Case Law[2022] ZAGPJHC 687South Africa
Liberty Group Limited and Another v A & O Imports and Exports (PTY) Ltd and Others (2021/4380) [2022] ZAGPJHC 687 (14 September 2022)
High Court of South Africa (Gauteng Division, Johannesburg)
14 September 2022
Headnotes
judgment proceedings seeking the following relief pursuant to the occupation of the first respondent of premises in the terms of a written lease agreement:
Judgment
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## Liberty Group Limited and Another v A & O Imports and Exports (PTY) Ltd and Others (2021/4380) [2022] ZAGPJHC 687 (14 September 2022)
Liberty Group Limited and Another v A & O Imports and Exports (PTY) Ltd and Others (2021/4380) [2022] ZAGPJHC 687 (14 September 2022)
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sino date 14 September 2022
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
No: 2021/4380
REPORTABLE:
NO
OF
INTEREST TO OTHER JUDGES: NO
REVISED
NO
14/09/2022
In
the matter between :
LIBERTY
GROUP LIMITED
First Plaintiff/Applicant
TWO
DEGREES PROPERTIES (PTY) LTD
Second Plaintiff/Applicant
and
A&O
IMPORTS AND EXPORTS (PTY) LTD
First Defendant/Respondent
AVIGOR
GEFEN
Second Defendant/Respondent
HANNA
GEFEN
Third Defendant/Respondent
JUDGMENT
STRYDOM
J
[1]
The applicants have instituted summary judgment
proceedings seeking the following relief pursuant to the occupation
of the first
respondent of premises in the terms of a written lease
agreement:
1.1
Payment of an amount of R1,010,091.01 plus interest accruing thereon,
owing in respect of arrear
rentals;
1.2
An order ejecting the respondents from the leased premises situated
at Shop 119, Nelson Mandela
Square at Sandton City (“the
premises”);
1.3
Payment of holding over damages of R1,553.23 per day from 1 February
2021 to date of ejectment;
and
1.4
Costs of suit on an attorney and client scale.
[2]
Against the applicants’ claim, the
respondents on or about 17 March 2021, raised the following defences
in their plea:
2.1
The respondents contended that the lease agreement upon which the
applicants placed reliance,
is invalid because the person who
purportedly signed the lease on behalf of the applicants was not
authorised to do so;
2.2
The respondents admitted that the second and third respondents signed
suretyships securing the
debt of the first respondent, but contend
that they are invalid insofar as the lease agreement is invalid;
2.3
The respondents deny breaching the lease or being indebted to the
applicants in that there was
a “
supervening impossibility of
the Covid-19 pandemic and/or the ensuing government lockdown”
that excused them from payment in terms of the lease agreement.
[3]
After the respondents filed their plea, the
applicants brought an application for summary judgment supported by
an affidavit.
[4]
After this the respondents’ attorneys
withdrew and were substituted by a new attorney. This took place on
13 July 2021 at
a time when the answering affidavit on behalf of the
respondents was already due.
[5]
On or about 14 July 2021, the respondents filed
their affidavit opposing summary judgment. In this affidavit, the
respondents recast
their attack on the validity of the lease
agreement by now alleging that the lease agreement upon which the
applicants rely was
invalid, not on the basis that Mr Gaddy who
signed on behalf of the applicant was not authorized to sign but on
the basis that
he signed this agreement much later but not before
July 2020 when a copy delivered to the respondents still only
reflected the
signature of second respondent. The offer to contract
was signed by the respondents on 31 July 2019 and accordingly, so the
argument
goes, the offer was not accepted within a reasonable time
and it thus lapsed. The respondents were no longer prepared to admit,
as they did in their pre-amended plea that the lease agreement was
signed on 18 November 2019 by Mr Gaddy as it is reflected on
the
attachment to the particulars of claim.
[6]
In the opposing affidavit, it was stated as
follows:
6.1
Upon receipt of the summons, the second and third respondents, for
the first time, saw that the
lease agreement which the second
respondent signed on 31 July 2019 on behalf of the first respondent,
had been signed by Mr Gaddy
on behalf of the first applicant on 18
November 2019.
