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South Africa Judgment

Free State High Court, Bloemfontein

Litsoane v Road Accident Fund and Another (4962/2019) [2023] ZAFSHC 359 (12 September 2023)

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01

Holding and result

The court found that the order granted on 10 November 2022 did not reflect the correct banking details as stipulated in the settlement agreement between the applicant and the first respondent. The error was patent and obvious, as the order nominated the banking details of the 2nd respondent rather than those of Motaung Attorneys, who were the attorneys of record at the time of settlement and whose account was specified in the agreement. The court rejected the points in limine raised by the 2nd respondent as irrelevant to the central issue of whether the order contained a patent error. The court held that the order must be amended under Rule 42(1)(b) to reflect the correct banking details, ensuring that payment is made in accordance with the original settlement agreement.

Court disposition

Application granted. The court order of 10 November 2022 is amended to reflect the correct banking details as per the settlement agreement. The 2nd respondent is ordered to pay the costs of the application.

Orders

  • Order 2.6 of the order granted on 10 November 2022, Case Number 4962/2019, is amended to nominate the banking details of Motaung Attorneys Trust for payment of the settlement amount.
  • The 2nd respondent is ordered to pay the costs of this application.

02

Material facts

Parties

Germina Litsoane

Applicant Counsel: Motaung Attorneys

Road Accident Fund

Respondent Counsel: Adv. T Mpahlwa

Dlabantu and Associates Incorporated

Respondent Counsel: Adv. T Mpahlwa

Amounts and remedies

  • Branch Code: 230,139

03

Procedural history

  1. Posture

    Urgent Application / Application to Vary Previous Court Order Under Rule 42(1)(b)

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contends that the court order of 10 November 2022 incorrectly reflects the banking details for payment of the settlement amount, nominating the account of the 2nd respondent instead of Motaung Attorneys as stipulated in the settlement agreement. The applicant seeks amendment of the order under Rule 42(1)(b) to correct this patent error, arguing that she remains liable for contingency fees and expenses owed to Motaung Attorneys, who facilitated the settlement. The applicant asserts that the error is obvious and should be rectified to ensure payment is made to the correct account.
Respondent
The 2nd respondent opposes the application, raising points in limine regarding non-joinder of himself in his personal capacity and non-joinder of Motaung Attorneys. He contends that there is no obvious error in the court order and that he should be afforded the opportunity to respond in his personal capacity as he is implicated professionally. The respondent maintains that the order should not be amended as requested.

05

Court’s reasoning

  1. 01

    Rule 42(1)(b) Uniform Rules of Court

    A court may amend its order under Rule 42(1)(b) where there is a patent error in the order.

  2. 02

    Settlement agreement as annexed to founding affidavit

    A court order must accurately reflect the terms of the underlying settlement agreement made an order of court.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the order granted on 10 November 2022 did not reflect the correct banking details as stipulated in the settlement agreement between the applicant and the first respondent. The error was patent and obvious, as the order nominated the banking details of the 2nd respondent rather than those of Motaung Attorneys, who were the attorneys of record at the time of settlement and whose account was specified in the agreement. The court rejected the points in limine raised by the 2nd respondent as irrelevant to the central issue of whether the order contained a patent error. The court held that the order must be amended under Rule 42(1)(b) to reflect the correct banking details, ensuring that payment is made in accordance with the original settlement agreement.

Obiter and limits

  • The court deliberately limited its judgment to the question of whether the order reflected the correct banking details and whether this error was patent under Rule 42(1)(b).
  • The in limine arguments raised by the 2nd respondent were considered red herrings and did not affect the determination of the patent error in the court order.

Court disposition

Application granted. The court order of 10 November 2022 is amended to reflect the correct banking details as per the settlement agreement. The 2nd respondent is ordered to pay the costs of the application.

  • Order 2.6 of the order granted on 10 November 2022, Case Number 4962/2019, is amended to nominate the banking details of Motaung Attorneys Trust for payment of the settlement amount.
  • The 2nd respondent is ordered to pay the costs of this application.

Source and reliance status

Free State High Court, Bloemfontein

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Judgment text

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Source document

Free State High Court, Bloemfontein

Judgment

[2023] ZAFSHC 359

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

THE HIGH COURT OF SOUTH AFRICA

FREE STATE PROVINCIAL DIVISION

Reportable: yes/no

Circulate to other Judges: yes/no

Circulate to Magistrates: yes/no

Case Number 4962/2019

In the matter between:

LITSOANE

GERMINA LITSOANE Applicant and

ROAD

ACCIDENT FUND 1st Respondent

DLABANTU

AND ASSOCIATES INCORPORATED 2nd Respondent In re:

LITSOANE

GERMINA LITSOANE Plaintiff and

ROAD

ACCIDENT FUND Defendant

CORAM: BERRY, AJ

HEARD ON: 23 March 2023

DELIVERED ON: 12 SEPTEMBER 2023

JUDGEMENT BY: BERRY,

AJ

JUDGMENT

[1] This is an Application to vary a Court Order granted on 10 November 2022 in terms of Rule 42(1)(b).

