South Africa Judgment

Limpopo High Court, Polokwane

Mukhari v Road Accident Fund (200/2016) [2017] ZALMPPHC 45 (25 October 2017)

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Source document

01

Holding and result

The court found that the plaintiff did not suffer any past loss of earnings, as she continued to receive her salary after the accident. However, the plaintiff demonstrated a future loss of earning capacity due to her inability to perform medium and heavy duties and the high risk of unemployment. The court exercised its discretion to apply a 30% contingency deduction to the future loss of earning capacity, awarding the plaintiff R236,510. The defendant was ordered to provide an undertaking for future medical expenses under Section 17(4)(a) of the Road Accident Fund Act and to pay the plaintiff's costs, including expert fees.

Court disposition

Plaintiff's claim for past loss of earnings dismissed; claim for future loss of earning capacity upheld with costs.

Orders

  • The plaintiff's claim for past loss of earning is dismissed.
  • The defendant shall pay the plaintiff the sum of R236,510.00 for loss of earning.
  • Interest on the above amount at 10.25% per annum from 1 December 2017 to date of final payment.
  • The defendant shall furnish the plaintiff with an undertaking in terms of Section 17(4)(a) of the Road Accident Fund Act for future medical expenses.
  • The defendant shall pay the plaintiff's taxed or agreed party and party costs, including the costs and/or qualifying fees of Dr TJ Enslin, Dr HB Enslin, Dr Joachim FL Mureriwa, Rixile Consulting, Dr Mpho Zwane, and Munro Actuaries.

02

Material facts

Parties

Mukhari, Vukatimuni Sylvia

Plaintiff Counsel: Adv MD Mphahlele

Road Accident Fund

Defendant Counsel: Adv TI Ngwana

Amounts and remedies

  • Future Loss of Earning Awarded: ZAR 236,510
  • Interest Rate Per Annum: ZAR 10.25

03

Procedural history

  1. Posture

    Civil Trial / Quantum Determination After Merits Settled

04

Questions and positions

Legal issues

Party arguments

Applicant
The plaintiff argued that a 5% contingency deduction should apply to past loss of earnings and a 30% deduction to future loss of earning capacity. She claimed that, following the accident, she could only perform light duties and was at high risk of losing her job as a domestic worker. The plaintiff submitted that she would likely be unemployed by 2022 and requested a total award of R236,510 for loss of earning.
Respondent
The defendant contended that the plaintiff's injuries were minor, involving no bone injury and treated conservatively. It was argued that the plaintiff was paid her full salary and that her actual salary was R1,500 per month, not R1,600 as claimed. The defendant denied any past loss of earnings and submitted that only scenario 2, awarding R46,620, was justified.

05

Court’s reasoning

  1. 01

    Legal Insurance Company Ltd v Botes 1963 (1) SA 608 (A) at 614F

    In assessing compensation, the trial judge has broad discretion to award what is considered right under the circumstances, guided but not bound by actuarial calculations.

  2. 02

    Dippenaar v Shield Insurance Co Ltd 1979 (2) SA 904 (A) para [9]

    Under the lex Aquilia, the defendant must compensate the difference between the plaintiff's estate after the delict and what it would have been but for the delict. Loss or impairment of earning capacity constitutes a loss if it diminishes the estate.

  3. 03

    Sandler v Wholesale Coal Suppliers Ltd 1941 AD 194

    The court must value damages in monetary terms based on the evidence, even if it is exceedingly difficult.

  4. 04

    Goodall v President Assurance Company 1978 (1) SA 389 (WU) at 392H–393A

    Assessment of contingencies involves arbitrary considerations, as predicting the future is not a judicial qualification.

  5. 05

    Goodall v President Assurance Company 1978 (1) SA 389 (WU) at 393A–G

    Contingency deductions vary depending on age, career stability, and prospects; typically, 10–20% is allowed, but must be tailored to the facts.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the plaintiff did not suffer any past loss of earnings, as she continued to receive her salary after the accident. However, the plaintiff demonstrated a future loss of earning capacity due to her inability to perform medium and heavy duties and the high risk of unemployment. The court exercised its discretion to apply a 30% contingency deduction to the future loss of earning capacity, awarding the plaintiff R236,510. The defendant was ordered to provide an undertaking for future medical expenses under Section 17(4)(a) of the Road Accident Fund Act and to pay the plaintiff's costs, including expert fees.

Obiter and limits

  • Contingency determination is inherently discretionary and must be exercised judicially, considering the plaintiff's age, employment history, and prospects.
  • Although the plaintiff's injuries were treated, the pain and sequelae are expected to persist for a considerable period, justifying the award for future loss of earning capacity.

