Mahlangu v Road Accident Fund (14662/2015) [2021] ZAGPPHC 789 (17 November 2021)
- Citation
- [2021] ZAGPPHC 789
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- North Gauteng High Court, Pretoria
- Panel
- Phahlamohlaka
- Case number
- 14662/2015
More details
- Court
- North Gauteng High Court, Pretoria
- Panel
- Phahlamohlaka
- Case number
- 14662/2015
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the plaintiff failed to prove past loss of earnings, as there was no documentary evidence of pre-accident or post-accident income and the expert opinions were speculative. The plaintiff's assistants continued working during his recuperation, further undermining the claim for actual past loss. The claim for past loss of earnings was dismissed. Regarding future loss of earning capacity, the court accepted that the plaintiff would suffer a residual loss, as supported by expert opinion, and applied contingency deductions of 15% to the uninjured scenario and 30% to the injured scenario. The difference between these calculations was awarded as compensation for future loss of earning capacity.
Court disposition
Plaintiff's claim for past loss of earnings is dismissed; plaintiff is awarded compensation for future loss of earning capacity.
Orders
- The defendant is ordered to pay the plaintiff an amount of R226,345.65 in respect of future loss of earning capacity.
- The plaintiff's claim for past loss of earnings is dismissed.
- The defendant is ordered to pay costs on party and party scale.
02
Material facts
Parties
Johannes Sfiso Mahlangu
Plaintiff Counsel: Adv Van Der WesthuizenRoad Accident Fund
DefendantAmounts and remedies
- Future Loss of Earning Capacity Awarded: ZAR 226,345.65
03
Procedural history
Posture
Civil Trial / Quantum Determination
04
Questions and positions
Legal issues
- 01
Whether the plaintiff proved past loss of earnings resulting from injuries sustained in a motor vehicle accident.
- 02
Whether the plaintiff is entitled to compensation for future loss of earning capacity.
- 03
How contingencies should be applied to the calculation of future loss of earnings.
Party arguments
- Applicant
- The plaintiff argued that he sustained injuries in a motor vehicle accident which diminished his earning capacity. He claimed past and future loss of income, stating that prior to the accident he was self-employed as a semi-skilled electrician and plumber, earning between R8,000 and R10,000 per month, and employed four assistants. He asserted that after the accident, his earnings dropped to R3,500 to R4,000 per month. The plaintiff relied on expert reports from an industrial psychologist and an actuary to support his claim for both past and future loss of earnings.
- Respondent
- The defendant, Road Accident Fund, did not participate in the proceedings and presented no argument. Liability had already been settled, with the Fund ordered to pay 100% of proven or agreed damages. The only remaining dispute was quantum, specifically past and future loss of income.
05
Court’s reasoning
Legal principles
- 01
Rudman v Road Accident Fund (370/01) [2002] ZASCA 129
A plaintiff must prove that injuries sustained in a motor vehicle accident resulted in actual damages, specifically a diminution of their estate. Mere injury does not automatically entitle a plaintiff to damages; the loss must be proven.
- 02
Dippenaar's case, as cited in Rudman v Road Accident Fund
Compensation for loss of earning capacity is awarded only to the extent that the plaintiff's patrimony has diminished due to incapacity.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the plaintiff failed to prove past loss of earnings, as there was no documentary evidence of pre-accident or post-accident income and the expert opinions were speculative. The plaintiff's assistants continued working during his recuperation, further undermining the claim for actual past loss. The claim for past loss of earnings was dismissed. Regarding future loss of earning capacity, the court accepted that the plaintiff would suffer a residual loss, as supported by expert opinion, and applied contingency deductions of 15% to the uninjured scenario and 30% to the injured scenario. The difference between these calculations was awarded as compensation for future loss of earning capacity.
Obiter and limits
- Past loss of earnings cannot be implied or based on speculation; actual proof is required.
- The plaintiff's pre- and post-accident earning potential are essentially the same, but a residual loss of earning capacity is accepted for future damages.
Court disposition
Plaintiff's claim for past loss of earnings is dismissed; plaintiff is awarded compensation for future loss of earning capacity.
