Standard General Insurance Co Ltd v SA Brake CC (70/93) [1995] ZASCA 46; 1995 (3) SA 806 (AD); (10 May 1995)

Standard General Insurance Co Ltd v SA Brake CC (70/93) [1995] ZASCA 46; 1995 (3) SA 806 (AD); (10 May 1995)

The Supreme Court of Appeal held that the short cession executed by the respondent in favour of the Bank of Lisbon and South Africa Limited was effective to transfer all rights under the insurance policy, including any replacement policy covering the same risks. The cession was unequivocally framed in the present tense and constituted both the obligationary and transfer agreements. The right ceded was a contingent right, not a future right, and could be effectively transferred. Delivery of the policy document to the cessionary was not required for the cession to be completed. As the respondent remained indebted to the bank at all relevant times, it had divested itself of the right to...

Citation
[1995] ZASCA 46
Parties
Appellant: Standard General Insurance Co Ltd; Respondent: S A Brake CC
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
10 May 1995
Case Number
70/93
Procedural Posture
Civil Appeal / Appeal From Witwatersrand Local Division; Judgment Delivered
Outcome
Appeal upheld; respondent lacked locus standi to sue under the insurance policy.
Judges
Smalberger, Vivier, Van den Heever, Nicholas, Olivier
Legal Topics
Cession in Securitatem Debiti, Locus Standi, Insurance Claims, Transfer of Rights
Commercial and Corporate Civil Procedure Cession in Securitatem Debiti Locus Standi Insurance Claims Transfer of Rights

Case Brief

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Parties

Standard General Insurance Co Ltd

Appellant

S A Brake CC

Respondent

Procedural Posture

Civil Appeal / Appeal From Witwatersrand Local Division; Judgment Delivered

Legal Issues

  1. 1 Whether the respondent had locus standi to sue the appellant despite a cession in securitatem debiti in favour of the Bank of Lisbon and South Africa Limited.
  2. 2 Whether delivery of the insurance policy document to the cessionary is required for a completed cession.
  3. 3 Whether the cession covered the replacement insurance policy under which the claim was made.

Ratio Decidendi

The Supreme Court of Appeal held that the short cession executed by the respondent in favour of the Bank of Lisbon and South Africa Limited was effective to transfer all rights under the insurance policy, including any replacement policy covering the same risks. The cession was unequivocally framed in the present tense and constituted both the obligationary and transfer agreements. The right ceded was a contingent right, not a future right, and could be effectively transferred. Delivery of the policy document to the cessionary was not required for the cession to be completed. As the respondent remained indebted to the bank at all relevant times, it had divested itself of the right to...

Court Disposition

Appeal upheld; respondent lacked locus standi to sue under the insurance policy.

Orders

  • The order of the court a quo is set aside.
  • Absolution from the instance is granted, with costs.