Road Accident Fund v Zulu and Others (50/11) [2011] ZASCA 223 (30 November 2011)

Road Accident Fund v Zulu and Others (50/11) [2011] ZASCA 223 (30 November 2011)

The Supreme Court of Appeal found that the trial court erred by treating the deceased's move to the corporate sector as a certainty from 2005, without applying a contingency deduction for the possibility that he might have remained in academia. The evidence did not establish with certainty that the deceased would have left academia, and the expert opinions were speculative. The court held that a 40% contingency deduction should be applied to reflect the chance that the deceased would have remained in academia, with a 60% probability of entering the corporate sector and progressing to CEO level. The actuarial calculations were adjusted accordingly, resulting in a reduced quantum for the...

Citation
[2011] ZASCA 223
Parties
Appellant: Road Accident Fund; Respondent: Philile Roseline Zulu; Respondent: Mandlakayise Mtembeni Ka-Ambrose Zulu; Respondent: Siphele Mlamulu Macpherson Zulu
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
30 November 2011
Case Number
50/11
Procedural Posture
Civil Appeal / Appeal From Kwa Zulu Natal High Court, Durban on Quantum of Damages
Outcome
Appeal upheld with costs; cross-appeal dismissed with costs; quantum of damages reduced.
Judges
Heher, Mhlantla, Seriti
Legal Topics
Loss of Support, Quantum of Damages, Contingency Deduction, Expert Evidence, Breadwinner Death

Case Brief

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Parties

Road Accident Fund

Appellant

Philile Roseline Zulu

Respondent

Mandlakayise Mtembeni Ka-Ambrose Zulu

Respondent

Siphele Mlamulu Macpherson Zulu

Respondent

Procedural Posture

Civil Appeal / Appeal From Kwa Zulu Natal High Court, Durban on Quantum of Damages

  1. 1 Whether the trial court correctly assessed the quantum of damages for loss of support to the dependants.
  2. 2 Whether the deceased would have left academia for the corporate sector and the impact on future earnings.
  3. 3 Whether the trial court properly applied contingency deductions to account for uncertainties in career trajectory.

Ratio Decidendi

The Supreme Court of Appeal found that the trial court erred by treating the deceased's move to the corporate sector as a certainty from 2005, without applying a contingency deduction for the possibility that he might have remained in academia. The evidence did not establish with certainty that the deceased would have left academia, and the expert opinions were speculative. The court held that a 40% contingency deduction should be applied to reflect the chance that the deceased would have remained in academia, with a 60% probability of entering the corporate sector and progressing to CEO level. The actuarial calculations were adjusted accordingly, resulting in a reduced quantum for the...

Court Disposition

Appeal upheld with costs; cross-appeal dismissed with costs; quantum of damages reduced.

Orders

  • The appeal is upheld with costs.
  • The order of the court below is set aside and replaced with an order for judgment for the plaintiffs as follows: First plaintiff, payment of R13 556 539; Third plaintiff, payment of R566 867.