Case Law[2025] ZAGPPHC 883South Africa
Mokoena General Maintenance and Projects (Pty) Ltd v Jovan Projects (Pty) Ltd (81906/19) [2025] ZAGPPHC 883 (14 August 2025)
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Mokoena General Maintenance and Projects (Pty) Ltd v Jovan Projects (Pty) Ltd (81906/19) [2025] ZAGPPHC 883 (14 August 2025)
Mokoena General Maintenance and Projects (Pty) Ltd v Jovan Projects (Pty) Ltd (81906/19) [2025] ZAGPPHC 883 (14 August 2025)
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sino date 14 August 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO.: 81906/19
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
Date:
14 August 2025
E
van der Schyff
In
the matter between
MOKOENA
GENERAL MAINTENANCE
PLAINTIFF
AND
PROJECTS (PTY) LTD
and
JOVAN
PROJECTS (PTY) LTD
DEFENDANT
JUDGMENT
Van der Schyff J
Introduction
[1]
The plaintiff, Mokoena General Maintenance
and Projects (Pty) Ltd (‘MGMP’) represented by Mr.
Solomon Mokoena, and the
defendant, Jovan Projects (Pty) Ltd
(‘Jovan’) represented by Mr. John van der Linde,
concluded an agreement on 27 March
2019. In terms of this agreement
MGMP was appointed as a sub-contractor for the Ebony Mall project.
Jovan terminated the contract
on or about 23 May 2019. This
litigation flows from the alleged breach of the contract and MGMP
claims damages of R4 350 611.00
for ‘loss of income’.
During closing argument, it became apparent that MGMP’s claim,
properly defined, was for
loss of profit.
Pleadings
Particulars of claim
[2]
MGMP averred in its particulars of claim
that the parties entered into a ‘written contract, partly oral
agreement’.
Annexure A is attached as being a copy of the
written contract.
[3]
The terms of the agreement, according to
MGMP, were the following:
a.
MGMP would carry out brickwork labour for
the erection of Ebony Mall in Tembisa;
b.
MGMP ‘would be allocated 14 million
bricks, sub-divided equally with the other 2 sub-contractors’
(
sic.);
c.
Each subcontractor would be allocated
4,666,666 (four million six hundred and sixty-six thousand six
hundred and sixty-six) bricks;
d.
Each brick would be at the cost of R0.95
cents;
e.
MGMP would be expected to issue invoices to
Jovan for services rendered on a fortnightly basis;
f.
Payment would be made into MGMP’s
bank account.
[4]
The contract was to run until the
completion of the stipulated construction work. Pursuant to the
agreement, MGMP did part of the
brickwork and sent invoices attached
to the particulars of claim to Jovan. During May 2019, barely two
months after the contract
period commenced, the agreement was orally
terminated by Jovan, who advised MGMP that their services were no
longer needed.
[5]
As a result of the breach of contract, MGMP
suffered ‘expected damage of loss of income’ in the
amount of R4 350 611.00.
Plea
[6]
Jovan pleaded that a written agreement had
been concluded between the parties. This agreement is constituted by
two documents, Annexure
‘A’ and ‘B’. The
defendant raised a special plea and requested a stay of the
proceedings pursuant to the
dispute being referred to arbitration. I
paused to state that the special plea was argued at the onset of the
proceedings. I indicated
to counsel that I am of the view that I can
only rule on the special plea after evidence has been led.
[7]
As to the merits of the claim itself, Jovan
denied being indebted towards MGMP for payment of the amount claimed
or any other amount
whatsoever.
[8]
Jovan pleaded that it bears no knowledge of
MGMP being a private company with limited liability, duly registered
and incorporated
in accordance with the company laws of the Republic
of South Africa, and denied the averments made in this regard.
[9]
Jovan pleaded that the material terms of
the agreement between the parties were that:
a.
MGMP would perform brickwork as and when
areas became available for a subcontractor to proceed at the sole
discretion of the project
manager when previous work was approved;
b.
No particular quantities were agreed, but
the bill of quantities only allowed for 1,240,000.00 stock bricks and
150,000 face bricks;
c.
MGMP’s invoices furnished to Jovan
had to correspond with the project manager’s measured
quantities and agreed rates;
d.
MGMP’s services would be rendered on
an ad hoc basis as and when required, but not for any particular
fixed term.
