D.C.A obo N.M and Another v Member of the Executive Council for the Department of Health, Northern Cape Province (2250/2016) [2023] ZANCHC 41 (11 August 2023)

D.C.A obo N.M and Another v Member of the Executive Council for the Department of Health, Northern Cape Province (2250/2016) [2023] ZANCHC 41 (11 August 2023)

The court found that the debt in question consists mainly of the present value of a loss which will occur in the future, and that interest should commence from the date the quantum was determined by agreement, which was made an order of court on 15 March 2023. The defendant's argument that interest is only payable upon default was rejected, as the statutory framework under section 2A of the Prescribed Rate of Interest Act provides for interest to run from the date of determination of the quantum, subject to the court's discretion. The court exercised its discretion under section 2A(5) of the PRIA, finding no substantiated reason to depart from the statutory rate, and held that it would be...

Citation
[2023] ZANCHC 41
Parties
Plaintiff: D.C.A obo N.M; Plaintiff: S.J.; Defendant: Member of the Executive Council for the Department of Health, Northern Cape Province
Court
Northern Cape High Court, Kimberley
Jurisdiction
South Africa
Judgment Date
11 August 2023
Case Number
2250/2016
Procedural Posture
Civil Trial / Post Settlement Application for Interest and Costs
Outcome
The defendant is ordered to pay interest on the sum of R20 million from 15 March 2023 to date of final payment at the rate of 10.75% per annum, and to pay the plaintiff's costs of adjudication of the issue of interest on a party and party scale, including costs for two counsel. The application to strike out is...
Judges
Phatshoane
Legal Topics
Prescribed Rate of Interest Act, State Liability Act, Unliquidated Damages, Mora Interest, Medical Negligence
Civil Procedure Delict Prescribed Rate of Interest Act State Liability Act Unliquidated Damages Mora Interest Medical Negligence

Case Brief

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Parties

D.C.A obo N.M

Plaintiff

S.J.

Plaintiff

Member of the Executive Council for the Department of Health, Northern Cape Province

Defendant

Procedural Posture

Civil Trial / Post Settlement Application for Interest and Costs

Legal Issues

  1. 1 Whether the defendant is liable to pay interest a tempore morae on the capital amount of R20 million from 15 March 2023 to 31 October 2023.
  2. 2 Whether interest is only payable in the event of default on instalment payments.
  3. 3 Whether the plaintiff waived her right to claim interest by agreeing to payment in instalments.

Ratio Decidendi

The court found that the debt in question consists mainly of the present value of a loss which will occur in the future, and that interest should commence from the date the quantum was determined by agreement, which was made an order of court on 15 March 2023. The defendant's argument that interest is only payable upon default was rejected, as the statutory framework under section 2A of the Prescribed Rate of Interest Act provides for interest to run from the date of determination of the quantum, subject to the court's discretion. The court exercised its discretion under section 2A(5) of the PRIA, finding no substantiated reason to depart from the statutory rate, and held that it would be...

Court Disposition

The defendant is ordered to pay interest on the sum of R20 million from 15 March 2023 to date of final payment at the rate of 10.75% per annum, and to pay the plaintiff's costs of adjudication of the issue of interest on a party and party scale, including costs for two counsel. The application to strike out is...

Orders

  • The defendant’s application to strike out is dismissed with no order as to costs.
  • The defendant is to pay interest on the sum of R20 000 000 (twenty Million rand) from 15 March 2023 to date of final payment at the rate of 10.75% per annum.