6.2
The document that the second respondent signed on behalf of the first
respondent on 31 July 2019
was never signed on behalf of the landlord
(the applicants), despite repeated requests that the signed document
be provided to
the respondents.
6.3
The signature of Mr Gaddy to the purported lease agreement was an
after-thought. The document
was never signed prior to the applicants’
summons having been issued.
6.4
It appeared that the applicants were not prepared to accept the
document which was signed on 31
July 2019 on behalf of the first
respondent. By signing the lease agreement an offer was made on
behalf of the first respondent
which offer had to be accepted by the
applicants. It was stated that the offer had to be accepted within a
reasonable time.
6.5
The offer as per the lease agreement was signed on behalf of the
first respondent was not accepted
by the applicants and therefore the
document never became a lease agreement.
6.6
It was stated that as the lease agreement was never concluded, the
first respondent occupied the
premises and continued to do so, on the
basis of an oral or tacit lease agreement with the applicants which
was later amended orally.
[7]
It was further averred by the respondents that the
suretyships which were signed by the second and third respondents,
would only
have secured the debt in terms of the written lease
agreement and not the tacit and/or oral lease agreement thereby not
rendering
them liable as sureties.
[8]
The new defences raised in the opposing affidavit
in material aspects, differed from the defences raised in the initial
plea on
behalf of the respondents. In the initial plea it was
admitted that the lease agreement was into on or about 18 November
2019 and
now the conclusion of this agreement has been placed in
dispute. This material amendment was explained to have come about as
a
result of an error. It was stated that an appropriate notice of
amendment will be served.
[9]
The respondents then aver that the amendment to
the plea will also make it clear that the terms of the tacit lease
agreement was
amended to the effect that only 8% of turnover would be
paid by the first respondent for the occupation of the premises. It
is
then stated that this amount was paid and that the tacit amended
agreement remains intact and forms the basis for the continuation
of
the occupation of the premises by the first respondent.
[10]
In support of the defence raised by respondents
that a tacit agreement came into being and that this tacit agreement
was amended,
the respondents attached various WhatsApp messages
wherein Mr Raggett on behalf of the applicants asked the respondents
if they
were in a position, after the Covid lockdown, to pay monthly
rental of 8% on turnover and electricity charges. The respondent
alleges
that this has become the lease agreement between the parties
and that they have ever since made payments in terms of this
agreement.
To substantiate this the respondents made reference to
invoices received as well as a schedule referred to as AG 3. None of
these
documents were attached. In a further supplementary affidavit
it is stated that the schedule AG 3 was not attached to the opposing
affidavit but was attached to the supplementary affidavit. Again it
was not attached. The applicants’ version in this regard
is
that only 2 small payments were made by the first respondent. The
dates provided by the applicant appear to be wrong as two
payment
advises were attached to the opposing affidavit The first payment was
made on 21 December 2020 in the amount of R3 400
and a further
payment in the amount of R 4 000 on 23 December 2020. These are
dates after demand for payment of arrears in
the amount of R
1 010 091,01 was made on 18 December 2020. No further was
made for electricity or other services whilst
the first respondent
remained in occupation of the premises for which its monthly charges
in terms of the disputed lease agreement
as at 1 January 2021
amounted to R83 506, 98 per month in total. One further payment
was made to applicants according to a
screenshot attached to the
opposing affidavit of respondents in the amount of R 4938.
[11]
It was alleged by the respondent that since the
tacit agreement as amended came into being the arrear rental which
stood in the
amount of R 513 741,96 was understood to be
written-off.
[12]
The respondents denied that the applicants are
entitled to any relief by stating that the respondents have a valid
and
bona fide
defence
to the applicants’ claim. They asked the court to exercise its
discretion in their favour and to refuse summary judgment
and grant
leave to defend.
[13]
On or about 23 November 2021, the respondents
filed their notice to amend their plea which it alluded to in the
opposing affidavit.
No objection was made and the amended pages were
filed thereafter.
