PVL3704 Semester 01 Assignment 01
Question 1
Discuss in general (without reference to a specific enrichment action) how the
extent of enrichment liability (or the quantum of the enrichment claim) will be
calculated. (10)
With regards to enrichment claims, the established position in South African law is that
it is calculated by determining the extent of the impoverishment of the plaintiff and the
extent of the enrichment of the defendant, where the claim then consists of the lesser
of the two amounts. The quantum of the enrichment claim is calculated at the time the
claim is instituted. That means that the defendant is not liable for benefits that, due to
his enrichment, could have gained, but didn’t. If the defendant’s enrichment has been
reduced or extinguished before the claim has been instituted, his liability will also be
reduced or extinguished. The onus to prove non-enrichment lies with the defendant.
In four instances the quantum will be calculated before the date of institution of the
action:
a) at the moment the defendant becomes aware of enrichment;
b) at an earlier stage if the defendant should have known that the benefit wasn’t
justified;
c) when the defendant fell into mora, and;
d) an earlier date if the defendant acted mala fide.
These exceptions do not apply in the case of minors.
In quantifying the claim all positive and negative side-effects should be taken into
account. Interest earned on money in the hands of the defendant before litis
contestatio cannot be claimed by the plaintiff, but after mora the plaintiff can claim
mora interest.
Question 1
Discuss in general (without reference to a specific enrichment action) how the
extent of enrichment liability (or the quantum of the enrichment claim) will be
calculated. (10)
With regards to enrichment claims, the established position in South African law is that
it is calculated by determining the extent of the impoverishment of the plaintiff and the
extent of the enrichment of the defendant, where the claim then consists of the lesser
of the two amounts. The quantum of the enrichment claim is calculated at the time the
claim is instituted. That means that the defendant is not liable for benefits that, due to
his enrichment, could have gained, but didn’t. If the defendant’s enrichment has been
reduced or extinguished before the claim has been instituted, his liability will also be
reduced or extinguished. The onus to prove non-enrichment lies with the defendant.
In four instances the quantum will be calculated before the date of institution of the
action:
a) at the moment the defendant becomes aware of enrichment;
b) at an earlier stage if the defendant should have known that the benefit wasn’t
justified;
c) when the defendant fell into mora, and;
d) an earlier date if the defendant acted mala fide.
These exceptions do not apply in the case of minors.
In quantifying the claim all positive and negative side-effects should be taken into
account. Interest earned on money in the hands of the defendant before litis
contestatio cannot be claimed by the plaintiff, but after mora the plaintiff can claim
mora interest.