The Supreme Court of Appeal (SCA) has ordered the Road Accident Fund (RAF) to pay more than R92 million to Newnet Property (Pty) Ltd, which operated the now-closed Sunshine Hospital, and has imposed a series of detailed obligations aimed at enforcing compliance with existing court orders.
The judgment, delivered on 24 March, overturns a decision of the High Court in Pretoria, which had dismissed Newnet’s urgent application based on res judicata.
The SCA upheld the appeal with costs, including the costs of two counsel, and substituted the High Court’s order with an extensive enforcement order.
The SCA directed the RAF to:
- pay R92 085 106.36, being amounts already reduced to judgment, within seven days of service of the order;
- provide Newnet with an updated Requested Not Yet Paid (RNYP) list within seven days, and thereafter every 14 days;
- adjudicate all accounts submitted by Newnet within 120 days of receipt;
- pay R158 890 967.70, being amounts due on the May 2023 RNYP list, within 30 days; and
- thereafter pay all amounts due to Newnet as reflected on current RNYP lists within 30 days of the relevant account being adjudicated and appearing on the RNYP list.
In addition, the court granted a mandamus directing the RAF’s acting chief executive, Radikwena Phora, to ensure compliance with the order, including the RNYP, adjudication and payment obligations.
Long-running dispute over unpaid medical claims
The dispute arises from medical services provided by Sunshine Hospital to patients injured in motor vehicle accidents.
According to the SCA, Newnet had over several years obtained numerous court orders requiring the RAF to pay claims submitted in respect of those services. Those claims had already been adjudicated and reduced to judgment. Despite this, substantial amounts remained unpaid.
The Court recorded that the RAF had paid R336 316 021.13, but that R92 085 106.36 in judgment debts remained outstanding – the subject of the present application.
Court’s findings on RAF’s conduct
The SCA was critical of the RAF’s conduct in relation to the processing and payment of claims.
It noted that the RAF had ceased updating the RNYP list and adjudicating claims, and stated: “The Fund has, however, become a recalcitrant payer. Since October 2023, it has stopped adjudicating and placing Newnet’s claims on the RNYP list. This is directed at preventing Newnet from approaching a court for payment of amounts due on the RNYP list.”
The Court also recorded that no updated RNYP list had been provided to Newnet since May 2023, and that amounts reflected on that list remained unpaid.
Closure of Sunshine Hospital
The judgment records that the financial impact of the non-payment dispute led to the closure of Sunshine Hospital.
Newnet was compelled to cease operations in April 2023, with critically ill patients transferred to other facilities and staff retrenched.
The Court also noted that Newnet had subsequently attempted, without success, to execute against funds believed to be payable to the RAF by entities including the South African Revenue Service, the South African Reserve Bank, National Treasury, and the Department of Transport.
Appeal not rendered moot
The RAF argued that the appeal had become moot because the hospital had ceased operating.
The SCA rejected that contention. It recorded that Newnet remains in existence, has not been wound up, and has indicated that it may consider reopening the hospital if the outstanding amounts are paid and a future arrangement with the RAF can be reached.
On that basis, the Court held that the closure of the hospital did not preclude the granting of relief.
The central issue on appeal was whether Newnet’s application was barred by res judicata.
The SCA held that it was not. It found that Newnet was not seeking to relitigate previously determined claims, but to enforce compliance with existing court orders and to secure payment of judgment debts.
Extensive litigation history
The matter forms part of a protracted dispute between the parties that has generated extensive litigation across multiple courts.
Following a breakdown in payment arrangements from around 2020, Newnet instituted numerous proceedings to recover outstanding amounts, at one stage exceeding R300m.
Over time, it obtained at least 181 court orders in its favour across magistrates’, regional, and High Courts, none of which were set aside on appeal or review.
The RAF paid a substantial portion of those amounts but did not settle the full indebtedness, leading to further enforcement proceedings.
The dispute has previously reached the SCA.
In a separate matter finalised in February 2026, the SCA dismissed a reconsideration application following earlier refusals of leave to appeal in proceedings aimed at staying execution of writs arising from the 181 court orders. Those orders accordingly remained fully enforceable.
Read: SCA dismisses RAF reconsideration bid in unpaid medical claims dispute
The present judgment represents a further intervention by the SCA in relation to the enforcement of those obligations.
Constitutional obligation to comply with court orders
The SCA emphasised that the RAF, as an organ of state, is constitutionally obliged to comply with court orders.
It held that persistent non-compliance, including conduct that frustrates execution processes, undermines the rule of law and the authority of the courts.
In those circumstances, the court held that the granting of mandatory relief – including a mandamus directed at the acting CEO – was justified to ensure compliance.
