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South Africa Judgment

North Gauteng High Court, Pretoria

Groining obo K v RAF (49021/2013) [2018] ZAGPPHC 14 (5 March 2018)

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Source document

01

Holding and result

The court found that, based on the expert evidence and family educational history, it was probable that the plaintiff's son would have attained at least a grade 12 education and had a realistic possibility of further qualification. The actuarial calculations presented by both parties were similar, with minor differences arising from the application of contingencies. The court considered the age of the plaintiff's son and determined that while the contingencies applied by both parties were low, adjusting them would not materially affect the outcome. The court exercised its discretion and accepted the plaintiff's calculation, awarding damages accordingly.

Court disposition

Judgment for the plaintiff. The defendant is ordered to pay the plaintiff damages for loss of earnings, interest, and costs.

Orders

  • The Defendant is ordered to pay the Plaintiff the amount of R3 175 508.00 on or before 20 March 2018.
  • The Defendant is ordered to pay interest on the aforementioned sum from 21 March 2018 at the rate of 10.5% per annum to date of payment.
  • The aforementioned amount shall be paid into the specified trust account of NS Swan Attorneys.
  • The Defendant is ordered to pay the Plaintiff's taxed or agreed party and party costs, including all costs not previously recovered and the costs of senior-junior counsel.
  • The Plaintiff's attorney is ordered to pay the net proceeds, after deduction of taxed attorney and own client costs in terms of the Contingency Fees Act 1997, into the FT K Trust.

02

Material facts

Parties

Groining, A obo FT K

Plaintiff Counsel: Adv AA Lubbe

Road Accident Fund

Defendant Counsel: Adv S Mathabathe

Amounts and remedies

  • Damages Awarded for Loss of Earnings: ZAR 3,175,508
  • Interest Rate Per Annum: ZAR 10.5

03

Procedural history

  1. Posture

    Civil Trial / Quantum Determination

04

Questions and positions

Legal issues

Party arguments

Applicant
The plaintiff argued that her son, but for the injuries sustained in the collision, would have completed grade 12 and had a realistic possibility of obtaining a post-grade 12 qualification. The expert reports and family educational history support this. The plaintiff presented actuarial calculations based on a 15% pre-morbid and 35% post-morbid contingency deduction, resulting in a higher quantum. She contended that the defendant's contingency deductions were not justified and that the calculation prepared on her behalf should be accepted.
Respondent
The defendant accepted the seriousness of the injuries and the sequelae but disputed the likelihood of the plaintiff's son attaining education beyond grade 12. The defendant's actuarial calculation applied a 20% contingency to both pre-morbid and post-morbid earnings, resulting in a slightly lower quantum. The defendant argued that the contingencies should be increased due to the plaintiff's son's age and vulnerability, but ultimately agreed that the difference in calculation was not material.

05

Court’s reasoning

  1. 01

    Southern Insurance Association Ltd v Bailey NO 1984 (1) SA 98 (A) at 98 E-F

    The trial judge retains discretion to award what is considered just, even when actuarial methods are used. Contingencies may be discounted, and their nature is not always adverse.

  2. 02

    Goodall v President Insurance Co. Ltd 1978 (1) SA 389 (WLD)

    The age of the injured party is a significant factor in determining appropriate contingencies for future loss of earnings.

06

Ratio, limits and disposition

Ratio decidendi

The court found that, based on the expert evidence and family educational history, it was probable that the plaintiff's son would have attained at least a grade 12 education and had a realistic possibility of further qualification. The actuarial calculations presented by both parties were similar, with minor differences arising from the application of contingencies. The court considered the age of the plaintiff's son and determined that while the contingencies applied by both parties were low, adjusting them would not materially affect the outcome. The court exercised its discretion and accepted the plaintiff's calculation, awarding damages accordingly.

Obiter and limits

  • Improved access to education for children from modest backgrounds increases the likelihood of attaining higher qualifications.
  • The difference in contingency deductions between the parties was not material to the final award.

Court disposition

Judgment for the plaintiff. The defendant is ordered to pay the plaintiff damages for loss of earnings, interest, and costs.

  • The Defendant is ordered to pay the Plaintiff the amount of R3 175 508.00 on or before 20 March 2018.
  • The Defendant is ordered to pay interest on the aforementioned sum from 21 March 2018 at the rate of 10.5% per annum to date of payment.
  • The aforementioned amount shall be paid into the specified trust account of NS Swan Attorneys.
  • The Defendant is ordered to pay the Plaintiff's taxed or agreed party and party costs, including all costs not previously recovered and the costs of senior-junior counsel.
  • The Plaintiff's attorney is ordered to pay the net proceeds, after deduction of taxed attorney and own client costs in terms of the Contingency Fees Act 1997, into the FT K Trust.

Source and reliance status

North Gauteng High Court, Pretoria

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Judgment reading view

Judgment text

The complete available source text.

Source document

North Gauteng High Court, Pretoria

Judgment

[2018] ZAGPPHC 14

SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy

IN THE HIGH COURT OF SOUTH AFRICA

(GAUTENG DIVISION, PRETORIA)

(1)

NOT REPORTABLE

(2)

NOT OF INTEREST TO OTHER JUDGES

(3)

REVISED

Case No.49021/2013

5/3/2018

In the matter between:

GROINING, A obo FT

K

PLAINTIFF

And

ROAD ACCIDENT

FUND

DEFENDANT

JUDGMENT

MILLAR. AJ

1. The plaintiff brought an action for damages on behalf of her son France T K “T") for damages arising out of injuries suffered in a motor vehicle collision. The action was brought against the defendant the statutory body responsible for such claims.

