South Africa Judgment

North Gauteng High Court, Pretoria

Ramotshela v Road Accident Fund (61687/16) [2017] ZAGPPHC 800 (17 November 2017)

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01

Holding and result

The Court found that the Plaintiff had proven the claim for loss of support arising from the wrongful death of the deceased. The Defendant failed to provide any coherent assessment or documentary evidence to challenge the Plaintiff's quantification, despite having had sufficient time and opportunity since March 2017. The Court noted the prejudice suffered by the minor Plaintiff due to delays and the Defendant's last-minute appointment of Counsel, which contributed to unnecessary postponements. The contingency fee agreement between the Plaintiff and the attorneys was declared invalid, and the attorneys were entitled to recover normal attorney and client costs. The Court ordered payment of the proven damages and costs, with interest applicable in the event of late payment.

Court disposition

Judgment for the Plaintiff; Defendant ordered to pay delictual damages and costs.

Orders

  • The Defendant is ordered to pay the Plaintiff an amount of R639,806.65 in delictual damages, to be deposited into Lepule Mokaka Inc Trust Account.
  • The capital amount will not bear interest unless payment is not made by 28 December 2017, in which case interest at 10.25% per annum will accrue from the fifteenth calendar day until payment.
  • The Defendant is ordered to pay the Plaintiff's taxed or agreed party and party costs on the High Court Scale, including the costs of obtaining reports by Robert J Koch and Counsel's fees.
  • The contingency fee agreement between Plaintiff and Plaintiff’s attorney is declared invalid; Plaintiff’s attorneys may recover normal attorney and client costs.
  • If costs are not agreed, Plaintiff shall serve Notice of Taxation on Defendant's attorney, allow fourteen court days for payment, and may recover interest at 10.25% on taxed or agreed costs from date of allocator to date of final payment.

02

Material facts

Parties

Adv T J Kanyane N. Ramotshela

Plaintiff Counsel: Advocate N Chimbuzi

Road Accident Fund

Defendant Counsel: Advocate E.D. Mnguni

Amounts and remedies

  • Delictual Damages Awarded: ZAR 639,806.65
  • Interest Rate on Judgment Debt: ZAR 10.25

03

Procedural history

  1. Posture

    Civil Trial / Final Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The Plaintiff, represented by a curator ad litem, claimed damages for loss of support following the wrongful death of the deceased, who was a self-employed street hawker. The Plaintiff submitted an assessed monthly income of R7,675.00 and provided supporting documentation, including expert reports. The Plaintiff argued that the Defendant had ample opportunity to challenge the assessment but failed to do so, and that the minor child had been without support since January 2009. The Plaintiff also contended that the contingency fee agreement should be declared invalid, entitling the attorneys to normal attorney and client costs.
Respondent
The Defendant argued that the matter had only recently been handed over to its Counsel, who was unaware of prior proceedings. The Defendant questioned the reasonableness of the Plaintiff's assessed loss in general terms but did not provide any documentary evidence or a coherent alternative assessment. The Defendant requested the Court to disregard prior proceedings and effectively restart the matter, but did not offer substantive reasons for its position or for the delay in resolving the claim.

05

Court’s reasoning

  1. 01

    Santam Insurance Co Ltd v Fourie 1997 (1) SA 611 (A)

    A claimant for loss of support must prove the wrongful death and the quantum of damages suffered as a result.

  2. 02

    Contingency Fees Act 66 of 1997

    Contingency fee agreements must comply with the Contingency Fees Act, and invalid agreements entitle attorneys only to normal attorney and client costs.

06

Ratio, limits and disposition

Ratio decidendi

The Court found that the Plaintiff had proven the claim for loss of support arising from the wrongful death of the deceased. The Defendant failed to provide any coherent assessment or documentary evidence to challenge the Plaintiff's quantification, despite having had sufficient time and opportunity since March 2017. The Court noted the prejudice suffered by the minor Plaintiff due to delays and the Defendant's last-minute appointment of Counsel, which contributed to unnecessary postponements. The contingency fee agreement between the Plaintiff and the attorneys was declared invalid, and the attorneys were entitled to recover normal attorney and client costs. The Court ordered payment of the proven damages and costs, with interest applicable in the event of late payment.

