Semester 1 2026 - DUE 17 April 2026; 100% Correct
solutions and explanations.
EDWARD NATHAN SONNENBERG INC v HAWARDEN
Case no: 421/2023
[2024] ZASCA 90; 2024 (5) SA 9 (SCA)
Date of judgment: 10 June 2024
1. INTRODUCTION AND CONTEXT OF THE CASE
This case concerns the development and application of South
African delictual principles relating to pure economic loss caused
by an omission, with particular emphasis on wrongfulness, legal
duty, vulnerability, and the risk of indeterminate liability. The
Supreme Court of Appeal (SCA) was called upon to clarify the
circumstances under which legal practitioners may be held liable in
delict to third parties, particularly creditors, for losses allegedly
arising from failures to act during liquidation proceedings.
The judgment is significant because it reaffirms the restrictive
approach adopted by South African courts in relation to pure
economic loss and underscores the policy-based nature of
wrongfulness. It further delineates the limits of professional liability
where a claimant has the ability to protect themselves against
foreseeable risks.
2. THE FACTS
2.1 Background to the Dispute