[10]
Jovan further pleaded that MGMP breached
the agreement by failing to:
a.
Pay the labourers employed by it after
receipt of payment from Jovan;
b.
Discharging its obligations timeously under
circumstances where time was of the essence;
c.
Deliver on the performance criteria and
milestones as determined by the project manager;
d.
Submit source documents to Jovan in support
of claims for payment as agreed between the parties;
e.
Failed to rectify its breach of the
agreement despite a demand to do so.
[11]
Jovan pleaded that MGMP repudiated the
agreement through its actions, a repudiation that Jovan accepted. A
notice of termination
was given to MGMP on or about 23 May 2019, and
the agreement was lawfully terminated. Jovan pleaded in the
alternative that MGMP
made performance impossible, and further in the
alternative that performance became impossible because it had to make
use of alternative
contractors to discharge the obligations owed to
it by MGMP. MGMP was paid for all the work completed by it.
Plaintiff’s
replication
[12]
In replication, MGMP denied that the
agreement concluded between the parties included Annexure ‘B’
attached to Jovan’s
plea. MGMP reiterated that ‘the only
valid contract signed’ is marked Annexure ‘A’.
Since Jovan alleged
that the community insisted on the termination of
the agreement with MGMP, MGMP requested that Jovan furnish minutes of
the meeting
where it was decided that MGMP’s service be
terminated, this was not done. MGMP’s agreement was with Jovan
and not
with the community.
Issues in dispute
[13]
When the trial commenced, MGMP’s
counsel listed a number of issues in dispute. Counsel for Jovan,
however, stated that the
totality of issues in dispute is set out in
the Joint Practice Note (‘JNP’). The following issues are
listed in the
JPN:
a.
The
locus
standi
and citation of the plaintiff;
b.
The court’s jurisdiction as raised in
the defendant’s special plea;
c.
The extent of the agreement as to whether
the agreement is embodied in Annexure A to the MGMP’s
particulars of claim, or Annexures
“A” and “B”
of Jovan’s plea;
d.
Whether the terms of the agreement are
those pleaded in paragraphs 5.1-5.7 of the plaintiff’s
particulars of claim, or those
pleaded in paragraph 13.1-13.4 of the
defendant’s plea?
e.
Which party breached the agreement?
f.
Whether the plaintiff suffered damages as a
result of any breach of contract by the defendant?
g.
If so, the quantum of the damages.
Evidence
[14]
Mr.
Solly Mokoena testified on behalf of MGMP. Mr. Mokoena testified that
he is the sole director of the plaintiff. His attention
was directed
to the termination letter,
[1]
wherein it was stated by Jovan that MGMP’s ‘lack of
performance to speed up the pace as well as the mismanagement of
[its] staff with the wrong ratio of tradesmen vs labour has caused
[it] to underperform’, and asked to comment on it. He
denied
that there was any issue with MGMP’s performance. Mr. Mokoena’s
evidence is that they (MGMP) were working well
and that Mr. Van der
Linde said they were doing a good job.
[15]
Mr.
Mokoena’s comment on the averment in the letter that it was
brought to Jovan’s attention by the Steering Committee
that
MGMP has not paid the workers from the Labour Desk
[2]
their full wages was that Jovan was responsible for paying the
workers from the Labour Desk and would have refunded MGMP. It became
apparent through the evidence presented that the community where
Ebony Mall was built required that local labourers be used in
the
project. This resulted in the Labour Desk’s existence where
local labourers were sourced for some aspects of the work.
MGMP
employed 30 labourers. I pause to state that MGMP did not fully
traverse this issue. Mr. Mokoena testified that MGMP paid
the
labourers.
[16]
Mr. Mokoena’s attention was then
directed to the particulars of claim wherein MGMP claimed that it
created invoices and sent
the invoices to Jovan for payment. The
evidence rendered in chief on this aspect is significant since Jovan
denied that MGMP submitted
source documentation in support of claims
for payment. MGMP’s evidence was that it was obliged, and
indeed, did send invoices
to Jovan on a fortnightly basis. He said he
took invoices to ‘Frans’ or emailed them.
[17]
Only three invoices were attached to the
particulars of claim. Of these, only one was dated. The first invoice
is dated 31 May 2019.
It contains invoice number 3836. The invoice
was for an amount of R73,268.67. No allowance is made for any Value
Added Tax (‘VAT’).
