Road Accident Fund v Sweatman (162/2014) [2015] ZASCA 22; [2015] 2 All SA 679 (SCA); 2015 (6) SA 186 (SCA) (20 March 2015)

Road Accident Fund v Sweatman (162/2014) [2015] ZASCA 22; [2015] 2 All SA 679 (SCA); 2015 (6) SA 186 (SCA) (20 March 2015)

The Supreme Court of Appeal held that the statutory cap on damages for loss of income or support under the Road Accident Fund Act is to be applied as the amount set out in the last notice issued prior to the date of the accident, without annual inflation adjustments. The conventional actuarial method, which calculates the present value of the actual loss including all contingencies and mortality, remains the correct approach. The Fund's alternative method, which inflates the cap for each year and applies mortality rates only after determining the annual loss, is not supported by the wording of the Act and results in unjustifiably lower awards. The trial court was correct in accepting the...

Citation
[2015] ZASCA 22
Parties
Appellant: Road Accident Fund; Respondent: Elizabeth Jemma Sweatman
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
20 March 2015
Case Number
162/2014
Procedural Posture
Civil Appeal / Appeal From Western Cape Division of the High Court, Cape Town
Outcome
Appeal dismissed with costs, including those of two counsel.
Judges
Lewis, Maya, Zondi, Dambuza, Mayat
Legal Topics
Road Accident Fund Act, Limitation of Liability, Loss of Income, Actuarial Calculation, Statutory Interpretation
Civil Procedure Land and Property Road Accident Fund Act Limitation of Liability Loss of Income Actuarial Calculation Statutory Interpretation

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Parties

Road Accident Fund

Appellant

Elizabeth Jemma Sweatman

Respondent

Procedural Posture

Civil Appeal / Appeal From Western Cape Division of the High Court, Cape Town

Legal Issues

  1. 1 What is the correct method for applying the statutory cap on damages for loss of income or support under the amended Road Accident Fund Act?
  2. 2 Should the annual loss cap be adjusted for inflation for each year after the accident or fixed at the date of the accident?
  3. 3 How should contingencies, including mortality, be factored into the calculation of actual loss?

Ratio Decidendi

The Supreme Court of Appeal held that the statutory cap on damages for loss of income or support under the Road Accident Fund Act is to be applied as the amount set out in the last notice issued prior to the date of the accident, without annual inflation adjustments. The conventional actuarial method, which calculates the present value of the actual loss including all contingencies and mortality, remains the correct approach. The Fund's alternative method, which inflates the cap for each year and applies mortality rates only after determining the annual loss, is not supported by the wording of the Act and results in unjustifiably lower awards. The trial court was correct in accepting the...

Court Disposition

Appeal dismissed with costs, including those of two counsel.

Orders

  • The appeal is dismissed with costs including those of two counsel.