Coetzee v Road Accident Fund (71483/2016) [2020] ZAGPPHC 179 (25 May 2020)
- Citation
- [2020] ZAGPPHC 179
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- North Gauteng High Court, Pretoria
- Panel
- Makhoba
- Case number
- 71483/2016
More details
- Court
- North Gauteng High Court, Pretoria
- Panel
- Makhoba
- Case number
- 71483/2016
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the plaintiff's claim for R500,000 in general damages was not justified given the nature of the injury and the plaintiff's ongoing recovery. The defendant's submission for a lower award was accepted, and R160,000 was deemed reasonable. On loss of earnings, the court accepted the plaintiff's submissions regarding the impact on earning capacity, noting that the plaintiff remained employable and continued working in another capacity. The court declined to award punitive costs against the plaintiff, considering the logistical difficulties caused by the Covid-19 pandemic and the plaintiff's efforts to bring the matter to finality without oral evidence. The total award was apportioned to reflect the merits settlement, resulting in a final amount of R529,469 plus costs of suit.
Court disposition
Judgment for the plaintiff; damages and costs awarded subject to apportionment.
Orders
- General damages awarded in the amount of R160,000.
- Loss of earnings awarded in the amount of R428,298.
- Total award before apportionment: R588,298.
- Less 10% apportionment on merits: R58,829.80.
- Total amount payable to plaintiff: R529,469.
- Costs of suit awarded to plaintiff.
02
Material facts
Parties
Lloyd Kenneth Coetzee
PlaintiffRoad Accident Fund
DefendantAmounts and remedies
- General Damages: ZAR 160,000
- Loss of Earnings: ZAR 428,298
- Total Award Before Apportionment: ZAR 588,298
- Merits Apportionment (10%): ZAR 58,829.8
- Total Amount Payable: ZAR 529,469
03
Procedural history
Posture
Civil Trial / Quantum Determination
04
Questions and positions
Legal issues
- 01
What is the appropriate quantum for general damages arising from the plaintiff's injuries sustained in a motor vehicle accident.
- 02
What is the correct amount to award for loss of earnings given the plaintiff's post-injury employability.
- 03
Should punitive costs be awarded against the defendant for its conduct regarding the general damages claim.
Party arguments
- Applicant
- Plaintiff argued for a higher award of general damages, submitting that the nature and impact of his injuries justified a claim of R500,000. He contended that the defendant's approach to general damages was unreasonable and requested the court to penalise the defendant for arguing for a lower amount not supported by case law. On loss of earnings, plaintiff's counsel isolated compromised elements of earning capacity and placed a monetary value on them, asserting that the plaintiff's ability to earn had been diminished.
- Respondent
- Defendant submitted that general damages should be limited to R200,000, referencing previous awards for similar ankle injuries and arguing that the plaintiff was employable and healing. Defendant further contended that the plaintiff failed to amend pleadings to reflect the increased claim and that the submissions on general damages were unreasonable, warranting a punitive costs order against the plaintiff.
05
Court’s reasoning
Legal principles
- 01
Road Accident Fund v Marunga 2003 (5)
There is no hard and fast rule requiring courts to consider past awards in determining general damages, but decided cases may provide guidance.
- 02
Sandler v Wholesale Coal supplier Ltd 1941 AD
The amount awarded as compensation depends on the judge's view of what is fair in all circumstances.
- 03
Southern Insurance Association v Bailey NO 1984 (1) SA 98 (A)
Actuarial calculations are useful but not binding; the trial judge has discretion to award what is considered right.
- 04
Road Accident Fund v Guedes (611/04) [2006] ZASCA, [2006] SCA 18 (RSA)
The calculation of future loss, such as earning capacity, is speculative and courts may only estimate present value, often roughly.
- 05
Rudman v Road Accident Fund 2003 (2) SA 234 (SCA)
Where a person's earning capacity is compromised, that incapacity constitutes a loss if it diminishes his estate, and he is entitled to compensation to the extent his patrimony is diminished.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the plaintiff's claim for R500,000 in general damages was not justified given the nature of the injury and the plaintiff's ongoing recovery. The defendant's submission for a lower award was accepted, and R160,000 was deemed reasonable. On loss of earnings, the court accepted the plaintiff's submissions regarding the impact on earning capacity, noting that the plaintiff remained employable and continued working in another capacity. The court declined to award punitive costs against the plaintiff, considering the logistical difficulties caused by the Covid-19 pandemic and the plaintiff's efforts to bring the matter to finality without oral evidence. The total award was apportioned to reflect the merits settlement, resulting in a final amount of R529,469 plus costs of suit.
Obiter and limits
- The court acknowledged the challenges posed by the Covid-19 pandemic, which necessitated the hearing via video link and the absence of oral evidence.
- The judge noted that actuarial calculations are a useful tool but should not bind the court, which retains discretion in determining quantum.
- The plaintiff should not be penalised with a cost order due to the circumstances under which the matter was finalised.
Court disposition
Judgment for the plaintiff; damages and costs awarded subject to apportionment.
- General damages awarded in the amount of R160,000.
- Loss of earnings awarded in the amount of R428,298.
- Total award before apportionment: R588,298.
- Less 10% apportionment on merits: R58,829.80.
- Total amount payable to plaintiff: R529,469.
- Costs of suit awarded to plaintiff.
