the defendantâs Bloemfontein attorneys, Honey Attorneys, that they had just received instructions from their client, the defendant, to concede the merits of the matter and to tender the costs of the merits trial. Hereto a draft order was attached and instructions were given that arrangements be made with the plaintiffâs attorneys that an order be taken in terms of the draft on 18 April 2006, the day of the hearing.
4. The draft order reads as follows:
âBy agreement between the parties the following order is made:
1.) Defendant is liable for payment of the plaintiffâs full (100%) proven or agreed damages.
2.) Defendant is liable for payment of the plaintiffs taxed or agreed party and party costs, on High Court scale, pertaining to the merits trial.â
These documents, under cover of a letter from defendants local attorneys, which states;
âWe refer to the above matter and annexed hereto the letter received from our instructing attorney together with draft order.
We trust you find same in order.â,
were faxed to the plaintiffâs local attorneys at 12:13 on 13 April 2006.
6. What seems to have happened though, is that plaintiffâs local attorneys closed early for the long weekend and only received the fax on the Tuesday morning after the long weekend, which was also the day the trial was due to commence.
7. In the meantime plaintiffâs attorney in Cape Town, also unaware of the developments, had proceeded with counsel to fly to Kimberley on Monday 17 April, at the same time busing witnesses from Upington where the motor vehicle accident occurred, with the necessary overnight accommodation arranged in Kimberley.
8. On 18 April 2006 the plaintiff agreed to the offer made by the defendant, the only remaining issue related to costs incurred after 13 April 2006. Mr. Nortier, who appeared for the plaintiff, argued that plaintiff was entitled to her costs up to 18 April 2006 while Ms. Lloyd who appeared for the defendant was of the view that the matter be left to the Taxing Master to determine.
9. I see no reason why this issue should be left for the Taxing Master to decide when the facts are before me. In the normal course of events where costs have been settled by agreement between the parties the trial Court would have no discretion to award the plaintiff any costs other than what defendant has undertook to pay. See Erasmus v Santam Insurance Ltd and Another 1992(1) SA 893(W) at 898B-C where Flemming DJP states the following:
âOn the basic principles of conclusion of a contract, the plaintiff could indeed accept only what is offered. Nothing else was available to be accepted. It is not possible to have an acceptance which succeeds in creating a contract of settlement, but which operates, despite the defendant's intention, as if it also contained a further clause to the effect that the plaintiff retains the right to ask the Court to award something in addition to what is offeredâ.
10. However, unlike in the Erasmus case supra, where the offer to pay the plaintiffâs costs was made âto date of this tenderâ, which was only accepted by the plaintiff therein a week later, after unnecessary and avoidable expenses had been incurred, no cut-off date is attached to the tender to pay the plaintiffâs costs in the present matter.
11. Of course this does not mean that the plaintiff has now acquired the luxury to deliberate the offer at her own leisure, meanwhile incurring avoidable expenses. What must be determined in the present situation is whether the plaintiff acted reasonably in the circumstances. To this extent it is necessary to examine the actions of the defendant.
12. It is clear from the letter from the defendantâs Bloemfontein attorneys that âarrangementsâ had to be made with the plaintiffâs attorneys that an order be taken in terms of the draft submitted. However, despite being made aware of the fact that plaintiffâs local attorney, Mr. Haddad of Elliot, Marris, Wilmans & Hay would not be in office on 13 April 2006, it appears as if, besides the fax being sent to plaintiffâs local attorneys offices on 13 April, no further effort was made concerning any arrangements with either plaintiffâs local or Cape Town attorneys in this regard on that date. Considering the very late stage at which the offer was made as well as the particular timing thereof (just before the Easter weekend), the defendant should have been well aware of the danger that certain expences relating to the period after the offer was made would be unavoidable.
13. Even if the defendantâs offer had stipulated that costs were tendered up to the date of the offer, in these circumstances I would be hesitant to disallow the costs incurred by the plaintiff after 13 April 2006.
14. The defendant took the risk upon itself, not only in the form that the offer was made, but also in spite thereof not to take any steps to ensure that it came to the notice of the plaintiffâs attorneys. In my opinion the plaintiff is entitled to her costs up to 18 April 2006, which is in any event nothing more than what was offered by the Defendant.
The following order is made:
a) Defendant is liable for payment of the plaintiffâs full (100%) proven or agreed damages.
b) Defendant is liable for payment of the plaintiffâs taxed or agreed party and party costs, on High Court scale, pertaining to the merits trial up to and including 18 April 2006.
_______
C.C
WILLIAMS
JUDGE
For Plaintiff: Adv. Nortier
Elliot, Marris, Wilmans & Hay
For Defendant: MS. Lloyd
Haarhoffs
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