The accompanying undated payment
certificate is signed by Mr. Mokoena only, and not signed on behalf
of Jovan. The second invoice
is undated. It reflects invoice number
3835, and indicates an amount of R82,649.05 as the amount due and
payable. This invoice
does not reflect any amount attributed to VAT.
The undated payment certificate linked to this invoice is again only
signed by Mr.
Mokoena. The third invoice attached is again undated.
It curiously also reflects invoice number 3836. This invoice was for
the
amount of R145 620.73. Again, no amount is attributed to
VAT. No corresponding payment certificate was provided.
[18]
Mr. Mokoena testified that the full amounts
reflected in the invoices were never paid. He only received partial
payment, but he
could not recall how much he received at each
instance. During Mr. Mokoena’s testimony, it became apparent
that the invoice
reflecting the amount of R82,649.05 was drafted
‘after the fact’ to represent the full amount MGMP
received from Jovan
for the duration of its involvement in the
project.
[19]
Mr. Mokoena’s attention was drawn to
a letter dated 21 May 2019 attached to the particulars of claim. It
is a letter on the
letterhead of the Department of Justice and
Constitutional Development, Magistrate’s Office, Johannesburg.
Mr. Mokoena
testified that he approached the Department because Jovan
did not pay him according to the agreement between the parties.
He was, however, informed that the Department did not have the
jurisdiction to deal with such matters and advised to obtain the
services of a lawyer.
[20]
Mr. Mokoena testified that Annexure A to
the particulars of claim constituted the written agreement between
the parties. He denied
that Annexure B to the defendant’s plea
formed part of the agreement between the parties. He never received
any written notice
from Jovan prior to the termination of the
agreement, nor was any notice in terms of the dispute resolution
mechanism contained
in clause 30 of Annexure B ever sent to him.
[21]
Mr. Mokoena then testified about his
involvement in the building project. He was contracted to do
brickwork and was one of three
subcontractors contracted for this
work. The total brickwork comprised 14 million bricks, which would
have been equally divided
between the three subcontractors.
Each subcontractor would be allocated 4,666,666 (four million six
hundred and sixty thousand
six hundred and sixty bricks. He expected
MGMP to be paid an amount of R 4,433,332 (four million four
hundred and thirty-three
thousand three hundred and thirty-two rand)
as he ought to have been paid 95c (ninety-five cents) per brick. The
duration of their
subcontract with Jovan was said to be ‘until
we finish the job’. He understood this to reflect that the
subcontract
will exist until the whole project is completed. I pause
to state that it was only during cross-examination that Mr. Mokoena
identified
Mr. Van der Linde as the person who told him that 14
million bricks would be equally divided between the three
subcontractors.
[22]
When cross-examined, Mr. Mokoena denied any
knowledge of the involvement of the Steering Committee in the
project. He testified
that he had nothing to do with the community as
he concluded a contract with Jovan. He was aware that the community
required the
involvement of local labour in the project, but
testified that Jovan was responsible for paying these labourers. MGMP
got involved
in the project after they submitted their profile to
Jovan. He was, however, aware of the volatile and hostile atmosphere,
which
required the intervention of the South African Police Services
and the Defence Force.
[23]
Mr. Mokoena confirmed that the foundation
of his claim was the amount of bricks allocated to each
subcontractor. His attention was
drawn to the fact that Annexure A
does not contain any reference to any amount of bricks. He confirmed
that the other two subcontractors
were already building when MGMP was
employed as the third subcontractor. His attention was drawn to the
clause in Annexure A that
‘[t]he subcontractor acknowledges
that “time is of the essence” in this contract.’
[24]
It was put to him that Mr. Van der Linde
would deny that he ever said that the project would comprise 14
million bricks, which would
be subdivided equally between the three
subcontractors. It was put to Mr. Mokoena that such an arrangement
would not make any business
sense, as some builders were more
efficient than others and would build faster. To stop them
progressing because the limit of an
amount of bricks was reached,
while another builder was slower, did not add up. Mr. Mokoena agreed
that since builders were paid
per brick, the faster they built, the
more they would be paid.
[25]
Mr. Mokoena denied not paying his workers.
His attention was then referred to a letter dated 13 May 2019, which
he signed on behalf
of MGMP and Mr. van der Linde on behalf of Jovan.
