Kanono v Road Accident Fund (7072/08) [2010] ZAFSHC 47 (13 May 2010)
- Citation
- [2010] ZAFSHC 47
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Free State High Court, Bloemfontein
- Panel
- A S Boonzaaier
- Case number
- 7072/08
More details
- Court
- Free State High Court, Bloemfontein
- Panel
- A S Boonzaaier
- Case number
- 7072/08
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court held that although the Plaintiff was successful, the amount recovered was significantly less than the amount claimed and did not present considerable factual or legal difficulty. The Plaintiff was over-optimistic in the quantum claimed. The Defendant did not act unreasonably in its conduct, and the matter was suitable for the Magistrate's Court. Therefore, it would be unfair to burden the Defendant with costs on the High Court scale. Costs were awarded on the Magistrate's Court scale.
Court disposition
Costs awarded to the Plaintiff on the Magistrate's Court scale.
Orders
- Costs to be taxed on the scale applicable in the Magistrate's Court.
02
Material facts
Parties
Tsele Reginald Kanono
Plaintiff Counsel: Adv J C CoetzerRoad Accident Fund
Defendant Counsel: Mr. PhalengAmounts and remedies
- Amount Claimed: ZAR 124,919.24
- Amount Settled (special Damages): ZAR 24,919.24
- Amount Abandoned: ZAR 100,000
03
Procedural history
Posture
Civil Trial / Costs Determination After Settlement
04
Questions and positions
Legal issues
- 01
Whether the Plaintiff is entitled to costs on the High Court scale despite the quantum being settled below the High Court jurisdiction.
- 02
Whether the Defendant's conduct justified an award of costs on a higher scale.
- 03
Whether the Plaintiff's claim was excessive or grossly disproportionate to the amount recovered.
Party arguments
- Applicant
- Plaintiff argued that the Defendant did not object to the High Court's jurisdiction prior to trial, despite having opportunities to do so, including during the R37 conference. Plaintiff further contended that the Defendant had sufficient time to settle the matter before trial, which could have prevented all costs incurred.
- Respondent
- Defendant argued that a proper investigation was necessary before settling the claim and that efforts were made to settle. Defendant highlighted that similar claims by fellow passengers were finalized with the same attorneys, and from the outset, it was clear the Plaintiff's claim would be limited.
05
Court’s reasoning
Legal principles
- 01
Jonker v Schultz 2002 (2) SA 360
The general rule that costs follow the event is subject to the court's judicial discretion in awarding costs.
- 02
Barnard v SA Mutual Fire & General Insurance Co Ltd 1979 (2) SA 1012 (SE)
A successful party is not deprived of costs merely because the claim exceeded the amount recovered, unless the claim is excessive or grossly disproportionate.
- 03
Payen Components SA Ltd v Bovic Gaskets CC 1999 (2) SA 409 (W)
The purpose of a costs award is to indemnify the successful litigant for expenses incurred due to unjust litigation, not to compensate for risk.
06
Ratio, limits and disposition
Ratio decidendi
The court held that although the Plaintiff was successful, the amount recovered was significantly less than the amount claimed and did not present considerable factual or legal difficulty. The Plaintiff was over-optimistic in the quantum claimed. The Defendant did not act unreasonably in its conduct, and the matter was suitable for the Magistrate's Court. Therefore, it would be unfair to burden the Defendant with costs on the High Court scale. Costs were awarded on the Magistrate's Court scale.
Obiter and limits
- The fact that the Defendant did not object to jurisdiction before trial does not automatically entitle the Plaintiff to costs on the High Court scale.
- The award of costs is a matter of judicial discretion and must be exercised on reasonable grounds.
Court disposition
Costs awarded to the Plaintiff on the Magistrate's Court scale.
- Costs to be taxed on the scale applicable in the Magistrate's Court.
Source and reliance status
Free State High Court, Bloemfontein
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Free State High Court, Bloemfontein
Judgment
FREE STATE HIGH COURT, BLOEMFONTEIN
REPUBLIC
OF SOUTH AFRICA
Case No. : 7072/08
In the matter between:-
TSELE REGINALD KANONO Plaintiff
and
THE ROAD ACCIDENT FUND Defendant
_____________
JUDGEMENT BY: BOONZAAIER,
AJ
HEARD ON: 5 MAY 2010
DELIVERED ON: 13 MAY 2010
Boonzaaier, AJ
[1] The Plaintiff instituted action in the High Court against the Defendant for payment in the amount of R124 919, 24 as and for damages
sustained by her as a consequence of injuries suffered in a motor vehicle accident.
[2] The Plaintiff has chosen the High Court as appropriate forum to institute proceedings.
[3] The merits and quantum of damages were settled in the amount of R24 919,24 being special damages. The Defendant tendered party and party costs on Magistrates Court scale and increased advocates fees. The whole amount of R100 000 for special damages was abandoned by Plaintiff.
[4] Counsel for Plaintiff argued that the Defendant never objected to the High Court’s jurisdiction before trial even when Defendant had ample opportunity to do so during the R37 conference.
[5] It was also argued that Defendant had sufficient time to settle the matter before the trial date and all the costs could have been
prevented.
[6] Counsel for Defendant argued that proper investigation had to be done by Defendant to consider the claim and that Defendant had indeed tried to settle the claim. In fact, fellow passengers’ claims were finalised with the same firm of attorneys who instituted action on behalf of the Plaintiff.
From the beginning it was clear that Plaintiff’s claim would be
limited.
[7] Even the general rule, viz that costs follows the event as argued by Adv Coetzer, is subject to the overriding principle that the court has a judicial discretion in awarding costs as it was indicated in the case of JONKER v SCHULTZ 2002 (2) SA 360.
[8] The fact that the Plaintiff claimed more than she succeeded in recovering is indeed not sufficient ground for refusing her costs or to justify the court in depriving her of costs. The claim must be excessive, or grossly disproportionate to the amount found to be due, before that would be done.
[9] The injuries were however described in the indictment as
“plaintiff suffered minor bodily injuries to the head as well as fairly severe injuries to the chest which include laceration of the left side of the face and fracture of the left ‘scapula’”.
[10] The purpose of an award of cost to a successful party/litigant is to indemnify him for the expense to which he has been put by having unjustly been compelled to initiate or defend litigation, as the case may be.
[11] The cost order is not intended to be compensation for a risk to which a litigant has been exposed, but a refund of expenses actually incurred PAYEN COMPONENTS SA LTD v BOVIC GASKETS CC 1999 (2) SA 409 (W) 417. The award of costs is a matter wholly within the discretion of the court, but this is a judicial discretion and must be exercise on grounds upon which a reasonable person could have come to the conclusion arrived at.
[12] After due consideration of the facts I also came to the conclusion that this matter did not “present considerable difficulties in fact or law” as was indicated in the BARNARD v SA MUTUAL FIRE & GENERAL INSURANCE CO LTD 1979 (2) SA 1012 ( SE) case. The Plaintiff had been over optimistic in regard to the amount she claimed as damages.
[13] Having regard to these factors and bearing in mind the principles I have set out above and the submissions been made by counsel it would be unfair to burden the Defendant with costs on the High Court scale.
[14] Order
The costs to be taxed on scale applicable in the Magistrate’s Court.
____
A. S. BOONZAAIER, AJ
On behalf of plaintiff: Adv J C Coetzer
Instructed by:
Honey & Partners
BLOEMFONTEIN
On behalf of defendant: Mr. Phaleng
A. P. Ledwaba Incorporated:
c/o Israel & Sackstein
(Matsepes)
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