[14]
As a direct result of the substantially amended
plea in which material admissions were withdrawn, the applicants
filed a supplementary
affidavit in support of their application for
summary judgment. This was followed by a further supplementary
affidavit resisting
summary judgment on behalf of the respondents. In
this supplementary affidavit a point was taken that the supplementary
affidavit
of the applicants were file 1 day after the prescribed 15
days. This affidavit was filed pursuant to material changes to the
defences
raised by respondent and will be allowed. The 15 day period
mentioned in Rule 28(8) can be extended as the court can make a
determination
in this regard. The court is of the view that the
period should be extended to allow this affidavit into evidence.
[15]
The applicants had to bring a compelling
application for the delivery of heads of argument by the respondents.
[16]
The respondents’ main defence against the
summary judgment application is that no written agreement of lease
was concluded
by the applicants and the first respondent. Still part
of this defence is then that a tacit agreement was entered into and
that
this tacit agreement was then amended. The respondent averred
that they performed in terms of the tacit agreement and can remain
in
occupation of the premises as the tacit agreement has not been
cancelled.
[17]
The first question for decision by this court at
this stage is whether this constitutes a
bona
fide
defence which raises a genuine
triable issue with reference to the facts placed before this court.
[18]
In
NPGS Protection &
Security Services CC v FirstRand Bank Ltd
2020
(1) SA 494
(SCA) at para 14, it was held as follows:
“
The
ever-increasing perception that bald averments and sketchy
propositions are sufficient to stave off summary judgment is
misplaced
and not supported by the trite general principles developed
over many decades by our courts.”
[19]
Considering this and other authorities, it is
clear that a party who wants to avoid summary judgment does not have
to set out a
defence exhaustively but will have to provide sufficient
particularity which should not be needlessly bald, vague or sketchy.
Material
facts upon which the defence is based should be mentioned.
At the end of the enquiry, the court must be able to conclude that
the
defence is
bona fide
.
It is important to note that the
bona
fide
s of the party deposing to the
affidavit is not in question but the defence. A court has a
discretion which it would have to exercise
judicially and where it is
not persuaded that the applicant has an unanswerable case, it must
conclude that there is reasonable
possibility that the defence may
succeed at trial. (See:
Eclipse Systems
and Another V He & She Investments (Pty) Ltd and A Related Matter
2020 (6) SA 497
(WCC).
In this judgment
the legal principles are fully stated with reference to case law. I
will quote relevant portions of this judgment
without reference to
the cases cited in the footnotes to this judgment, except a reference
to the oft-quoted judgment of
Breitenbach
v Fiat
1976 (2) SA 226
(T).
“
The
relevant principles
10. It is trite that
summary judgment, a procedure which was adopted into our law from
English law, is aimed at allowing a plaintiff
to obtain a final
judgment summarily ie without a trial, in instances where a defendant
does not have a legitimate defence to an
action and has sought to
defend it merely for the purpose of delay. It is aimed at preventing
a defendant from raising a bogus
or sham defence, which is bad in
law, in order to unjustifiably delay a plaintiff from obtaining what
is due to it.
11. Given its summary
and final nature it has frequently been described as an
‘extraordinary’ and stringent remedy which
makes drastic
inroads on a defendant’s right to present its case to a Court.
As a result, the Supreme Court of Appeal has
warned that it is a
remedy which is not intended to ‘shut’ a defendant out of
defending a matter unless it is ‘very
clear indeed’ that
it has ‘no case’, and it is not to be utilized to prevent
a defendant who has a ‘triable
issue or a sustainable defence’
from having its day in Court.
12. The applications
for summary judgment in this matter were brought and heard before the
amendments to the relevant rule came
into effect on 1 July 2019. As
the rule now stands an application for summary judgment can only be
brought after a defendant has
filed its plea, and in doing so the
plaintiff must not only verify the cause of action and the amount
claimed but must, in addition,
also identify any point of law which
it relies upon and the facts upon which its claim is based, and must
also briefly explain
why the defence which has been pleaded by the
defendant does not ‘raise any issue’ for trial. What the
precise ambit
and effect of the amendment is and how it differs from
the previous requirements and the applicable test in summary judgment
matters
has not yet been definitively determined, but need not be
decided by us.
