The plaintiff sued the defendants for damages, caused by a fire that originated on the defendants’ property, a farm in the Eastern Cape. The parties settled the claim a day before the trial, with the defendant accepting 80% liability for the plaintiff’s damages. The settlement agreement was reduced to writing and signed, in the form of a draft court order. Later that same day, the defendants purportedly withdrew their settlement proposal because, they informed the plaintiff, their insurer had rejected their claim, and they would have to pay out of their own pockets.

The court noted that the insurer was not a party to the proceedings, and therefore whether they later denied liability for the claim was irrelevant. The defendants were bound by the settlement agreement.

Cloete v Van Zyl (3384/2017) [2024] ZAECMKHC 48 (2 May 2024)