Automated Summary
Key Facts
The case involves a claim for delictual damages where the plaintiff (respondent) was unable to work in the United Kingdom due to medical injury, remaining in South Africa. The court adjusted the measure of loss in sterling currency to account for the lower cost of living in South Africa, amending awards for past and future loss of earnings and specifying interest rates and payment timelines.
Issues
- The court examined the contention that the respondent's future medical expenses should only cover the present value of additional premiums he must pay as a chronic sufferer. The judgment clarified that payments from the medical aid scheme are contractual obligations and not social insurance benefits, thus not deductible from the respondent's claim. The court upheld the original award for future medical expenses at R845,377.
- The court addressed the legal question of whether the cost of living adjustment should be applied to the respondent's loss of earnings claim. The respondent, who was unable to work in the UK due to medical issues and remained in South Africa, argued for compensation based on UK earnings. The appellants contended that the lower cost of living in South Africa should reduce the claim. The court ruled that the cost of living adjustment is relevant and incorporated a 20% contingency deduction to offset potential advantages.
- The cross-appeal challenged the failure to account for potential future income increases in the respondent's London earnings calculation. The court noted that the respondent's case did not include evidence on promotional increases, and the judge's decision to exclude such factors was upheld. The reasoning emphasized that increases beyond commission targets (e.g., managerial promotions) were not addressed in the evidence.
- The cross-appeal questioned the interest accrual dates on the respondent's claims. The court agreed that interest should be calculated at the rate prescribed by the Prescribed Rate of Interest Act from specific dates (e.g., 2004-03-17 for past medical expenses, 2007-08-20 for general damages) to the judgment date of 2008-01-31, with further interest from the judgment date to the payment date. The respondent was ordered to pay the appellants' costs of appeal and cross-appeal.
Holdings
- The appeal succeeds in adjusting the plaintiff's past and future loss of earnings to account for the cost of living differential between London and South Africa. The past loss of earnings is set at GBP128,714 (ZAR 791,835) and future loss at GBP578,884 (ZAR 3,911,705), using the exchange rate prevailing at payment. The court amended the interest calculation periods on the awards, including on past hospital expenses from 2004 to 2008, general damages from 2007 to 2008, and future medical expenses from their respective dates of incurrence to 2008. Interest on the capital amounts (R2,434,630.09 and loss of earnings) runs from 2008 to payment.
- The court dismissed the appeal and cross-appeal except for the specific amendments to the loss of earnings calculation and interest periods. The remaining issues, including claims about future medical expenses and promotional income increases, were found without merit. The respondent is ordered to pay the appellants' costs of appeal and cross-appeal.
Remedies
- The appeal and cross-appeal are dismissed except for the amendments to the order regarding the loss of earnings and interest as set out in the judgment.
- Interest at the rate prescribed under the Prescribed Rate of Interest Act is payable on R1,189,253.09 (past medical expenses) from 17 March 2004 to 31 January 2008; R400,000 (general damages) from 20 August 2007 to 31 January 2008; and on the capital amount of R2,434,630.09 from 31 January 2008 to the date of payment. Additionally, interest on past and future loss of earnings awards is payable from 31 January 2008 to the date of payment.
- The respondent is ordered to pay the appellants' costs of appeal and the costs of the cross-appeal.
- The court amended the order to specify that the plaintiff's net past loss of earnings is the difference between GBP128,714 and ZAR791,835, and the future loss of earnings is the difference between GBP578,884 and ZAR3,911,705. The exchange rate to be used is the one prevailing at noon on the date of payment.
Monetary Damages
2434630.09
Legal Principles
The court addressed the principle of remoteness in delictual damages, determining whether the cost of living differential between London and South Africa was a sufficiently proximate consequence of the delict to warrant adjustment in the claim for loss of earnings. It held that while speculative, the cost of living adjustment should not be treated as a collateral benefit but as a factor to consider in calculating fair compensation for the plaintiff's actual loss.
Precedent Name
- Southern Insurance Association v Bailey NO
- Santam Versekeringsmaatskappy v Byleveldt
- Innes v Visser
- Zysset v Santam Ltd
- Standard General Insurance Co Ltd v Dugmore NO
- Dippenaar v Shield Insurance Co Ltd
Cited Statute
- Prescribed Rate of Interest Act, 55 of 1975
- Medical Schemes Act, 131 of 1998
Judge Name
- BRAND
- LEACH
- JAFTA
- HURT
- MAYA
Passage Text
- The essence of the computation of a claim for loss of earnings is to compensate the claimant for his loss of earning capacity. The court emphasized that the cost of living adjustment should not be treated as a 'collateral benefit' but as a factor to balance the compensation against speculative advantages.
- Interest at the rate prescribed in terms of s1 of the Prescribed Rate of Interest Act, 55 of 1975, is payable by the defendants as follows: [specific interest periods and rates].
- The value of the plaintiff's net past loss of earnings will be the difference between GBP128 714 and ZAR 791 835; The value of the plaintiff's claim for future loss of earnings will be the difference between GBP578 884 and ZAR 3 911 705; The exchange rate will be the one prevailing at noon on the date of payment.