Road Accident Fund v Myhill NO (Swalibe Minors)

In 1997, Ms Seani Swalibe and her two minor children, Philippine and Lufuno, were injured in a motor vehicle collision. Claims were lodged with the Road Accident Fund (RAF) on behalf of the minors. In 1999 the RAF settled each child’s claim for modest amounts, reducing the already low settlements by 30% to account for alleged contributory negligence by the mother, effectively setting off the mother’s personal liability against the minors’ claims. No allowance was made for future medical treatment despite serious head injuries and indications of possible post‑traumatic epilepsy. About ten years later a curator ad litem was appointed for the minors, who sought rescission of the settlements on the basis that they were substantially prejudicial to the children.

The appeal was dismissed with costs, including the costs of two counsel, and the High Court order setting aside the settlement agreements was confirmed.

The case clarifies South African law on the protection of minors in settlement agreements, confirming that compromises prejudicial to minors may be rescinded. It authoritatively establishes that a debtor may not set off a custodian parent’s personal liability against damages owed to a minor child, thereby strengthening safeguards for minors’ claims, particularly in RAF matters.