Saayman v Road Accident Fund (329/09) [2010] ZASCA 123; 2011 (1) SA 106 (SCA) ; [2011] 1 All SA 581 (SCA) (30 September 2010)

Saayman v Road Accident Fund (329/09) [2010] ZASCA 123; 2011 (1) SA 106 (SCA) ; [2011] 1 All SA 581 (SCA) (30 September 2010)

The Supreme Court of Appeal found that the trial court erred in its calculation of damages for the appellant's future loss of income by applying an excessive contingency deduction of 50% to the probability of promotion to Head of Market Risk, contrary to the evidence which supported a 75% probability and thus a 25% deduction. The trial court also misdirected the actuaries to use the 2009 salary rate instead of the agreed 2007 rate. The evidence established that, but for the accident, the appellant would have been promoted to Head of Market Risk by 1 January 2014 and would have earned a salary of R2.25 million per annum at 2007 rates, with annual increases comprising inflation plus a real...

Citation
[2010] ZASCA 123
Parties
Appellant: A T Saayman; Respondent: Road Accident Fund
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
30 September 2010
Case Number
329/09
Procedural Posture
Civil Appeal / Appeal From South Gauteng High Court (johannesburg)
Outcome
Appeal upheld. The order of the court below is set aside and replaced with an award of R13 572 649 for future loss of income. Costs awarded to the appellant, including costs of two counsel and the actuary.
Judges
Heher, Bosielo, Leach, Majiedt, Seriti
Legal Topics
Quantum of Damages, Future Loss of Income, Contingency Deductions, Road Accident Fund Act, Actuarial Evidence, Interest and Inflation Rates
Delict Civil Procedure Banking and Finance Quantum of Damages Future Loss of Income Contingency Deductions Road Accident Fund Act Actuarial Evidence +1 more

Case Brief

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Parties

A T Saayman

Appellant

Road Accident Fund

Respondent

Procedural Posture

Civil Appeal / Appeal From South Gauteng High Court (johannesburg)

Legal Issues

  1. 1 What is the correct quantum of damages for the appellant's future loss of income or earning capacity resulting from injuries sustained in a motor collision.
  2. 2 What is the appropriate contingency deduction for the probability of promotion to Head of Market Risk.
  3. 3 What is the correct rate of increase to be applied to future earnings, including inflation and real increases.

Ratio Decidendi

The Supreme Court of Appeal found that the trial court erred in its calculation of damages for the appellant's future loss of income by applying an excessive contingency deduction of 50% to the probability of promotion to Head of Market Risk, contrary to the evidence which supported a 75% probability and thus a 25% deduction. The trial court also misdirected the actuaries to use the 2009 salary rate instead of the agreed 2007 rate. The evidence established that, but for the accident, the appellant would have been promoted to Head of Market Risk by 1 January 2014 and would have earned a salary of R2.25 million per annum at 2007 rates, with annual increases comprising inflation plus a real...

Court Disposition

Appeal upheld. The order of the court below is set aside and replaced with an award of R13 572 649 for future loss of income. Costs awarded to the appellant, including costs of two counsel and the actuary.

Orders

  • The appeal succeeds with costs, including the costs of two counsel.
  • The award of R4 295 290 as damages is set aside and replaced with R13 572 649.