Benede Sand Boerdery (Edms) Bpk. v Munisipaliteit van Virginia (533/1990) [1992] ZASCA 89; 1992 (4) SA 176 (AD); [1992] 2 All SA 264 (A) (27 May 1992)

Benede Sand Boerdery (Edms) Bpk. v Munisipaliteit van Virginia (533/1990) [1992] ZASCA 89; 1992 (4) SA 176 (AD); [1992] 2 All SA 264 (A) (27 May 1992)

The Supreme Court of Appeal held that the diminution in value of the appellant's property resulting from the existence of sewage works on adjacent land does not constitute actual financial loss or inconvenience caused by the expropriation of the servitude. The court found no direct causal link between the expropriation and the alleged loss; the servitude's expropriation was, at most, a causa sine qua non for the loss, which is insufficient for compensation under the Expropriation Act. Only the loss directly attributable to the expropriation of the servitude itself is compensable. The court affirmed the approach that indirect damage, such as loss caused by works on neighbouring land, must...

Citation
[1992] ZASCA 89
Parties
Appellant: Benede Sand Boerdery (Edms) Beperk; Respondent: Munisipaliteit van Virginia
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
27 May 1992
Case Number
533/1990
Procedural Posture
Civil Appeal / Appeal From Judgment of the Orange Free State Provincial Division
Outcome
Appeal dismissed with costs.
Judges
Botha, EM Grosskopf, Van den Heever
Legal Topics
Expropriation, Compensation for Expropriation, Causation, Servitude, Indirect Damage
Land and Property Civil Procedure Expropriation Compensation for Expropriation Causation Servitude Indirect Damage

Case Brief

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Parties

Benede Sand Boerdery (Edms) Beperk

Appellant

Munisipaliteit van Virginia

Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment of the Orange Free State Provincial Division

Legal Issues

  1. 1 Whether the diminution in value of the appellant's property caused by the existence of sewage works on adjacent land constitutes actual financial loss or inconvenience caused by the expropriation.
  2. 2 Whether compensation for expropriation should include loss resulting from the sewage works on neighbouring property not owned by the appellant.

Ratio Decidendi

The Supreme Court of Appeal held that the diminution in value of the appellant's property resulting from the existence of sewage works on adjacent land does not constitute actual financial loss or inconvenience caused by the expropriation of the servitude. The court found no direct causal link between the expropriation and the alleged loss; the servitude's expropriation was, at most, a causa sine qua non for the loss, which is insufficient for compensation under the Expropriation Act. Only the loss directly attributable to the expropriation of the servitude itself is compensable. The court affirmed the approach that indirect damage, such as loss caused by works on neighbouring land, must...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.
  • Compensation is confirmed at R48,000.00.