M T v Road Accident Fund; H M v Road Accident Fund (37986/2018) [2020] ZAGPJHC 286; [2021] 1 All SA 285 (GJ); 2021 (2) SA 618 (GJ) (16 November 2020)

M T v Road Accident Fund; H M v Road Accident Fund (37986/2018) [2020] ZAGPJHC 286; [2021] 1 All SA 285 (GJ); 2021 (2) SA 618 (GJ) (16 November 2020)

The court found that the settlements concluded between the plaintiffs and the Road Accident Fund were constitutionally invalid and void ab initio due to deliberate misrepresentations by the plaintiffs' attorneys and lack of proper judicial oversight. The conduct of the legal representatives and experts involved was referred to their respective professional bodies for investigation. The Road Accident Fund's practice of settling claims without court scrutiny, especially under circumstances of insolvency and lack of legal representation, was found to be unlawful and contrary to its statutory and constitutional obligations. Payment by the Fund in terms of such settlements would constitute...

Citation
[2020] ZAGPJHC 286
Parties
Plaintiff: M T; Defendant: Road Accident Fund; Plaintiff: H M
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
16 November 2020
Case Number
37986/2018
Procedural Posture
Civil Trial / Judgment After Settlement Negotiations; Court Oversight of Settlement Validity
Outcome
Settlements declared void ab initio; matters postponed sine die; conduct of legal representatives and experts referred to professional bodies; no costs order.
Judges
D Fisher
Legal Topics
Road Accident Fund Act, Settlement Agreements, Judicial Oversight, Public Finance Management Act, Misrepresentation, Professional Conduct
Civil Procedure Delict Administrative Law Road Accident Fund Act Settlement Agreements Judicial Oversight Public Finance Management Act Misrepresentation +1 more

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Parties

M T

Plaintiff

Road Accident Fund

Defendant

H M

Plaintiff

Procedural Posture

Civil Trial / Judgment After Settlement Negotiations; Court Oversight of Settlement Validity

Legal Issues

  1. 1 Whether the settlements concluded between plaintiffs and the Road Accident Fund are constitutionally and legally valid under circumstances of misrepresentation and lack of court oversight.
  2. 2 Whether the conduct of legal representatives and experts in inflating claims and misrepresenting facts constitutes professional misconduct.
  3. 3 Whether the Road Accident Fund's practice of settling claims without judicial scrutiny is lawful and compliant with statutory and constitutional obligations.

Ratio Decidendi

The court found that the settlements concluded between the plaintiffs and the Road Accident Fund were constitutionally invalid and void ab initio due to deliberate misrepresentations by the plaintiffs' attorneys and lack of proper judicial oversight. The conduct of the legal representatives and experts involved was referred to their respective professional bodies for investigation. The Road Accident Fund's practice of settling claims without court scrutiny, especially under circumstances of insolvency and lack of legal representation, was found to be unlawful and contrary to its statutory and constitutional obligations. Payment by the Fund in terms of such settlements would constitute...

Court Disposition

Settlements declared void ab initio; matters postponed sine die; conduct of legal representatives and experts referred to professional bodies; no costs order.

Orders

  • In case 37986/2018 T v RAF: The matter is postponed sine die.
  • This judgment is to be brought to the attention of any court called upon to enforce the purported settlement agreement.