Case Law[2024] ZAGPPHC 113South Africa
Nkosi and Another v Tuso Attorneys and Another (4957/22) [2024] ZAGPPHC 113 (6 February 2024)
High Court of South Africa (Gauteng Division, Pretoria)
6 February 2024
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Nkosi and Another v Tuso Attorneys and Another (4957/22) [2024] ZAGPPHC 113 (6 February 2024)
Nkosi and Another v Tuso Attorneys and Another (4957/22) [2024] ZAGPPHC 113 (6 February 2024)
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sino date 6 February 2024
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IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG DIVISON,
PRETORIA)
Case:
4957/22
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED.
DATE:
06/02/2024
In the MATTER between:
SIMON
NKOSI
1st APPLICANT
ELIZABETH QUEEN
THEMANI
2
nd
APPLICANT
and
TUSO
ATTORNEYS
1st
RESPONDENT
TEAM JP
AGENTS 2
nd
RESPONDENT
JUDGEMENT
KHOLONG AJ
INTRODUCTION
- This
is an opposed application in terms of which the applicant Mr Simon
Nkosi (herein-after ‘first applicant’) has
applied for
Tuso Attorneys (herein-after ‘first respondent’) to pay
money which it contends it received in respect
of the proceeds of
sale of a property belonging to first applicant and his wife, Ms
Queen Elizabeth Themani (herein-after ‘second
Applicant’),
located at house no 5[…] T[…] S[…], T[…].
This
is an opposed application in terms of which the applicant Mr Simon
Nkosi (herein-after ‘first applicant’) has
applied for
Tuso Attorneys (herein-after ‘first respondent’) to pay
money which it contends it received in respect
of the proceeds of
sale of a property belonging to first applicant and his wife, Ms
Queen Elizabeth Themani (herein-after ‘second
Applicant’),
located at house no 5[…] T[…] S[…], T[…].
- For
convenience, first and second applicants will here-under simply be
referred to as ‘applicants’ in this matter.
They are a
married elderly couple, that resided at the aforementioned house
until they decided to sell this property and eventually
vacated it.
For
convenience, first and second applicants will here-under simply be
referred to as ‘applicants’ in this matter.
They are a
married elderly couple, that resided at the aforementioned house
until they decided to sell this property and eventually
vacated it.
- Applicants
have applied to this Court seeking relief in terms of which Tuso
Attorneys, first respondent is ordered to pay money
which it
received in respect of the proceeds of sale of the property of the
applicants. That first respondent pay what they term
“money
envisaged in clause 8.1.2 of the agreement they had plus interest in
terms of clause 8.1.2’. This refers to
payment received in
consideration for the sale of their property, in Temong Section,
Tembisa.
Applicants
have applied to this Court seeking relief in terms of which Tuso
Attorneys, first respondent is ordered to pay money
which it
received in respect of the proceeds of sale of the property of the
applicants. That first respondent pay what they term
“money
envisaged in clause 8.1.2 of the agreement they had plus interest in
terms of clause 8.1.2’. This refers to
payment received in
consideration for the sale of their property, in Temong Section,
Tembisa.
- In terms of paragraph 3
of the notice of motion, applicants seek an order declaring that a
dispute exists with regards to who
was at fault with respect to the
alleged breach of the agreement of sale document signed by
applicants as purchasers and TeamJPS
Estate Agents as sellers and for the matter to be referred for
adjudication through a Court process as envisaged in clause
9.3 of
the agreement of sale document.
In terms of paragraph 3
of the notice of motion, applicants seek an order declaring that a
dispute exists with regards to who
was at fault with respect to the
alleged breach of the agreement of sale document signed by
applicants as purchasers and Team
JPS
Estate Agents as sellers and for the matter to be referred for
adjudication through a Court process as envisaged in clause
9.3 of
the agreement of sale document.
BACKGROUND
- The factual matrix
leading to the application can be summarized briefly as follows: The
applicants, an elderly male and his wife
decided to sell their
property and approached one Ms. Louisa Modingoana herein-after
‘Louisa’, an estate agent, who
according to Applicants
was an agent and tasked her to help them sell their house. Louisa
agreed to this agency arrangement.
The factual matrix
leading to the application can be summarized briefly as follows: The
applicants, an elderly male and his wife
decided to sell their
property and approached one Ms. Louisa Modingoana herein-after
‘Louisa’, an estate agent, who
according to Applicants
was an agent and tasked her to help them sell their house. Louisa
agreed to this agency arrangement.
- Whilst
their house was on the market and a potential buyer had been
identified and was undergoing bank approval processes, Louisa
is
alleged by applicants to have picked them up in order to help them
view other properties they might be interested in buying
ones their
property was sold. Applicants identified a property in Birchleigh
after the viewing tour and, in their submission,
informed Louisa
about the property they liked. What follows is a dispute surrounding
the purchase of this new Birchleigh property;
alleged subsequent
failure to make payment for the Birchleigh property; whether or not
they consented or authorized the cancellation
of the purchase
agreement for the Birchleigh property and a dispute over a sum of
R400 000 applicants allege second respondent
paid over to
sellers as cancellation penalty fee without their consent. They seek
this Court to order first respondent to pay
this sum over to them.
