MT obo PM v Road Accident Fund (54034/2017) [2024] ZAGPPHC 284 (26 March 2024)
- Citation
- [2024] ZAGPPHC 284
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- North Gauteng High Court, Pretoria
- Panel
- de Vos
- Case number
- 54034/2017
More details
- Court
- North Gauteng High Court, Pretoria
- Panel
- de Vos
- Case number
- 54034/2017
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court determined that, due to the uncertainties in the claimant's educational background and family circumstances, a 40% contingency should be applied to both future uninjured and injured earnings calculations. The expert evidence indicated that, while the claimant is performing well academically post-accident, there is insufficient reliable evidence of pre-accident learning ability, justifying a higher than usual contingency. The difference between the uninjured and injured calculations, after applying the 40% contingency, amounts to R 2,902,680, which is awarded for future loss of earnings. The court further ordered the respondent to pay 100% of the plaintiff's damages, furnish an undertaking under section 17(4)(a), and pay costs.
Court disposition
Plaintiff's claim for future loss of earnings is granted; respondent ordered to pay damages, costs, and furnish statutory undertaking.
Orders
- The defendant shall pay 100% of the plaintiff’s damages.
- The defendant shall furnish the plaintiff with an undertaking in terms of section 17(4)(a) of the Road Accident Fund Act 56 of 1996.
- The defendant shall pay the plaintiff an amount of R 2,902,680 for future loss of earnings.
- The issue of general damages is postponed sine die.
- The defendant is to pay the plaintiff’s costs.
- The quantum and taxed or agreed costs shall be paid into the trust account of Molefe Machaka Attorneys Inc.
- There is no valid contingency fee agreement.
02
Material facts
Parties
MT obo PM
Applicant Counsel: M MashauRoad Accident Fund
RespondentAmounts and remedies
- Future Loss of Earnings Awarded: ZAR 2,902,680
03
Procedural history
Posture
Civil Trial / Quantum Determination and Final Orders
04
Questions and positions
Legal issues
- 01
What is the appropriate contingency to apply to the calculation of future loss of earnings for a child claimant with significant facial scarring?
- 02
Should the higher contingency be applied given the uncertainties in the claimant's educational and developmental background?
- 03
Is the plaintiff entitled to 100% of damages and an undertaking in terms of section 17(4)(a) of the Road Accident Fund Act?
Party arguments
- Applicant
- The applicant submitted recalculated quantum figures based on the court's preference for the Educational Psychologist's second report, which estimated a career ceiling of NQF5 post-injury. The applicant argued for the application of standard contingencies, referencing the claimant's above-average school performance and developmental milestones, and sought full damages and an undertaking under section 17(4)(a) of the Road Accident Fund Act.
- Respondent
- The respondent did not file further submissions despite multiple invitations from the court. The respondent's position was therefore not advanced or clarified in the final quantum determination stage.
05
Court’s reasoning
Legal principles
- 01
Koch's sliding scale
Contingencies for future loss of earnings should be guided by Koch's sliding scale, typically 0.5% per year until retirement, but may be increased where there is greater uncertainty.
- 02
Expert evidence: Educational Psychologist Ms Masipa
Where expert evidence indicates significant uncertainty in a claimant's educational or developmental trajectory, a higher contingency may be justified.
- 03
Road Accident Fund Act 56 of 1996
Section 17(4)(a) of the Road Accident Fund Act entitles the plaintiff to an undertaking for future medical expenses related to the accident.
06
Ratio, limits and disposition
Ratio decidendi
The court determined that, due to the uncertainties in the claimant's educational background and family circumstances, a 40% contingency should be applied to both future uninjured and injured earnings calculations. The expert evidence indicated that, while the claimant is performing well academically post-accident, there is insufficient reliable evidence of pre-accident learning ability, justifying a higher than usual contingency. The difference between the uninjured and injured calculations, after applying the 40% contingency, amounts to R 2,902,680, which is awarded for future loss of earnings. The court further ordered the respondent to pay 100% of the plaintiff's damages, furnish an undertaking under section 17(4)(a), and pay costs.
Obiter and limits
- The court noted the absence of a valid contingency fee agreement.
- The judgment was delivered electronically and sent to the parties as a courtesy.
- The issue of general damages is postponed sine die.
Court disposition
Plaintiff's claim for future loss of earnings is granted; respondent ordered to pay damages, costs, and furnish statutory undertaking.
- The defendant shall pay 100% of the plaintiff’s damages.
- The defendant shall furnish the plaintiff with an undertaking in terms of section 17(4)(a) of the Road Accident Fund Act 56 of 1996.
- The defendant shall pay the plaintiff an amount of R 2,902,680 for future loss of earnings.
- The issue of general damages is postponed sine die.
- The defendant is to pay the plaintiff’s costs.
- The quantum and taxed or agreed costs shall be paid into the trust account of Molefe Machaka Attorneys Inc.
- There is no valid contingency fee agreement.
Source and reliance status
North Gauteng High Court, Pretoria
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.
