DISCUSSION PAPER 67

The Honourable Mr Justice I Mahomed (Chairperson)
The Honourable Mr Justice P J J Olivier (Vice-Chairperson)
The Honourable Madam Justice Y Mokgoro
Adv J J Gauntlett SC
Mr P Mojapelo
Prof R T Nhlapo
Ms Z Seedat

The Secretary is Mr W Henegan. The Commission's offices are on the 8th floor, N G Kerk Sinodale Sentrum, 228 Visagie Street, Pretoria. Correspondence should be addressed to:

The Secretary
South African Law Commission
Private Bag X668
PRETORIA
0001

Telephone : + 27 12 322 6440
Fax : + 27 12 320 0936
E mail : salawcom@cis.co.za
URL : http://www.uct.ac.za/law/salc/salc.htm

PREFACE

This discussion paper (which reflects information gathered up to the end of April 1996) has been prepared by the research staff of the Commission to serve as a basis for the Commission's deliberations. The views, conclusions and recommendations contained herein should not be regarded as the Commission's final views. The discussion paper is published in full so as to provide persons and bodies wishing to comment or make suggestions for the reform of this particular branch of the law with sufficient background information to enable them to place reasoned submissions before the Commission.

Any request to treat submissions relating to the discussion paper as confidential will be respected. If no request for confidentiality or anonymity is made, it will be inferred that the respondents agree to the Commission quoting from or referring to comments and attributing comments to respondents. Respondents should be aware that the Commission may have to release information contained in submissions under the Constitution of the Republic of South Africa Act 200 of 1993.

Written comments, representations or requests should reach the Commission by 30 November 1996 at the address appearing on the previous page. Please contact the researcher if you are unable to submit your comments on time.

The project leader responsible for this project is the Honourable Mr Justice PJJ Olivier, Judge of Appeal, and the researcher, who may be contacted for further information, is Mr G O Hollamby.

SUMMARY OF RECOMMENDATIONS

This discussion paper relates to the revision of the entire Apportionment of Damages Act 34 of 1956 and contains inter alia the following recommendations:

In the light of the Appeal Court's decision in South British Insurance Co. Ltd v Smit 1962 3 SA 826 (A) the Commission recommends that all references to "fault" in section 1 of the Act be substituted by "negligent conduct". If "fault" in section 1 of the Act means negligence (which we believe it does), then the Act should make it clear. This would necessitate either the repeal or amendment of the definition of "fault" in section 1(3) of the Act.
It follows from the Commission's interpretation that section 1(1)(a) of the Act does not allow a defence of contributory intention.
It is further recommended that the Act should apply to cases of breach of a statutory duty (where fault is a requirement) and breach of contract. However, the Commission is equally convinced that the Act does not cover no-fault liability on the part of the defendant.
A "joint wrongdoer" is defined in the Act. The Commission, however, suggests a reformulation to make it clear that wrongdoers who are liable in terms of vicarious liability qualify as joint wrongdoers.
No amendments are recommended regarding section 2(1B) of the Actwhich deals with the death of or injury to the breadwinner.
By giving proper notice in terms of section 2(2) of the Act a joint wrongdoer not sued in an action can be joined with the other joint wrongdoer(s) in that action and this will entitle such joint wrongdoer to intervene as a defendant. If a joint wrongdoer is not sued and no notice is given, then the plaintiff cannot subsequently sue that joint wrongdoer except with leave of the court. No major amendments to sections 2(2) and 2(4) of the Act are recommended.
No major amendments to section 2(3) of the Act are proposed. This section allows the court to order a separation of trials on application.
The Commission proposes a re-arrangement and simplification of the various subsections dealing with costs.
Section 2(7) of the Act deals with the recovery of payments in excess of the amount apportioned to the joint wrongdoers. The Commission recommends that this section be repealed.
Consequential changes are suggested to sections 2(6), 2(8) and 2(10) of the Act. These sections respectively deal with contribution between joint wrongdoers, judgments in favour of the plaintiff and exemptions from or limitation of liability.
The Commission also deals with the problem of contribution in cases of insolvency. It invites comment on the problems experienced in practice in this regard, and especially on the possibility of making a re-allocation of the apportionment in the event of it becoming impossible to execute against one of the joint wrongdoers in respect of his or her share, the introduction of full proportionate liability whereby defendants would be liable to plaintiffs only for the amount of damages equal to their proportionate share of the fault in the plaintiff's loss or whether some form of modified proportional liability should apply.
No amendments to sections 2(12) and (13) of the Act are suggested. These sections respectively deal with payments in full settlement of the plaintiff's claim and discharge from liability once the judgement debt has been paid in full.
The outdated references in the Act to, inter alia, the Motor Vehicle Insurance Act, 1942 and the Administration of Justice Proclamation, 1919 require amendment. Obviously, the Act no longer applies to South West Africa and section 6 of the Act can also be repealed.
The Commission does not recommend that the Act be made applicable to collisions or accidents at sea.
The Commission also recommends that the Rules Board should seriously consider introducing a third party procedure similar to that contained in Rule 13 of the Supreme Court rules for the Magistrate's Court.

