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South Africa Judgment

North Gauteng High Court, Pretoria

Molakeng v Padongelukfonds (53523/07) [2010] ZAGPPHC 201 (16 November 2010)

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01

Holding and result

The court held that section 36(2) of the Compensation for Occupational Injuries and Diseases Act requires the deduction of compensation received under the Act from any damages awarded for loss of support against the Road Accident Fund. The Supreme Court of Appeal's decision in Sasol Synthetic Fuels (Pty) Ltd and Others v Lambert and Others is binding and confirms that there is no conflict between the relevant statutory provisions. The discretion referenced in Erasmus, Ferreira & Ackerman and Others does not apply to statutory compensation under the Act. Accordingly, the compensation received by the applicant and her children must be deducted from the agreed quantum of damages, resulting in a reduced award.

Court disposition

The applicant's claim for loss of support is reduced by the amount of statutory compensation received, and judgment is granted for the lower agreed amount.

Orders

  • The draft order marked 'X' is made an order of court.
  • The applicant is ordered to pay the respondent's costs incurred for the argument on 5 November 2010.
  • The defendant is to pay the plaintiff's attorney of record the sum of 84,418 ZAR.
  • Interest shall accrue on the outstanding amount at 15.5% per annum from due date to date of payment.
  • Payment of the plaintiff's taxed or agreed party and party costs, including full fees of Senior Junior Counsel, costs of expert reports, reasonable preparation and reservation fees of experts, and declaration of Miss Belina Nthejane as a necessary witness.
  • The plaintiff shall serve notice of taxation on the defendant's attorney if costs are not agreed, and the defendant shall have seven court days to pay taxed costs.

02

Material facts

Parties

Mamonate Sarah Molakeng

Applicant Counsel: Adv. W. Dreyer

Padongelukfonds (Road Accident Fund)

Respondent Counsel: Adv. B.D. Stevens

Amounts and remedies

  • Damages Awarded After Statutory Deduction: ZAR 84,418
  • Interest Rate Per Annum: ZAR 15.5

03

Procedural history

  1. Posture

    Civil Trial / Final Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that the compensation received under the Compensation for Occupational Injuries and Diseases Act should not be deducted from the damages for loss of support. Reliance was placed on section 1(1) of the Calculation of Damages Act, which broadly defines 'pension' to include such compensation and prohibits its deduction. The applicant further contended, based on Erasmus, Ferreira & Ackerman and Others v Francis and Others, that the court retains discretion not to deduct statutory compensation, invoking policy and equity considerations.
Respondent
The respondent submitted that section 36(2) of the Compensation for Occupational Injuries and Diseases Act expressly requires the court to take into account compensation paid under the Act when awarding damages, which means such compensation must be deducted. The respondent relied on the Supreme Court of Appeal's decision in Sasol Synthetic Fuels (Pty) Ltd and Others v Lambert and Others, which held there is no conflict between the relevant statutory provisions and that deduction is mandatory. The respondent also argued that the discretion referenced in Erasmus, Ferreira & Ackerman and Others does not apply to statutory compensation under the Act.

05

Court’s reasoning

  1. 01

    Compensation for Occupational Injuries and Diseases Act, 130 of 1993

    Section 36(2) of the Compensation for Occupational Injuries and Diseases Act requires the court to have regard to compensation paid under the Act when awarding damages, which entails deducting such compensation from the damages awarded.

  2. 02

    Calculation of Damages Act, 9 of 1969

    Section 1(1) of the Calculation of Damages Act prohibits the deduction of pensions or benefits paid as a result of death when calculating damages for loss of support, but this does not override the specific requirement of section 36(2) of the Compensation for Occupational Injuries and Diseases Act.

  3. 03

    Sasol Synthetic Fuels (Pty) Ltd and Others v Lambert and Others 2002 (2) SA 21 (SCA)

    The Supreme Court of Appeal has held that there is no conflict between section 36(2) of the Compensation for Occupational Injuries and Diseases Act and section 1(1) of the Calculation of Damages Act, and that statutory compensation must be deducted from the damages awarded.

  4. 04

    Erasmus, Ferreira & Ackerman and Others v Francis and Others 2010 (2) SA 228 (SCA)

    Discretion to refuse deduction of benefits based on policy and equity applies only in the context of common law principles, not where statutory provisions mandate deduction.

06

Ratio, limits and disposition

Ratio decidendi

The court held that section 36(2) of the Compensation for Occupational Injuries and Diseases Act requires the deduction of compensation received under the Act from any damages awarded for loss of support against the Road Accident Fund. The Supreme Court of Appeal's decision in Sasol Synthetic Fuels (Pty) Ltd and Others v Lambert and Others is binding and confirms that there is no conflict between the relevant statutory provisions. The discretion referenced in Erasmus, Ferreira & Ackerman and Others does not apply to statutory compensation under the Act. Accordingly, the compensation received by the applicant and her children must be deducted from the agreed quantum of damages, resulting in a reduced award.