Whilst
their house was on the market and a potential buyer had been
identified and was undergoing bank approval processes, Louisa
is
alleged by applicants to have picked them up in order to help them
view other properties they might be interested in buying
ones their
property was sold. Applicants identified a property in Birchleigh
after the viewing tour and, in their submission,
informed Louisa
about the property they liked. What follows is a dispute surrounding
the purchase of this new Birchleigh property;
alleged subsequent
failure to make payment for the Birchleigh property; whether or not
they consented or authorized the cancellation
of the purchase
agreement for the Birchleigh property and a dispute over a sum of
R400 000 applicants allege second respondent
paid over to
sellers as cancellation penalty fee without their consent. They seek
this Court to order first respondent to pay
this sum over to them.
FACTUAL ANALYSIS
- First
respondent in their answer raised two points of law objecting to
this claim. The first is non-joinder of Louisa, the Estate
Agent as
she is alleged to have duped applicants into purchase of the
Birchleigh property. The second objection is what respondent
contend
is anti-cipated dispute of fact by applicants. The result of which
is that they should have anticipated that there will
be dispute of
fact principally about whether first respondent was authorized by
them to cancel the purchase agreement with resultant
penalties. That
on this score alone applicants claim must be dismissed, as it should
have been prosecuted properly not through
motion but action
proceedings.
First
respondent in their answer raised two points of law objecting to
this claim. The first is non-joinder of Louisa, the Estate
Agent as
she is alleged to have duped applicants into purchase of the
Birchleigh property. The second objection is what respondent
contend
is anti-cipated dispute of fact by applicants. The result of which
is that they should have anticipated that there will
be dispute of
fact principally about whether first respondent was authorized by
them to cancel the purchase agreement with resultant
penalties. That
on this score alone applicants claim must be dismissed, as it should
have been prosecuted properly not through
motion but action
proceedings.
- This Court has deemed it
convenient to examine the facts, in their proper context as
presented, to inform it properly in the examination
of the legal
questions. There is dispute about circumstances that led to the
purchase of the Birchleigh property which brought
with it obligation
to pay purchase price by applicants or in the event of failure, as
it appeared on the facts of this case,
penalties deducted from the
proceeds of their Tembisa property.
This Court has deemed it
convenient to examine the facts, in their proper context as
presented, to inform it properly in the examination
of the legal
questions. There is dispute about circumstances that led to the
purchase of the Birchleigh property which brought
with it obligation
to pay purchase price by applicants or in the event of failure, as
it appeared on the facts of this case,
penalties deducted from the
proceeds of their Tembisa property.
- The
agent, Louisa’s version in her confirmatory affidavit to first
respondent has a different version to that of applicants
as to the
genesis of the decision to view other properties with a view to
buying. This is a point first respondent raise as a
major issue in
their answer. Her version is that applicants themselves decided to
buy another property upon selling their own
property and in that
process changed their minds at least once with respect to
identifying what they deemed a suitable property
for them. Whatever
the cause, what is common cause is that they settled on the
Birchleigh property and put an offer to purchase
this property,
which offer was accepted.
The
agent, Louisa’s version in her confirmatory affidavit to first
respondent has a different version to that of applicants
as to the
genesis of the decision to view other properties with a view to
buying. This is a point first respondent raise as a
major issue in
their answer. Her version is that applicants themselves decided to
buy another property upon selling their own
property and in that
process changed their minds at least once with respect to
identifying what they deemed a suitable property
for them. Whatever
the cause, what is common cause is that they settled on the
Birchleigh property and put an offer to purchase
this property,
which offer was accepted.
- In applicant’s
version, the agent, Louisa subsequent to what they term ‘tour’
to view properties, arrived later
at their house with papers for
them to sign. In the founding affidavit, She is alleged by
applicants to have explained these
papers as papers for the sale of
their property. Applicants accept that they signed the papers. When
their son returned from
work they informed him of what they term the
sale agreement they entered into but that they did not have the
copies. Their son,
one Kenneth, then advised them otherwise and
whatever happened Kenneth then called Louisa and advised her that
they wanted to
cancel, as he Kenneth, was unhappy that Louisa made
them sign the agreement in his absence knowing the parents were
elderly,
uneducated, and do not understand the papers they signed.
In applicant’s
version, the agent, Louisa subsequent to what they term ‘tour’
to view properties, arrived later
at their house with papers for
them to sign. In the founding affidavit, She is alleged by
applicants to have explained these
papers as papers for the sale of
their property. Applicants accept that they signed the papers. When
their son returned from
work they informed him of what they term the
sale agreement they entered into but that they did not have the
copies. Their son,
one Kenneth, then advised them otherwise and
whatever happened Kenneth then called Louisa and advised her that
they wanted to
cancel, as he Kenneth, was unhappy that Louisa made
them sign the agreement in his absence knowing the parents were
elderly,
uneducated, and do not understand the papers they signed.
