General Accident Insurance Co (SA) Ltd v Summers; In re: Southern Versekerings Assosiasie BPK: General Accident Insurance Co (SA) Ltd (456/85) [1987] ZASCA 65; [1987] 2 All SA 345 (A) (2 June 1987)

General Accident Insurance Co (SA) Ltd v Summers; In re: Southern Versekerings Assosiasie BPK: General Accident Insurance Co (SA) Ltd (456/85) [1987] ZASCA 65; [1987] 2 All SA 345 (A) (2 June 1987)

The Supreme Court of Appeal held that there is no absolute rule requiring damages for loss of support or earning capacity to be discounted to the date of the delict. The court found that such an approach may be unfair to plaintiffs who only receive payment years after the delict occurred, as it would not fully compensate them for their actual losses. The court endorsed the method of awarding past losses undiscountered and discounting future losses to the date of trial, provided proper allowance is made for contingencies. This approach is consistent with actuarial practice and the aim of placing the plaintiff in the position they would have been in had the delict not occurred. The court...

Citation
[1987] ZASCA 65
Parties
Appellant: General Accident Insurance Co (SA) Ltd; Respondent: Naomi Gloria Summers; Appellant: Southern Versekerings Assosiasie BPK; Respondent: Hendrik Michiel Carstens N O; Appellant: General Accident Insurance Company of South Africa Limited; Respondent: Mhlengani Nhlumayo
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
2 June 1987
Case Number
456/85
Procedural Posture
Civil Appeal / Final Appellate Judgment
Outcome
All three appeals are dismissed, with costs awarded against the appellants. In Carstens, the order is amended to specify the commencement of interest on damages and costs.
Judges
Rabie, Jansen, Viljoen, Hoexter, Botha
Legal Topics
Assessment of Damages, Loss of Earning Capacity, Loss of Support, Discounting of Future Losses, Contingencies in Damages, Interest on Unliquidated Claims
Delict Civil Procedure Assessment of Damages Loss of Earning Capacity Loss of Support Discounting of Future Losses Contingencies in Damages Interest on Unliquidated Claims

Case Brief

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Parties

General Accident Insurance Co (SA) Ltd

Appellant

Naomi Gloria Summers

Respondent

Southern Versekerings Assosiasie BPK

Appellant

Hendrik Michiel Carstens N O

Respondent

General Accident Insurance Company of South Africa Limited

Appellant

Mhlengani Nhlumayo

Respondent

Procedural Posture

Civil Appeal / Final Appellate Judgment

Legal Issues

  1. 1 Whether damages for loss of support and earning capacity must be discounted to the date of the delict or to the date of trial.
  2. 2 Whether the trial courts erred in their method of calculating damages for past and future losses.
  3. 3 Whether awarding undiscountered damages for past losses and discounting future losses to the date of trial constitutes impermissible interest on unliquidated claims.

Ratio Decidendi

The Supreme Court of Appeal held that there is no absolute rule requiring damages for loss of support or earning capacity to be discounted to the date of the delict. The court found that such an approach may be unfair to plaintiffs who only receive payment years after the delict occurred, as it would not fully compensate them for their actual losses. The court endorsed the method of awarding past losses undiscountered and discounting future losses to the date of trial, provided proper allowance is made for contingencies. This approach is consistent with actuarial practice and the aim of placing the plaintiff in the position they would have been in had the delict not occurred. The court...

Court Disposition

All three appeals are dismissed, with costs awarded against the appellants. In Carstens, the order is amended to specify the commencement of interest on damages and costs.

Orders

  • In General Accident Insurance Co (SA) Ltd v Summers: The appeal is dismissed with costs.
  • In Southern Versekerings Assosiasie BPK v Hendrik Michiel Carstens N O: The appeal is dismissed with costs, including the costs of two advocates. The trial court's order is amended to provide that interest on the damages awarded runs from the 15th day after judgment, and interest on costs runs from the date of the...