The executor of a deceased estate sued the applicant under a life policy and was granted default judgment.
The court rescinded the judgment because the summons was served on the incorrect legal entity at an address that was neither its head office nor registered office as required. Summons was served at a branch of FirstRand Limited.
The court noted that proper service is fundamental to the validity of proceedings. The misidentification of the party materially affected by the outcome constituted an error in law and fact.
The court noted that the matter revealed multiple irregularities, which collectively justify rescission.
The judgment highlights the importance and benefit to insurers of ensuring that the identity of the relevant insurer is properly communicated both in the policy documentation, disclosure documents and any related correspondence. That applies especially to the proper description and name of the insured. Often policies refer to the parties in short-hand which can create confusion and wasted costs.