13. As it stood at the
time, the rule simply required the plaintiff to verify the cause of
action and the amount claimed, and to
state that the defendant did
not have a bona fide defence and had entered an appearance to defend
solely for the purposes of delay;
and (just as the subrule currently
provides) in order to ward off summary judgment the defendant was
required to satisfy the Court,
by affidavit, that it had such a
defence, by disclosing ‘fully’ the nature and grounds
thereof and the material facts
upon which it was based.
i)
Ad the defendant’s duty of disclosure
14. In the seminal
decision in Breitenbach v Fiat a full bench held that the obligation
on a defendant to ‘fully’ disclose
the nature and grounds
of its defence and the material facts upon which it is based should
not be taken literally, for to do so
would require the defendant to
set out, in full, all the evidence which it intended to rely on in
order to resist the plaintiff’s
claim at trial.
15. Thus, what a
defendant can reasonably be expected to set out in its affidavit
depends upon the manner in which the plaintiff’s
claim has been
formulated and the defendant need not deal ‘exhaustively’
with the facts and the evidence which it relies
upon in order to
substantiate them.
16. All that is
required is for it to set out its defence with ‘sufficient
particularity’ and in a manner which is not
‘needlessly
bald, vague or sketchy’. To this end the material facts upon
which the defence is based should be set out
in a manner which is
‘sufficiently full’ and complete enough to persuade the
Court that, if what is alleged is proved
at trial, it would
constitute a defence to the claim. If the stated material facts are
equivocal, ambiguous or contradictory, or
fail to canvass matters
which are essential to the defence which has been raised, then the
affidavit will not comply with the rule
and summary judgment will be
granted.
17. Importantly, the
defendant is not obliged to set out what is required of it with the
same exactitude as would be required of
a plea, and the Court is not
required to evaluate what is set out, against the standards required
of a pleading.
18. Finally, the
defendant is also not required to persuade the Court of the truth or
correctness of the facts which are set out
by it, nor, where these
are disputed, that there is a ‘preponderance of probability’
in its favour in respect of them,
and the Court is not to ‘endeavour
to weigh or decide’ disputed factual issues.
ii)
Ad a bona fide defence
19.
As far as setting out a bona fide defence is concerned, the subrule
does not require the defendant to establish its bona fides:
it is the
defence which must be bona fide and in this regard once again it has
been held that the requirement must not be taken
literally, for to do
so would be to demand the impossible. As was explained in
Breitenbach:
[1]
‘
On
the face of it bona fides is a separate element relating to the state
of the defendant’s mind. A man may believe in perfect
good
faith that he has a defence, and may state honestly the facts which
he relies upon, yet the law may be against him, or he
may be honestly
mistaken about the facts. He is bona fide, but he has no defence.
Another man may make averments which, if they
were true, would be an
answer, in law, to the plaintiff’s claim; but, to his
knowledge, the averments may be false. He is
not bona fide. If,
therefore, the averments in the defendant’s affidavit disclose
a defence, the question whether the defence
is bona fide or not, in
the ordinary sense of that expression, will depend upon his belief as
to the truth or falsity of his factual
statements, and as to their
legal consequences. It is difficult to see how the defendant can be
expected, in his affidavit to ‘satisfy
the court’…
not only that what he alleges is an answer to the plaintiff’s
claim, but also that his allegations
are believed by him to be true.
There is no magic whereby the veracity of an honest deponent can be
made to shine out of his affidavit.
It must be accepted that the
sub-rule was not intended to demand the impossible. It cannot,
therefore, be given its literal meaning
when it requires the
defendant to satisfy the Court of the bona fides of his defence. It
will suffice, it seems to me, if the defendant
swears to a defence,
valid in law, in a manner which is not inherently and seriously
unconvincing.’
21.
As to the requirement that the defendant must set out the nature of
its defence Erasmus
[2]
is
of the view that the defendant is required to (merely) set out the
‘character or kind’ (sic) of defence which it
intends to
raise at trial. Such an approach is consonant with an understanding
that a defendant is not required to set out its
defence with the same
degree of exactitude as would be required in a pleading.”