- What
then puzzles this Court, is that the following day Louisa, despite
the foregoing arrived and informed them that she was taking
them to
an attorney as part of the further process in the selling of the
house and that they must bring with them the following:
What
then puzzles this Court, is that the following day Louisa, despite
the foregoing arrived and informed them that she was taking
them to
an attorney as part of the further process in the selling of the
house and that they must bring with them the following:
a)
Title deed
b)
Marriage certificate, and
c)
Their identity documents.
- It
appears despite what they term engagement between their son Kenneth
and Louisa the previous day expressing unhappiness that
they were
made to sign without him being present and are eldrerly and
uneducated, they proceeded to continue cooperating with
Louisa
including producing relevant documents needed to complete the
‘sale’. They aver Louisa informed them that
her attorney
would be processing the transfer for them. There is no explanation
in the light of Kenneth’s communication
with Louisa informing
her of his parent’s decision to cancel, why in the days that
followed they willingly accompanied
her to what they term ‘Louisa’s
Attorneys’, who is the first respondent in this matter, where
evidently they
settled various papers related to the sale, which are
now the subject of dispute.
It
appears despite what they term engagement between their son Kenneth
and Louisa the previous day expressing unhappiness that
they were
made to sign without him being present and are eldrerly and
uneducated, they proceeded to continue cooperating with
Louisa
including producing relevant documents needed to complete the
‘sale’. They aver Louisa informed them that
her attorney
would be processing the transfer for them. There is no explanation
in the light of Kenneth’s communication
with Louisa informing
her of his parent’s decision to cancel, why in the days that
followed they willingly accompanied
her to what they term ‘Louisa’s
Attorneys’, who is the first respondent in this matter, where
evidently they
settled various papers related to the sale, which are
now the subject of dispute.
- It
is nonetheless applicant’s version that they went the
following day to the offices of Anna Tuso, the conveyancer and
first
respondent here-in. That they were asked for and that they produced
aforementioned documents. That they were made to sign
further
papers, which they contend first respondent explained as documents
for the purpose of sale of their property.
It
is nonetheless applicant’s version that they went the
following day to the offices of Anna Tuso, the conveyancer and
first
respondent here-in. That they were asked for and that they produced
aforementioned documents. That they were made to sign
further
papers, which they contend first respondent explained as documents
for the purpose of sale of their property.
- They
aver that an argument ensued after first respondent had informed
them that the papers she wanted them to sign were for the
sale of
their property. Their version is that they argued why sign another
sale agreement having signed one previously with Louisa.
Louisa upon
being called to the meeting explained that the documents she made
them sign were for the purchase of the Birchleigh
property. They
further allege that at this meeting, and following their
protestation, Louisa confirmed that she would have those
documents
related to the purchase of Birchleigh property cancelled and they
need not worry.
They
aver that an argument ensued after first respondent had informed
them that the papers she wanted them to sign were for the
sale of
their property. Their version is that they argued why sign another
sale agreement having signed one previously with Louisa.
Louisa upon
being called to the meeting explained that the documents she made
them sign were for the purchase of the Birchleigh
property. They
further allege that at this meeting, and following their
protestation, Louisa confirmed that she would have those
documents
related to the purchase of Birchleigh property cancelled and they
need not worry.
- A
week after this meeting first respondent called them and advised
them that there is an Estate Agent threatening to sue them
if they
cancelled the purchase agreement on the Birchleigh property.
A
week after this meeting first respondent called them and advised
them that there is an Estate Agent threatening to sue them
if they
cancelled the purchase agreement on the Birchleigh property.
- A
meeting was called with all parties to try resolve the issue but no
agreement could be reached. Upon sale of the property at
R650 000
a sum of R400 000 of the money was transferred to 2ndrespondent as damages or penalties. Applicants
received 171 000 balance. That following the sale applicants
were removed
from their house. They allege that they are now
temporarily housed elsewhere and are effectively homeless.
A
meeting was called with all parties to try resolve the issue but no
agreement could be reached. Upon sale of the property at
R650 000
a sum of R400 000 of the money was transferred to 2
nd
respondent as damages or penalties. Applicants
received 171 000 balance. That following the sale applicants
were removed
from their house. They allege that they are now
temporarily housed elsewhere and are effectively homeless.
- Applicants
contend that they did not know 1strespondent prior to their decision to sell. That
first respondent was brought by Louisa and that they intended to
appoint their
own Attorney.
Applicants
contend that they did not know 1
st
respondent prior to their decision to sell. That
first respondent was brought by Louisa and that they intended to
appoint their
own Attorney.
- There
is reference in the papers and notice of motion to purchase
agreement but that was not uploaded and filed. This Court raised
an
issue on the day of the hearing about this failure to upload the
agreement. An indulgence was requested by applicants as they
alleged
to have problems uploading on caselines, and with respondents
expressing no opposition, indulgence was granted for the
matter to
momentarily stand down and the agreement uploaded on caselines.
There
is reference in the papers and notice of motion to purchase
agreement but that was not uploaded and filed. This Court raised
an
issue on the day of the hearing about this failure to upload the
agreement. An indulgence was requested by applicants as they
alleged
to have problems uploading on caselines, and with respondents
expressing no opposition, indulgence was granted for the
matter to
momentarily stand down and the agreement uploaded on caselines.
