Road Accident Fund v Shabangu and Another

The respondents were attorneys who lodged a Road Accident Fund claim on behalf of a woman who falsely claimed to be the widow of a deceased motor accident victim. The claim was supported by forged documentation and corroborated by the deceased’s brother and an official from the Department of Home Affairs. The Fund settled the claim for R258 593, which was paid into the attorneys’ trust account and disbursed on the client’s instructions. It later emerged that the claimant was an impostor and that no valid RAF claim existed because the deceased had been the sole driver in a single-vehicle accident. The Fund sought to recover the paid amount and related costs from the attorneys, alleging various contractual and delictual bases of liability.

The appeal was dismissed with costs, and the order of the High Court dismissing the Fund’s claims against the attorneys was confirmed.

The case is a leading authority on the absence of a general delictual duty owed by attorneys to opposing parties or third parties while acting for their clients. It clarifies the limits of an attorney’s warranty of authority and confirms that, absent fraud or special circumstances, attorneys are not liable to the Road Accident Fund for innocent submission of fraudulent claims. The judgment is central to South African law on wrongfulness, professional negligence, and legal policy in delict.