MacDonald v Road Accident Fund

A motor vehicle collision on 3 March 1994 caused by the negligence of an insured driver resulted in the deaths of Petrus Geyser MacDonald and his wife, Myra MacDonald. They were survived by three minor children (the appellants). A curator ad litem instituted action against the Road Accident Fund (RAF) for loss of support. Liability was conceded, leaving only quantum in dispute. The deceased father left substantial assets, including non-insurance assets and life insurance proceeds, which were placed in a testamentary trust for the children. Over time, approximately R1.97 million was expended from the trust to maintain the children, and their needs were fully met. By the time of trial, two children were self-supporting and the youngest was near majority. The trust assets had grown significantly. The High Court absolved the RAF from the instance, holding that the appellants failed to prove that their maintenance needs exceeded what could be met from the deceased father’s estate. The appellants appealed to the Supreme Court of Appeal.

The appeal was dismissed with costs, including the costs of two counsel.

The case clarifies the application of the Assessment of Damages Act in dependants’ claims, confirming that insurance proceeds must be wholly ignored rather than apportioned. It reinforces that loss of support is limited to actual pecuniary loss and that actuarial speculation is inappropriate where actual maintenance data exists. The judgment is significant for RAF litigation and the assessment of damages in dependants’ claims.