[20]
This court will consider the defence that no
written agreement was concluded having regard to the considerations
referred to above.
I will now turn to the facts of this matter to
consider whether a
bona fide
defence has been raised by the respondents.
[21]
On 31 July 2019, whilst already in occupation of
the relevant premises, the second respondent signed the written lease
agreement
on behalf of the first respondent. This signified, on his
own version, an offer to lease made to the applicants on the terms
set
out in the written agreement.
[22]
On 30 October 2019, the second respondent signed a
document titled
“
Certificate
issued by a tenant who is classified as a consumer in terms of the
Consumer Protection Act”
. In this
document it was expressly stated that the second respondent confirmed
that he has read and understood the entire lease.
[23]
On 18 November 2019, according to the applicants,
Mr Gaddy signed the lease agreement on behalf of the applicants. This
fact was
previously admitted by the respondents but are now denied.
In my view, this already casts a doubt over the
bona
fides
of the first respondent’s
defence. Why will an error occur in relation to one of the most
important aspects of the case? Why
was the authority of Mr Gaddy
attacked?
[24]
On the respondents’ version they repeatedly
asked for a signed copy of the lease agreement but was never provided
with same.
The first time they became aware that the lease agreement
was in fact signed was when the lease agreement was attached to the
particulars
of claim in this matter. According to the respondents, a
copy of the lease agreement was physically provided to the
respondents
during or about July 2020 but still was not signed. It
was stated that the respondents did not attach a copy of this
unsigned lease
agreement to their opposing affidavit as this
agreement could not be located at this time.
[25]
In my view, this statement is bald, vague and
sketchy. If the respondents were so keen to obtain a copy of the
written lease agreement
which was delivered to them, one would have
expected that they would be able to locate such copy. All which was
said in the affidavit
was that it cannot be located. No explanation
has been provided as to what could have happened with this copy, what
steps have
been taken to locate same and why this copy has
disappeared into thin air. Moreover, if a copy was delivered, it was
highly improbable
that the unsigned copy would have been presented.
[26]
The time when the lease agreement was signed is of
importance when the respondents’ defence is considered in
relation to a
reasonable period during which the written lease
agreement had to be signed by and on behalf of the applicants to
constitute a
valid lease agreement.
[27]
The defence that it was not signed on 18 November
2019 is based on mere speculation and inference. Despite the fact
that the agreement
attached to the particulars of claim indicated
that it was signed on 18 November 2019 the bald statement is made
that it was never
signed on behalf of the landlord. It is stated to
be an afterthought just because a signed copy was not delivered to
the respondents.
It is stated that it “
appears
that the landlord (the Plaintiff) for whatever reason was not
prepared to accept the document I have signed on 31 July 2019
”
.
This assumption flies in the face of what in fact happened. The
applicants sent invoices in line with the terms of the written
lease
agreement and respondent made payments according to its tenor.
[28]
In considering the
bona
fide
of the respondents, the court
cannot leave out of the equation the fact that it was previously
admitted that the agreement was signed
on 18 November 2019. The
allegation on behalf of the respondents that the lease agreement was
only signed during or about the time
that the summons was issued is
based on speculation and no, or insufficient, particularity was
provided to come to this conclusion.
[29]
The defence raised must also be considered in
light of what the respondents aver the contractual relationship
between the parties
entail. To explain their right of occupation,
which forms part of the defence, they allege a tacit agreement
without providing
any particularity as to the terms thereof. What was
the terms of the tacit agreement pertaining to duration, rental
payable and
payment for services? When and how much was paid? The
schedule and invoices referred to by the respondents were not
attached. These
documents would have provided a clearer picture as to
what was in fact happening. Add to this the allegation that this
alleged
tacit agreement was amended during about July 2020 and that
first respondent had to pay 8% on turn over but only made two
payments
in the total amount of R 7400 thereafter. Nowhere was it
stated what the turnover was and how the rental was calculated. On
the
respondents’ own version the first respondent was in
arrears of R283 271, 08 as at 22 November 2019. Such statement
of account was attached to the opposing affidavit. This was the
situation before the effects of the Covid 19 pandemic. The allegation
that the arrears of more than R500 000 was simply written-off by
the applicants is another bald, vague and sketchy allegation
which
undermines any finding of a
bona fide
defence. It was not stated on what
basis could it have been “
understood”
that the arrears would be written-off.