- The defendant is ordered to pay the plaintiff an amount of R226,345.65 in respect of future loss of earning capacity.
- The plaintiff's claim for past loss of earnings is dismissed.
- The defendant is ordered to pay costs on party and party scale.
Source and reliance status
North Gauteng High Court, Pretoria
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.
North Gauteng High Court, Pretoria
Judgment
IN THE HIGH COURT
OF SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
(1) REPORTABLE: NO
(2) OF INTEREST TO OTHER JUDGES: NO
(3) REVISED: NO
Case number: 14662/2015
In the matter between:
JOHANNES SFISO
MAHLANGU
PLAINTIFF
And
ROAD ACCIDENT
FUND
DEFENDANT
JUDGMENT
PHAHLAMOHLAKA AJ
INTRODUCTION
[1] On the 2 March 2013 at approximately 22h30 the Plaintiff was a passenger in a motor vehicle driven by the insured driver when a collision occurred and as a result of the collision the plaintiff sustained injuries. The plaintiff, therefore, instituted a claim against the ROAD ACCIDENT FUND for compensation as a result of the damages he suffered.
[2] This matter was heard in the absence of the defendant because the Road Accident Fund decided not to participate in these proceedings.
[3] At the commencement of the trial Counsel for the plaintiff informed me that the aspect of liability was settled in that the defendant was ordered to pay 100% of the plaintiffâs proven or agreed damages. All the other aspects of quantum, safe for past and future loss of income, were also settled. The only issue to be determined by this court is therefore, that of past and future loss of income or earning capacity.
INJURIES
SUSTAINED
[4] From the accident the plaintiff sustained injuries to his head, face, chest and his left ankle with a non-union of the medial malleo.
THE LEGAL
POSITION
[5] In order to succeed with his claim the plaintiff must prove that he sustained injuries in a motor vehicle accident and as a result of the injuries he suffered damages. The plaintiff has to prove that because of the accident his estate has diminished. The fact that the plaintiff sustained injuries does not automatically qualify him for award of damages. The plaintiff ought to prove that his patrimony or estate has been compromised as a result of the injuries. This principle was well captured by Jones AJA in the case of Rudman v Road Accident Fund (370/01) [2002] ZASCA129 at paragraph 11 where the learned Judge of appeal said the following: âin my opinion the learned judge in the court a quo has not misdirected himself in his understanding of these authorities or in his application of the law to the facts. His judgment correctly emphasises that where a personâs earning capacity has been compromised, âthat incapacity constitutes a loss, if such loss diminishes the estate.â(Rumpff CJ in the above quotation from Dippenaarâs case) and âhe is entitled to be compensated to the extent that his patrimony has diminished.â
PRE ACCIDENT
EMPLOYMENT POTENTIAL
[6] At the time of the accident the plaintiff was 43 years of age and he is currently 52 years of age. His highest level of education is grade 11. He informally acquired the skill to perform electrical and plumbing work. Before the accident plaintiff was self-employed semi-skilled electrician and plumber. According to the plaintiff he returned to work approximately 6 (six) months after the accident. However, the plaintiff had four assistants employed at the time. The industrial psychologist, Nelia Joyce, made the following comments in this regard: âMy understanding was that Mr Mahlangu had workers who helped and continued with the work under his supervision. A loss of income is implied, but probably more in the region of R50 000.00â.The industrial psychologist goes on to say: âwith regards to Mr Mahlanguâs career and considering his age at the time of the accident, pre accident as well as post-accident career history, writer is of the opinion that Mr Mahlangu but for the accident probably would have remained in the semi-skilled labour work classification range. Mr Mahlangu continuing in this capacity with the probability of expanding his business. He would continue employment until retirement age of 65 years or as long as his health would have permitted him.â
POST ACCIDENT
EMPLOYMENT POTENTIAL
[7] On the post-morbid employment potential the industrial psychologist opines that âMr Mahlangu still has the employment potential capacity to function in the non-corporate South Africa and global labour market. The problem Mr Mahlangu faces is that he is a vulnerable employeeâ. The industrial psychologist concluded that âBased on the information received and Mr Mahlanguâs work industry Writer is of the opinion that an increased post-morbid contingency deduction should be allowed. Mr Mahlanguâs pre and post-accident scenarios should be used in quantifying his loss of earning capacityâ.