In this letter, the parties confirmed that MGMP would borrow R19,000
from Jovan
to reimburse MGMP’s staff who worked at Ebony Mall.
The letter also reflects that Jovan has overpaid MGMP R14 353.00.
Jovan was willing to re-measure all the work done by MGMP. The total
amount of R33,353.00 owed by MGMP to Jovan would be deducted
in
smaller increments from MGMP’s payments as soon as they
commence with new brickwork. Jovan informed MGMP that it would
assist
MGMP in managing its workforce. However, MGMP was advised to lay off
its workers and employ a smaller team as soon as ‘a
new area’
was available.
[26]
Mr. Mokoena initially denied that MGMP
borrowed any money from Jovan. He did acknowledge that he signed the
letter. He said that
Mr. van der Linde informed him that the
community is threatening him, and he had to take local labourers from
the labour desk.
Mr. Mokoena was of the view that he was not
responsible for remunerating the workers added to his workforce.
The fact that
he signed this letter, however, was not disputed. He
then testified that he decided he would come back and pay Jovan back
when
he started working again. It was put to Mr. Mokoena and
confirmed by Mr. Van der Linde when he testified that Jovan did not
pay
the amount of R19,000 to MGMP. The amount was paid directly to
the labourers on MGMP’s payroll by Jovan after MGMP provided
a
list of names with the individuals’ banking details.
[27]
When it was put to him that MGMP’s
work pace was too slow because of the ratio between tradesmen and
labourers, Mr. Mokoena
denied it. Mr. Mokoena took issue with the
fact that Jovan never provided MGMP with detailed drawings and a bill
of quantities.
These documents were, however, later discovered after
the litigation commenced.
[28]
While being cross-examined, Mr. Mokoena
said that although the written agreement contained in Annexure A
provides for the use of
stock bricks and face bricks at different
tariffs, Jovan only provided face bricks. The tariff for stock bricks
was R840.00 / 1000
bricks, and for face bricks, R950.00 / 1000
bricks. It was put to Mr. Mokoena that he attempted to enlarge his
claim by claiming
that only face bricks were utilised in the project.
[29]
It was put to Mr. Mokoena that the
community was, among others, angered by the fact that MGMP did not
pay its workers. As a result,
Jovan had to intervene and pay the
workers directly. The community, through the Steering
Committee, demanded that MGMP’s
involvement in the project be
terminated. Because he had to finish the project, and in an attempt
to calm the volatile atmosphere
and address the complaints that MGMP
did not pay its workers, Jovan decided to terminate the agreement
with MGMP.
[30]
It was put to Mr. Mokoena that Mr. Van der
Linde would testify that he did not use MGMP’s invoices when he
calculated payment
owed to MGMP. He used the measurements provided by
his own employees. Mr. Mokoena could not explain why the payment
certificates
did not contain Jovan’s employee’s
signatures. He conceded later that Mr. Franz Bulow would ‘check’
MGMP’s
measurements. Mr. Mokoena could not explain why two of
the three invoices were not dated.
[31]
Mr. Mokoena’s evidence regarding the
payment of his workers by Jovan was inconsistent. He first denied
that Jovan lent him
any money, then conceded that he signed the
letter confirming the transaction and planned to pay back the money
when work was allocated
to him again. Later, he claimed again that he
paid the workers himself. Later, he again acknowledged that Jovan
paid them, but
said he did not know the reason why Jovan paid them.
[32]
After having heard Mr. Mokoena’s
evidence, this court was none the wiser as to how it came about that
a contract was concluded
between MGMP and Jovan. Except for a remark
in passing that Mr. Mokoena deposited his profile in a box at the
Labour Desk, no evidence
was tendered as to whom he had negotiations
with, or what the negotiations preceding the conclusion of the
contract entailed.
[33]
After Mr. Mokoena’s evidence, the
plaintiff’s case was closed. The defendant called Mr. van der
Linde to testify. Mr.
Van der Linde testified that the agreement
captured in Annexure A was sent to MGMP for signing. He could not
recall if it was emailed
or delivered by hand. He explained that MGMP
was awarded a contract after submitting a profile in a box at the
Labour Desk. The
Labour Desk was a community structure as the project
commenced in a hostile community.
