Sasria Ltd. v Slabbert Burger Transport (Pty) Ltd (510/07) [2008] ZASCA 73; [2008] 4 All SA 255 (SCA); 2008 (5) SA 270 (SCA) (30 May 2008)

Sasria Ltd. v Slabbert Burger Transport (Pty) Ltd (510/07) [2008] ZASCA 73; [2008] 4 All SA 255 (SCA); 2008 (5) SA 270 (SCA) (30 May 2008)

The court held that the word 'strike' in the SASRIA policy should be given its ordinary dictionary meaning, which is a concerted cessation of work by employees to obtain concessions from the employer. The destruction of the truck was directly related to the strike, and there was no clear language in the policy restricting the meaning of 'strike' to violent or unlawful conduct. The insurer's attempt to narrow the meaning was rejected, and the contra proferentem rule was applied against the insurer. Therefore, the peril was covered by the policy, and the insurer was liable to indemnify the plaintiff for the loss.

Citation
[2008] ZASCA 73
Parties
Defendant: Sasria Ltd.; Plaintiff: Slabbert Burger Transport (Pty) Ltd
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
30 May 2008
Case Number
510/07
Procedural Posture
Civil Appeal / Appeal From Court a Quo
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Hurt, Mpati, Streicher
Legal Topics
Insurance Policy Interpretation, Contra Proferentem Rule, Strike Related Damage
Commercial and Corporate Civil Procedure Insurance Policy Interpretation Contra Proferentem Rule Strike Related Damage

Case Brief

Summary, issues, holding and outcome

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Parties

Sasria Ltd.

Defendant

Slabbert Burger Transport (Pty) Ltd

Plaintiff

Procedural Posture

Civil Appeal / Appeal From Court a Quo

Legal Issues

  1. 1 Whether the destruction of the truck was caused by a peril listed in the SASRIA insurance policy.
  2. 2 Whether the word 'strike' in the policy should be given its ordinary dictionary meaning or a restricted meaning based on its context.
  3. 3 Whether the contra proferentem rule applies to the interpretation of the policy wording.

Ratio Decidendi

The court held that the word 'strike' in the SASRIA policy should be given its ordinary dictionary meaning, which is a concerted cessation of work by employees to obtain concessions from the employer. The destruction of the truck was directly related to the strike, and there was no clear language in the policy restricting the meaning of 'strike' to violent or unlawful conduct. The insurer's attempt to narrow the meaning was rejected, and the contra proferentem rule was applied against the insurer. Therefore, the peril was covered by the policy, and the insurer was liable to indemnify the plaintiff for the loss.

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed.
  • The defendant is ordered to pay the plaintiff R 600,000 as indemnification for the destruction of the truck.