- Applicants
reflect in their founding affidavit that the Birchleigh property was
bought for a sum of R1 950 000 which was
to be a cash sale and
a deposit thereof to be paid in full into a trust account, managed
by first respondent.
Applicants
reflect in their founding affidavit that the Birchleigh property was
bought for a sum of R1 950 000 which was
to be a cash sale and
a deposit thereof to be paid in full into a trust account, managed
by first respondent.
- Applicants
contend that no deposit or payment to seller was made in
consideration of the Birchleigh property. There is dispute
about
whether payment by applicants to second respondent was ever
discussed at least until sellers started making demands for
payment
of deposit, which in effect was full purchase price as it was a cash
sale. At paragraph 10.1.2 of their affidavit applicants
contend that
had a request been made by first respondent for that deposit then
they would have at an early stage been made aware
then that they
were ‘duped into signing documents for a purchase of a
property they had no intention of purchasing’.
That Louisa did
not cancel the documents as undertaken. That had this come to their
attention, they would at that early stage
have taken action to
clarify issues.
Applicants
contend that no deposit or payment to seller was made in
consideration of the Birchleigh property. There is dispute
about
whether payment by applicants to second respondent was ever
discussed at least until sellers started making demands for
payment
of deposit, which in effect was full purchase price as it was a cash
sale. At paragraph 10.1.2 of their affidavit applicants
contend that
had a request been made by first respondent for that deposit then
they would have at an early stage been made aware
then that they
were ‘duped into signing documents for a purchase of a
property they had no intention of purchasing’.
That Louisa did
not cancel the documents as undertaken. That had this come to their
attention, they would at that early stage
have taken action to
clarify issues.
- That the first
respondent without any mandate took the proceeds of the sale of
their property and decided on her own to disburse
the money
according to how she saw fit. That there was never any authorization
from them that the proceeds from the sale of their
property should
be used as a deposit for the purchase of the Birchleigh property.
That they didn’t receive any notice of
breach as required by
the purchase agreement for Birchleigh property.
That the first
respondent without any mandate took the proceeds of the sale of
their property and decided on her own to disburse
the money
according to how she saw fit. That there was never any authorization
from them that the proceeds from the sale of their
property should
be used as a deposit for the purchase of the Birchleigh property.
That they didn’t receive any notice of
breach as required by
the purchase agreement for Birchleigh property.
- They contend that first
respondent ‘as their attorney should have made sure that
before second respondent claims damages,
that all necessary terms of
the agreement are adhered to. They further complain of procedural
steps not adhered to in terms of
the said agreement. That the
principle of rouwkoop is not applicable as they made no deposit
towards the Birchleigh property.
That the meeting they or their son
attended at the estate agents did not result in any agreement or
authorization. That the conveyancer
is their attorney and aught to
have acted in a manner that protected their interests and she failed
to do so. Consequently they
have been prejudiced as a result
thereof.
They contend that first
respondent ‘as their attorney should have made sure that
before second respondent claims damages,
that all necessary terms of
the agreement are adhered to. They further complain of procedural
steps not adhered to in terms of
the said agreement. That the
principle of rouwkoop is not applicable as they made no deposit
towards the Birchleigh property.
That the meeting they or their son
attended at the estate agents did not result in any agreement or
authorization. That the conveyancer
is their attorney and aught to
have acted in a manner that protected their interests and she failed
to do so. Consequently they
have been prejudiced as a result
thereof.
- They
complain in the papers that first respondent failed to service them
with required skill, expertise and honesty required in
the code of
conduct for lawyers, in terms of Section 35 of the Legal Practice
Act. That she disregarded terms of the contract
that she purported
to rely on when she ‘dispensed’ of their money. Further
that she failed to account faithfully,
accurately and timeously to
them thereby breaking the code of conduct of lawyers as envisaged in
the Legal Practise Act. That
she should have ensured that all due
processes are followed as required by the purchase agreement. That
having failed to do so
she was grossly negligent and ignored
significant provisions protecting her clients.
They
complain in the papers that first respondent failed to service them
with required skill, expertise and honesty required in
the code of
conduct for lawyers, in terms of Section 35 of the Legal Practice
Act. That she disregarded terms of the contract
that she purported
to rely on when she ‘dispensed’ of their money. Further
that she failed to account faithfully,
accurately and timeously to
them thereby breaking the code of conduct of lawyers as envisaged in
the Legal Practise Act. That
she should have ensured that all due
processes are followed as required by the purchase agreement. That
having failed to do so
she was grossly negligent and ignored
significant provisions protecting her clients.
The Purchase Agreement
- Whilst
there is a dispute about circumstances surrounding applicant’s
decision to enter into the purchase agreement of the
Birchleigh
property. The existence of the agreement is not in dispute.
Applicants themselves invoke various provisions of this
agreement,
which they contend first respondent aught to have observed and
failed to do so.
Whilst
there is a dispute about circumstances surrounding applicant’s
decision to enter into the purchase agreement of the
Birchleigh
property. The existence of the agreement is not in dispute.
