BoE Bank Ltd v Ries

The deceased intended to change the beneficiary of an Old Mutual life policy to his fiancée, the respondent, to enable her to fund a bequest under his will. A bank employee, Groenewald, acting as an insurance broker for the appellant bank, provided a change-of-beneficiary form as a favour but did not obtain the deceased’s signature or lodge the form with the insurer. The deceased died without completing the process, and the existing beneficiary received the policy proceeds. The respondent sued the bank for damages equal to the policy value, alleging wrongful and negligent omission in failing to ensure the form was signed and submitted.

Appeal upheld with costs. The judgment of the court a quo was set aside and replaced with an order dismissing the plaintiff’s claim with costs.

The case clarifies the limits of delictual liability for pure economic loss arising from omissions in South African law. It cautions against uncritical reliance on the ‘disappointed beneficiary’ analogy and reinforces that wrongfulness depends on a value judgment grounded in boni mores and the existence of a legal duty, not merely foreseeability or moral considerations.