Mahlo v Road Accident Fund (3993/2017) [2022] ZAFSHC 194 (25 August 2022)

Parties

Procedural Posture

Civil Trial / Quantification of Damages

Legal Issues

1. 1 What is the appropriate retirement age for a self-employed street vendor in the context of future loss of earning capacity?
2. 2 What contingency rate should be applied to the calculation of future loss of earnings?
3. 3 Is the Plaintiff entitled to damages for future loss of earning capacity, and if so, in what amount?

Ratio Decidendi

The court found that, although the Plaintiff claimed she would have worked until age 80, her physical condition and receipt of a government old age grant at 65 made this unlikely. However, it was reasonable to accept that she could have worked beyond 65, up to age 70, given her self-employment and the absence of a statutory retirement age for vendors. The court relied on the Plaintiff's actuarial report and selected scenario 2, which calculated loss up to age 70. Considering the Plaintiff's age, health, and diminished competitiveness, the court determined that a contingency deduction of 25% was fair and reasonable. The Defendant was ordered to pay the Plaintiff R829,725 for loss of...

Court Disposition

Plaintiff's claim for future loss of earning capacity partially succeeds; Defendant ordered to pay quantified damages.

Orders

• The Defendant is ordered to make payment for loss of earnings in the amount of R829,725.
• Interest on the above sum at the maximum prescribed rate, presently 15.5% per annum, from 14 days after the date of judgment to date of final payment.