Newnet Property (Pty) Ltd t/a Sunshine Hospital v The Road Accident Fund and Another

Newnet Property (Pty) Ltd t/a Sunshine Hospital (Newnet) operated a hospital treating motor vehicle accident victims, many referred by the Road Accident Fund (RAF). Newnet invoiced the RAF for approved medical services, including RNYP (Requested Not Yet Paid) claims that had been audited and approved. From March 2020 the RAF persistently failed to pay Newnet, leading to multiple court applications and judgments in Newnet’s favour, many by consent or default. Although judgments totalling over R403 million were granted, the RAF paid only part, leaving an unpaid balance of R92,085,106.36. The RAF also obstructed execution processes and withheld RNYP lists. Newnet exhausted alternative remedies, including writs of execution against movable property and attempts to attach levy funds, without success. Facing imminent closure of its hospital and risk to critically ill patients, Newnet launched an urgent application in June 2024 seeking enforcement of judgment debts and a mandamus directing the RAF’s CEO to ensure compliance. The High Court dismissed the application on the basis that the relief sought was res judicata. Newnet appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The order of the High Court was set aside and replaced with an order directing the Road Accident Fund to pay Newnet R92,085,106.36 within seven days; to provide updated RNYP lists within specified timeframes; to adjudicate and pay outstanding RNYP claims within prescribed periods; directing payment of R158,890,967.70 on the May 2023 RNYP list; directing the Acting Chief Executive Officer, Mr Radikwena Phora, to ensure compliance with the order; and ordering the RAF to pay the costs of the application, including the costs of two counsel.

This judgment is significant for clarifying that applications to enforce judgment debts against organs of state are not barred by res judicata. It affirms the availability of mandamus relief to compel compliance with court orders where state entities systematically evade payment. The case underscores judicial intolerance of persistent non-compliance by the Road Accident Fund and strengthens mechanisms available to judgment creditors seeking to enforce final orders against public bodies.