North Gauteng High Court, Pretoria
Judgment
SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy
REPUBLIC OF SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE NO: 54034/2017
(1) REPORTABLE: NO
(2) OF INTEREST TO OTHER JUDGES: NO
(3) REVISED: YES
Date: 26 March 2024
In the matter between:
MT obo
PM
APPLICANT
and
THE
ROAD ACCIDENT
FUND
RESPONDENT
JUDGMENT
DE
VOS AJ
[1] The plaintiff claimed just shy of R 9 million for future loss of earnings. The plaintiff was a child at the time of the accident and suffered significant and unsightly scarring to his face. The impact of these scars has, according to the experts left him incapable of achieving the potential he had, prior to the accident.
[2] The Court requested a recalculation of the quantum. The Educational Psychologist had provided two conflicting reports. The first was for an estimated career ceiling of NQF6 post injury and the second estimation was a NQF5 qualification. For reasons set out in my judgment of 22 February 2024, the second report was preferred. I therefore requested a recalculation premised on the estimation in the first report. The plaintiff provided the recalculation on 5 March 2024. All that remains is the application of contingencies to the quantum as recalculated.
[3] At the hearing of the matter, I had provided the plaintiff with an opportunity to file further submissions and make oral submissions on two occasions. The order of February 2024 also permitted the plaintiff to make further submission within five days of providing the court with the recalculations. The order provided that if no submissions were received the Court would make a determination without such submissions. These submissions were not received. The Court requested the registrar on 13 March 2024 to reach out to the plaintiff and make sure it did not wish to make any further written submissions. Such a further invitation was extended on 14 March 2024. The invitation was not accepted.
[4] The Court will therefore turn to the case law as guideline for the calculation of contingencies. The contingencies (for future uninjured) has as a guideline Koch’s sliding scale. The sliding scale provides for 0.5% per year until retirement. The contingency, premised solely on the Koch sliding scale should be at least 30%. However, the expert evidence before the Court indicates that there is an even higher degree of uncertainty in relation to young Mr PM.
[5] Ms Masipa, the Educational Psychologist, postulates that Mr PM would have studied towards a NQF 7 (matric, plus a degree). The EP notes that there is a high degree of uncertainty in this regard as Mr PM –
“attended creche for a few months in 2011 and he was withdrawn because his parents were not satisfied with the care. He was therefore, cared for at home until the time of the accident. Therefore, there is no reliable evidence of his learning ability.”[1]
[6] The additional difficulty, as acknowledged by the EP, is that the immediate circumstances of the child creates further uncertainty. In this case, those are that his mother obtained a nursing certificate post matric and that his father completed matric, whilst his sole sibling, an older sister, had not passed matric. The uncertainties in relation to young Mr PM’s ability to reach the NQF 7 as postulated by the EP would require a higher contingency than the usual contingency to be applied. For this reason, the Court applies a 40% contingency for future uninjured loss resulting in a loss of R 8 075 040.
[7] As for future uninjured loss the Court has used a 40% contingency as well, as there are none of the usual factors present to increase this contingency further. It weighs with the Court that young Mr PM is doing exceptionally well at school for many years since the accident. The Educational Psychologist notes that according to “his school progress reports of grade R to grade 4, his performance has been ranging between meritorious and outstanding achievement.”[2] In addition according to the child’s parents “they have not received any complaint with regard to his learning or behaviour from school”.[3] His score card shows that of English and Life Skills he achieved 85 and 93% respectively. He also sustains an A+ in maths.[4] The results of his cognitive and intellectual assessment indicates that he is above average in non-verbal tests and average on a verbal scale. Post -accident he will be able to reach matric “with ease”.[5] The IP’s report indicates that the child reached his normal developmental milestones. He has subsequent to the accident attended school and has to date not failed or repeated any grade.
[8] The calculation of 40% contingencies on future injured (premised on a NQF6) has been calculated by the actuary to be R 5 172 360. The difference between the uninjured and injured calculations are R 2 902 680.
Order:
[9] The Court orders:
1. The defendant shall pay 100% of the plaintiff’s damages.
2. The defendant shall furnish the plaintiff with an undertaking in terms of section 17(4)(a) of the road Accident Fund Act 56 of 1996.
3. The defendant shall pay the plaintiff an amount of R 2,902 680 for future loss of earnings.
4. The issue of general damages is postponed sine die.
5. The defendant is to pay the plaintiff’s costs.
6. The quantum and taxed or agreed costs as referred to in to above shall be paid into the trust account of the Plaintiff’s Attorney MOLEFE MACHAKA ATTORNEYS INC. which is as follows:
ACCOUNT HOLDER : MOLEFE MACHAKA ATTORNEYS INC.
ACCOUNT TYPE : TRUST
ACCOUNT NUMBER : 4[...]
NAME OF BANK : A[...]
BRANCH : 6[...]
CODE REFERENCE NO : M[...]
7. There is no valid contingency fee agreement.
I de Vos
Acting Judge of the High Court
Delivered: This judgment is handed down electronically by uploading it to the electronic file of this matter on CaseLines. As a courtesy gesture, it will be sent to the parties/their legal representatives by email.
Counsel for the plaintiff:
M
MASHAU Instructed by: Molefe Machaka Attorneys Date of receiving calculations: 5 March 2024 Date of judgment: 26 March 2024
[1] CL 2-8
[2] CL 2-77
[3] Id
[4] CL 2-78
[5] CL 2-86
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