South Africa Judgment

Limpopo High Court, Thohoyandou

Magada v Road Accident Fund (651/2011) [2017] ZALMPTHC 11 (16 August 2017)

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Source document

01

Holding and result

The court found that, although the minor child suffered non-serious physical injuries, there is credible expert evidence indicating a risk of emotional difficulties that may affect her academic performance and future employment prospects. The joint minute of industrial psychologists suggested a likely career trajectory, but the educational psychologist’s assessment indicated the accident may result in a lower level of education and earning capacity than would have been achieved otherwise. Weighing all expert reports and evidence, the court determined that a fair and reasonable compensation for loss of earnings is R900,000.00.

Court disposition

Plaintiff awarded R900,000.00 for loss of earnings, plus interest and costs.

Orders

  • The Defendant is ordered to pay to the Plaintiff in her representative capacity the sum of R900,000.00 for loss of earnings.
  • The Defendant shall pay interest on the aforesaid sum at the rate of 10.25% per annum from 14 days after the date of judgment to date of final payment.
  • The Defendant shall pay the Plaintiff’s costs of the action on the High Court scale, including costs of obtaining expert reports.

02

Material facts

Parties

Magada Fhulufhelo Rosemary obo A. M.

Plaintiff

Road Accident Fund

Defendant

Amounts and remedies

  • Loss of Earnings Awarded: ZAR 900,000
  • Interest Rate Per Annum: ZAR 10.25

03

Procedural history

  1. Posture

    Civil Trial / Quantum Determination

04

Questions and positions

Legal issues

Party arguments

Applicant
The plaintiff argued that the minor child suffered injuries in a motor vehicle accident which would negatively impact her future earning capacity. Expert reports were submitted indicating the child could have achieved a certain educational and career trajectory but may now be limited due to emotional and physical consequences of the accident. The plaintiff claimed R2,804,679.00 as compensation for loss of earnings.
Respondent
The defendant accepted liability for the merits but disputed the extent of the loss of earnings. The defendant relied on expert reports suggesting the minor child suffered non-serious injuries and would be able to cope academically and in the open labour market, arguing that any reduction in earning capacity would be minimal.

05

Court’s reasoning

  1. 01

    Southern Insurance Association v Balie NO 1984 (1) SA 98 (A) at 113 G-1

    Assessment of damages for loss of earning capacity is inherently speculative and requires the court to estimate present value based on available evidence, either by a round estimate or mathematical calculation.

  2. 02

    Michael v Linksfield Park Clinic 2001 (3) SA 1188 (SCA)

    Expert opinions must be founded on logical reasoning and supported by evidence.

06

Ratio, limits and disposition

Ratio decidendi

The court found that, although the minor child suffered non-serious physical injuries, there is credible expert evidence indicating a risk of emotional difficulties that may affect her academic performance and future employment prospects. The joint minute of industrial psychologists suggested a likely career trajectory, but the educational psychologist’s assessment indicated the accident may result in a lower level of education and earning capacity than would have been achieved otherwise. Weighing all expert reports and evidence, the court determined that a fair and reasonable compensation for loss of earnings is R900,000.00.

Obiter and limits

  • The court noted that all expert reports collectively indicate the minor child can still cope well at school and will enjoy employment in the open labour market.
  • The court accepted the educational psychologist’s conclusion that emotional difficulties may affect the minor child’s future performance at school and work.

Court disposition

Plaintiff awarded R900,000.00 for loss of earnings, plus interest and costs.

  • The Defendant is ordered to pay to the Plaintiff in her representative capacity the sum of R900,000.00 for loss of earnings.
  • The Defendant shall pay interest on the aforesaid sum at the rate of 10.25% per annum from 14 days after the date of judgment to date of final payment.
  • The Defendant shall pay the Plaintiff’s costs of the action on the High Court scale, including costs of obtaining expert reports.