Applicants themselves invoke various provisions of this
agreement,
which they contend first respondent aught to have observed and
failed to do so.
- First
respondent in the papers and in argument does not query its
obligations under the agreement, save to plead that cancellation
was
authorized by applicants, at least through their mandated son
Kenneth, with resultant penalties.
First
respondent in the papers and in argument does not query its
obligations under the agreement, save to plead that cancellation
was
authorized by applicants, at least through their mandated son
Kenneth, with resultant penalties.
- Paragraph
three of the notice of motion pleads with this Court for an order
declaring that a dispute exists with regards to who
was at fault
with regards to the alleged breach of the agreement of sale document
signed by Simon Nkosi and Queen Themani as
purchasers and Team JPS
Estate Agents as sellers, and for the matter to be referred for
adjudication through a court process
as envisaged by clause 9.3 of
the agreement of sale document.
Paragraph
three of the notice of motion pleads with this Court for an order
declaring that a dispute exists with regards to who
was at fault
with regards to the alleged breach of the agreement of sale document
signed by Simon Nkosi and Queen Themani as
purchasers and Team JPS
Estate Agents as sellers, and for the matter to be referred for
adjudication through a court process
as envisaged by clause 9.3 of
the agreement of sale document.
- Clause
9.3 of this Agreement of sale between the parties signed on or
around 23 May 2019 provides that:
Clause
9.3 of this Agreement of sale between the parties signed on or
around 23 May 2019 provides that:
“
Should
there be a dispute as to who the defaulting party is and/or whether
the agreement has been validly cancelled, the Conveyancer
must hold
the deposit payment referred to in clause 4.1.1 in trust until such
dispute is finalized either by agreement between
the purchaser and
the seller or in terms of a Court order
.”
- This
Court considers it just and equitable for the provisions of this
clause to be considered. To the extend therefore that there
has been
any non-compliance by applicants in uploading this agreement on
caselines timeously and bringing it into evidence; noting
also first
respondent’s non objection for the agreement to be braught
into evidence before this Court, the Court thus exercises
its
discretion and condones any non-compliance with regard to handing up
the evidence in Court through caselines and hereby accepts
the
agreement of sale into evidence.
This
Court considers it just and equitable for the provisions of this
clause to be considered. To the extend therefore that there
has been
any non-compliance by applicants in uploading this agreement on
caselines timeously and bringing it into evidence; noting
also first
respondent’s non objection for the agreement to be braught
into evidence before this Court, the Court thus exercises
its
discretion and condones any non-compliance with regard to handing up
the evidence in Court through caselines and hereby accepts
the
agreement of sale into evidence.
- Paragraph
2.3 appoints Tuso Attorneys, the first respondent as Attorneys
appointed’ by the seller’. Paragraph 9.2.1
states that
if the defaulting party is the purchaser, then the estate agent and
the Conveyancer i.e. first respondent will be
entitled immediately
upon cancellation of this agreement to receive payment of the
commission and wasted costs from the deposit
payment referred to in
clause 4.1.1 of the agreement. This clause relates to the purchase
price of R1.9 Million. It also provides
that the seller will be
entitled to the balance if any of such payment, together with all
interest payed thereon.
Paragraph
2.3 appoints Tuso Attorneys, the first respondent as Attorneys
appointed’ by the seller’. Paragraph 9.2.1
states that
if the defaulting party is the purchaser, then the estate agent and
the Conveyancer i.e. first respondent will be
entitled immediately
upon cancellation of this agreement to receive payment of the
commission and wasted costs from the deposit
payment referred to in
clause 4.1.1 of the agreement. This clause relates to the purchase
price of R1.9 Million. It also provides
that the seller will be
entitled to the balance if any of such payment, together with all
interest payed thereon.
- Evidently
cursory reading of this clause reflects that the first and second
respondent stand to benefit from the cancellation
of this purchase
agreement, to the detriment of applicants. As history would have it
R400 000 has been disbursed not from
a deposit related to this
transaction but a different agreement. It is therefore in the
interest of justice for this Court to
properly understand the
circumstances surrounding cancellation of the purchase agreement.
Whether that cancellation was indeed
authorized.
Evidently
cursory reading of this clause reflects that the first and second
respondent stand to benefit from the cancellation
of this purchase
agreement, to the detriment of applicants. As history would have it
R400 000 has been disbursed not from
a deposit related to this
transaction but a different agreement. It is therefore in the
interest of justice for this Court to
properly understand the
circumstances surrounding cancellation of the purchase agreement.
Whether that cancellation was indeed
authorized.
- On
the facts it is common cause that the deposit money of R1.9 Million
was never paid as envisaged by this agreement. Further
that this
agreement has cancelled any suspensive conditions from paragraphs
14.1 to 14.1.3. Further that from the review of this
purchase
agreement, it can be identified that the sale of ‘purchaser’s
property’ is also cancelled by being
scratched over with a pen
to indicate non-applicability of this provision. Put differently,
there is no reference in this purchase
agreement to the sale of the
applicant’s Temong, Tembisa property. On the face of this
agreement on record and in the absence
of any other, there appears
to have been two distinct transactions. This, notwithstanding. the
fact that one conveyancer, first
respondent, was attending to both.