Obiter and limits

  • The discretion to refuse deduction of benefits based on policy and equity is limited to common law scenarios and does not override statutory mandates.
  • The parties' agreement on costs is fair given the circumstances of the dispute and the timing of the settlement.

Court disposition

The applicant's claim for loss of support is reduced by the amount of statutory compensation received, and judgment is granted for the lower agreed amount.

  • The draft order marked 'X' is made an order of court.
  • The applicant is ordered to pay the respondent's costs incurred for the argument on 5 November 2010.
  • The defendant is to pay the plaintiff's attorney of record the sum of 84,418 ZAR.
  • Interest shall accrue on the outstanding amount at 15.5% per annum from due date to date of payment.
  • Payment of the plaintiff's taxed or agreed party and party costs, including full fees of Senior Junior Counsel, costs of expert reports, reasonable preparation and reservation fees of experts, and declaration of Miss Belina Nthejane as a necessary witness.
  • The plaintiff shall serve notice of taxation on the defendant's attorney if costs are not agreed, and the defendant shall have seven court days to pay taxed costs.

Source and reliance status

North Gauteng High Court, Pretoria

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Judgment reading view

Judgment text

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Source document

North Gauteng High Court, Pretoria

Judgment

[2010] ZAGPPHC 201

SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy

NOT

REPORTABLE

IN

DIE HOOGGEREGSHOF VAN SUID AFRIKA

(NOORD GAUTENG, PRETORIA)

Saaknommer: 53523/07

Datum aangehoor: 05/11/2010

Datum van uitspraak: 16/11/2010

In die saak tussen:

MAMONATE

SARAH MOLAKENG

en

PADONGELUKFONDS..........................................................................VERWEERDER

UITSPRAAK

DU PLESSIS:

Op 7 Junie 2005 is die eiseres se eggenoot en die vader van haar twee minderjarige kinders noodlottig beseer in 'n motorongeluk. Die verweerder gee toe dat dit aanspreeklik is om die eiseres en die kinders te vergoed vir hulle verlies aan onderhoud. Die partye het ooreengekom dat, as daar voorsiening gemaak word vir gebeurlikehede waarop hulle ook ooreengekom het, die omvang van die eiseres en die kinders se eis op R356 348 te staan kom. Dit is gemeensaak dat die gemelde motorongeluk plaasgevind het in omstandighede wat die eiseres en die kinders geregtig gemaak het op betaling van vergoeding ingevolge die bepalings van die Compensation for Occupational Injuries and Diseases Act, 130 van 19931 ("die Wet"). Dit is verder gemeensaak dat die eiseres en die kinders inderdaad sodanige vergoeding ontvang het. Die enigste geskilpunt is of daardie vergoeding afgetrek moet word van die verlies aan onderhoud soos wat dit by ooreenkoms gekwantifiseer is. As bevind word dat dit nie afgetrek moet word nie dan, so is ooreengekom, moet vonnis vir die eiseres toegestaan word in die bedrag hierbo vermeld. As bevind word dat die vergoeding wel afgetrek moet word, is die partye dit eens dat vonnis vir R84 418 toegestaan moet word.

Geen mondeiinge getuienis is aangebied nie, maar die partye het by ooreenkoms 'n brief van die vergoedingskommissaris voor die hof

geplaas. In die brief word die vergoeding wat die eiseres en die kinders kragtens die Wet ontvang het uiteengesit. Die partye het

aanvaar dat, as vergoeding wat ingevolge die Wet ontvang is regtens aftrekbaar is, moet die voile bedrag wat ontvang is afgetrek word. Dit is dus nie vir my nodig om te handel met hoe die totale bedrag saamgestel is nie. Ek volstaan dus deur daarop te wys dat die vergoeding ingevolge artikel 54(1)(b) gelees met artikel 54(1)(a) van die Wet ontvang is en ook ingevolge artikel 54(2).

Volgens die definisie van "employee" in artikel 1 van die Wet sluit "employee" ook die afhanklikes van 'n oorlede werknemer in. Saamgelees met die definisie van "employee", bepaal artikel 36(1 )(a) van die Wet dan;

"(1) If an occupational injury or disease in respect of which compensation is payable, was caused in circumstances resulting in some person other than the employer of the employee concerned (in this section referred to as the "third party") being liable for damages in respect of such injury or disease ... the employee, including his dependants, may claim compensation in terms of this Act and may also institute action for damages in a court of law against the third party".