Source and reliance status

Limpopo High Court, Thohoyandou

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Judgment text

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Source document

Limpopo High Court, Thohoyandou

Judgment

[2017] ZALMPTHC 11

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

LIMPOPO DIVISION,THOHOYANDOU

REPORTABLE:

NO

OF INTEREST TO OTHER JUDGES: NO

CASE NO: 651/2011

16/8/2017

In the matter between:-

MAGADA

FHULUFHELO ROSEMARY

OBO A. M. PLAINTIFF

AND

ROAD

ACCIDENT

FUND DEFENDANT

JUDGMENT

MUSHASHA AJ

[1] The Plaintiff instituted an action on behalf of the minor child namely A. M. for damages suffered as a result of injuries sustained by the minor child in a motor vehicle accident.

[2] The merits have been settled in favour of the minor child.

[3] Th outstanding issue for determination by Court is loss of earnings and earning capacity. In other words the Court is to determine the amount payable to the Plaintiff as compensation for loss of earnings.

[4] According to the pleadings the Plaintiff s minor child is alleged to have suffered injuries set out in his clinical records. The minor child sustained bruises on the forehead, right cheek, right leg and right lower limb.

[5] The total amount of compensation claimed by the Plaintiff is reflected as R2 804 679.00.

[6] It was held in Southern Insurance Association V Balie N0.1984 (1) SA 98 (A) at 113 G-1 that:-

"Any enquiry into damages for loss of earning capacity is of its nature speculative because it involves a predictions as to the future, without the benefit of crystal balls, soothsayers, augurs or oracles.

All that the Court can do is to make an estimate which is often a very rough estimate of the present value of the loss. It has open to it two possible approaches. One is for the judge to make a round estimate of an amount which seems to him to be fair and reasonable. That is entirely a matter of guesswork, a blind plunge into the unknown. The other is to try to make an assessment by way of mathematical calculations on the basis of assumptions resting on the evidence......"

[7] In this matter both parties filed expert reports to guide the Court to make a fair and reasonable amount of compensation.

[8] In Michael V Linksfield Park clinic 2001 (3) SA 1188 SCA; it was held that the opinion of expert witnessess must be.founded on logical reasoning.

[9] In the joint minute of Christa Du Toit and Andrie Van der Weshuizen and Nicolene Cotze, the industrial Psychologists agreed that pre-accident, the minor child could have completed matric and studied full or part time and within 3-5 years she would have opted for whatever job was available with a fragmented income somewhere on a Peterson level A1/A2 Medium basic salary. After obtaining applicable certificates should start to earn Paterson level 81with gradual progression Paterson level C1/C2 towards age 45 as a career ceiling.

[10] All reports filed by the Plaintiff indicate that the minor child suffered non-serious injuries and as such the minor child is able to cope well academically with a good progression in relation to academic performance and work prospect.

[11] All reports collectively considered paint the picture of the minor child who can still cope well at school and will enjoy employment in the open labour market.

[12] Nevertheless, Ms Linda Rudenberg, the Educational Psychologists, concluded that the minor child's emotional assessment suggests that she is at risk of experiencing emotional difficulties as a result of the accident which would further affect her performance at school and that the emotional difficulties may further affect the minor child when she goes to the work place. The minor child is likely to enter the open labour market with a lower level of education than she would had she not been involved in an accident. I find merit in this conclusion.

[13] Regard being had to all the evidence including the experts reports I hold the view that the amount which seems to be fair and reasonable as compensation for loss of earnings would be R900 000-00.

[14] In the result the following order is made.

[14.1] The Defendant is ordered to pay to the Plaintiff in her representative capacity the sum of R900 000-00 for loss of earnings.

[14.2] The Defendant shall pay the interest on the aforesaid sum at the rate of 10, 25% per annum as from 14 days after the date of judgment to date of final payment.

[14.3] The Defendant shall pay the Plaintiff costs of the action on the High Court scale including costs of obtaining experts reports.

______

MUSHASHA M.J

ACTING

JUDGE OF THE HIGH COURT

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Authorities

Authorities used by the court

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

Southern Insurance Association v Balie NO 1984 (1) SA 98 (A)

Case cited

Michael v Linksfield Park Clinic 2001 (3) SA 1188 (SCA)

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