Obiter and limits

  • The Court expressed concern over the Defendant's practice of last-minute appointment of Counsel, which causes delays and prejudice to claimants, especially minors.
  • The Court encouraged the Defendant to improve its case management procedures to avoid unnecessary expenditure of judicial resources and taxpayer money.

Court disposition

Judgment for the Plaintiff; Defendant ordered to pay delictual damages and costs.

  • The Defendant is ordered to pay the Plaintiff an amount of R639,806.65 in delictual damages, to be deposited into Lepule Mokaka Inc Trust Account.
  • The capital amount will not bear interest unless payment is not made by 28 December 2017, in which case interest at 10.25% per annum will accrue from the fifteenth calendar day until payment.
  • The Defendant is ordered to pay the Plaintiff's taxed or agreed party and party costs on the High Court Scale, including the costs of obtaining reports by Robert J Koch and Counsel's fees.
  • The contingency fee agreement between Plaintiff and Plaintiff’s attorney is declared invalid; Plaintiff’s attorneys may recover normal attorney and client costs.
  • If costs are not agreed, Plaintiff shall serve Notice of Taxation on Defendant's attorney, allow fourteen court days for payment, and may recover interest at 10.25% on taxed or agreed costs from date of allocator to date of final payment.

Source and reliance status

North Gauteng High Court, Pretoria

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Judgment text

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Source document

North Gauteng High Court, Pretoria

Judgment

[2017] ZAGPPHC 800

IN

THE HIGH COURT OF SOUTH AFRICA

(GAUTENG DIVISION, PRETORIA)

REPUBLIC

OF SOUTH AFRICA

CASE NO: 61687/16

NOT

REPORTABLE

NOT

OF INTEREST TO OTHER JUDGES

REVISED

In the matter between:

ADV T J KANYANE N.

RAMOTSHELA PLAINTIFF

and

ROAD

ACCIDENT

FUND DEFENDANT

REASONS

FOR THE JUDGMENT

LUKHAIMANE AJ:

[1] On 19 October 2017 this Court, having heard Counsel for the Plaintiff and Defendant, granted the following order

1.1 That the Defendant to pay Plaintiff an amount of R639 806.65 (six hundred and thirty nine thousand eight hundred and six rand sixty five cents) in delictual damages, such amount to be deposited into Lepule Mokaka Inc Trust Account number.... .

1.2 The capital amount referred to in paragraph 1 above will not bear interest unless the Defendant fails to effect payment thereof on or before 28 December 2017, in which event the capital amount will bear interest at the rate of 10.25% per annum calculated from and including the fifteenth (15) calendar day and including the date of payment thereof.

[2] The Defendant to pay the Plaintiff's taxed or agreed party and party costs on the High Court Scale, such costs to include:

2.1 The costs of obtaining reports by Robert J Koch; and

2.2 Counsel's fees.

[3] The contingency fee agreement between Plaintiff and Plaintiff’s attorney is declared invalid and Plaintiff’s attorneys shall be entitled to recover normal attorney and client costs.

[4] In the event that costs are not agreed, the Plaintiff agrees as follows:

4.1 The Plaintiff shall serve the Notice of Taxation on the Defendant's attorney of record.

4.2 The Plaintiff shall allow the Defendant fourteen (14) court days to make the payment of the taxed costs.

4.3 Should payment not be effected timeously, Plaintiff will be entitled to recover interest at the rate of 10.25% on the taxed or agree costs from date of allocator to date of final payment.

[5] Immediately after handing down the order, THIS Court received a request for reasons in terms of Rule 49(1)(c).

