Road Accident Fund v P F Cloete NO and Others

Dr Els Thomas, a Belgian medical practitioner, was seriously injured in a motor vehicle collision in South Africa. The Road Accident Fund admitted 70% liability and quantum was referred to arbitration. Dr Thomas received compulsory Belgian social security benefits (medical and disability). An issue arose whether those benefits should be deducted from the damages payable by the Fund, particularly where undertakings existed to repay the Belgian institutions to avoid double compensation. The arbitrator stated a question of law to the High Court under s 20(1) of the Arbitration Act, asking whether the earlier Cape decision in Zysset v Santam was correctly decided. The High Court entertained the question, held Zysset to be wrongly decided, and issued a qualified order. Both parties appealed.

Appeal dismissed with costs; cross-appeal upheld with costs. The High Court’s order was set aside and substituted with an order dismissing the application with costs.

The case clarifies South African law on s 20 of the Arbitration Act, confirming that both arbitrators and courts have a wide discretion whether to state or answer questions of law. It affirms Telcordia and rejects the notion that courts are obliged to answer stated cases meeting the Halfdan Grieg criteria. The judgment reinforces judicial restraint in arbitration and limits court intervention.