The bank sued the defendant for cancellation of a credit agreement and return of the motor vehicle sold under that agreement. In October 2025 the High Court dismissed a defence raised by the consumer that the vehicle was defective for the purposes of the Consumer Protection Act. The court held that the bank did not
Patrick Bracher (ZA)
The proper approach to an on-demand guarantee
By Patrick Bracher (ZA) on
There is a persistent stream of judgments where guarantees that are plainly on-demand guarantees are declared enforceable as such. In matter after matter, allegations of fraud are not proved by those trying to prevent payment under the guarantees. A common theme is that “unconscionability and the development of the common law” is raised despite this…
Precise cause of a fire is immaterial if not deliberate by insured (India)
By Patrick Bracher (ZA) on
An October 2025, judgment of the Supreme Court of India held that once it is established that the loss at the insured premises is due to fire and there is no finding of an allegation of fraud or that the insured is the instigator of the fire, the cause of the fire is immaterial. It…
Foreseen damage to wall not ‘sudden and accidental’ (US)
By Patrick Bracher (ZA) on
In October 2025, a Washington Appeals Court found that an insurance claim arising from the failure of a wall constructed by the insured was not “sudden and accidental” because the insured had knowledge in the months before the wall failed of the fact that the retaining walls were not built correctly and had a substantial…
Prescribed rate of interest is 10.5% from 1 October 2025
By Patrick Bracher (ZA) on
The prescribed rate of interest is 10.5% per annum with effect from 1 October 2025. The previous rate was 10.75% per annum.
According to the Prescribed Rate of Interest Act, interest on debts where no rate is prescribed is calculated at the repo rate plus 3.5%. The prescribed rate of interest applies to all debts…
Prison sentences for ‘white-collar’ crime
By Patrick Bracher (ZA) on
In an appeal against a sentence of 10 years’ imprisonment imposed on a first offender convicted of fraud involving over R10.6 million, the accused urged the court to impose a non-custodial sentence. The Supreme Court of Appeal in a September 2025 judgment quoted the following telling remarks from a year-2000 decision in S v Sadler:…
Another insurance case considering an “occurrence” (US)
By Patrick Bracher (ZA) on
A September 2025 decision in a Massachusetts Appeal Court found that an “occurrence” connotes a relatively concrete, timebound quality. The insured company supplied defective oil to customers over a long period of time which led to damage to the customers’ heating equipment and a class action.
There was no cover unless the insured knew that…
Additional audit expenses from data loss are “extra expenses” under insurance policy (US)
By Patrick Bracher (ZA) on
In September 2025, a US State Court of Appeals held that cover under an Equipment Breakdown policy that included an “extra expense” provision covered additional audit fees incurred during the restoration period of the data lost by the insured even after the end of the policy period.
The insured experienced a power surge at its…
Whiskey and Collapse Insurance (USA)
By Patrick Bracher (ZA) & Donald Dinnie on
Whiskey lovers will be distraught reading the facts of this case.
The insured plaintiff was the distiller of American single malt whiskey, which it placed in barrels to age for 3 to 4 years. The barrels were stored on metal racks in the distillery.
Racks that were holding dozens of barrels of whiskey that had…
On The Road fees legitimate under NCA subject to transparency
By Patrick Bracher (ZA) on
In September 2025, the Supreme Court of Appeal held that On The Road fees added by dealers to the purchase price of vehicles sold by them are part of the transaction between the dealer and the consumer. OTR fees may be included as part of the principal debt under the ensuing credit agreement between the…