Makosa v Road Accident Fund (002641/2024) [2025] ZAGPJHC 201 (14 February 2025)
- Citation
- [2025] ZAGPJHC 201
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- South Gauteng High Court, Johannesburg
- Panel
- Weideman
- Case number
- 002641/2024
More details
- Court
- South Gauteng High Court, Johannesburg
- Panel
- Weideman
- Case number
- 002641/2024
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the plaintiff, although a foreign national, had provided sufficient documentation to justify calculation of future loss of income according to South African income scales. However, significant uncertainties existed regarding his ability to remain in South Africa and maintain employment as a general labourer, particularly given the physical nature of the work and the competitive labour market. The actuarial calculation included discretionary elements such as overtime and bonuses, which warranted a higher contingency deduction. The court determined that a 50% contingency deduction was appropriate to address these uncertainties. After applying the deduction and apportioning liability (80% accepted by the defendant), the net award for loss of income was calculated. The plaintiff's application to tender evidence by affidavit was granted, and the claim for general damages was postponed sine die.
Court disposition
Plaintiff's claim for loss of income partially upheld; general damages postponed sine die.
Orders
- The plaintiff's application in terms of Rule 38(2) is granted.
- The defendant is liable to pay the plaintiff the net amount of R1 198 200 in respect of loss of income.
- The plaintiff's claim in respect of general damages is postponed sine die.
- The defendant is liable to provide the plaintiff with an Undertaking in terms of section 17(4)(a) of the Road Accident Fund Act for 80% of future hospital, medical and ancillary expenses arising from the accident.
- The plaintiff is awarded party and party costs as taxed or agreed, with counsel's fees on scale B.
02
Material facts
Parties
Makosa Pieter
Plaintiff Counsel: Mr SchoombieRoad Accident Fund
DefendantAmounts and remedies
- Past Loss of Income: ZAR 1,300
- Future Loss of Income (after Contingency Deduction and Apportionment): ZAR 1,198,200
03
Procedural history
Posture
Civil Trial / Quantum Determination After Partial Settlement on Liability
04
Questions and positions
Legal issues
- 01
Whether the plaintiff, a foreign national, is entitled to claim future loss of income under South African law.
- 02
What contingency deduction is appropriate given uncertainties regarding the plaintiff's future employment and residency status.
- 03
How to calculate loss of income considering discretionary elements such as overtime and bonuses.
Party arguments
- Applicant
- The plaintiff argued that, despite being a foreign national, he was legally employed, registered for income tax, and intended to remain in South Africa. He submitted extensive documentation regarding his residency status, employment history, and future prospects. He contended that his loss of earning capacity should be calculated according to South African income scales, and that the actuarial report accurately reflected his projected losses.
- Respondent
- The defendant challenged the certainty of the plaintiff's future residency and employment in South Africa, highlighting gaps in documentation and the lack of guarantee regarding visa renewals. The defendant argued for a higher contingency deduction due to the speculative nature of future earnings, especially overtime and bonuses, and the physical demands of the plaintiff's work as he ages.
05
Court’s reasoning
Legal principles
- 01
Road Accident Fund Act 56 of 1996
A foreign national may claim future loss of income in South Africa if evidence is presented regarding residency status, employment prospects, and the likelihood of securing necessary visas.
- 02
Southern Insurance Association Ltd v Bailey NO 1984 (1) SA 98 (A)
Contingency deductions must reflect uncertainties in future earnings, especially for discretionary income such as overtime and bonuses.
- 03
Uniform Rule 38(2)
Evidence may be tendered by affidavit with leave of the court.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the plaintiff, although a foreign national, had provided sufficient documentation to justify calculation of future loss of income according to South African income scales. However, significant uncertainties existed regarding his ability to remain in South Africa and maintain employment as a general labourer, particularly given the physical nature of the work and the competitive labour market. The actuarial calculation included discretionary elements such as overtime and bonuses, which warranted a higher contingency deduction. The court determined that a 50% contingency deduction was appropriate to address these uncertainties. After applying the deduction and apportioning liability (80% accepted by the defendant), the net award for loss of income was calculated. The plaintiff's application to tender evidence by affidavit was granted, and the claim for general damages was postponed sine die.
