Miles v Road Accident Fund (7410/2009) [2013] ZAKZPHC 41 (14 June 2013)

Miles v Road Accident Fund (7410/2009) [2013] ZAKZPHC 41 (14 June 2013)

The Court found that the Plaintiff's loss of earnings and earning capacity should be assessed using the performance, turnover, and profitability of his close corporation, Guy Miles Brokerage CC, rather than solely his declared salary. The Plaintiff owns 99% of the CC, controls its affairs, and its fortunes are directly tied to his personal exertion and management. The apportionment of income between the Plaintiff and the CC was driven by tax efficiency, not by the true reflection of his earning capacity. The evidence showed a significant decline in the CC's turnover and profitability after the Plaintiff's injury, and expert evidence supported the use of the CC's income as the appropriate...

Citation
[2013] ZAKZPHC 41
Parties
Plaintiff: Guy Brian Miles; Defendant: Road Accident Fund
Court
Kwazulu-Natal High Court, Pietermaritzburg
Jurisdiction
South Africa
Judgment Date
14 June 2013
Case Number
7410/2009
Procedural Posture
Civil Trial / Judgment After Trial on Quantum of Damages
Outcome
Judgment granted in favour of the Plaintiff for payment of R 13 835 895, plus costs as specified.
Judges
C.J. Hartzenberg
Legal Topics
Road Accident Fund Act, Loss of Earning Capacity, Quantification of Damages, Close Corporation Income, Contingency Deductions
Delict Civil Procedure Road Accident Fund Act Loss of Earning Capacity Quantification of Damages Close Corporation Income Contingency Deductions

Case Brief

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Parties

Guy Brian Miles

Plaintiff

Road Accident Fund

Defendant

Procedural Posture

Civil Trial / Judgment After Trial on Quantum of Damages

Legal Issues

  1. 1 Whether the Plaintiff's loss of earnings and earning capacity should be assessed using the income and profitability of his close corporation, or only his declared salary.
  2. 2 What is the appropriate quantum of damages for past and future loss of earnings and earning capacity resulting from the Plaintiff's injuries.
  3. 3 What contingency deductions should be applied to the Plaintiff's claim for loss of earnings.

Ratio Decidendi

The Court found that the Plaintiff's loss of earnings and earning capacity should be assessed using the performance, turnover, and profitability of his close corporation, Guy Miles Brokerage CC, rather than solely his declared salary. The Plaintiff owns 99% of the CC, controls its affairs, and its fortunes are directly tied to his personal exertion and management. The apportionment of income between the Plaintiff and the CC was driven by tax efficiency, not by the true reflection of his earning capacity. The evidence showed a significant decline in the CC's turnover and profitability after the Plaintiff's injury, and expert evidence supported the use of the CC's income as the appropriate...

Court Disposition

Judgment granted in favour of the Plaintiff for payment of R 13 835 895, plus costs as specified.

Orders

  • The Defendant is ordered to pay the Plaintiff the amount of R 13 835 895.
  • The Defendant is ordered to pay the costs of suit, including the costs of two counsel.