SA Eagle Insurance Co Ltd. v Hartley (119/89) [1990] ZASCA 106; 1990 (4) SA 833 (AD); [1990] 2 All SA 616 (A) (26 September 1990)

SA Eagle Insurance Co Ltd. v Hartley (119/89) [1990] ZASCA 106; 1990 (4) SA 833 (AD); [1990] 2 All SA 616 (A) (26 September 1990)

The Supreme Court of Appeal held that the principle of currency nominalism is firmly entrenched in South African law. Accordingly, damages for past loss of earnings must be paid at their nominal value, without adjustment for changes in the purchasing power of money. The court rejected the 'Everson adjustment' as inconsistent with this principle, finding that it would improperly alter the quantum of the debt based on currency fluctuations. The court distinguished the calculation of damages for future loss of earnings, where inflation may be considered indirectly, and general damages, which are assessed in terms of current currency values. However, for monetary debts representing past...

Citation
[1990] ZASCA 106
Parties
Appellant: S A Eagle Insurance Co Ltd; Respondent: Graeme Eric Hartley
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
26 September 1990
Case Number
119/89
Procedural Posture
Civil Appeal / Appeal From Cape Provincial Division Judgment
Outcome
Appeal allowed with costs. The order of the court a quo was altered by substituting the amount of R216 395 for R232 123 in paragraph (a) of the order.
Judges
Joubert, E M Grosskopf, Milne, Kumleben, Nicholas
Legal Topics
Loss of Earnings, Currency Nominalism, Interest on Damages, Quantification of Damages
Delict Civil Procedure Loss of Earnings Currency Nominalism Interest on Damages Quantification of Damages

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 10 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

S A Eagle Insurance Co Ltd

Appellant

Graeme Eric Hartley

Respondent

Procedural Posture

Civil Appeal / Appeal From Cape Provincial Division Judgment

Legal Issues

  1. 1 Whether an 'Everson adjustment' should be added to damages for past loss of earnings to compensate for loss of purchasing power of money.
  2. 2 Whether South African law permits an upward adjustment of monetary damages for inflation in respect of past losses.
  3. 3 Whether the principle of currency nominalism applies to damages for past loss of earnings.

Ratio Decidendi

The Supreme Court of Appeal held that the principle of currency nominalism is firmly entrenched in South African law. Accordingly, damages for past loss of earnings must be paid at their nominal value, without adjustment for changes in the purchasing power of money. The court rejected the 'Everson adjustment' as inconsistent with this principle, finding that it would improperly alter the quantum of the debt based on currency fluctuations. The court distinguished the calculation of damages for future loss of earnings, where inflation may be considered indirectly, and general damages, which are assessed in terms of current currency values. However, for monetary debts representing past...

Court Disposition

Appeal allowed with costs. The order of the court a quo was altered by substituting the amount of R216 395 for R232 123 in paragraph (a) of the order.

Orders

  • The appeal is allowed with costs.
  • The order of the court a quo is altered by substituting in paragraph (a) of the order the amount of R216 395 for the amount of R232 123.