Sasria Ltd [formerly South African Special Risks Insurance Assosiation] v Lloyds (Certain Underwriters At Lloyds) (511/2000) [2002] ZASCA 22; [2002] 3 All SA 57 (A); 2002 (4) SA 474 (SCA) (27 March 2002)

Sasria Ltd [formerly South African Special Risks Insurance Assosiation] v Lloyds (Certain Underwriters At Lloyds) (511/2000) [2002] ZASCA 22; [2002] 3 All SA 57 (A); 2002 (4) SA 474 (SCA) (27 March 2002)

The Supreme Court of Appeal held that when the parties agreed to provide for an appeal in the arbitration process, it was a tacit term of their agreement that the due date for payment of the refund remained the date of the arbitrator's award. If an appeal was lodged, the arbitrator's award would be suspended pending...

Source-derived case information.

Citation
[2002] ZASCA 22
Parties
Appellant: Sasria Ltd [formerly South African Special Risks Insurance Assosiation]; Respondent: Certain Underwriters At Lloyds
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
27 March 2002
Case Number
511/2000
Procedural Posture
Civil Appeal / Appeal From Full Court Decision
Outcome
Appeal allowed with costs. The order of the Full Court is set aside and replaced with the dismissal of the respondent's appeal, with costs.
Judges
Howie, Streicher, Mthiyane, Brand, Heher
Legal Topics
Insurance Liability, Mora Interest, Tacit Terms, Arbitration Award Enforcement
Commercial and Corporate Insurance Liability Mora Interest Tacit Terms Arbitration Award Enforcement

Source-derived case record

Summary, issues, holding and outcome

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Parties

Sasria Ltd [formerly South African Special Risks Insurance Assosiation]

Appellant

Certain Underwriters At Lloyds

Respondent

Procedural Posture

Civil Appeal / Appeal From Full Court Decision

Legal Issues

  1. 1 Whether the respondent is liable to pay mora interest to the appellant on the refund of interim payments.
  2. 2 What was the due date for payment of the refund under the parties' agreement, considering the arbitration and appeal process.
  3. 3 Whether a tacit term existed regarding the date when the debt became enforceable and interest began to accrue.

Ratio Decidendi

The Supreme Court of Appeal held that when the parties agreed to provide for an appeal in the arbitration process, it was a tacit term of their agreement that the due date for payment of the refund remained the date of the arbitrator's award. If an appeal was lodged, the arbitrator's award would be suspended pending appeal, and the appellate award would retrospectively determine liability as of the date of the arbitrator's award. The parties would not have intended to shift the due date to the appellate award, as this would result in a material loss of interest to the successful party. Therefore, mora interest was payable from the date of the arbitrator's award, and the respondent was...

Court Disposition

Appeal allowed with costs. The order of the Full Court is set aside and replaced with the dismissal of the respondent's appeal, with costs.

Orders

  • The appeal is allowed with costs.
  • The order of the Court below is set aside and replaced by: 'The appeal is dismissed, with costs.'