[6] This is a claim for loss of Support arising out of the wrongful death of the deceased, Hloman Kenneth Sekwati (hereinafter referred to as the deceased) for a minor dependant Tebatso Ramotshela, born 19 July 2008 duly represented by her curator ad litem Adv JT Kanyane. The deceased was killed on 31 December 2008.

[7] Initially, an amount of R2 million was claimed for loss of support, but indicated in the summons as an estimc;1te. The Defendant duly filed its plea during September 2016. The deceased, a 37 year old male born on 9 November 1971 was self-employed as a street hawker selling fruits and vegetables.

[8] The matter was duly set down for hearing on 17 March 2017, however could not proceed and was postponed for settlement negotiations

between the parties to take place. Counsel for Plaintiff indicated that the Defendant had on that date also wanted to satisfy itself of the reasonableness of the assessed monthly amount of R7 675.00 (seven thousand six hundred and seventy five rands) being the income of the deceased as assessed by Plaintiff's assessors.

[9] Counsel for the Defendant indicated that he was unaware of any prior proceedings and undertakings in this matter as it had only recently been handed over to him and therefore no prior issues should have a bearing on the proceedings of 19 October 2017.

[10] The Plaintiffs mother has since passed away on 9 November 2011 and she is now under the care of her aunt, in her capacity as the sister of the mother of the minor child.

[11] There is a notable practice of 'last minute appointment' by the Defendant of its Counsel in numerous matters which has the effect of delaying matters that were duly placed on the roll to the prejudice of claimants. This is acutely demonstrated by the current matter where Plaintiff is a minor in the care of a young adult without the necessary support of her parents, as the latter are both deceased. The deceased i!'1 the current matter passed away in December 2008 and the minor child has been without support since.

[12] Once Plaintiff had presented its case, inst ad of presenting its assessed loss, Defendant sought to question the reasonableness of the assessed loss by Plaintiff in general term$ without offering any documentary evidence in that regard despite having been granted the opportunity to do its proper work since March 2017, a period of almost seven (7) months. Considering the draft order handed over by the Plaintiff, there was all expectation from Plaintiff that this matter would be settled as it commenced with the words "By agreement between the parties."

[13] This Court finds it unfortunate that stretched judicial resources have to be utilised to address matters that can be settled or presented with complete information by parties duly fulfilling their responsibilities. Moreover, it is disappointing that Defendant failed to follow through on its undertaking of 17 March 2017, a lapse that might result in taxpayer’s money being spent without its proper input. Although it is to be encouraged for Defendant to satisfy itself of the loss of support suffered by Plaintiff, Plaintiff has been at a loss since January 2009 and has gone to considerable effort to resolve this matter as noticeable from its submission of the assessed loss report. Plaintiff has been severely deprived by the delay.

[14] Except for the submission that the matter had only recently been handed over to Counsel before the prior proceedings and requesting

the Court to also ignore its prior proceedings, effectively commencing the matter from the beginning, no reasons were offered to

the Court by the Defendant for this current state of affairs.

[15] Therefore, this Court ruled in favour of the Plaintiff on its proven loss of support as the Defendant had failed to provide any coherent assessment of loss, despite its attempt at the hearing. Having said this, I hope that the Defendant takes note and reflects on its case management procedures. It can only augur well for this Court, Plaintiffs and tax payers.

M

A LUKHAIMANE

ACTING

JUDGE OF THE HIGH COURT OF SOUTH AFRICA

GAUTENG DIVISION, PRETORIA

APPEARANCES

Counsel for the Appellant: Advocate N Chimbuzi

Instructed by: LEPULE MOKOKA INC

Counsel for the Respondent: Advocate E.D. Mnguni

Instructed by: MOCHE ATIORNEYS

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Authorities

Authorities used by the court

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

Santam Insurance Co Ltd v Fourie 1997 (1) SA 611 (A)

Case cited

Contingency Fees Act 66 of 1997

Legislation

Legislation referenced in the available case record.

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