The Minister of Public and Business Service Delivery, operating the Motor Vehicle Accident Claims Fund, sought to recover pre-arbitration expenses from two insurers who had accepted priority for Statutory Accident Benefits claims without proceeding to arbitration.
The insurers argued that the Fund was required to arbitrate the dispute and that pre-arbitration expenses were not recoverable.
The Superior Court of Justice held that the 'proper case' exception allowed the Fund to seek restitution in court because there was no dispute over the payment of benefits to arbitrate.
The court found that the insurers were unjustly enriched by the Fund's investigative work and ordered them to reimburse the Fund for its pre-arbitration expenses.