Die eiseres en die kinders se aksie teen die verweerder val dus binne die trefwydte van artikel 36(1 )(a).

Artikel 36(2) van die Wet bepaal:

"In awarding damages in an action referred to in subsection (1)(a) the court shall have regard to the compensation paid in terms of this Act." 2

Toegepas op die huidige feite bepaal artikel 36(1 )(a) en (2) dus dat 'n oorlede werknemer se afhanklikes aksie teen die Padongelukkefonds mag instel vir skadevergoeding weens verlies aan onderhoud, maar dat die hof wat in daardie aksie skadevergoeding toestaan, die vergoeding wat ingevolge die Wet betaal is, in ag moet neem. Die advokate was dit eens, en tereg, dat die verpligting wat die hof net om die vergoeding kragtens die Wet "in ag te neem", daarop neerkom dat die hof sodanige vergoeding moet aftrek van die skadevergoeding wat aan 'n eiser toegeken word.

Namens die eiser het Mnr Dreyer egter betoog dat die vergoeding wat in hierdie geval aan die eiseres en die kinders betaal is, nie in ag geneem kan word nie. Vir daardie betoog het hy in die eerste plek gesteun op artikel (1) van die Wet op die Berekening van Skadevergoeding, 9 van 1969 ("die Berekeningswet") wat bepaal:

"Wanneer in 'n geding ... skadevergoeding bereken word vir die verlies van onderhoud ten gevolge van iemand se dood, word geen ... pensioen of voordeel wat ten gevolge van die dood betaal is of betaal sal word of moontlik betaal sal word, in aanmerking geneem nie." In die artikel woord "pensioen" sodanig wyd omskryf dat dit die vergoeding wat die eiseres en die kinders kragtens die Wet ontvang het sou inlsuit.

Mnr Dreyer se betoog gaan van die standpunt uit dat daar 'n botsing is tussen die bepalings van artikel 36(2) van die Wet en artikel 1 (1) van die Berekeningswet. Die vraag na sodanige botsing en die wese van Mnr Dreyer se argument het pertinent ter sprake gekom in Sasol Synthetic Fuels (Pty) Ltd and Others v Lambert and Others 2002 (2) SA 21 (SCA). Dit het in daardie saak ook gegaan oor die vraag of vergoeding wat aan afhanklikes betaal is van hulle eis om verlies aan onderhoud afgetrek moet word. Die Hoogste Hof van Appel het bevind dat daar geen botsing tussen artikel 36(2) van die Wet en artikel 1(1) van die Berekeningswet is nie en dat die vergoeding ingevolge die Wet wel van die afhanklikes se eis afgetrek moet word. Toe die Sasol-saak beslis is, het artikel 36(2) ietwat anders gelui as wat dit nou lui. Die verskil raak nie die vraag waaroor dit tans gaan nie. Ek is dus aan die beslissing in die Sasol-saak gebonde, onderhewig aan mnr Dreyer se verdere argument waarmee ek nou gaan handel.

Op grond van die appelhof se beslissing in Erasmus, Ferreira & Ackerman and Others v Francis and Others 2010 (2) SA 228 (SCA) het mnr Dreyer betoog dat hierdie hof, ten spyte van die beslissing in die Sasol-saak (supra), 'n diskresie het om nie die vergoeding ingevolge die Wet van die eiseres en die kinders se eis af te trek nie. Die Erasmus Ferreira-saak het nie oor vergoeding ingevolge die Wet gegaan nie. Die diskresie waarna mnr Dreyer verwys het in 'n heeltemal ander konteks ter sprake gekom. Die hof moes naamlik ondermeer besluit of pensioengeld wat die eiseres ontvang het van haar eis teen die verweerders afgetrek moet word kragtens die res inter alios acfa-reel van die gemene reg. Volgens die gemelde gemeenregtelike reel kan 'n handeling of 'n transaksie tussen partye nie persone wat nie deel van daardie handeling of transaksie was, bevoordeei of benadeel nie. Op grond van die gemelde reel het die howe al meermale geweier om sekere voordelige gevolge van 'n delik wat die eiser toeval, van sy skadevergoeding af te trek. (Kyk paragrawe 15 tot 17 van die Erasmus Ferreira-saak.) Die vraag oor wanneer die res iner alios acra-reel toegepas moet word, het die Hoogste Hof van Appel bevind, is een wat beslis moet word aan die hand van "policy principles and equity" (paragraaf 18 van die versiag). Die hof het nie, soos mnr Dreyer se betoog dit wil he, beslis dat alle aftrekkings van skadevergoeding 'n kwessie van beleid en billikheid is nie. Ek kom dus tot die gevolgtrekking dat hierdie hof gebonde is om, ooreenkomstig die Sasol-beslissing die vergoeding wat die eiseres en die kinders kragtens die Wet ontvang het van hulle ooreengekome skade af te trek.