Obiter and limits
- The court noted that the documentation provided by the plaintiff was more comprehensive than typically seen in cases involving foreign claimants.
- The physical demands of general labouring work and the competitive nature of the employment market for older workers were highlighted as factors increasing uncertainty in future earnings.
- The court emphasized that overtime and bonuses should not be projected into the future on the same basis as basic wages due to their discretionary nature.
Court disposition
Plaintiff's claim for loss of income partially upheld; general damages postponed sine die.
- The plaintiff's application in terms of Rule 38(2) is granted.
- The defendant is liable to pay the plaintiff the net amount of R1 198 200 in respect of loss of income.
- The plaintiff's claim in respect of general damages is postponed sine die.
- The defendant is liable to provide the plaintiff with an Undertaking in terms of section 17(4)(a) of the Road Accident Fund Act for 80% of future hospital, medical and ancillary expenses arising from the accident.
- The plaintiff is awarded party and party costs as taxed or agreed, with counsel's fees on scale B.
Source and reliance status
South Gauteng High Court, Johannesburg
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.
South Gauteng High Court, Johannesburg
Judgment
IN THE HIGH COURT OF SOUTH AFRICA
GAUTENG LOCAL DIVISION,
JOHANNESBURG
CASE NO: 002641/2024
DATE: 14-02-2025
(1) REPORTABLE: YES / NO.
(2) OF INTEREST TO OTHER JUDGES: YES / NO.
(3) REVISED.
In the matter between
MAKOSA
PIETER
Plaintiff
and
ROAD ACCIDENT
FUND
Defendant
JUDGMENT
WEIDEMAN, AJ: The matter of Makosa, case number 002641/2024, was called earlier this week and very ably argued by Mr Schoombie. I indicated, at that stage, that I wanted an opportunity to consider the matter, and in particular wanted to have a look at some of the case law which Mr Schoombie referred to in support of his argument.
The accident from which this claim arose occurred on 25 October 2021 when the plaintiff was a pedestrian. The aspect of liability had previously been resolved between the parties on the basis that the defendant accepts liability for 80% of such damages as the plaintiff may be able to substantiate.
At the commencement of the matter, and before presenting any evidence, counsel moved an application in terms of Rule 38(2) for the tendering of evidence on affidavit. That application was granted.
The defendant had not made an election in respect of general damages and I was requested to postpone general damages sine die. This left only the aspects of past and future loss of income for debate before this Court. According to the plaintiff’s particulars of claim, paragraph 10 on CaseLines 03-7, the plaintiff's claim in respect of past loss of income amounts to R1 300 and the claim for future loss of income to R2 964 100.
These two amounts are as per the plaintiff’s actuarial calculation. The injuries forming the basis of this claim are set out in paragraph 6 of the Particulars of Claim and consists of the following:
· A brain injury;
· a fracture of the left temporo-parietal bone;
· a left epidural (extradural) haemorrhage; and
· various abrasions and lacerations.
The plaintiff is a foreigner and as a result the evaluation of the claim for loss of income cannot be dealt with on the same basis as if he was a South African citizen. As a foreigner, a guest in South Africa, it is necessary, not only for this plaintiff but for all foreigners, to comply with all the applicable legislation governing their residency in South Africa and their participation in the labour market.
Thus, to enable a foreigner to prosecute a claim for future loss of income in South Africa, evidence must be presented which addresses his status in the country, the nature of the work which it is anticipated that he would do in future, as well as the probabilities that he would be able to secure the necessary visas to perform such work.