[30]
The alleged oral agreement allegedly supported by
the WhatsApp correspondence is in itself not supported by sufficient
particularity
and it remains needlessly bald, vague and sketchy. This
is an important part of the defence raised by the first respondent.
Nowhere
in the WhatsApp messages between Mr Raggett and the third
respondent is it stated that this oral agreement would supersede
existing
agreements. It was not stated for how long this variation
was going to last. The allegation of the respondents that it remained
in place indefinitely is in itself vague and unexplained. In my view,
it amounted to an indulgence which in terms of the written
lease
agreement was not binding of the applicants. The terms of the written
lease agreement and the amount of rental payable in
terms thereof
remained unaffected and applicable.
[31]
Lastly, the respondents wanted to rely on a lack
of water and air-conditioning to excuse them from payment. Again it
is not stated
when this occurred and for how long. It is just a bald
statement which lacked sufficient particularity. Moreover, this
cannot be
a defence in terms of the written lease agreement as the
obligation of the first respondent to make payment of the rent was
not
a reciprocal obligation of the applicants to grant beneficial
occupation of the premises to the first respondent.
(See:
Tudor Hotel Brasserie & Bar (Pty) Ltd (793/2017 ZASCA 111 at para
11 and 14)
[32]
In my view the absence of any tangible evidence to
sustain the respondents’ allegations reveals the
mala
fides
of the defences.
[33]
In my view, the defence that the written lease
agreement was not signed by and on behalf of the applicants on 18
November 2019 is
not
bona fide.
If this defence is not
bona
fide
the court must accept that the
contractual relationship between the parties was governed by the
written lease agreement. The applicant
accepted the offer of the
first respondent within a reasonable period after the respondents
signed the agreement on 19 July 2019.
In my view, the defence raised
that the written lease agreement was never concluded as it lapsed
because it was not signed within
a reasonable period does not
constitute a
bona fide
defence against the claim of the applicants.
[34]
However, even if the signed lease agreement was
not provided to the respondents, this does not mean that there was
not acceptance
and no binding lease agreement on the terms as
contained in the written lease agreement.
[35]
In
Pillay and Another
v Shaik and others
2009 (4) SA 74
(SCA), the SCA had occasion to comment on where an acceptance does
not take place in a prescribed mode. Farlam JA held :
“
This
raises the question as to whether the doctrine of quasi-mutual
assent
can be applied in circumstances where acceptance does not take place
in accordance with a prescribed mode but the conduct
of the offeree
is such as to induce a reasonable belief on the part of the offeror
that the offer has been duly accepted according
to the prescribed
mode. Viewed in the light of basic principle, the question must
surely be answered in the affirmative because
the considerations
underlying the application of the reliance theory apply as strongly
in a case such as the present as they do
in cases where no mode of
acceptance is prescribed and the misrepresentation by the offeree
relates solely to the fact that there
is consensus.”
[36]
It can be found that the first respondent did not
reasonably believe that his offer had not been accepted in
circumstances where
the first respondent took possession of the
leased premises, paid the rental contemplated by the lease agreement
and further stated
in its initial plea that
“
the
first defendant could only be liable in terms of the lease agreement
from the date of entering into it on 18 November 2019,
alternatively
from the rent obligation date of 1 September 2019”
.
[37]
I am in agreement with the argument advanced on
behalf of the applicants that the court must conclude that the
respondents considered
this offer accepted it and occupied the lease
premises according to the offer. If the first respondent did not
believe the offer
had been accepted, it begs the question why, on his
own version, he was asking for a copy of the signed agreement. On
acceptance
that there exist no
bona fide
defence which renders the written lease
agreement not applicable the defences raised of an oral variation of
this agreement cannot
be legally sustained as the written lease
agreement contains a non-variation clause, unless in writing.
