First National Bank of Southern Africa Ltd v Duvenhage

Mrs Duvenhage and her husband embarked on a farming and afforestation venture on leased land in KwaZulu-Natal, relying on forestry permits and anticipated financing. The manager of First National Bank’s Greytown branch, Mr Roux, assured them that a loan application to purchase the farm would be approved, but he never submitted the application. In the meantime, the bank advanced funds on overdraft, which the Duvenhages used to prepare the land. When it later emerged that no loan had been applied for or approved, the planting season had effectively passed, the forestry permits had expired (on their understanding), and promised financing from SAPPI lapsed. The venture collapsed. The bank sued for repayment of the overdraft; Mrs Duvenhage counterclaimed for damages based on breach of contract and, alternatively, delict.

The appeal was upheld with costs. The full court’s declaratory order holding the bank liable for damages was set aside and replaced with an order dismissing Mrs Duvenhage’s appeal with costs.

The case is a leading South African authority on factual causation in delict. It underscores that negligent conduct does not attract liability unless it is shown, on a balance of probabilities, to be a causa sine qua non of the loss. The judgment highlights the practical value of addressing causation early in delictual inquiries and has been frequently cited in later negligence cases.