[8] It must be noted that the plaintiff is self-employed and he also employed four other persons who could continue doing the job during the time he was recuperating. However, the industrial psychologist opinions that he suffered a residual loss of earning capacity. In other words his pre and post morbid scenarios are the same. The plaintiff has a duty to prove that as a result of the injuries he suffered damages has suffered damages in the form of loss of earnings. According to the experts the plaintiff could not prove his pre-accident earnings. On this aspect, Nehia Joyce, the Industrial Psychologist reports as follows: âMr Mahlangu could not provide/proof his income but stated that his pre accident earnings was between R8000. and R10 000 per monthâ.
[9] On the post morbid employment potential the industrial psychologist opinions that Mr Mahlanguâs earning has since the accident significantly dropped. He reported post-accident earnings at R3500 to R4000 per month. Still there is no proof of this earnings and therefore the industrial psychologist is giving an opinion based only on the information given by the plaintiff.
[10] The actuary calculated a past loss of income of R575 044 and it is not clear what informed such a huge amount of past loss because the plaintiff had four assistants working at the time he was recuperating from the injuries and he could not present any proof of the loss. The industrial psychologist confirmed this assertion when she reported that âMr Mahlangu states that he had four assistants employed at the time. During his recuperation period, they continued with the jobs under supervision. He reportedly resumed his normal duties approximately a year after the accident, although in slightly adapted capacity. According to Dr Van Der Bault, a R72 000 loss of income was experienced during the six months that Mr Mahlangu was unable to work. My understanding was that Mr Mahlangu had workers who helped and continued with the work under his supervision. A loss of income implied, but probably more in the region of R50 000â.
[11] There is clearly a contradiction between the experts and this is because they both speculate as the plaintiff could not furnish them with any proof of his earnings. I cannot therefore make a finding based on speculations, especially when it comes to the past loss of earnings which is supposed to be an actual loss.
[12] I am of the view that past loss earnings cannot be implied. In the result I find that the plaintiff has failed to prove that he suffered past loss of earnings and therefore the plaintiffâs claim for past loss of earning ought to be dismissed.
[13] This brings me to the aspect of future loss of earnings or earning capacity. I have already said earlier that the plaintiff could not prove his earnings even after he told the experts that he was self-employed as an electrician and plumber and he had employed four assistants. It is not clear how the amount given to the experts as earning was arrived at. The experts however, are of the opinion that the plaintiff would suffer a residual loss of earning capacity.
CONCLUSION
[14] I am of the view that the plaintiffâs pre and post morbid earnings potential are the same. I will use the Actuarial calculation in respect of the future uninjured scenario and future injured being the same and I will apply a 15% spread on the amount.
[15] Therefore, I will apply 15% contingencies on the uninjured and 30% on the injured. The calculation will yield the following results:
Uninjured
1 508971
Less 15% contingencies 226 345, 65
= 1508971
Injured 1 508 971
Less 30% contingencies 452 691.3
1 056 279.70
=
226 345.65
[16] Consequently I make the following order:
16.1 The Defendant is ordered to pay the Plaintiff an amount of R226 345.65 (Two Hundred and Twenty Six Thousand Three Hundred and Forty Five and Six Five Cents) in respect of the Plaintiffâs claim for future loss of earning capacity.
16.2 The Plaintiffâs claim for past loss of earnings is dismissed.
16.3 The defendant is ordered to pay costs on party and party scale.
Draft order marked âXKFâ is made court order.
KGANKI
PHAHLAMOHLAKA
Acting Judge High Court,
Gauteng Division, Pretoria
HEARD ON
: 03 August 2021
FOR THE
PLAINTIFF :
Adv Van Der Westhuizen
INSTRUCTED BY
:
Roets Van Rensbuyrg Inc.
FOR THE
DEFENDANT : No Appearence
DATE OF
JUDGMENT : 17 November 2021
Case-aware research
Ask AI about this case
The judgment and available research above are public. New questions open in a separate private conversation grounded in this case.