Smith and Another v Road Accident Fund (28469/2015) [2015] ZAGPPHC 822 (8 December 2015)

Smith and Another v Road Accident Fund (28469/2015) [2015] ZAGPPHC 822 (8 December 2015)

Section 19 of the Road Accident Fund Act applies to the institution and prosecution of delictual claims up to settlement or judgment, not to the administrative process of recovering payments under an undertaking issued in terms of section 17(4)(a). The agreement between the first and second applicant, whereby the second applicant administers the recovery of medical expenses on behalf of the first applicant, does not contravene section 19. The statutory context and relevant case law confirm that section 19 is intended to regulate who may institute and prosecute claims, but does not preclude third parties from appointing agents to assist in the recovery of payments after judgment. The...

Citation
[2015] ZAGPPHC 822
Parties
Applicant: L Smith; Applicant: Just RAF Undertakings; Respondent: Road Accident Fund
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
8 December 2015
Case Number
28469/2015
Procedural Posture
Urgent Application / Judgment After Application for Declaratory Relief and Payment
Outcome
Application granted. Declaratory order issued that the agreement between first and second applicant does not contravene section 19 of the Road Accident Fund Act. Respondent ordered to pay medical costs and punitive costs.
Judges
R G Tolmay
Legal Topics
Road Accident Fund Act, Section 17 Undertakings, Section 19 Exclusion, Agency in Claims, Punitive Costs
Civil Procedure Delict Road Accident Fund Act Section 17 Undertakings Section 19 Exclusion Agency in Claims Punitive Costs

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Parties

L Smith

Applicant

Just RAF Undertakings

Applicant

Road Accident Fund

Respondent

Procedural Posture

Urgent Application / Judgment After Application for Declaratory Relief and Payment

Legal Issues

  1. 1 Does the agreement between the first and second applicant contravene section 19 of the Road Accident Fund Act?
  2. 2 Is the respondent obliged to pay medical costs incurred by the first applicant under an undertaking issued in terms of section 17(4)(a)?
  3. 3 Does section 19 of the Act apply to the administrative process of recovering payments after settlement or judgment?

Ratio Decidendi

Section 19 of the Road Accident Fund Act applies to the institution and prosecution of delictual claims up to settlement or judgment, not to the administrative process of recovering payments under an undertaking issued in terms of section 17(4)(a). The agreement between the first and second applicant, whereby the second applicant administers the recovery of medical expenses on behalf of the first applicant, does not contravene section 19. The statutory context and relevant case law confirm that section 19 is intended to regulate who may institute and prosecute claims, but does not preclude third parties from appointing agents to assist in the recovery of payments after judgment. The...

Court Disposition

Application granted. Declaratory order issued that the agreement between first and second applicant does not contravene section 19 of the Road Accident Fund Act. Respondent ordered to pay medical costs and punitive costs.

Orders

  • An order is granted in terms of prayers 1, 2, 3, 4 and 5 of the amended notice of motion.
  • Respondent is ordered to pay the amount of R4,798.43 to the applicant's attorneys of record together with interest.