General Accident Versekeringsmaatskappy Auid-Afrika v Bailey NO (257/87) [1988] ZASCA 73; [1988] 4 All SA 614 (AD) (1 June 1988)

General Accident Versekeringsmaatskappy Auid-Afrika v Bailey NO (257/87) [1988] ZASCA 73; [1988] 4 All SA 614 (AD) (1 June 1988)

The Supreme Court of Appeal held that when the quantum of damages awarded by a trial court is varied on appeal, the appellate court's substituted judgment is not a 'new' judgment but is deemed to be the judgment the trial court should have given. Accordingly, the judgment debt is payable from the date of the trial court's judgment, and interest runs from that date, regardless of whether the amount is increased or decreased on appeal. This principle is consistent with the purpose of interest, which is to compensate the creditor for being deprived of money due to them. The court rejected the appellant's argument that interest should only run from the date of the appellate judgment, finding...

Citation
[1988] ZASCA 73
Parties
Appellant: General Accident Versekeringsmaatskappy Suid-Afrika Beperk; Respondent: Pieter Bailey NO
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
1 June 1988
Case Number
257/87
Procedural Posture
Civil Appeal / Final Appellate Judgment
Outcome
The appeal is dismissed with costs. The order of the court a quo is amended to provide for interest a tempore morae on the amount of R18,948.96 from 7 August 1986 until date of payment at 11% per annum.
Judges
Rabie, Jansen, Van Heerden, Smalberger, Kumleben
Legal Topics
Prescribed Rate of Interest Act, Judgment Interest, Quantum of Damages, Motor Vehicle Insurance, Appeal Procedure
Civil Procedure Banking and Finance Prescribed Rate of Interest Act Judgment Interest Quantum of Damages Motor Vehicle Insurance Appeal Procedure

Case Brief

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Parties

General Accident Versekeringsmaatskappy Suid-Afrika Beperk

Appellant

Pieter Bailey NO

Respondent

Procedural Posture

Civil Appeal / Final Appellate Judgment

Legal Issues

  1. 1 Whether interest on a judgment debt, where the quantum is varied on appeal, runs from the date of the trial court's judgment or from the date of the appellate court's judgment.
  2. 2 Whether the substituted judgment on appeal constitutes a 'new' judgment for purposes of interest calculation.
  3. 3 Whether the respondent is entitled to interest from the date of demand or only from the date of the judgment.

Ratio Decidendi

The Supreme Court of Appeal held that when the quantum of damages awarded by a trial court is varied on appeal, the appellate court's substituted judgment is not a 'new' judgment but is deemed to be the judgment the trial court should have given. Accordingly, the judgment debt is payable from the date of the trial court's judgment, and interest runs from that date, regardless of whether the amount is increased or decreased on appeal. This principle is consistent with the purpose of interest, which is to compensate the creditor for being deprived of money due to them. The court rejected the appellant's argument that interest should only run from the date of the appellate judgment, finding...

Court Disposition

The appeal is dismissed with costs. The order of the court a quo is amended to provide for interest a tempore morae on the amount of R18,948.96 from 7 August 1986 until date of payment at 11% per annum.

Orders

  • The appeal is dismissed with costs.
  • Paragraph (2) of the order of the court a quo is amended to read: 'Interest a tempore morae on the amount of R18,948.96 from 7 August 1986 until date of payment at 11% per annum.'