On
the facts it is common cause that the deposit money of R1.9 Million
was never paid as envisaged by this agreement. Further
that this
agreement has cancelled any suspensive conditions from paragraphs
14.1 to 14.1.3. Further that from the review of this
purchase
agreement, it can be identified that the sale of ‘purchaser’s
property’ is also cancelled by being
scratched over with a pen
to indicate non-applicability of this provision. Put differently,
there is no reference in this purchase
agreement to the sale of the
applicant’s Temong, Tembisa property. On the face of this
agreement on record and in the absence
of any other, there appears
to have been two distinct transactions. This, notwithstanding. the
fact that one conveyancer, first
respondent, was attending to both.
- Whilst
this Court notes first respondent’s argument that applicants,
through their son Kenneth, authorized cancellation
of the purchase
of this Birchleigh property. There is no reasonable explanation,
even if this Court where to accept this explanation,
why given that
the respondent was also hired to attend separately to the sale of
the Tembisa property, were the proceeds of that
sale, which is
distinct and different from this purchase agreement, used to off-set
the damages or penalties envisaged in clause
9.2 of this purchase
agreement. This considering that no payment, as applicants contend,
was ever made into or for this trust
account.
Whilst
this Court notes first respondent’s argument that applicants,
through their son Kenneth, authorized cancellation
of the purchase
of this Birchleigh property. There is no reasonable explanation,
even if this Court where to accept this explanation,
why given that
the respondent was also hired to attend separately to the sale of
the Tembisa property, were the proceeds of that
sale, which is
distinct and different from this purchase agreement, used to off-set
the damages or penalties envisaged in clause
9.2 of this purchase
agreement. This considering that no payment, as applicants contend,
was ever made into or for this trust
account.
- Both
parties agree that there is dispute about whether this agreement was
validly cancelled with resultant damages or penalties.
What first
respondent takes issue with is whether they are ventilating their
dispute in the right Court. It is the Court’s
view therefore
that paragraph 9.3 as prayed for by applicants at paragraph 3 of the
notice of motion is relevant to determination
of this dispute. This
court must, however, consider as raised by respondent, whether a
party to a contract’s request for
a declaratory relief is
competent through motion proceedings as the facts obtain in this
matter. This Court will thus proceed
to examine these points of law
raised by first respondent.
Both
parties agree that there is dispute about whether this agreement was
validly cancelled with resultant damages or penalties.
What first
respondent takes issue with is whether they are ventilating their
dispute in the right Court. It is the Court’s
view therefore
that paragraph 9.3 as prayed for by applicants at paragraph 3 of the
notice of motion is relevant to determination
of this dispute. This
court must, however, consider as raised by respondent, whether a
party to a contract’s request for
a declaratory relief is
competent through motion proceedings as the facts obtain in this
matter. This Court will thus proceed
to examine these points of law
raised by first respondent.
Non-joinder of the
‘Applicant’.
- The
respondent in their answer raises issue with the non-joinder of the
estate agent, Louisa Dingangoane (the agent). That contrary
to
allegations raised by applicants in their founding affidavit, first
respondent was not present when they signed the offer
to purchase
the Birchleigh property and could therefore not give evidence on any
matter related thereto. Nor whether they
were misled or
tricked by Louisa to sign the purchase agreement.
The
respondent in their answer raises issue with the non-joinder of the
estate agent, Louisa Dingangoane (the agent). That contrary
to
allegations raised by applicants in their founding affidavit, first
respondent was not present when they signed the offer
to purchase
the Birchleigh property and could therefore not give evidence on any
matter related thereto. Nor whether they
were misled or
tricked by Louisa to sign the purchase agreement.
- That
the first time she came to know of the matter is when they together
with their agent, Louisa, son and daughter came to her
office for
assistance with regards to transfer of their property.
That
the first time she came to know of the matter is when they together
with their agent, Louisa, son and daughter came to her
office for
assistance with regards to transfer of their property.
- First
respondent disputes that there were any complaints raised at their
meeting to deal with transfer nor was she informed that
they
believed they may have been duped by the agent, Louisa, into signing
wrong documents. She contends that the only complaint
raised was
that by the son, Kenneth, that they shouldn’t have signed the
agreement in his absence.
First
respondent disputes that there were any complaints raised at their
meeting to deal with transfer nor was she informed that
they
believed they may have been duped by the agent, Louisa, into signing
wrong documents. She contends that the only complaint
raised was
that by the son, Kenneth, that they shouldn’t have signed the
agreement in his absence.
- First respondents points
out to this Court that applicants did not join their agents in this
matter but the court is asked to
determine whether they were duped
by their agent into signing the agreement. That determination of the
issue of whether the applicants
were misled or tricked would one way
or the other affect the legal rights of the agent, particularly the
right to be heard. That
it affects the right to put their side of
the story before a decision is made.On this basis alone respondent
contends that application
falls to be dismissed for non-joinder.
