Sibanda v Road Accident Fund (77461/2014) [2019] ZAGPPHC 295 (8 July 2019)

Sibanda v Road Accident Fund (77461/2014) [2019] ZAGPPHC 295 (8 July 2019)

The court held that the creation of an inter vivo trust to administer the damages award for the minor is preferable to entrusting the funds to the parents or depositing them in the Guardian's Fund. The court reasoned that a trust provides greater protection for the capital, ensures proper administration, and subjects the trustees to oversight and accountability. The plaintiff and the minor's mother both support the creation of a trust, and the practice in the Gauteng Division is to appoint a curator bonis or create a trust in similar cases. The court rejected the defendant's argument regarding the costs of administration, finding that such costs are a direct consequence of the injury and...

Citation
[2019] ZAGPPHC 295
Parties
Plaintiff: Nyambe Petros Sibanda o.b.o R[….] S[….]; Defendant: Road Accident Fund
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
8 July 2019
Case Number
77461/2014
Procedural Posture
Civil Trial / Judgment on Post Settlement Administration of Award
Outcome
Order granted for the creation of an inter vivo trust to administer the damages award for the minor.
Judges
Du Preez
Legal Topics
Administration of Awards to Minors, Creation of Inter Vivo Trust, Guardian's Fund, Trustee Appointment, Costs of Trust Administration
Civil Procedure Family and Children Administration of Awards to Minors Creation of Inter Vivo Trust Guardian's Fund Trustee Appointment Costs of Trust Administration

Case Brief

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Parties

Nyambe Petros Sibanda o.b.o R[….] S[….]

Plaintiff

Road Accident Fund

Defendant

Procedural Posture

Civil Trial / Judgment on Post Settlement Administration of Award

Legal Issues

  1. 1 Whether an inter vivo trust should be created to administer a damages award for a minor.
  2. 2 Whether the costs of trust administration justify refusing the creation of a trust.
  3. 3 Whether the Guardian's Fund is a preferable alternative to a trust for protecting a minor's award.

Ratio Decidendi

The court held that the creation of an inter vivo trust to administer the damages award for the minor is preferable to entrusting the funds to the parents or depositing them in the Guardian's Fund. The court reasoned that a trust provides greater protection for the capital, ensures proper administration, and subjects the trustees to oversight and accountability. The plaintiff and the minor's mother both support the creation of a trust, and the practice in the Gauteng Division is to appoint a curator bonis or create a trust in similar cases. The court rejected the defendant's argument regarding the costs of administration, finding that such costs are a direct consequence of the injury and...

Court Disposition

Order granted for the creation of an inter vivo trust to administer the damages award for the minor.

Orders

  • An inter vivo trust shall be created to receive and administer the damages award for the benefit of R[….] S[….].
  • The proposed trustee, a nominee of Absa Trust, is appointed subject to the Master's supervision and approval.