[34]
The agreement provided to and signed by
MGMP consisted only of Annexure A. Annexure B to the defendant’s
plea is referred
to in Annexure A. The document, Annexure B, was not
sent to MGMP together with Annexure A.
[35]
Jovan contracted with three subcontractors
for the brickwork. The contracts did not commence at the same time.
MGMP was the third
subcontractor with whom a contract was concluded.
At this point the other contractors have already commenced with
brickwork. Work
would be allocated to the contractors depending on
the workload. Both face bricks and stock bricks were used in the
project.
Mr. van der Linde emphatically denied telling Mr.
Mokoena that 14 million bricks would be divided between the three
subcontractors.
Some builders worked faster, the work areas were of
different sizes, and contractors could not work across each other’s
allocated
working areas. There were times when the subcontractors
laid down work as they waited for areas to be built to become
available.
The subcontractors were not on site permanently.
[36]
He testified that around 1.3 million bricks
were used on the project, and stated that no building in Pretoria
would have required
14 million bricks. He confirmed that both stock
bricks and face bricks were used when Ebony Mall was erected. MGMP
was only one
and a half months on site. Mr. Van der Linde testified
that MGMP’s pace was slow in comparison with the other
subcontractors.
He ascribed it to the ratio between tradesmen
(bricklayers) and labourers. This is also the reason why MGMP could
not pay its workers.
[37]
Mr.
Van der Linde testified that his site agent was Mr. Franz Bulow. Mr.
Bulow would provide him with the measurement of the work
done, and he
would calculate the payment to be made to the respective
subcontractors based on Mr. Bulow’s measurement. Invoices
could
not be prepared in advance. Where disputes arose, Mr. Bulow would
re-measure the work together with the relevant subcontractor.
He
denied any knowledge of disputes between MGMP and Jovan regarding
payments made to MGMP. According to his calculations captured
in a
spreadsheet that was discovered, Jovan paid over R92,174.19 to
MGMP.
[3]
[38]
Mr. Van der Linde testified that the
Steering Committee demanded that MGMP’s involvement in the
project be terminated as MGMP
did not pay its labourers. He
eventually acceded to this demand as part of Jovan’s efforts to
defuse the hostile atmosphere
and to prevent further delays, although
he attempted to provide MGMP with advice. By terminating MGMP’s
contract, Jovan suffered
a financial loss as it was not able to
recover the payments made to the labourers or the amount by which
MGMP was overpaid.
[39]
When cross-examined, Mr. Van der Linde
denied the existence of any disagreement between MGMP and Jovan. He
said the issue that arose
was a compliance issue. He reiterated that
Jovan only terminated the contract with MGMP after the Steering
Committee demanded it.
Whilst counsel for MGMP initially took issue
with the fact that MGMP was not provided with a resolution by or the
minutes from
the meeting with the Steering Committee regarding the
termination of MGMP’s involvement in the project, he later put
it to
Mr. Van der Linde that the reason why Jovan terminated the
agreement with MGMP was the pressure put on it by the community. Mr.
Van der Linde testified that Jovan usually goes out of its way to
assist the subcontractors it concludes contracts with, but here
the
community demanded the termination of the subcontract.
[40]
When questioned as to why Jovan did not
provide the plans with dimensions and bill of quantities to MGMP when
requested to do so,
Mr. Van der Linde explained that drawings and
plans were available at the site office, and it was accessible. As
for the bill of
quantities, it contained privileged information that
could not be distributed before the project was finalised.
[41]
Mr. Van der Linde explained that payments
were made to subcontractors even if invoices were not provided. This
was done because
payment was calculated based on the measurements
taken by Jovan’s site inspectors. Since MGMP was not a VAT
vendor, no invoices
were required to make payments. Even when
acceptable invoices were not rendered, payment was made based on
Jovan’s measurements.
Counsel put it to Mr. Van der Linde that
MGMP was a VAT vendor. However, I pause to point out that evidence
was not presented substantiating
this statement, and the invoices
provided by MGMP do not reflect any VAT liability.
[42]
Mr. van der Linde testified that Jovan had
no labourers. The labour was acquired through subcontracts. He denied
any knowledge of
invoices sent by MGMP and said the invoices attached
to the particulars of claim were not relevant to the work done.
Discussion
[43]
Much was made by MGMP’s counsel about
Mr. Van der Linde’s credibility as a witness. I disagree with
the submission that
Mr. Van der Linde was not a credible witness. He
was consistent in providing Jovan’s version before the court.