First respondents points
out to this Court that applicants did not join their agents in this
matter but the court is asked to
determine whether they were duped
by their agent into signing the agreement. That determination of the
issue of whether the applicants
were misled or tricked would one way
or the other affect the legal rights of the agent, particularly the
right to be heard. That
it affects the right to put their side of
the story before a decision is made.On this basis alone respondent
contends that application
falls to be dismissed for non-joinder.
- This
Court recalls the dictum inAmalgamated
Engineering Union v Minister of Labour[1]that the question of whether all the necessary parties have been
joined does not depend upon the nature of the subject matter
of the
suit, but upon the manner in which, and the extent to which, the
Court’s order may affect the interests of third
parties.
In essence the Court in this matter noted two essential principles
of law that is that:
This
Court recalls the dictum in
Amalgamated
Engineering Union v Minister of Labour
[1]
that the question of whether all the necessary parties have been
joined does not depend upon the nature of the subject matter
of the
suit, but upon the manner in which, and the extent to which, the
Court’s order may affect the interests of third
parties.
In essence the Court in this matter noted two essential principles
of law that is that:
1) That a judgement
cannot be pleaded as res judicata against someone who was not a party
to the suit in which it was given, and
2) That the Court should
not make an order that may prejudice the rights of parties not before
it.
- Given
the facts before it, this court disagrees with first respondent’s
contention on this matter. The issue in dispute
as set out in
paragraphs one and two of the notice of motion and respondent’s
answer is whether first respondent had the
authority to disburse
R400 000 as conveyancer towards damages or penalties for
cancellation of the Birchleigh agreement
of sale settled by the
parties on 23 May 2019. It is this Court’s view that the agent
Louisa is peripheral to the Court’s
determination of this
point. Further, she is not party to this agreement which both
applicants and defendants seek to rely on
for the respective relief
they seek, but Magda Muller, an agent of team JP Estate Agents who
is second respondent in this matter.
This Court therefore finds this
objection to be meritless and is thus dismissed.
Given
the facts before it, this court disagrees with first respondent’s
contention on this matter. The issue in dispute
as set out in
paragraphs one and two of the notice of motion and respondent’s
answer is whether first respondent had the
authority to disburse
R400 000 as conveyancer towards damages or penalties for
cancellation of the Birchleigh agreement
of sale settled by the
parties on 23 May 2019. It is this Court’s view that the agent
Louisa is peripheral to the Court’s
determination of this
point. Further, she is not party to this agreement which both
applicants and defendants seek to rely on
for the respective relief
they seek, but Magda Muller, an agent of team JP Estate Agents who
is second respondent in this matter.
This Court therefore finds this
objection to be meritless and is thus dismissed.
Dispute of facts
- First
respondent, as a second basis of attack of applicant’s case is
the contention of existence of dispute of facts. This
in
respondent’s view included consideration of inter alia whether
applicants were duped into concluding the sale agreement
for the
Birchleigh property. Whether first respondent had instructions to
use portions of the proceeds of sale to pay damages
in respect of
applicant’s repudiation or breach of the sale agreement in
respect of the Birchleigh property.
First
respondent, as a second basis of attack of applicant’s case is
the contention of existence of dispute of facts. This
in
respondent’s view included consideration of inter alia whether
applicants were duped into concluding the sale agreement
for the
Birchleigh property. Whether first respondent had instructions to
use portions of the proceeds of sale to pay damages
in respect of
applicant’s repudiation or breach of the sale agreement in
respect of the Birchleigh property.
- First respondent
contends that she engaged with the agent and she disputes
applicant’s version that applicants were duped
or misled. She
puts her version and that of the agent, corroborated by the agent in
the confirmatory affidavit that applicants
approached the agent not
only to sell their property but also to have her help them find a
property they could move into once
their property is sold. That
prior the disputed sale agreement they had intended to buy another
property for which they settled
a purchase agreement with sellers of
Birchleigh property.
First respondent
contends that she engaged with the agent and she disputes
applicant’s version that applicants were duped
or misled. She
puts her version and that of the agent, corroborated by the agent in
the confirmatory affidavit that applicants
approached the agent not
only to sell their property but also to have her help them find a
property they could move into once
their property is sold. That
prior the disputed sale agreement they had intended to buy another
property for which they settled
a purchase agreement with sellers of
Birchleigh property.
- That
they first intended to by a different property but changed their
mind about that property as they felt it was too small for
them. As
a result the agent did not put the offer to the seller. As a result
they continued to search for suitable sizeable property
to purchase
until they got the Birchleigh property.
That
they first intended to by a different property but changed their
mind about that property as they felt it was too small for
them. As
a result the agent did not put the offer to the seller. As a result
they continued to search for suitable sizeable property
to purchase
until they got the Birchleigh property.
- According
to first respondent and the agent, they baught the more expensive
property and sold their Tembisa property because of
certain funds to
the value of R4 Million they expected to receive shortly, but which
did not eventuate.
According
to first respondent and the agent, they baught the more expensive
property and sold their Tembisa property because of
certain funds to
the value of R4 Million they expected to receive shortly, but which
did not eventuate.
- It is
respondent’s case that because the agent, did not have
properties in her portfolio suitable for applicants, the agent
for
Tembisa property Louisa, enlisted assistance of second respondent,
the listing agent who had the Birchleigh property in her
portfolio.