2. It is common cause that all issues between the parties, save the quantum of loss of earnings and the costs of this hearing, have already been resolved between the parties. No evidence was led, and the issue was argued, it being agreed between the parties that the expert reports filed by the respective parties were admitted into evidence and I could have regard thereto as though those experts had testified. The minutes prepared by the experts and in particular between the educational psychologists and industrial psychologists were similarly admitted.

3. The injured, T was born on 28 January 2006 and was 6 years old at the time of the collision and of his injuries on 25 November 2011. The injuries suffered were extensive and included an open depressed skull

fracture, a fracture of the left femur, lacerations on the right foot, left knee, left arm, chin and forehead. He also suffered

conjunctiva! hemorrhages in both eyes, a contusion of the right lung and abrasions to his abdomen.

4. The seriousness of the injuries is not in dispute and neither are their

sequelae. T would but for the injuries have completed a grade 12 education, a matric, and had the potential to obtain a further

qualification but will now only be able to complete the equivalent of a grade 8 level of education at a special school. He has for all intents and purposes been rendered virtually unemployable on the open labour market.

5. What is in dispute is whether he would, had he not been injured been educated

beyond grade 12 and if so to what level. The industrial psychologists agreed on a grade 12 pre­ morbid career path and the earnings commensurate with this as derived from the Patterson scales. They also agreed that there was a "realistic possibility" stated to be 50% of him obtaining a further post grade 12 qualification. In regard to his post-morbid earning potential they agreed that he was a vulnerable individual who was best suited to unskilled labour. The quantification of his post-morbid earnings was recommended in accordance with the Quantum Yearbook 2015, by Koch and was stated to be from "R7 300- R18 600 - R53 500 per annum". Put differently this would be an income of R608 per month at the lower end of the spectrum to R 4 458 per month at the upper end of the spectrum.

6. The plaintiff has a post grade qualification and the two siblings of T have both attained a grade 12 level of education and it seems probable that had he not been injured he would have attained the grade 12 and possibly progressed further. I am fortified in my view having regard to his current age and the improved access to further education for children from modest backgrounds, that the possibility that he would have progressed beyond grade 12 is a realistic one.

7. The parties presented actuarial calculations based on the scenarios

postulated by the industrial psychologists. The calculation presented by the plaintiff for the post grade 12 qualification scenario amounts to R3 175 508,00 and that presented for the defendant to R3 124 989,00. The difference arises from the application contingencies.

8. The principle to be applied is that set out in Southern Insurance

Association Ltd v Bailey NO[1] -

"Even where method of actuarial calculations is adopted the trial Judge still has a discretion to award what he considers right - Can make a discount for contingencies - Nature of contingencies that can be taken into account - Such contingencies not always adverse"

9. Another factor to be considered and which weighs heavily in this particular

matter, is the age of the T[2].

10. The plaintiff's calculation provides for the deduction of a 15% pre-morbid contingency and 35% post morbid contingency whereas the defendant has applied 20% to both. The difference in calculation is not material.

11. While given the age of T, I am of the view that the pre-morbid contingencies deducted by both the plaintiff and defendant appear low[3], I am mindful of the fact that similarly the contingencies in respect of the post-morbid scenario are also too low.

12. Adjustment to the respective contingencies by this court, by increasing the pre and

post morbid contingencies is likely to yield substantially the same result and, in the circumstances, there is no need for me to

interfere with the calculations. I am however inclined to accept the calculation prepared on behalf of the plaintiff for the reasons set out above.

13. In the circumstances, I make the following order:

13.1 The Defendant is ordered pay to the Plaintiff the amount of R3 175 508.00 (Three million one hundred and

seventy-five thousand five hundred and eight rand only) on or before the 20th day of March 2018.

13.2 The Defendant is ordered to pay interest on the aforementioned sum from the 21st March 2018 at the rate of 10.5% per annum to date of payment.

13.3 The aforementioned amount shall be paid into the following bank account:

Name of Account Holder: NS Swan Attorneys Trust Account Bank Name: Nedbank

Branch Code: 160345 (Gezina) Trust Account Number: [….]

13.4 The Defendant is ordered to pay the Plaintiff's taxed or agreed party and party costs, which costs are to include all costs not previously recovered in terms of an order of this court together with the costs of senior-junior counsel.

13.5 The Plaintiff's attorney is ordered to pay the net proceeds, after the deduction of taxed attorney and own client costs in terms of the Contingency Fees Act 1997 into the FT K Trust.

A MILLAR

ACTING JUDGE OF THE HIGH COURT

GAUTENG DIVISION, PRETORIA

HEARD ON:

16 FEBRUARY 2018

JUDGMENT DELIVERED ON: 5 MARCH 2018

COUNSEL FOR THE PLAINTIFF:

ADV AA LUBBE

INSTRUCTED BY:

NS SWAN ATTORNEYS

REFERENCE:

MR N SWAN

COUNSEL FOR THE DEFENDANT: ADV S MATHABATHE

INSTRUCTED BY:

TAU PHALANE INC

REFERENCE:

MR

K RACHUENE

[1] 1984 (1) SA 98 (A) at 98 E-F

[2] Goodall v President Insurance Co. Ltd 1978 (1) SA 389 (WLD)

[3] ibid

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Southern Insurance Association Ltd v Bailey NO 1984 (1) SA 98 (A) at 98 E-F

Case cited

Goodall v President Insurance Co. Ltd 1978 (1) SA 389 (WLD)

Case cited

Contingency Fees Act 1997

Legislation

Legislation referenced in the available case record.

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