[44]
Mr. Mokoena’s evidence was somewhat
erratic and disjointed. Several
lacunae
exist in his evidence. Most
importantly, he failed to lead any evidence as to how and where the
parties agreed that MGMP would be
allocated a third of the alleged 14
million bricks that would apparently be utilized in the project. Mr.
Mokoena did not explain
whether this agreement was reached before the
written contract was concluded, and if so, why it was not
incorporated as a term
in the written agreement. He did not explain
how MGMP came to tender for the project by submitting his profile.
The three invoices
attached to the particulars of claim served no
purpose at all and did not substantiate MGMP’s version that
contract-compliant
invoices were regularly submitted on a fortnightly
basis. Mr. Mokoena contradicted himself as far as his testimony
regarding the
R19,000 paid by Jovan to MGMP’s workforce went.
He also failed to provide clear and coherent evidence regarding the
labourers
from the Labour Desk that MGMP apparently was required to
accommodate after the agreement was concluded between Jovan and MGMP.
This aspect was also not raised in the pleadings.
[45]
The plaintiff faces several obstacles in
this litigation. The first can be regarded as highly technical, but
in itself is dispositive
of the claim. It is averred in the
particulars of claim that the plaintiff is a private company with
limited liability, duly registered
and incorporated in accordance
with the company laws of the Republic of South Africa. The defendant
pleaded that it bears no knowledge
of this allegation and accordingly
denied it. In the joint practice note, respectively signed on 11 and
15 July 2025, the plaintiff’s
locus
standi
is listed as an issue in
dispute. The plaintiff led no evidence to substantiate the averment
that it is indeed at this point a
private company with limited
liability registered and incorporated in accordance with the laws of
the Republic of South Africa.
Locus standi
[46]
For
the plaintiff to have
locus
standi,
it was required to prove that it is indeed a juristic entity. Since
this aspect was not proven, it cannot be said that the plaintiff
has
the required standing to institute legal proceedings in its own name.
It suffices to quote from
Van
Heerden v du Plessis
:
[4]
‘
Daar
kan geen eis wees sonder 'n eiser nie; 'n dokument wat voorgee om 'n
dagvaarding te wees maar wat van 'n verweerder verlang
dat hy aan die
eis van 'n nie-bestaande persoon moet voldoen is 'n nulliteit sover
dit die daarstelling van 'n eis betref. Die
eiser is hy wat die
uitdaging tot litigasie uitstuur (
Voet
5.1.9)
en moet 'n
persona
wees.'
(‘
There can be
no claim without a claimant; a document purporting to be a summons
but requiring a defendant to comply with the demand
of a non-existent
person is a nullity so far as the establishment of a claim is
concerned. The claimant is he who issues the challenge
to litigation
(Voet 5.1.9) and must be a persona.
’) (My translation)
Onus
of proof
[47]
The
second obstacle faced by the plaintiff is the onus of proof borne by
the plaintiff. The plaintiff bears the onus of proving
the agreement
and the terms that it alleges.
[5]
The onus of proving the terms of the agreement may involve the proof
of a negative, for example, that the parties did not agree
on an
additional term alleged by the defendant.
[48]
As
far as the evidence regarding the terms of the contract is concerned,
the court is faced with two mutually destructive versions.
The
plaintiff, MGMP, could only discharge this onus if it succeeded in
satisfying the court on a preponderance of probabilities
that its
version is true and accurate and therefore acceptable and that
Jovan’s version is false, or mistaken and falls to
be
rejected.
[6]
[49]
If this court weighs up MGMP’s
testimony against the general probabilities, MGMP’s version
falls short. I agree with
the defendant that it defies logic and
business sense that a principal contractor would agree with three
subcontractors, all appointed
at different periods, contracted to do
brickwork on a project where different-sized areas must be built,
where time is of the essence,
and where the subcontractors were
expected to stand down when a building area was not yet prepared,
that the subcontractors would
each be allotted the exact same number
of bricks to build with according to which their remuneration would
be calculated. In addition,
Mr. Van der Linde’s evidence that
there is no building in Pretoria where 14 million bricks were used,
and that an estimate
of 1.3 million bricks were used in the Ebony
Mall project, was not challenged.