Die partye het aan my 'n konsep-bevel voorgele waarin ek, so het hulle ooreengekom, slegs die finale bedrag in ooreenstemming met hierdie beslissing moet invul. Daarin het hulle ook oor die gepaste kostebevel ooreengekom. Ek is egter meegedeel dat die saak die dag voor dit vir verhoor geplaas is, reeds geskik is en dat die enigste oorblywende geskilpunt toe reeds die een was waaroor hierdie uitspraak handel. In die lig daarvan, het mnr Stevens vir die verweerder betoog, is sy klient geregtig op 'n bevel dat die eiseres die verweerder se koste vir die argument voor my moet betaal. As die eiser nie aangevoer het dat die vergoeding ingevolge die Wet nie afgetrek moet word nie,

was geen argument nodig nie en kon die saak afgehandel gewees het sonder die addisionele koste van verweerder se advokaat. Mnr Dreyer het aangedui dat hy met mnr Stevens se betoog saamstem. Ek meen dit is billik om sodanige bevel te maak.

Gevolglik word die volgende bevel gemaak:

1. Die konsepbevel gemerk "X" waarvan 'n afskrif hierby aangeheg word, word 'n bevel van die hot gemaak.

2. Die eiseres word gelas om die verweerder se koste veroorsaak deur die argument op

5 November 2010 te betaal.

B.R. du Plessis

Regter van die Hooggeregshof

IN THE NORTH GAUTENG HIGH COURT,

PRETORIA (REPUBLIC OF SOUTH AFRICA)

CASE NUMBER: 53523/2007

In the matter between:

MS MOLAKENG..............................................................................................PLAINTIFF

and

THE

ROAD ACCIDENT FUND....................................................................DEFENDANT

DRAFT

ORDER

AFTER HAVING HEARD COUNCIL FOR BOTH PARTIES, IT IS ORDERED THAT:

1. The Defendant is to pay the Plaintiffs attorney of record payment in the sum of 84 481

The Plaintiffs Attorney's trust account details are as follows:

ACCOUNT HOLDER:

BRANCH:

BRANCH CODE:

TYPE OF ACCOUNT:

ACCOUNT NUMBER:

Namens die Eiser: Van Zyl, Le Roux en Hurter

13de vloer,

SALU gebou h/v Scoeman- en Andriesstrate

Pretoria

Adv. W. Dreyer

On behalf of the Defendants: Dyason Prokureurs

Muckleneukstraat 134

Adv. B.D. Stevens

In the event of default on the above payment, interest is shall accrue on such outstanding amount at 15.5 per cent per annum calculated from due date to date of payment.

2. Payment of the Plaintiffs taxed or agreed party and party costs, which cost shall include, but not be limited to the following:

2.1 The full fees of Senior Junior Counsel;

2.2 The cost of obtaining all actuarial- and any other related reports of an expert nature that were furnished to the defendant;

2.3 The reasonable taxable preparation and reservation fees of all experts, if any;

2.4 That miss Belina Nthejane be declared a necessary witness;

2.5 The above-mentioned payment with regard to costs shall be subject to the following conditions:

2.5.1 The Plaintiff shall, in the event that costs are not agreed, serve the notice of taxation on the Defendant's attorney of record; and

2.5.2 The Plaintiff shall allow the Defendant 7(seven) Court days to make payment of the taxed costs

THE

REGISTRAR

1Ek gebruik die Engelse weegawe van die Wet omdat die Afrikaanse weergawe nie opgedateer is nie.

2Volledigheidshalwe wys ck daarop dat begrafniskoste wat ingevolge artikel 54(2) betaal is, kragtens artikel 36(4) ook deel van die "vergoeidng" vorm. Vanwee die partye se "alles of niks"-benadering hang niks daarvan af dat deel van die vergoeding wat die eiseres ontvang het, befrafniskoste was nie.

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Sasol Synthetic Fuels (Pty) Ltd and Others v Lambert and Others 2002 (2) SA 21 (SCA)

Case cited

Erasmus, Ferreira & Ackerman and Others v Francis and Others 2010 (2) SA 228 (SCA)

Case cited

Compensation for Occupational Injuries and Diseases Act, 130 of 1993

Legislation

Legislation referenced in the available case record.

Calculation of Damages Act, 9 of 1969

Legislation

Legislation referenced in the available case record.

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