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South Africa Judgment

North Gauteng High Court, Pretoria

Mthimkhulu v Road Accident Fund (48531/2014) [2017] ZAGPPHC 666 (21 September 2017)

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01

Holding and result

The Defendant formally admitted the content of all the Plaintiff's expert reports, including the Industrial Psychologist's opinion that the Plaintiff will remain unemployed and unable to find suitable employment. In South African law, such judicial admissions are binding and preclude the Defendant from leading evidence to contradict the admitted facts. The Defendant's attempt to challenge the quantum by introducing alternative calculations and suggesting future employability is inconsistent with its admissions. The court accepted the Plaintiff's calculation of past and future loss of income, applying the agreed contingencies, and found that the Plaintiff had proven her claim for fair and reasonable compensation for loss of income/earnings on a balance of probabilities.

Court disposition

Plaintiff's claim for loss of income/earnings is upheld.

Orders

  • Defendant is ordered to pay the Plaintiff the amount of R287,317.85.
  • Defendant is ordered to pay interest on the amount of R287,317.85 at a rate of 15.5% per annum, calculated from fourteen days after the date of judgment to the date of payment.
  • Defendant is ordered to pay the costs of suit.

02

Material facts

Parties

Gadihele Betty Mthimkhulu

Plaintiff Counsel: Adv. M. van Antwerpen

Road Accident Fund

Defendant Counsel: Adv. GNC Rakgetsi

Amounts and remedies

  • Total Loss of Income (past and Future): ZAR 287,317.85
  • Interest Rate Per Annum: ZAR 15.5

03

Procedural history

  1. Posture

    Civil Trial / Quantum Determination After Liability Settled

04

Questions and positions

Legal issues

Party arguments

Applicant
Plaintiff argued that, based on the admitted expert reports, particularly the Industrial Psychologist's opinion, she will remain unemployed and unable to find suitable employment. The Actuary calculated her past and future loss of income accordingly. Plaintiff submitted that a 15% contingency should be deducted from past loss and 30% from future loss, resulting in a total loss of R287,317.85. Plaintiff further argued that, since the Defendant admitted all expert reports, it cannot now contradict their contents.
Respondent
Defendant argued that the calculation of loss was incorrect, suggesting that R1,500.00 should have been used instead of R1,800.00 and that a 35% reduction should apply. Defendant submitted a spreadsheet (Exhibit B) calculating future loss on the basis that Plaintiff could still be employed post-accident, thereby reducing the quantum of damages.

05

Court’s reasoning

  1. 01

    Gordon v Tamow 1947 (3) SA 525 (A)

    A judicial admission in pleadings is conclusive and binds the party making it, rendering it unnecessary for the other party to adduce evidence to prove the admitted fact, and incompetent for the party making the admission to adduce evidence to contradict it.

  2. 02

    AA Mutual Assurance Association Ltd v Biddulph and Another 1976 (1) SA 725 (A)

    An admission of fact in a plea binds the defendant; the plaintiff need not adduce evidence to prove the admitted fact, and the defendant cannot seek to contradict it.

06

Ratio, limits and disposition

Ratio decidendi

The Defendant formally admitted the content of all the Plaintiff's expert reports, including the Industrial Psychologist's opinion that the Plaintiff will remain unemployed and unable to find suitable employment. In South African law, such judicial admissions are binding and preclude the Defendant from leading evidence to contradict the admitted facts. The Defendant's attempt to challenge the quantum by introducing alternative calculations and suggesting future employability is inconsistent with its admissions. The court accepted the Plaintiff's calculation of past and future loss of income, applying the agreed contingencies, and found that the Plaintiff had proven her claim for fair and reasonable compensation for loss of income/earnings on a balance of probabilities.

Obiter and limits

  • The Defendant's calculations in its Heads of Argument contradict its own admissions and are therefore not sustainable.
  • The Plaintiff's inability to provide proof of cash payments was reasonably accommodated in the calculation of damages.

Court disposition

Plaintiff's claim for loss of income/earnings is upheld.

  • Defendant is ordered to pay the Plaintiff the amount of R287,317.85.
  • Defendant is ordered to pay interest on the amount of R287,317.85 at a rate of 15.5% per annum, calculated from fourteen days after the date of judgment to the date of payment.
  • Defendant is ordered to pay the costs of suit.

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

[2017] ZAGPPHC 666

REPUBLIC

OF SOUTH AFRICA

IN THE HIGH COURT OF SOUTH AFRICA,

GAUTENG DIVISION, PRETORIA

CASE NO: 48531/2014

DATE: 21/09/2017

In the matter between:

GADIHELE

BETTY

MTHIMKHULU

Plaintiff

and

ROAD

ACCIDENT

FUND

Defendant

JUDGMENT

MAKHOBA, AJ:

[1]. Plaintiff instituted an action against the Defendant for damages suffered as the result of injuries sustained in a motor vehicle

accident that occurred on the 9th July 2013. The Defendant is the Road Accident Fund, a juristic person established in terms of section 2 (1) of the Road Accident Fund Act, Act 56 of 1996.