[50]
Even if I accept, in MGMP’s favour,
that the probabilities are evenly balanced, I am not satisfied or
convinced that the defendant’s
version is so improbable that it
is inherently false.
Damages
[51]
The final nail in the plaintiff’s
coffin, is that it did not prove its damages. Even if the court
accepts the plaintiff’s
evidence regarding the terms of the
agreement, the plaintiff’s claim is a claim for loss of profit.
The ‘income’
that would or could have been generated
through the agreement would have been the basis for the calculation
of damages if all the
work was rendered as agreed and the plaintiff
was not compensated accordingly. This is not the case in the current
scenario. Here,
MGMP claims the benefit it expected to receive had
the contract been fulfilled as agreed. MGMP’s claim is for loss
of profit.
MGMP, however, did not lead one shred of evidence
regarding the expenses it would have incurred in the course of
building, which
have to be deducted from the projected income to
calculate the projected profit. It is just not possible to calculate
MGMP’s
loss, even on the terms of the agreement as proposed by
MGMP.
Remaining issue: Costs
relating to the special plea
[52]
Jovan raised a special plea at the
commencement of the trial. It sought a stay of proceedings pending
the arbitration of the dispute.
Jovan contended that the document
signed by both parties, Annexure A, incorporated by reference the
‘The Joint Building Contracts
Committee – NPC Nominated /
Selected Subcontract Agreement Edition 6.1 – March 2014’
(JBCC contract) to the agreement
concluded between the parties. MGMP
denied any knowledge of the JBCC contract. The JBCC contract contains
a clause specifically
dealing with dispute resolution. It provides
for a dispute to be referred to adjudication and eventually
arbitration. I indicated
that evidence needed to be presented before
I finally dealt with the special plea, and the matter proceeded.
[53]
The specific wording in the signed
agreement on which the defendant based its special plea reads as
follows:
‘
Please
execute the following DOMESTIC Subcontract as per JBCC Nominated /
Selected Subcontract Agreement Edition 6.1- March 2014
at the NEW
SHOPPING CENTRE, EBONY MALL, TEMBISA in accordance with the terms and
directions set out below.’
It is later stated in the
agreement:
‘
Furthermore,
this sub-contract shall be deemed to incorporate mutatis mutandis all
the terms and conditions of the Principal Building
agreement entered
into between the Client and JOVAN PROJECTS and that the subcontractor
hereby waives and renounces and abandons
any terms and conditions set
out in this tender which are in conflict with the Principal Building
Agreement and the Specific Conditions
of Subcontract.’
It is important to note
that the JBCC Nominated / selected Subcontract Agreement Edition 6.1
– March 2014 (the JBCC contract)
is not included in the
documents pertinently stated to have been incorporated into the
agreement concluded between the parties.
The agreement does,
however, contain a section under the heading ‘Annexure “A”
Amendments to the JBCC Edition
6.1 – March 2014 Sub-Contract
Document (Pages 2 -4)’
[54]
During closing argument, counsel for Jovan
submitted that there is no doubt that MGMP had no subjective
knowledge of the JBCC contract,
but was nevertheless bound to the
terms contained therein since it was incorporated by reference.
Counsel also submitted that since
this court heard evidence on the
totality of the matter, it would have no value to refer the matter to
arbitration at this stage,
and the issue only remained relevant for
purposes of costs.
[55]
That Jovan was aware of its corporate
social responsibility is evident from Mr. Van der Linde’s
evidence. Jovan went out of
its way to accommodate subcontractors.
Jovan gave advice, lent money to pay workers, sometimes provided
wheelbarrows and equipment
when a project commenced, provided the
scaffolding, and even marked the area that had to be built up with
chalk. When subcontractors
did not provide contract-compliant
invoices Jovan still effected payment based on the measurements of
its site officials. When
it came to the agreement, however, Jovan
expected the subcontractors sourced from the community to be
well-versed in intricate
legal principles. Jovan did not attach the
JBCC contract to the document that had to be, and was, signed by both
parties.
It did not invite the subcontractor to request a copy
of the JBCC contract or inform the subcontractor where the JBCC
contract
could be accessed. In fact, Jovan did not attach a complete
copy of the JBCC agreement to its plea, and counsel informed the
court
that Jovan’s legal team had to purchase a copy before it
could upload the last page to the electronic file after I alerted
them to the existence of the last page. This raises the question of
whether any terms contained in the JBCC contract could actually
have
been incorporated to the parties' agreement through reference.