Source and reliance status
North Gauteng High Court, Pretoria
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.
North Gauteng High Court, Pretoria
Judgment
IN THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION, PRETORIA
Case number: 71483/2016
25/5/2020
In the matter between
LLOYD KENNETH
COETZEE
PLAINTIFF
versus
ROAD
ACCIDENT FUND
DEFENDANT
JUDGMENT
MAKHOBA J
1. The plaintiff instituted an action against the defendant for damages suffered as the result of injuries sustained in a motor
vehicle accident that occurred on the 26th April 2015. Plaintiff was hit by a motor vehicle whilst walking on the Thaba-Nchu road in Bloemfontein.
2. The merits of the matter have been settled between the parties 90% in favour of the Plaintiff. General damages were referred to HPCSA (Health Professionals council of South Africa) for determination and it was determined that the plaintiff does qualify for General damages.
3. The matter was heard via video link. Both parties agreed not to lead oral evidence but made submissions to the court and filed heads of argument. Only Plaintiff filed expert reports defendant did not file any reports.
4. The only dispute between the parties is general damages, loss of earnings and defendant submits to this court that the court must award punitive costs against the defendant because of the increased claim on general damages without amending the pleading. Furthermore, counsel for the plaintiff asks that the court to penalise the defendant for arguing for R500 000 award in general damages knowing that it is not justified by the case law.
5. Both parties in their heads of arguments submitted and referred to case law in supporting their views on loss of earnings on behalf of defendant. It is submitted that the defendant is employable and therefore the court should not award a higher amount. In contrast Counsel for the defendant dealt in detail why he is rejecting the figures submitted on behalf of the defendant on both general damages and loss of earnings.
6. In Road Accident Fund v Marunga 2003 (5) the court said that there was no hard and fast rule of general application requiring the court or a court of appeal to consider past awards. The court further said that awards on decided cases might be of some use and guidance. In Sandler v Wholesale Coal supplier Ltd 1941 AD, the court held that the amount to be awarded as compensation and the figure arrived at depends on the Judge’s view of what is fair in all circumstances.
7. Counsel for the defendant in his heads of argument refers the court to a number of decided cases wherein ankle injury was specifically dealt with and submitted that in this matter the court should consider awarding general damages to the amount of R200 000 based on previous awards and facts of this case.
8. I am persuaded by Counsel for the defendant in his submissions. I have read the cases he referred me to and I without any doubt agree that the claim of R500 000 for general damages is not justified taking into account the nature of the injury and the fact that he is healing. The award of R160 000 (hundred and sixty thousand Rands only), in my view, is reasonable under the circumstances.
9. The locus classicus with regard to contingencies is the judgment of Nicholas JA at 116- 117 of the decision in Southern Insurance
Association v Bailey NO 1984 (1) SA 98 (A) the “Where the method of actuarial calculation is adopted, it does not mean that the trial Judge is “tied” down by inexorable actuarial calculations. He has a large discretion to award what he considers right”. Zulman JA, with reference to various authorities including Southern Assurance decision, said the following in Road Accident Fund v Guedes (611/04) [ 2006] ZASCA, [ 2006] SCA 18 (RSA) “ The calculation of the quantum of a future amount, such as loss of earning capacity, is not as I have already indicated, a matter of exact mathematical calculation. By its nature, such an enquiry is speculative and a court can therefore only make an estimate of the present value of the loss that is often a very rough estimate (see, for example, southern insurance Association Ltd v Bailey NO) courts have adopted the approach that, in order to assist in such calculation, an actuarial computation is a useful basis for establishing the quantum of damages”. Furthermore, in Rudman v Road Accident Fund 2003 (2) SA 234 (SCA) the court held that where a person’s earning capacity was compromised that incapacity constituted a loss if such loss diminished his estate and he is entitled to be compensated to the extent that his patrimony was diminished.
10. With respect, Counsel for the Plaintiff in his heads of argument in dealing with loss of earnings, he failed to consider the
plaintiff’s earning capacity as a whole but instead isolated plaintiff’s elements of the ability to earn a living that had been compromised and then placed a monetary value on them. The plaintiff continued to work after the injury in another capacity,
furthermore, he has a degree in Social Sciences and he is employable according to his own experts. On costs on behalf of the defendant, it is submitted that the plaintiff failed to amend his pleadings in line with the amount claimed on the papers before court. Furthermore, the argument and submissions on general damages was unreasonable and the court must make appropriate cost order. I agree with this submission however, it must also be taken into account the conditions and the manner in which the matter was brought to me due to the difficult logistics caused by the Covid-19 pandemic the plaintiff had to forgo the calling of witnesses in order to bring this matter to finality. For that reason, it is my view that Plaintiff should not be punished with a cost order.
11. In regard to the claim on loss of earnings I am inclined to accept the submissions by counsel for the plaintiff on paragraph 8.4 of his heads of arguments.
12. In the premises, the following order is made in favour of the plaintiff.
Order:
12.1 General damages R160 000 (Hundred and sixty thousand)
12.2 Loss of earnings: R428
298
Award:
R 588 298
Less Merits apportionment 10% R588 298
R58829.8
Total R
529 469
12.3 Costs of suit.
D MAKHOBA
JUDGE OF THE HIGH COURT OF SOUTH AFRICA,
GAUTENG DIVISION
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