LIST OF SOURCES AND MODE OF CITATION

Bamford Law of Shipping

Bamford BR The Law of Shipping and Carriage in South Africa (second edition) Cape Town: Juta 1973.

Baer Admiralty Law

Baer HR Admiralty Law (second edition) Charlottesville, Virginia: Michie Company 1969.

Boberg 1960 SALJ

Boberg PQR "Shortened expectation of life as an element in the assessment of damages for loss of earnings" 1960 (77) South African Law Journal 438 - 447.

Boberg 1965 Annual Survey

Boberg PQR "Law of Delict" 1965 Annual Survey 179 - 187.

Boberg 1971 SALJ

Boberg PQR "The Apportionment of Damages Amendment Act 58 of 1971: Reform of the law regarding delictual actions between spouses married in community and the dependants' action" 1971 (88) South African Law Journal 423 - 459.

Boberg 1975 SALJ

Boberg PQR "Further and better reflections on the Apportionment of Damages Amendment Act 1971" 1975 (92) South African Law Journal 330 - 332.

Boberg Law of Delict

Boberg PQR The Law of Delict Volume I Cape Town: Juta 1984.

British Law Commission Consultation Paper No. 140

British Law Commission Consultation Paper No. 140: Damages for Personal Injury: Non-Pecuniary Loss London: HMSO 1995.

British Columbia Law Reform Commission Shared Liability

British Columbia Law Reform Commission Shared Liability LRC Report No. 88, 1986.

Buchanan Liability in Motor Cases

Buchanan JL Liability in Motor Cases Cape Town: Juta 1973.

Burchell Principles of Delict

Burchell J Principles of Delict Cape Town: Juta 1993.

Claasen 1980 De Rebus

Claasen JY "Valhelms en sitplekgordels" 1980 De Rebus Procuratoriis 384 - 386.

Claasen 1982 De Rebus

Claasen JY "Sitplekgordels: Medewerkende nalatigheid" 1982 De Rebus Procuratoriis 327 - 336.

Common Law Team of the British Law Commission Feasibility Investigation

Common Law Team of the British Law Commission Feasibility Investigation of Joint and Several Liability London: HMSO 1996.

Conradie 1966 THRHR

Conradie PJ "Verdeling van skadevergoeding en aksies van afhanklikes" 1966 (29) Tydskrif van Hedendaagse Romeins-Hollandse Reg 56 - 61.

Davel Skadevergoeding aan Afhanklikes

Davel T Skadevergoeding aan Afhanklikes by die dood van die broodwinner Roodepoort: Digma-Publikasies 1987.

Davids 1965 SALJ

Davids J "Altered cheques: Apportionment of loss" 1965 (82) South African Law Journal 289 - 294.

Davids 1966 SALJ

Davids J "Apportionment of contractual damages" 1966 (83) South African Law Journal 226 - 227.

Dendy 1990 SALJ

Dendy M "Claims for damages for loss of support: Dependants' or breadwinners' actions?" 1990 (107) South African Law Journal 155.

Dlamini 1985 De Jure

Dlamini CRM "The measure of damages for fraud inducing a contract - a comedy of errors?" 1985 (18) De Jure 346 - 367.

Erasmus Superior Court Practice

Erasmus HJ and AM Breitenbach (eds) Superior Court Practice (formerly Nathan, Barnett & Brink) Kenwyn: Juta 1994.