Considering this plaintiff, a significant amount of documentation has been presented, far more than in most matters which come before this Court in respect of foreigners. These are uploaded on CaseLines at pocket 18. The Court was advised, during argument, that the passport which had been uploaded was lost and that a further passport, a current passport, appears on CaseLines18-35.
This passport is valid from 23 May 2022 to 22 May 2032. A number of asylum seeker permits have also been uploaded. There is no indication of what the status of the plaintiff was between August 2023 and January 2025. On 14 January 2025, the plaintiff had applied for a visa, albeit that the nature of the visa is not reflected on the receipt for payment of the application for the visa.
What is clear from the documentation referred to, as well as the fact that the plaintiff was employed as a general worker in the formal economy and was registered with the South African Revenue Services for income tax, was that it was his intention and desire to remain in South Africa.
There is however no evidence that the plaintiff would have been able to remain in South Africa indefinitely. I believe that the documentation is sufficient to enable a claim for future impairment of capacity to be considered in terms of South African income scales.
The amount as per the actuarial report, but for the collision, is R2 992 900, which is slightly different from the amount in the plaintiff’s Particulars of Claim. It seems that in calculating the projected future income, the actuary took into consideration a basic wage, overtime and an annual bonus. These might form part of the plaintiff's income currently, but it would be wrong to project overtime and bonuses into the future on the same basis as one would a basic wage, as overtime is directly linked to the employer's needs, economic factors and the availability (in casu) of construction contracts. It is not a right that the employee is entitled to for the duration of the period of the calculation.
It should be born in mind that the plaintiff is currently approximately 27 years of age and that the calculation is for a lengthy period. Simply taking the plaintiff’s current income and projecting the basic wage, overtime and bonus over the complete period of the calculation without distinguishing between the basic wage and the other elements would, in my opinion, overstate the loss.
Different contingencies should, if the calculation is done correctly, be applied to discretionary amounts such as overtime and bonus. A higher contingency (than that applicable to a basic wage) should be applied, given the discretionary and uncertain nature of overtime and bonusses.
There is no guarantee that the visa application of 14 January 2025 will be successful and there is no evidence that he will be able to renew or extend that work visa if it is granted.
It should further also be taken into consideration that the work that the plaintiff is engaged in might be relatively easy for a 27-year-old but, it is physically demanding work and as age takes its toll, he might not be able to continue doing the same kind of general labouring work. It should also not be forgotten that, as workers in the lower echelons of the employment market get older, a large pool of younger job seekers with more energy and more strength become available to step in.
There is therefore no guarantee that plaintiff would have been able to either secure or maintain employment as a general labourer until his projected retirement age. If one looks at the combination of all of these uncertainties then the calculation has to be adjusted by a significant margin.
Having re-looked at all the documentation it is my view that a 50% contingency deduction would adequately address this basket of uncertainties. The nett effect is that the plaintiff's claim in respect of past loss of income is allowed in the sum of R1 300 and the plaintiff's claim in respect of future loss of income or impairment of earning capacity is allowed in the sum of R1 496 450.
This renders a subtotal of R1 497 750 before the apportionment on negligence is deducted. Reducing the above by 20% yields a nett result of R1 198 200 in respect of loss of income. My order is as follows:
ORDER
1. The plaintiff's application in terms of Rule 38(2) is granted.
2. The defendant is liable to pay the plaintiff the net amount of R1 198 200 in respect of loss of income.
3. The plaintiff's claim in respect of general damages is postponed sine die.
4. The defendant is liable to provide the plaintiff with an Undertaking, as provided for in section 17(4)(a) of the Road Accident Fund Act, for 80% of such future hospital, medical and ancillary expenses as the plaintiff may require and arising from the injury sustained in the accident.
5. The plaintiff is awarded his party and party costs as taxed or agreed. Counsel's fees to be on scale B.
WEIDEMAN, AJ
JUDGE OF THE HIGH COURT
DATE: ……………….
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