[38]
In my view, the applicants made proper demand for
performance, the first respondent remained in default and the written
lease agreement
was cancelled when summons was issued. The first
respondent remains in unlawful occupation and stands to be evicted
from the premises.
[39]
On 31 July 2019 the second and third respondents
executed Deeds of Suretyships pursuant to which the bound themselves
as surety
and co-principle debtors with the first respondent. The
court found that the written lease agreement did not lapse and in
fact
regulated the relationship between the parties. This would
render the suretyships enforceable as the second and third
respondents
stood as sureties and co-principle debtors with the first
respondent:-
“
for
the due and punctual payment and performance by the debtor of all
debts (including the payment of damages)and obligations which
may now
be owing and which may hereafter be owing or which may arise, out of
the TENANT’s occupation, use, enjoyment and/or
possession of
the premises described below or otherwise in terms of or in respect
of an agreement of lease entered into or about
to be entered into the
LANDLORD and the TENANT (including any extensions, renewal or tacit
relocation thereof)…”
[40]
The defence raised by the respondents to avoid
liability in terms of the suretyships is premised on their version of
a tacit and/or
oral agreement which the court found not constituting
a
bona fide
defence.
Consequently, the second and third respondents are bound by the
suretyships.
[41]
The outstanding debt in terms of the written
agreement stood at R 1 010 091.01 as at 1 January 2021 as
per the attachment
to the applicant’s particulars of claim “POC
3”. Payments in the amount of R 7 400 was made by or on
behalf
of the first respondent which is not reflected on the
attachment. This amount stands to be deducted from the R 1 010 091,01
which leaves an amount of R 1 002 691,01. The applicants
will be entitled to summary judgment in this amount.
[42]
As far as holding over damages are concerned the
respondents raised the following defence and placed reliance on the
decision in
Hyprop Inv Ltd v NCS
Carriers & Forwarding CC
2013 (4) SA 607
(GSJ):
42.1 The
measure of damages is the market related rental of the premises. It
is only in the absence of evidence to the
contrary that the rental
value of the premises is assumed to be the rental paid under the
lease.
42.2
Respondent has place evidence before court to show that the rental at
the end of the term of the lease was no longer
market related. This
was a legitimate challenge to the rental provided in the lease at the
time of cancellation. This rendered
the claim illiquid.
[43]
The evidence place before court was that the
Covid-19 pandemic has had a dramatic impact on the commercial rental
market and retail
industry. There exists an oversupply of retail
premises and many shopping centres, including Sandton City Shopping
Centre, are
suffering from low occupancy rates. The evidence is not
supported by fact but in the exercise of the court’s discretion
the
court will place reliance thereon not to grant summary judgment
pertaining to holding-over damages. There is also this further
payment which was allegedly made by the respondents on or about 8
February 2021 in the amount of R4938,00 which may have an effect
on
the figure claimed as holding-over damages.
[44]
This evidence cannot at this summary judgment
stage be rejected and it cannot be deemed that the premises could
still be let at
a rate of R 48 150.00 per month.
[45]
Thus, the claim for holding-over damages is not a
liquid claim and is not susceptible to summary judgment.
[46]
The following order is made:
46.1 Summary
judgment is granted against the First, Second and Third Respondents,
jointly and severally, the one paying
the other to be absolved for
payment in the sum of R 1 002 691,01 with interest thereon
at the rate of 7% per annum,
a tempore morae
to date of final
payment;
46.2 The
Respondents are ejected from the premises described as Shop 119,
Nelson Mandela Square at Sandton City;
46.3 The
Respondents are ordered to pay, jointly and severally, the one paying
the other to be absolved the cost of
suit on the scale as between
attorney and client;
46.4 Leave to
defend the claim for holding-over damages is granted to the
Respondents.
RÉAN STRYDOM
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION
JOHANNESBURG
Date
of Hearing:
27 July 2022
Date
of Judgment:
14 September 2022
APPEARANCES
On
behalf of the Applicant:
Adv. J M Hoffman
On
behalf of the Respondent:
Adv. L Hollander
[1]
A
t
227H-228B.
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