Fleming 1976 California LR

Fleming JG "Comparative negligence at last - By judicial choice" 1976 California Law Review 239

Fleming 1979 Hastings LR

Fleming JG "Report to the Joint Committee of the California Legislature on Tort Liability on the problems associated with American Motorcycle Association v Superior Court" 1979 Hastings Law Review 1465 - 1514.

Fleming Law of Torts

Fleming JG The Law of Torts (seventh edition) Sydney: The Law Book Company 1987.

Gauntlett Quantum of Damages (Volume I)

Gauntlett JJ Corbett's The Quantum of Damages (Volume I) (fourth edition) Cape Town: Juta 1995.

Gilmore and Black Law of Admiralty

Gilmore G and CL Black The Law of Admiralty (second edition) New York: Foundation Press 1975.

Grime Shipping Law

Grime RP Shipping Law London: Sweet & Maxwell 1978.

Honey 1981 De Rebus

Honey DP "Die Wet op Verdeling van Skadevergoeding 34 van 1956 soos gewysig" 1981 De Rebus Procuratoriis 525 - 529.

Honey MVA Practice

Honey DP MVA Practice under Act 84 of 1986 Pretoria: Joan Lötter Publications 1987.

Hong Kong Law Reform Commission Report on Contribution between Wrongdoers

Hong Kong Law Reform Commission Report on the Law relating to Contribution between Wrongdoers (Topic 5) January 1984.

Jones and Buckle Civil Practice of the Magistrates' Courts

Erasmus HJ and DE van Loggerenberg (eds) Jones and Buckle The Civil Practice of the Magistrates' Courts Volume II (eight edition) Cape Town: Juta 1991.

Kotzé 1956 THRHR

Kotzé PJ "Die Wet op Verdeling van Skadevergoeding, No.34 van 1956" 1956 (19) Tydskrif van Hedendaagse Romeins-Hollandse Reg 186 - 196.

Klopper 1995 De Rebus

Klopper H "Besering van 'n broodwinner - eise van afhanklikes" 1995 De Rebus Procuratoriis 101 - 102.

Lötz 1996 TSAR

Lötz DJ "Vermindering van kontraktuele skadevergoeding" 1996 Tydskrif vir die Suid-Afrikaanse Reg 170 - 174.

McKerron The Apportionment of Damages Act

McKerron RG The Apportionment of Damages Act 1956 Cape Town: Juta 1956.

McKerron 1962 SALJ 443

McKerron RG "Reduction of damages under the Apportionment of Damages Act" 1971 (79) SALJ 443 - 449.

McKerron Law of Delict

McKerron RG The Law of Delict (seventh edition) Cape Town: Juta 1971.

Millner 1956 Annual Survey

Millner MA "Law of delict" 1956 Annual Survey 188 - 195.

Neethling, Potgieter and Visser Deliktereg

Neethling J, JM Potgieter and PJ Visser Deliktereg (second edition) Durban: Butterworths 1992.

New Zealand Law Commission Preliminary Paper

New Zealand Law Commission Preliminary Paper No. 19: Apportionment of civil liability Wellington: NCLC PP No. 19 1992.

Ontario Law Reform Commission Report on Contribution

Ontario Law Reform Commission Report on Contribution among Wrongdoers and Contributory Negligence Ottawa, 1988.

Rubens 1976 De Rebus

Rubens AP "Rule 28(2) of the Magistrate's Court Rules" 1976 De Rebus Procuratoriis 115 - 116.

Sonnekus 1986 De Jure

Sonnekus JC "Vonnisbespreking: Delport v Mutual and Federal Insurance Co Ltd 1984 3 SA 191 (D)" 1986 (19) De Jure 150 - 157.

Swanepoel 1959 THRHR

Swanepoel HL "Oor die Wet op Verdeling van Skadevergoeding" 1959 (22) Tydskrif van Hedendaagse Romeins-Hollandse Reg 262 - 274.

Trindade and Cane Law of Torts

Trindade FA and P Cane The Law of Torts in Australia Melbourne: Oxford University Press 1985.

Van der Merwe 1971 De Rebus

Van der Merwe CG "Verdeling van skadevergoeding: nuwe wysigings" 1971 De Rebus Procuratoriis 309 - 312.

