SASRIA Limited (formerly the South African Special Risks Insurance Association) v Certain Underwriters at Lloyds

The appellant (SASRIA) and the respondent (Certain Underwriters at Lloyds) were both insurers of timber plantations damaged by fire. Liability depended on whether the fire was caused by labour disturbances: if so, SASRIA was liable; if not, the respondent was liable. Pending arbitration to determine the cause of the fire, the parties agreed to make equal interim payments to the insured, with the understanding that the party ultimately found liable would refund the other’s share. An appeal procedure against the arbitration award was later agreed. The arbitrator found that the fire was not caused by labour disturbances, absolving SASRIA. The respondent unsuccessfully appealed. After the appeal award, the respondent repaid the capital amount in instalments but disputed liability for mora interest. The issue became whether mora interest was payable from the date of the arbitrator’s award or only from the date of the appellate award.

The appeal to the Supreme Court of Appeal was upheld with costs. The order of the Full Court was set aside and replaced with an order dismissing the respondent’s appeal, thereby restoring the High Court order that the respondent pay mora interest from the date of the arbitrator’s award.

The case is significant for South African contract and insurance law in clarifying when mora interest accrues in the context of arbitration agreements with appeal procedures. It affirms that courts will infer tacit terms based on commercial efficacy and fairness, and that arbitration awards can, by agreement, be treated analogously to money judgments for purposes of enforceability and interest. The judgment provides authoritative guidance on the relationship between arbitration, appeals, and mora interest.