Pretoria - The Master of the High Court has asked the Gauteng High Court, Pretoria, for guidance on how to deal with the large number of cash payouts by courts in damages claims.
Another question is whether it is best to establish a trust or appoint a curator where plaintiffs are unable to manage the money themselves.
This is especially in Road Accident Fund (RAF) cases and, to a lesser degree, in medical negligence matters where the victims have suffered severe brain damage, and funds must be protected for further use.
In many cases a lump sum, sometimes running into millions, is awarded.
Two legal mechanisms are generally employed to protect the funds in these cases. The first is the appointment of a curator bonis (a person appointed by the court to manage the funds). The second is the creation of a trust into which the damages award is paid.
Both mechanisms are designed to ensure that the protected funds are used for the benefit of the plaintiff’s maintenance, care and other needs.
In both instances, the curator bonis or trustee has fiduciary duties and is subject to supervision by the Master of the High Court and the court.
The Master earlier submitted a report to the court, seeking guidance on certain issues involving the Master’s supervisory powers over trustees and curators in matters where damages have been awarded. The Master also identified five cases where specific guidance was sought, which involved RAF matters where the accident victims suffered severe brain damage and could not manage the funds.
Three judges – Raylene Keightley, Anthony Millar and Acting Judge Cinzia Vallaro – who presided over the application voiced their concern that the RAF did not participate in these proceedings.
“These were issues in respect of which the RAF could and should have provided crucial input. It is concerning indeed that it saw fit to remain disengaged from the proceedings,” Judge Keightey said in the judgment.
She said the court rolls were congested with RAF claims often involving millions of rand.
“These damages are awarded on the basis that the amount will compensate the plaintiff for the salary he/she would have earned but for their injury in an accident… In most cases, once a lump-sum award has been made, a court has no further legal interest in the matter.
However, there are certain categories of cases in which the court retains a legal oversight role in ensuring that damages awards are protected.
These are cases in which minors are recipients of damages awards, or where adult plaintiffs suffer some incapacity which inhibits their ability to properly manage the financial sum awarded.
Pretoria News