Court disposition

Plaintiff's claim for past loss of earnings dismissed; claim for future loss of earning capacity upheld with costs.

  • The plaintiff's claim for past loss of earning is dismissed.
  • The defendant shall pay the plaintiff the sum of R236,510.00 for loss of earning.
  • Interest on the above amount at 10.25% per annum from 1 December 2017 to date of final payment.
  • The defendant shall furnish the plaintiff with an undertaking in terms of Section 17(4)(a) of the Road Accident Fund Act for future medical expenses.
  • The defendant shall pay the plaintiff's taxed or agreed party and party costs, including the costs and/or qualifying fees of Dr TJ Enslin, Dr HB Enslin, Dr Joachim FL Mureriwa, Rixile Consulting, Dr Mpho Zwane, and Munro Actuaries.

Source and reliance status

Limpopo High Court, Polokwane

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.

Source document

Limpopo High Court, Polokwane

Judgment

[2017] ZALMPPHC 45

REPUBLIC

OF SOUTH AFRICA

IN THE HIGH COURT OF SOUTH AFRICA

(LIMPOPO DIVISION, POLOKWANE)

CASE NO: 200 / 2016

Not reportable

Not of interest to other judges

Revised.

25/10/2017

In the matter between:

MUKHARI,

VUKATIMUNI

SYLVIA PLAINTIFF

and

ROAD

ACCIDENT

FUND DEFENDANT

JUDGMENT

SIKHWARI AJ

[1] In this matter merits are settled 100% in favour of the plaintiff. The issue of future medical expenses has been settled by way of a certificate in terms of Section 17(4)(a) of the Road Accident Fund Act. Plaintiff’s injuries and possible treatment thereof is common cause.

[2] The issue of general damages was referred to the HPCSA. The issue before court is for the determination of applicable contingencies on the loss of earning.

[3] It is common cause that the plaintiff is 40 years of age, having been born on the 9 May 1977. The cause of action arose from a motor vehicle accident that occurred on the 21 October 2012 at Bambeni village along the main road from Giyani to Mageva area in Limpopo province where the plaintiff was a passenger in the insured motor vehicle to wit CNR 233 L being driven by Shiviti Mbhazima Norman.

[4] It is common cause between the parties that plaintiff sustained injuries which are described as soft tissue injury to the cervical

spine, soft tissue injury to lumbar spine and sof tissue injury to the thoracic spine. The parties agreed to argue the matter on papers without leading evidence.

[5] The plaintiff’s submission is that past loss of earning should be subject to 5% contingency deduction and future loss of earning should be subject to 30% deduction. Plaintiff submitted that at the time of the accident she was employed as a domestic worker. After the accident she could only do incidental to light duty functions. She will not be able to do medium and heavy duty activities. The employer is no satisfied with the plaintiff’s performance and the risk of losing her job is very high. It was submitted that there is likelihood that in 2022 plaintiff will be unemployed.

[6] Plaintiff prays that 5% contingency deduction be done in respect of past loss of earning of R160 720. For the same reasons, a deduction of 30% contingency be effected on the future loss of earning on the earning capacity of R334 990. The plaintiff prays that the fair and reasonable award will be a total amount of R236 510.

[7] The defendant argued that the plaintiff’s injuries are minor as there is no bone injury. The plaintiff’ injuries were conservatively treated was not left with exercises and bed rest. It was argued that the intensity of the symptoms has deteriorated since the accident.

[8] Defendant argued that the plaintiff was paid all her salary notwithstanding that she stated that she was not paid. Her salary

scale is R1 500 per month as opposed to R1 600 per month which she claimed to earn. It was argued that there was no past loss of earning. The defendant concedes that the only scenario that could be justified is scenario 2 which has the amount of R46 620 as the fair and reasonable amount to be awarded to the plaintiff.

[9] Contingency determination is a matter which is within the discretion of the court. That discretion has to be exercised judicially. In the case of Legal Insurance Company Ltd v Botes 1963 (1) SA 608 (A) at page 614F that “in assessing the compensation the trial judge has a large discretion to award what under the circumstances he considers right. He may be guided but is certainly not tied down by inexorable actuarial calculations”.

[10] In the case of Dippenaar v Shield Insurance Co Ltd 1979 (2) SA 904 (A) at para [9] it was stated that “in our law under the lex Aquilia, the defendant must make good the difference between the value of the plaintiff’s estate after the commission of the delict and the value it would have had if the delict had not been committed. The capacity to earn money is considered to be part of a person’s estate and the loss or impairment of that capacity constitutes a loss, if such loss diminishes his estate”.

[11] In the case of Sandler v Wholesale Coal Suppliers Ltd 1941 AD 194, the court stated that “it is no doubt exceedingly difficult to value the damage in terms of money, but that does not relieve the court of the duty of doing do upon the evidence which has been acted on in several cases in South African”.

