Van Reenen v Santam Ltd (623/12) [2013] ZASCA 74; 2013 (5) SA 595 (SCA) (29 May 2013)

Van Reenen v Santam Ltd (623/12) [2013] ZASCA 74; 2013 (5) SA 595 (SCA) (29 May 2013)

The court held that the debt claimed under section 156 of the Insolvency Act becomes due when the cause of action arises, not when liability is established. The insurer's opposition to the third party action did not amount to an acknowledgement of liability as contemplated by section 14(1) of the Prescription Act, and therefore did not interrupt the running of prescription. The appeal was dismissed, confirming that prescription had run its course and the claim was time-barred.

Citation
[2013] ZASCA 74
Parties
Appellant: Lourens Wepener Van Reenen; Respondent: Santam Limited
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
29 May 2013
Case Number
623/12
Procedural Posture
Civil Appeal / Appeal From Lower Court Judgment
Outcome
Appeal dismissed; prescription not interrupted.
Judges
Maya, Leach, Theron, Willis, Meyer
Legal Topics
Prescription Act, Insolvency Act, Acknowledgement of Liability, Interruption of Prescription, Insurance Liability
Civil Procedure Commercial and Corporate Prescription Act Insolvency Act Acknowledgement of Liability Interruption of Prescription Insurance Liability

Case Brief

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Parties

Lourens Wepener Van Reenen

Appellant

Santam Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From Lower Court Judgment

Legal Issues

  1. 1 When does a 'debt' claimed under section 156 of the Insolvency Act become due for purposes of section 12(1) and (3) of the Prescription Act?
  2. 2 Does an insurer's opposition to a third party's action against a liquidated insured constitute an acknowledgement of liability and interrupt prescription under section 14(1) of the Prescription Act?

Ratio Decidendi

The court held that the debt claimed under section 156 of the Insolvency Act becomes due when the cause of action arises, not when liability is established. The insurer's opposition to the third party action did not amount to an acknowledgement of liability as contemplated by section 14(1) of the Prescription Act, and therefore did not interrupt the running of prescription. The appeal was dismissed, confirming that prescription had run its course and the claim was time-barred.

Court Disposition

Appeal dismissed; prescription not interrupted.

Orders

  • The appeal is dismissed with costs.
  • The claim is declared to have prescribed.