Van der Merwe 1964 Acta Juridica

Van der Merwe NJ "Enkele beskouings oor die Wet op Verdeling van Skadevergoeding" 1964 Acta Juridica 82 - 98.

Van der Merwe 1972 THRHR

Van der Merwe NJ "Vonnisbespreking: Lean v Van der Mescht 1972 2 SA 100 (O)" 1972 (35) Tydskrif van Hedendaagse Romeins-Hollandse Reg 179 - 184.

Van der Merwe and Mynhardt 1971 THRHR

Van der Merwe NJ and SJ Mynhardt "Die Wysigingswet op Verdeling van Skadevergoeding" 1971 (34) Tydskrif van Hedendaagse Romeins-Hollandse Reg 308 - 315.

Van der Merwe and Olivier Onregmatige Daad

Van der Merwe NJ and PJJ Olivier Die Onregmatige Daad in die Suid-Afrikaanse Reg (sixth edition) Pretoria: Van der Walt 1989.

Van der Walt Delict

Van der Walt JC Delict: Principles and cases Durban: Butterworths 1979.

Visser and Potgieter Skadevergoedingsreg

Visser PJ and JM Potgieter Skadevergoedingsreg Cape Town: Juta 1993.

Wessels 1976 De Rebus

Wessels JJ "Die 'skim' van derdepartyprosedure" 1976 De Rebus Procuratoriis 374 - 375.

Williams Joint Torts and Contributory Negligence

Williams GL Joint Torts and Contributory Negligence: A study of concurrent fault in Great Britian, Ireland and the common-law dominiums London: Stevens 1951.

Wright 1992 Memphis State LR

Wright R "The logic and fairness of joint and several liability" 1992 Memphis State Law Review 45

LIST OF CASES

AA Mutual Insurance Association Ltd v Nomeka 1976 3 SA 45 (A)

Abrahamse v Danek 1962 1 SA 171 (C)

Barclays Bank v Straw 1965 2 SA 93 (O)

Basildon DC v Lesser [1985] QB 839

Bata Shoe Co Ltd (SA) v Moss 1977 4 SA 16 (W)

Becker v Kellerman 1971 2 SA 172 (T)

Bondcrete (Pty) Ltd v City View Investments (Pty) Ltd 1969 1 SA 134 (N)

Butterfield v Forrester (1809) II East 60; 103 ER 962

Callender-Easby v Grahamstown Municipality 1981 2 SA 810 (E)

Car-to-Let (Pty) Ltd v Addisionele Landdros 1973 2 SA 99 (O)

Coetzee v Van Rensburg 1954 4 SA 616 (AD)

Commercial Union Assurance Co Ltd v Pearl Assurance Co Ltd 1962 3 SA 856 (E)

Da Silva v Coutinho 1971 3 SA 123 (A)

Day v Mead [1987] 2 NZLR 443

Dellabarca v Northern Storemen and Packers Union [1989] 2 NZLR 737

Delport v Mutual and Federal Insurance Co Ltd 1984 3 SA 191 (D)

De Polo v Dreyer 1990 2 SA 290 (W)

De Vaal NO v Messing 1938 TPD 34

Drew v Abbassi and Packer unreported, 24 May 1995 (NZLR) (CA)

Du Preez v AA Mutual Insurance Association Ltd 1981 3 SA 795 (E)

Du Raan v Maritz 1973 4 SA 39 (SWA)

Erasmic v Botha 1990 3 SA 230 (C)

Evins v Shield Insurance Co Ltd 1980 2 SA 814 (A)

Fitzgerald v Lane [1989] 1 AC 328

Forsikrings v Butcher [1986] 2 All ER 488

Geduld Lands Ltd v Uys 1980 3 SA 335 (T)

Glatt v Evans 1962 3 SA 959 (T)

Govender v SA Stevedores Service Co Ltd 1981 1 SA 353 (D)

Grindrod Cotts Stevedoring (Pty) Ltd v Brock's Stevedoring Services 1979 1 SA 239 (D)

Grobbelaar v Federated Employers Insurance Co Ltd 1974 2 SA 225 (A)

Gross v Commercial Union Assurance Co Ltd 1974 1 SA 630 (A)

Hart v Santam Insurance Co Ltd 1975 4 SA 275 (ECD)