[12] In the case of Goodall v President Assurance Company 1978 (1) SA 389 (WU) at pages 392H – 393A, Margo. J stated that “in the assessment of a proper allowance for contingencies, arbitrary considerations must inevitably play a part, for the sort of science of foretelling the future, so confidently practiced by ancient prophets and soothsayers, and by modern authors of a certain type of almanac, is not numbered among the qualifications for judicial office.”

[13] Margo J stated further at page 393A–E that “In Van Rensburg’s case the plaintiff was 25 years old, and in De Jongh’s case, which was a claim by dependents for loss of support, Nicholas J, adopted the figure of 20 per cent for contingencies in relation to the deceased’s earning power, the deceased having been approximately 25 years of age at the time of his death. Van RD, N.O v Employers ’Liability Assurance Corporation Ltd, 1964 (4) SA 737 (W), but reported on this point only in Corbett and Buchainan, Vol. 1 at p.618, in another instance of 20 per cent being allowed for

contingencies, the plaintiff in that case being a minor who had not embarked on a firm career. In the well-known case of Sigourmay v Gilbanks, 1960(2) SA 552 (AD), SCHREINER, JA, at p.569, made provision for contingencies in an amount equal to approximately 16 per cent. The plaintiff in that case was 33 years of age, a fact which appears from the report of the case in the Appellant Division, or in the court of first instance, or Corbett and Buchanan”.

[14] Margo J stated further in page 393F–G in Goodall case (supra) that “In the present case, however the plaintiff is 46 years of age, as already noted, so that the period for which contingencies must be taken into account will be much shorter than in the cases cited above. Although his working career has been undistinguished, he has been a pretty steady employee, changing his job only in an endeavor to improve his prospects.

“He has enjoyed good health apart from his injuries and the consequences thereof, and he appears, to judge from his background to be a responsible and reasonable individual. In these circumstances I consider that the allowance for the possibility of yet further

promotion to the post of sectional manager, I consider that the provision for contingencies should not exceed 10 percent.”

[15] In my view, the plaintiff has not suffered any past loss of earning. The plaintiff’s claim for past loss of earning will fail. suffered future loss of earning.

[16] as regard to the future loss of earning capacity, the plaintiff has been able to show such loss; and as such she will succeed in that front. The awarded amount will be subject to contingency deduction of 30% for future loss of earning capacity. Although her injuries were treated to a large extent, but the pain and the sequelae will be there for a fairly longer period. The plaintiff’s claim on future loss of earning should succeed with costs.

[17] Accordingly I make the following order:

1. That the plaintiff’s claim for past loss of earning is dismissed.

2. shall pay the plaintiff the sum of R236 510.00 (two hundred and thirty-six thousand five hundred and ten rand) for loss of earning.

3. Interest on the above amount at the rate of 10.25% per annum from the 1 December 2017 to the date of final payment.

4. That the defendant shall furnish the plaintiff with an undertaking in terms of Section 17 (4) (a) of the Road Accident Fund Act, Act No. 56 of 1996, as amended, in respect of future medical expenses.

5. That the defendant shall pay the plaintiff’s taxed or agreed party and party costs, including the costs and / or qualifying fees of the following experts:

5.1 Dr TJ Enslin

5.2 Dr HB Enslin

5.3 Dr Joachim FL Mureriwa

5.4 Rixile Consulting

5.5 Dr Mpho Zwane

5.6 Munro Actuaries

_____

MS

SIKHWARI AJ

ACTING JUDGE OF THE HIGH COURT OF SOUTH AFRICA, LIMPOPO DIVISION, POLOKWANE

APPEARANCES

For Plaintiff

: Adv MD Mphahlele

Instructed by

: Baloyi Attorneys

For Defendant

: Adv TI Ngwana

Instructed by

: Hamman-Moosa Inc

Date of Hearing : 22 August 2017

Date of Judgment : 25 October 2017

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.

Legal Insurance Company Ltd v Botes 1963 (1) SA 608 (A)

Case cited

Dippenaar v Shield Insurance Co Ltd 1979 (2) SA 904 (A)

Case cited

Sandler v Wholesale Coal Suppliers Ltd 1941 AD 194

Case cited

Goodall v President Assurance Company 1978 (1) SA 389 (WU)

Case cited

Van RD, N.O v Employers’ Liability Assurance Corporation Ltd, 1964 (4) SA 737 (W)

Case cited

Sigourmay v Gilbanks 1960(2) SA 552 (AD)

Case cited

Road Accident Fund Act, Act No. 56 of 1996

Legislation

Legislation referenced in the available case record.

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