The plaintiff, acting on behalf of her minor child (E[...]), claimed damages from the defendant, Santam Limited, for injuries the child sustained at birth at St Mary's Mission Hospital, which resulted in brain damage, severe asphyxia, and cerebral palsy. Santam was the insurer of St Mary's Mission Hospital, which was operated by a Trust. The plaintiff alleged the injuries resulted from the negligence of medical officers at the hospital, and that this negligence was not limited to 'midwifery duties'. The Trust became insolvent and was placed in final liquidation. The defendant and the Trust concluded an Agreement of Loss, settling the Trust's insurance claim for R5,560,175.01, which the defendant asserted was the maximum indemnity in respect of claims arising from 'midwifery duties'. The amount paid was not ring-fenced for the plaintiff's claim and was apparently used for the liquidated hospital's general expenses. The plaintiff filed a replication to the defendant's plea more than five years after the close of pleadings, and therefore brought a condonation application for its late filing.
The application for condonation for the late filing of the replication was granted with costs, including the costs of two counsel.
In determining whether good cause exists for condonation of non-compliance with the rules of court, each case must be judged on its own merits. Factors such as the importance of the case, prospects of success, lack of prejudice to the other party, the best interests of the child (as required by section 28(2) of the Constitution), and the fact that the delay was not attributable to the litigant personally, all weigh heavily in favour of granting condonation. A court, as upper guardian of minors, should be slow to allow legal technicalities to override the interests of justice and fairness.
The court made strong obiter remarks regarding the ethical conduct of Mr Liebenberg, who acted as chairman of St Mary's Mission Hospital and was also a director of Garlicke & Bousfield, a firm acting for Santam. The court noted a 'clear conflict of interest situation and/or a perception of bias' in concluding the Agreement of Loss, stating that Mr Liebenberg appeared to have placed Santam's and his firm's interests above those of the hospital and the minor child. It cited the high ethical standards expected of legal practitioners as restated in Chueu and Ex Parte Minister of Home Affairs, remarking that it is 'unpalatable and undesirable' for one person to represent both insurer and insured.
This judgment underscores the principle that the best interests of the child are paramount in all matters concerning the child, as entrenched in section 28 of the Constitution. It demonstrates that courts will not rigidly apply procedural rules where this would cause injustice to a minor child. The case also highlights the ethical obligations of legal practitioners to avoid conflicts of interest, particularly where vulnerable parties (such as injured children and insolvent trusts) are affected. It provides guidance on the application of section 156 of the Insolvency Act in the context of insurance claims against an insolvent insured.