Fourway Haulage SA (Pty) Ltd v SA National Roads Agency Ltd (653/07) [2008] ZASCA 134; 2009 (2) SA 150 (SCA) ; [2009] 1 All SA 525 (SCA) (26 November 2008)

Fourway Haulage SA (Pty) Ltd v SA National Roads Agency Ltd (653/07) [2008] ZASCA 134; 2009 (2) SA 150 (SCA) ; [2009] 1 All SA 525 (SCA) (26 November 2008)

The Supreme Court of Appeal held that the Agency's claim was for pure economic loss, as it did not arise from physical damage to property but from the negligent act itself. The court found that, in the context of pure economic loss, wrongfulness depends on the existence of a legal duty, which is determined by policy considerations. The court identified that the Agency was a single, identifiable plaintiff suffering a finite loss, and was 'vulnerable' as it could not protect itself by contract against such loss. Imposing liability would not create indeterminate liability nor place an unjustified burden on Fourway, as its driver was already obliged to exercise reasonable care. The court...

Citation
[2008] ZASCA 134
Parties
Appellant: Fourway Haulage SA (Pty) Ltd; Respondent: SA National Roads Agency Ltd
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
26 November 2008
Case Number
653/07
Procedural Posture
Civil Appeal / Appeal From High Court, Pretoria; Liability Phase Only
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Scott, Farlam, Brand, Lewis, Jafta
Legal Topics
Pure Economic Loss, Wrongfulness, Remoteness of Damage, Policy Considerations, Negligence, Legal Causation
Delict Pure Economic Loss Wrongfulness Remoteness of Damage Policy Considerations Negligence Legal Causation

Case Brief

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Parties

Fourway Haulage SA (Pty) Ltd

Appellant

SA National Roads Agency Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court, Pretoria; Liability Phase Only

Legal Issues

  1. 1 Whether the Agency's claim constitutes pure economic loss.
  2. 2 Whether the negligent conduct of Fourway's employee was wrongful and attracted liability for pure economic loss.
  3. 3 Whether the damages claimed by the Agency are too remote to be recoverable.

Ratio Decidendi

The Supreme Court of Appeal held that the Agency's claim was for pure economic loss, as it did not arise from physical damage to property but from the negligent act itself. The court found that, in the context of pure economic loss, wrongfulness depends on the existence of a legal duty, which is determined by policy considerations. The court identified that the Agency was a single, identifiable plaintiff suffering a finite loss, and was 'vulnerable' as it could not protect itself by contract against such loss. Imposing liability would not create indeterminate liability nor place an unjustified burden on Fourway, as its driver was already obliged to exercise reasonable care. The court...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs of two counsel.