[2]. The issue of liability was previously settled between the parties, Defendant agreeing to pay 100% of the Plaintiff's proven or agreed damages. Future hospital and medical expenses as well as general damages were settled between parties. Defendant formally admitted the content of all the expert reports of the Plaintiff.

[3]. The only issue in dispute between the parties is loss of income/ earnings.

[4]. The parties agreed not to present oral evidence but to argue the issue on the papers, specifically the expert reports filed on behalf of the Plaintiff. The only dispute is the calculation of the amount to be awarded.

[5]. Plaintiff filed the following reports,

5.1 Dr T. Birrel (Orthopaedic Surgeon)

5.2 Dr D.A. Sherel (Psychiatrist)

5.3 Dr K. Truter (Clinical Psychologist)

5.4 Dr T. Holshausen (Occupational Therapist)

5.5 Dr Esme Noble (Industrial Psychologist)

5.6 Greg Whittaker (Actuary)

The Defendant filed only one report.

[6]. Plaintiff submitted that according to Plaintiff's Industrial Psychologist (Dr Esme Noble), Plaintiff will not find suitable

employment and will remain unemployed. This report is contained on page 110 paragraph 8.2.4 of Plaintiff's expert report/ Greg Whittaker (Actuary) calculated Plaintiff's past and future loss of income based on the opinion of Esme Noble (Industrial Psychologist). Plaintiff prepared annexure A as the summary of the fair and reasonable compensation for both parties based on the fact that the Plaintiff were paid cash and could not provide proof thereof.

[7]. Counsel for the Plaintiff submitted that a 15% contingency should be deducted on the past loss income uninjured resulting in a net past loss of R87 350-25 and 30% should be deducted on the future loss income uninjured, resulting in a net future loss of R215927.00. Plaintiff's total loss (past and future) amounts to R287317.85.

[8]. Counsel for the Defendant in his submissions in court, he submits in his Heads of Argument in paragraph 13.4 that "the basis of the calculation is incorrect as R1500.00 should have been used instead of R1800.00 so as 35% reduction should apply to the original amount." During his submission, he handed in Exhibit B and argued that Plaintiff can still be employed. Exhibit "B" is a spread sheet in terms whereof the Plaintiff's future loss of income was calculated based on contingency where it is accepted that the Plaintiff will be employed post-accident.

[9]. Counsel on behalf of the Plaintiff submits that Defendant has already admitted the opinion of Esme Noble and therefore cannot contradict it. Defendant in fact admitted all the reports.

[10]. That is the totality of the submissions including their submission contained in their Heads of Argument.

[11]. In Gordon v Tamow 1947 (3) SA 525 (A) para 531-532, Davis AJA said, "But this admission in the plea is of the greatest importance for it is what Wigmore (paras 2588-2590) calls a Judicial admission' (Cf the confessio judicialis of voet (42.2.6)) which is conclusive, rendering it unnecessary for the other party to adduce evidence to prove the admitted fact, and incompetent for the party

making it to adduce evidence to contradict it."

[12]. In AA Mutual Assurance Association Ltd v Biddulph and Another 1976 (1) SA 725

(A) at page 735 paragraph B the court said, "For an admission of a fact in a plea has important and serious consequences for the defendant: while it stands it usually binds him, the plaintiff need not adduce any evidence to prove the admitted fact, and the defendant cannot seek to contradict it."

[13]. It is clear therefore that the Defendant cannot contradict any of the reports after it has been admitted. In terms of the admissions made by the Defendant, Defendant admitted the opinion of Esme Noble (Industrial Psychologist) that the Plaintiff will not find suitable employment and that she will remain unemployed in future. It is clear from the admitted report of Esme Noble that she did take into consideration all of the experts opinions regarding the Plaintiff's working capacity post-accident.

[14]. Furthermore , the Defendant's calculations on paragraphs 13 of the Heads of Argument contradicts what has been admitted.

[15]. The court finds that the Plaintiff has succeeded on preponderance of probabilities to prove the fair and reasonable

compensation for the Plaintiff's claim for loss of

income/ earnings.

[16]. The following order is made

16.1 Payment in the amount R287317.85

16.2 Interest on the amount R287317.85 at a rate of 15.5% per annum calculated 14 (fourteen) days from the date of judgment to date of payment.

16.3 Costs of suit.

______

D

MAKHOBA

ACTING

JUDGE OF THE HIGH COURT OF SOUTH AFRICA

CASE NO.:

48531/2014

HEARD.ON: 25 AUGUST 2017

FOR THE STATE: ADV. M. VAN ANTWERPEN

INSTRUCTED BY: ADAMS & ADAMS

FOR THE DEFENSE: ADV. GNC RAKGETSI

INSTRUCTED BY:

TSEBANE MOLABA

ATTORNEYS

DATE OF JUDGMENT: SEPTEMBER 2017

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Authorities

Authorities used by the court

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

Gordon v Tamow 1947 (3) SA 525 (A)

Case cited

AA Mutual Assurance Association Ltd v Biddulph and Another 1976 (1) SA 725 (A)

Case cited

Road Accident Fund Act 56 of 1996

Legislation

Legislation referenced in the available case record.

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