[2] The Court Order made a settlement Agreement between the Applicant and the 1st Respondent and Order of Court.

[3] The Application to make the settlement agreement was only served on the 1st Respondent and proceeded unopposed.

[4] The Applicant was involved in a vehicle accident and lodged a claim against the 1st Respondent.

[5] She appointed Motaung Attorneys to represent her.

[6] The matter was settled on 10 March 2022 in that an offer of settlement was made and accepted.

[7] The settlement was not made an order of Court at the time.

[8] Mr Dlabantu was employed as Professional Assistant by Motaung Attorneys.

[9] Mr Tando Ongama Dlabantu represented Motaung Attorneys at all material times in his capacity as an employee of Motaung Attorneys.

[10] The settlement agreement nominated the banking details of Motaung Attorneys into which the 1st Respondent had to pay the settlement amount.

[11] Mr Dlabantu left the employ of Motaung Attorneys on 05 October 2022 to start his own firm, cited in this Application as the 2nd Respondent.

[12] His resignation occurred after the settlement was reached, but prior to payment.

[13] The Applicant was contacted by Mr Dlabantu on 25 October 2022 and requested a consultation at the premises of the 2nd Respondent.

[14] Mr Dlabantu, as sole director of the 2nd Respondent, requested the Applicant to sign a new power of attorney appointing the 2nd Respondent as her attorney as well as a new contingency fee agreement.

[15] Mr Dlabantu was still in the employ of Motaung Attorneys when the settlement agreement was signed.

[16] Following the appointment of the 2nd Respondent as Attorney of record, the Applicant, represented by the 2nd Respondent brought an Application to make the settlement agreement an Order of Court.

[17] The Court Order of 10 November 2022 reads as follows:

“1 The settlement recorded in the offer, Annexure “FA1” to

the Founding Affidavit is made an Order of Court.”

[18] The settlement agreement attached to the Application to make it an Order of Court, referred to as ANNEXURE “FA1” stipulated the banking details of Motaung Attorneys as the bank into which payment had to be made.

[19] Order 2.6 of the 10 November 2022 Court Order however nominate the banking details of the 2nd Respondent into which payment must be made.

[20] This banking detail differs from the banking detail captured in the settlement agreement.

[21] It is this anomaly the Applicant wishes to rectify as she is liable for the contingency fees and expenses owed to Motaung Attorneys, which facilitated the settlement and finalisation of the matter before Mr Dlabantu left the employ of Motaung Attorneys.

[22] The Applicant contacted Motaung Attorneys to enquire about the status of the 2nd Respondent after the 2nd Respondent provided her with a copy of the Order dated 10 November 2022.

[23] She appointed Motaung Attorneys to bring this Application on 28 November 2022.

[24] The 2nd Respondent opposes the Application to amend the Order.

[25] The 2nd Respondent raised two points in limine, dealing with the non-joinder of him in his personal capacity as well as the non-joinder of Motaung Attorneys.

[26] Motaung represents the Applicant in this Application.

[27] The 2nd Respondent’s contention is that Mr Dlabantu is implicated in his professional capacity as an attorney and therefore he should be afforded the opportunity to respond in his personal capacity.

[28] The 2nd Respondent further contents that there is not an obvious error in the Court Order.

ANALYSIS

[29] The Order differs from the settlement agreement.

[30] There is no Application to amend the settlement agreement.

[31] Rule 42(1)(b) provides that an Order may be amended where there is a patent error in the Order.

[32] The Order does not reflect the correct banking details provided for in the settlement agreement.

[33] The in limine arguments are in my opinion no more than red herrings as it does not affect the fact that the Court Order reflects the incorrect banking details.

[34] I deliberately limit this judgment to the question whether the Order reflects the correct banking details contained in the settlement agreement and whether this error is a patent error as provided for in Rule 42(1)(b).

[35] I find that there is an obvious error in the Court Order of 10 November 2022 in that it does not reflect the correct banking details provided in the settlement agreement.

ORDER

[36] The following Order is made.

1. Order 2.6 of the Order granted on 10 November 2022, Case Number 4962/2019 is amended to read as follows:

2.6 The 1st Respondent is ordered to pay the sum plus interest into the following account:

MOTAUNG ATTORNEYS TRUST

FIRST NATIONAL BANK

ACCOUNT NUMBER: 622[…]

BRANCH NAME: PRELLER

BRANCH CODE: 230139

REF NUMBER: LIT22/0001

E-MAIL PROOF: l[...]@motaungattorneys.co.za

2. The 2nd Respondent is ordered to pay the costs of this Application.

AP BERRY, AJ

APPEARANCES: For the Applicant: Motaung Attorneys

BLOEMFONTEIN For the Defendant: Adv. T Mpahlwa Instructed by:

DLABANTU

AND ASSOCIATES INC

BLOEMFONTEIN

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Authorities

Authorities used by the court

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

Rule 42(1)(b) Uniform Rules of Court

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