Road Accident Fund v Arendse NO

The respondent, acting as father and natural guardian of his minor daughter Cindy, sued the Multilateral Motor Vehicle Accidents Fund (MMF) for damages arising from severe injuries Cindy sustained in a motor vehicle accident in 1991. The claim included future medical and hospital expenses. The matter was settled, and the MMF’s appointed agent furnished an undertaking under article 43(a) of the MMF Act to pay future medical and related costs as they were incurred. Provision was also made for the costs of a curator bonis, but instead of appointing one, the respondent established a trust to administer the award. The capitalised curator’s costs were paid into the trust. Subsequently, the respondent sought a declaratory order that the Road Accident Fund (which had taken over the MMF’s liabilities) was obliged under the undertaking to reimburse the costs of his attorney for administering the undertaking.

The appeal succeeded. The order of the court a quo was set aside and replaced with an order dismissing the application.

The case clarifies the limited scope and purpose of Road Accident Fund undertakings for future medical expenses. It confirms that administration or professional fees are not automatically recoverable under such undertakings unless they were properly claimed as damages and included in the settlement. The decision provides important guidance for RAF litigation and settlement practice.