[56]
The terms of a standard-form agreement may
be incorporated into a contract by reference. The contract must
expressly and unambiguously
indicate that the external document is to
be incorporated. Vague allusions are insufficient. The phrase ‘Please
execute the
following DOMESTIC Subcontract as per JBCC Nominated /
Selected Subcontract Agreement Edition 6.1- March 2014’ on its
own,
does not, in my mind, indicate a clear intention to incorporate
the terms of the JBCC contract to the agreement. The latter portion
of the agreement, which specifically includes amendments to the JBCC
contract, may, on face value, be said to support the proposition
that
the JBCC contract was meant to be incorporated by the drafter of the
signed agreement. This is, however, not the end of the
matter.
[57]
The
totality of evidence does not support a finding that MGMP had actual
knowledge of the terms of the JBCC contract or had been
given access
to the document and had been provided with an opportunity to read and
understand the document before or at the time
of contracting.
[7]
In addition, the signed agreement specifically incorporates certain
other documents and agreements to the agreement concluded between
the
parties. The JBCC contract is not listed among those.
[58]
Also relevant is the fact that Jovan, who
pleaded that Annexure B formed part of the agreement and the matter
should, based on the
terms of Annexure B, be referred to arbitration,
failed to follow the procedure set out in Annexure B when it
terminated the agreement
because of the community’s pressure.
Jovan, however, required MGMP, who it accepts had no subjective
knowledge of the content
of Annexure B, to be bound by the terms of
the JBCC contract. In the prevailing circumstances, the maxim
caveat
subscriptor
does not avail the
defendant.
[59]
In these circumstances, it is fair that the
defendant, JOVAN, carries the costs in relation to court time
expended in arguing the
special plea.
Conclusion
[60]
The cumulative effect of MGMP not
succeeding in proving that it has the required
locus
standi
, that the terms of the agreement
are what it alleged them to be, or its loss of profit, renders the
issue of whether Jovan indeed
breached the contract when it
communicated to MGMP that the community has requested Jovan not to
let MGMP back on site and that
Jovan can therefore not make use of
MGMP’s services any more, irrelevant.
[61]
As a result, the plaintiff’s claim
stands to be dismissed.
[62]
There is no reason to deviate from the
principle that costs, with the exclusion of costs incurred in
relation to the court time
expended for arguing the special plea,
follow success. The defendant did not seek a punitive costs order
against the plaintiff.
Having regard to the complexity of the matter,
it is just that costs be awarded on scale B.
ORDER
In
the result, the following order is granted:
1.
The plaintiff’s claim is dismissed.
2.
Subject to 3 below, the plaintiff is to pay the defendant’s
costs, which costs include the costs of counsel, on Scale B.
3.
The defendant is liable for the costs incurred in relation to
court time expended on arguing the special plea on scale B.
E
van der Schyff
Judge
of the High Court
Delivered:
This judgment is handed down electronically by uploading it to the
electronic file of this matter on CaseLines.
In the event that there
is a discrepancy between the date the judgment is signed and the date
it is uploaded to CaseLines, the
date the judgment is uploaded to
CaseLines is deemed to be the date that the judgment is handed down.
For
the plaintiff:
Adv. T Mahafha
Instructed
by:
Mokhabuki Attorneys
For
the defendant:
Adv. JH Wildenboer
Instructed
by:
Du Randt Du Toit Pelser Inc.
Date
of the hearing:
4 - 7 August 2025
Date
of judgment:
14 August 2025
[1]
Annexure
‘B1’ attached to the plaintiff’s particulars of
claim filed on Caselines 28-180.
[2]
The
community demanded that local labour be used in the project. The
Labour Desk was set up where local labour could be sourced
from.
[3]
Caselines
28-178.
[4]
1969
(3) SA 298
(O) at 304A.
[5]
Kriegler
v Minitzer and Another
1949
(4) SA 821
(A) at 826.
[6]
National
Employer’s General Insurance v Jagers
1984
(4) SA 437
(E) at 440D-G.
[7]
See
Spindrifter
(Pty) Ltd v Lester Donovan (Pty) Ltd
1986
(1) SA 303
(A) and
Mercurius
Motors v Lopez
2008 (3) 572 (A).
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