Hoeberger v Koppens [1974] 2 NZLR 597

Hughes v Transvaal Associated Hide & Skin Merchants (Pty) Ltd 1955 2 SA 176 (T)

Ihlenfeldt v Rieseberg 1960 2 SA 455 (T)

Jones NO v Santam Bpk 1965 2 SA 542 (A)

Khumalo v Wilkins 1972 4 SA 470 (N)

Kleinhans v African Guarantee & Indemnity Co Ltd 1959 2 SA 619 (E)

Lane v Holloway [1968] 1 QB 379

Lean v Van der Mescht 1972 2 SA 100 (O)

Lillicrap, Wassenaar and partners v Pilkington Brothers (SA) (Pty) Ltd 1985 1 SA 475 (A)

Lincoln v Ramsaran 1962 3 SA 374 (D)

Lockhat's Estate v North British and Mercantile Insurance Co Ltd 1959 3 SA 295 (A)

Mabaso v Felix 1981 3 SA 865 (A)

Maphosa v Wilke 1990 3 SA 789 (T)

Minister van Vervoer v Bekker 1975 3 SA 128 (O)

Minister van Wet en Orde v Ntsane 1993 1 SA 560 (A)

Montana Steel Corporation v New Zealand Insurance Co Ltd 1975 4 SA 339 (W)

Moore v Minister of Posts & Telegraphs 1949 1 SA 815 (AD)

Nel v Silicon Smelters (Edms) Bpk 1981 4 SA 792 (A)

Netherlands Insurance Co Ltd v Van der Vyver 1968 1 SA 412 (A)

Nieuwenhuizen NO v Union & National Insurance Co Ltd 1962 1 SA 760 (W)

OK Bazaars (1929) Ltd v Stern and Ekermans 1976 2 SA 521 (C)

Prinsloo v Du Preez NO 1965 4 SA 300 (W)

Randbond Investments v FPS (Northern Region) (Pty) Ltd 1992 2 SA 608 (W)

Robertson v Durban Turf Club 1970 4 SA 649 (N)

Rohloff v Ocean Accident & Guarantee Corporation Ltd 1960 2 SA 291 (A)

Rondalia Assurance Corporation v Page 1975 1 SA 708 (A)

Rondalia Bank Bpk v Pieter Nel Motors (Edms) Bpk 1979 4 SA 467 (T)

Rowe v Turner Hopkins [1980] 2 NZLR 550

Saitowitz v Provincial Insurance Co Ltd 1962 3 SA 443 (W)

Shield Insurance Co Ltd v Zervoudakis 1967 4 SA 735 (E)

Smit v General Accident Fire and Life Assurance Corp Ltd 1964 3 SA 739 (C)

Smith v Davis (1878) 8 Buch 66

South African Railways and Harbours v SA Stevedores Services Co Ltd 1983 1 SA 1066 (A)

South British Insurance Co Ltd v Smit 1962 3 SA 826 (A)

Stolp v Du Plessis 1960 2 SA 661 (T)

Stolp v Kruger 1976 2 SA 477 (T)

Suid-Afrikaanse Onderlinge Brand- en Algemene Versekeringsmaatskappy Bpk v Van den Berg 1976 1 SA 602 (A)

Swart v Scottish Union & National Insurance Co Ltd 1971 1 SA 384 (W)

Taylor v SAR&H (1) 1958 1 SA 139 (D)

Tomlin v London & Lancashire Insurance Co Ltd 1962 2 SA 30 (D)

Trimmel v Williams 1952 3 SA 786 (C)

Tychsen v Evans (1880) 1 EDC 28

Union National South British Insurance Co Ltd v Vitoria 1982 1 SA 444 (A)

Van Zyl v Gracie 1964 2 SA 434 (T)

Wapnick v Durban City Garage 1984 2 SA 414 (D)

Windrum v Neunborn 1968 4 SA 286 (T)

DISCUSSION PAPER 67

Project 96

THE APPORTIONMENT OF DAMAGES ACT, 1956

Closing date for comment: 30 November 1996

ISBN: 0-621-17543-9

CONTENTS

INTRODUCTION

PREFACE

SUMMARY OF RECOMMENDATIONS

LIST OF SOURCES AND MODE OF CITATION

LIST OF CASES