Erasmus Ferreira & Ackermann v Francis

The respondent’s husband died in a motor vehicle accident in 1998, giving rise to a claim for loss of support against the Road Accident Fund. The respondent instructed the appellants, who were attorneys, to pursue the claim. Although the claim was lodged, the attorneys negligently failed to issue summons timeously, causing the claim to prescribe. The respondent sued the attorneys for professional negligence, claiming damages equal to what she would have recovered from the Road Accident Fund (R850 000). Separately, as a dependant of the deceased, she received pension benefits of R695 525 under an employer-related insurance policy (the Commuting Journey Policy) issued by Rand Mutual Assurance. The dispute concerned whether these insurance benefits should reduce the attorneys’ liability.

The appeal was dismissed with costs. The High Court order was confirmed and amended to include interest. Judgment was entered against the defendants, jointly and severally, for R850 000 with interest at 15.5% per annum from 14 days after judgment, plus costs including senior counsel.

The case clarifies that section 1(1) of the Assessment of Damages Act does not apply to professional negligence claims for loss of a cause of action. It is significant for its application of the collateral benefits doctrine in South African delict law, emphasizing fairness and policy considerations where negligent professionals seek to rely on insurance benefits received by plaintiffs.