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Protection of Businesses Act, 1978 (Act No. 99 of 1978)

1B. Recovery of certain amounts paid by way of multiple or punitive damages

 

(1)

(a) A qualifying defendant against whom a judgment for multiple or punitive damages has been delivered by a court outside the Republic, whether before or after the commencement of the Protection of Business Amendment Act, 1984, and who in compliance with that judgment has paid an amount to the person in whose favour the judgment has been delivered or to another person as against whom the qualifying defendant is liable to make a contribution in respect of such damages, may recover from the person in whose favour the judgment was delivered so much of the amount paid as exceeds the part attributable to compensation for damage or loss actually sustained.
(b) The "part" referred to in paragraph (a) shall be deemed to be that part of the amount paid which bears to the whole of it the same proportion as the amount assessed by the court which delivered the judgment as compensation for damage or loss actually sustained bears to the whole of the damages awarded.

 

(2) This section shall not apply—
(a) if the qualifying defendant at the material time carried on business outside the Republic and the proceedings in respect of which the judgment was given related to activities exclusively carried on outside the Republic in connection with that business; or
(b) if the qualifying defendant was at the material time ordinarily resident outside the Republic or, in the case of a juristic person, had at that time its principal place of business outside the Republic.

 

(3) In the application of subsection (1) an amount obtained by execution against the property of the qualifying defendant, or against the property of any company the interests of which are according to a judgment referred to in that subsection integrated with the interests of the qualifying defendant to an extent which requires that an act or omission of that company be regarded in law as an act or omission of the qualifying defendant also, shall be deemed to be an amount paid by the qualifying defendant, and in such application any person upon whom devolved, by succession or otherwise, the rights of the person in whose favour the judgment was delivered or of any person who is entitled to a contribution in respect of such damages, shall be deemed to be the person in whose favour the judgment was delivered or, as the case may be, the person who is entitled to such contribution.

 

(4) Where the person in whose favour a judgment for multiple or punitive damages was delivered is a company, any other company which is the controlling company or a controlled company of the first-mentioned company or is a company which is controlled by the same controlling company as controls the first-mentioned company, shall be liable, jointly and severally, together with the first-mentioned company, in respect of any liability imposed upon the first-mentioned company as contemplated in subsection (1).

 

(5) In this section, unless the context otherwise indicates—

"controlled company" means a controlled company as defined in section 1 of the Companies Act, 1973 (Act 61 of 1973), and "control" has a corresponding meaning;

"controlling company" means a controlling company as defined in section 1 of the Companies Act, 1973;

"material time" means the time when the proceedings were instituted pursuant to which a judgment for multiple or punitive damages was delivered;

"qualifying defendant" means—

(a) a natural person who at the material time was domiciled or ordinarily resident in the Republic; or
(b) a juristic person who at the material time was incorporated in the Republic; or
(c) any person who at the material time carried on business in the Republic.

 

[Section 1B inserted by section 1 of Act 71 of 1984.]