Road Accident Fund v Bee (A07/16) [2016] ZAWCHC 122 (20 September 2016)

Road Accident Fund v Bee (A07/16) [2016] ZAWCHC 122 (20 September 2016)

The court held that the respondent failed to establish that this was an appropriate case to quantify his personal loss of earnings by reference to the loss of income suffered by BPW. The evidence did not show that the fortunes of BPW were inextricably bound to the respondent's well-being or that his work performance directly impacted BPW's profitability. The respondent continued to receive payments equivalent to his brother's, based on their equal member interests, regardless of his reduced capacity. The court found no legal basis to exclude these payments as ex gratia or to award damages for early retirement, as the respondent's entitlement to profits from BPW was unaffected by his work...

Citation
[2016] ZAWCHC 122
Parties
Appellant: Road Accident Fund; Respondent: Glenn Marc Bee
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
20 September 2016
Case Number
A07/16
Procedural Posture
Civil Appeal / Appeal Against Damages Award (past and Future Loss of Earnings)
Outcome
Appeal upheld; damages award for past and future loss of earnings set aside.
Judges
Nuku, Hlophe, Steyn
Legal Topics
Quantification of Damages, Loss of Earning Capacity, Close Corporation Member Loss, Ex Gratia Payments, Early Retirement, Application of Rudman Principle
Delict Civil Procedure Quantification of Damages Loss of Earning Capacity Close Corporation Member Loss Ex Gratia Payments Early Retirement Application of Rudman Principle

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Parties

Road Accident Fund

Appellant

Glenn Marc Bee

Respondent

Procedural Posture

Civil Appeal / Appeal Against Damages Award (past and Future Loss of Earnings)

Legal Issues

  1. 1 Whether the respondent's loss of earnings can be quantified by reference to the loss of income suffered by BPW, the close corporation.
  2. 2 Whether payments received by the respondent during his absence and after his return to work should be excluded as ex gratia payments.
  3. 3 Whether the respondent is entitled to damages for early retirement as a member of a close corporation.

Ratio Decidendi

The court held that the respondent failed to establish that this was an appropriate case to quantify his personal loss of earnings by reference to the loss of income suffered by BPW. The evidence did not show that the fortunes of BPW were inextricably bound to the respondent's well-being or that his work performance directly impacted BPW's profitability. The respondent continued to receive payments equivalent to his brother's, based on their equal member interests, regardless of his reduced capacity. The court found no legal basis to exclude these payments as ex gratia or to award damages for early retirement, as the respondent's entitlement to profits from BPW was unaffected by his work...

Court Disposition

Appeal upheld; damages award for past and future loss of earnings set aside.

Orders

  • The appeal is upheld with costs.
  • The award of damages in the sum of R4 049 614.00 for past loss of earnings and R7 532 400.00 for future loss of earnings is set aside.