Court dismisses FirstRand Bank's attempt to repossess car from a dead woman

The North West High Court in Mahikeng dismissed an application from the FirstRand Bank where the financial institution wanted to repossess a car from a dead woman.

The deceased, Lilian Dinekile Botsane, had bought a Ford Figo 1.5Ti VCT Titanium in October 2023 and it was financed by the bank.

At the time of her passing in January 2024, she was up to date on all instalments. Unfortunately, due to her passing, her first missed payment occurred in February, which set in motion a series of misguided actions by the bank.

In August 2024, FirstRand Bank filed summons for repossession, seemingly unaware of Botsane’s death.

During the court proceedings, Botsane's elderly parents—both struggling with health issues—appeared not as parties to the case but came to aid the court in understanding their daughter’s circumstances. They clarified that Botsane had indeed died before any defaults on payment occurred.

In response, the bank's lawyer told the court that he had no knowledge of Botsane's death.

Acting Judge Tsakane Tsautse said this was not surprising as summons had consistently been directed to an address Botsane no longer lived. As a result, the bank had no reason to suspect that she was no longer alive.

However, Judge Tsautse said the bank's lack of knowledge about Botsane's death does not cure the application.

The judge stated that a person’s legal personality terminates upon death. "Once death occurs, the individual ceases to have a juristic existence, and legal proceedings may not be initiated or continued against them. Instead, any cause of action thereafter must be directed against the deceased estate, properly represented by an appointed executor.

Furthermore, it was noted that the bank's claim was premised on a default which started in February 2024, however, by that time, Botsane had already passed away and could not have defaulted on any obligation. Therefore, the cessation of payments was not a breach of contract but a direct consequence of death.

"Any recovery of the asset or the outstanding balance must be sought through the procedures applicable to deceased estates," said the judge.

As a result, Judge Tsautse said the bank's application was legally incompetent and void. In addition, Botsane's default occurred after her death, and it cannot constitute a breach of contract.

"The application is accordingly struck from the roll...No order is made as to costs, as the applicant (the bank) acted without knowledge of the respondent’s death and service appeared regular," said the judge.

sinenhlanhla.masilela@iol.co.za

IOL News

Get your news on the go. Download the latest IOL App for Android and IOS now.