The Road Accident Fund v Wayne Coughlan NO

The children’s father died in 2000. In June 2002 their mother was killed as a pedestrian in a motor vehicle collision for which the Road Accident Fund (RAF) admitted 100% liability. Prior to her death, the children lived with their maternal grandparents, with the mother contributing financially when she could. After the mother’s death, the grandmother was appointed as foster parent under the Child Care Act 74 of 1983 and received foster child grants under the Social Assistance legislation. The curator ad litem and the RAF agreed that the children’s damages for loss of support amounted to R112 942, while foster child grants paid totalled R146 790. The High Court held that the grants were res inter alios acta and not deductible from damages. The RAF appealed.

The appeal was upheld. The High Court order was set aside and replaced with an order that foster child grants must be taken into account in assessing damages for loss of support; since the grants exceeded the agreed damages, no payment was ordered. Each party was to bear its own costs.

The case authoritatively confirms that foster child grants, like other social assistance grants, are generally deductible from damages for loss of support in RAF claims where they arise as a consequence of the breadwinner’s death. It aligns foster child grants with child support grants and clarifies the application of the double-compensation principle in South African delictual damages law.