Malindi v Commercial Union Insurance Company Ltd. (103/95) [1996] ZASCA 121; 1997 (1) SA 327 (SCA); [1997] 1 All SA 255 (A); (27 September 1996)

Malindi v Commercial Union Insurance Company Ltd. (103/95) [1996] ZASCA 121; 1997 (1) SA 327 (SCA); [1997] 1 All SA 255 (A); (27 September 1996)

The Supreme Court of Appeal held that section 14(2)(b) of the Motor Vehicle Accidents Act does not require an offer of settlement to remain open for acceptance for 90 days. The plain language of the statute provides that prescription resumes 90 days after the delivery of a notice conveying an offer of settlement, regardless of the period for which the offer is open. The Court rejected the reasoning in Ngantweni and Lucas, finding no basis in the Act for reading in a 90-day requirement. The respondent's offer, open for 60 days, was bona fide and, if accepted, would have disposed of the claim. The exclusion of future earnings was a clear rejection of that portion due to insufficient proof...

Citation
[1996] ZASCA 121
Parties
Appellant: Malindi Enoch; Respondent: Commercial Union Insurance Company Limited
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
27 September 1996
Case Number
103/95
Procedural Posture
Civil Appeal / Appeal From a Decision Upholding a Plea of Prescription and Dismissing the Appellant's Action With Costs.
Outcome
Appeal dismissed with costs.
Judges
E M Grosskopf, F H Grosskopf, Marais, Olivier, Plewman
Legal Topics
Prescription of Claims, Motor Vehicle Accidents Act, Offer of Settlement, Statutory Interpretation
Civil Procedure Prescription of Claims Motor Vehicle Accidents Act Offer of Settlement Statutory Interpretation

Case Brief

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Parties

Malindi Enoch

Appellant

Commercial Union Insurance Company Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From a Decision Upholding a Plea of Prescription and Dismissing the Appellant's Action With Costs.

Legal Issues

  1. 1 Whether an offer of settlement under section 14(2)(b) of the Motor Vehicle Accidents Act must remain open for acceptance for 90 days to trigger the resumption of prescription.
  2. 2 Whether the respondent's letter constituted a valid offer of settlement for the purposes of section 14(2)(b) of the Act.
  3. 3 Whether the exclusion of future earnings from the offer rendered it invalid as a settlement of the claim.

Ratio Decidendi

The Supreme Court of Appeal held that section 14(2)(b) of the Motor Vehicle Accidents Act does not require an offer of settlement to remain open for acceptance for 90 days. The plain language of the statute provides that prescription resumes 90 days after the delivery of a notice conveying an offer of settlement, regardless of the period for which the offer is open. The Court rejected the reasoning in Ngantweni and Lucas, finding no basis in the Act for reading in a 90-day requirement. The respondent's offer, open for 60 days, was bona fide and, if accepted, would have disposed of the claim. The exclusion of future earnings was a clear rejection of that portion due to insufficient proof...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.