Raath v Nel (473/2011) [2012] ZASCA 86; 2012 (5) SA 273 (SCA); [2012] 4 All SA 26 (SCA) (31 May 2012)

Raath v Nel (473/2011) [2012] ZASCA 86; 2012 (5) SA 273 (SCA); [2012] 4 All SA 26 (SCA) (31 May 2012)

The Supreme Court of Appeal held that the respondent failed to prove patrimonial loss in his personal capacity for the period after 1 April 2001, when he transferred his shares and loan account in Koos Nel Auto to the Koos Nel Trust. The trust is a separate legal entity, and losses suffered by it are not automatically the respondent's personal loss. There was no evidence of a reduction in the respondent's personal patrimony, such as decreased dividends, drawings, or salary. However, for the period prior to 1 April 2001, the respondent proved a personal loss, as the value of his loan account was diminished due to the reduced profits of Koos Nel Auto caused by his absence. The award for...

Citation
[2012] ZASCA 86
Parties
Appellant: Dr R Raath; Respondent: J J G Nel
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
31 May 2012
Case Number
473/2011
Procedural Posture
Civil Appeal / Appeal From North Gauteng High Court, Pretoria
Outcome
Appeal upheld in part; respondent's claim for loss of earning capacity after 1 April 2001 disallowed; damages for proven loss prior to 1 April 2001, future medical expenses, and general damages awarded.
Judges
Farlam, Ponnan, Malan, Majiedt, Kroon
Legal Topics
Patrimonial Loss, Loss of Earning Capacity, Trusts and Separateness, Damages Quantification, Future Medical Expenses
Delict Civil Procedure Patrimonial Loss Loss of Earning Capacity Trusts and Separateness Damages Quantification Future Medical Expenses

Case Brief

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Parties

Dr R Raath

Appellant

J J G Nel

Respondent

Procedural Posture

Civil Appeal / Appeal From North Gauteng High Court, Pretoria

Legal Issues

  1. 1 Whether the respondent proved patrimonial loss in his personal capacity for the period after the transfer of assets to the trust.
  2. 2 Whether the losses suffered by Koos Nel Auto or the trust are automatically the respondent's personal loss.
  3. 3 Whether the respondent is entitled to damages for future medical and hospital expenses related to depression.

Ratio Decidendi

The Supreme Court of Appeal held that the respondent failed to prove patrimonial loss in his personal capacity for the period after 1 April 2001, when he transferred his shares and loan account in Koos Nel Auto to the Koos Nel Trust. The trust is a separate legal entity, and losses suffered by it are not automatically the respondent's personal loss. There was no evidence of a reduction in the respondent's personal patrimony, such as decreased dividends, drawings, or salary. However, for the period prior to 1 April 2001, the respondent proved a personal loss, as the value of his loan account was diminished due to the reduced profits of Koos Nel Auto caused by his absence. The award for...

Court Disposition

Appeal upheld in part; respondent's claim for loss of earning capacity after 1 April 2001 disallowed; damages for proven loss prior to 1 April 2001, future medical expenses, and general damages awarded.

Orders

  • The appeal is upheld to the limited extent set out in the judgment.
  • The respondent is ordered to pay the appellant’s costs of appeal.