The Compensation Commissioner and Others v Compensation Solutions (Pty) Ltd and Compensation Solutions (Pty) Ltd v The Compensation Commissioner and Others

Compensation Solutions (Pty) Ltd (CompSol) conducts a factoring business, purchasing and taking cession of medical service providers’ (MSPs) claims for payment of medical accounts under the Compensation for Occupational Injuries and Diseases Act 130 of 1993 (COIDA). In 2009, due to extensive delays in payment by the Compensation Commissioner, CompSol brought an application which was settled and made an order of court on 31 July 2009 (the so-called 75-day order). The order regulated the processing, validation and payment of medical accounts within 75 days and addressed an existing backlog. After 2009, CompSol instituted numerous actions relying on the 75-day order as a cause of action for unpaid medical accounts submitted after that date. The State parties sought declaratory relief that the order applied only to accounts forming part of the 2009 litigation. Conflicting High Court decisions led to two related appeals to the Supreme Court of Appeal.

In appeal no 997/2021, the State parties’ appeal was upheld with costs and the High Court order was set aside and replaced with an order granting the declaratory relief sought. In appeal no 1175/2021, CompSol’s appeal was dismissed and the State parties’ cross-appeal was also dismissed, both with costs.

The judgment clarifies the interpretation and temporal scope of court-approved settlement agreements in COIDA disputes, confirming that such orders do not regulate future claims unless expressly stated. It provides authoritative guidance on the non-mandatory nature of the W.CI.20 billing procedure and affirms the legality of cession of medical aid claims under COIDA. The decision is important for factoring arrangements, medical service providers, and the administration of the Compensation Fund.