As a result the agent for the Tembisa property procured the offer to
purchase from the listing agent, second respondent,
as the
Birchleigh property was in her portfolio. That she explained the
offer to purchase the Birchleigh property to them in
the presence of
their daughter, Portia. That Portia participated in explaining the
offer to purchase to applicants prior to signing.
It is
respondent’s case that because the agent, did not have
properties in her portfolio suitable for applicants, the agent
for
Tembisa property Louisa, enlisted assistance of second respondent,
the listing agent who had the Birchleigh property in her
portfolio.
As a result the agent for the Tembisa property procured the offer to
purchase from the listing agent, second respondent,
as the
Birchleigh property was in her portfolio. That she explained the
offer to purchase the Birchleigh property to them in
the presence of
their daughter, Portia. That Portia participated in explaining the
offer to purchase to applicants prior to signing.
- First,respondent avers that she only became involved
when applicants came to her offices, with agent, Louisa, and Kenneth
with an agreement
that had already been signed and accepted by
sellers. That on this score alone applicants should have foreseen
dispute of facts
and not approach court through motion proceedings.
This Court considers this objection irrelevant to the determination
of whether
first respondent was authorized to cancel the purchase
agreement as duly appointed conveyancer for applicants.
First
,
respondent avers that she only became involved
when applicants came to her offices, with agent, Louisa, and Kenneth
with an agreement
that had already been signed and accepted by
sellers. That on this score alone applicants should have foreseen
dispute of facts
and not approach court through motion proceedings.
This Court considers this objection irrelevant to the determination
of whether
first respondent was authorized to cancel the purchase
agreement as duly appointed conveyancer for applicants.
- First
Respondent further contends that she had a mandate from applicants
to cancel the Birchleigh property and to pay the amount
of damages
from the proceeds of the sale of Temong, Tembisa Property which
mandate was given in the presence of their son Kenneth
and Magda
Muller of second respondent. That if there is dispute about
agreement to pay damages, that would require oral evidence
from both
sides with cross examination.
First
Respondent further contends that she had a mandate from applicants
to cancel the Birchleigh property and to pay the amount
of damages
from the proceeds of the sale of Temong, Tembisa Property which
mandate was given in the presence of their son Kenneth
and Magda
Muller of second respondent. That if there is dispute about
agreement to pay damages, that would require oral evidence
from both
sides with cross examination.
- Respondent on claim for
damages contend that applicants conveniently claim general damages
per para 8.1.4 of founding affidavit
but relief is not found in the
notice of motion. Further that there are no facts pleaded for
general damages. That a claim for
damages cannot be brought through
application proceedings as oral evidence has to be led on a number
of elements of such claim.
That the nexus between first respondent’s
conduct and harm has to be pleaded; that the quantum of damages has
to be pleaded;
witnesses called and their evidence tested.
Respondent on claim for
damages contend that applicants conveniently claim general damages
per para 8.1.4 of founding affidavit
but relief is not found in the
notice of motion. Further that there are no facts pleaded for
general damages. That a claim for
damages cannot be brought through
application proceedings as oral evidence has to be led on a number
of elements of such claim.
That the nexus between first respondent’s
conduct and harm has to be pleaded; that the quantum of damages has
to be pleaded;
witnesses called and their evidence tested.
- First
respondent further argues that they should therefore have foreseen
that this action should not have been brought through
motion
proceedings and that the application must therefore be dismissed
with costs.
First
respondent further argues that they should therefore have foreseen
that this action should not have been brought through
motion
proceedings and that the application must therefore be dismissed
with costs.
- In argument, first
respondent submitted that the Court should not consider hearsay
evidence and strike out any and all averments
that amount to
hearsay. That Kenneth Nkosi, applicant’s son instructed
cancellation, which she confirmed with applicants
in subsequent
correspondence. Payment of damages and correspondence to that effect
was remitted to daughter.
In argument, first
respondent submitted that the Court should not consider hearsay
evidence and strike out any and all averments
that amount to
hearsay. That Kenneth Nkosi, applicant’s son instructed
cancellation, which she confirmed with applicants
in subsequent
correspondence. Payment of damages and correspondence to that effect
was remitted to daughter.
- First respondent
contended that she presented to applicants at their meeting and was
mandated to deal with both transfers of Temong,
Tembisa and purchase
of Birchleigh properties. That at the meeting atfirst
respondent’s offices the son simply just reprimanded the
applicants for dealing with matters in his absence and there-after,
of their own volition, proceeded to indicate that they will proceed
with purchase of the Birchleigh property. Especially as they
were
just waiting for money from their investment, which money according
to respondents did not come. They then proceeded to
sign all
necessary sale documents referenced in Annex AT 5 of respondent’s
papers.
First respondent
contended that she presented to applicants at their meeting and was
mandated to deal with both transfers of Temong,
Tembisa and purchase
of Birchleigh properties. That at the meeting at
first
respondent’s offices the son simply just reprimanded the
applicants for dealing with matters in his absence and there-after,
of their own volition, proceeded to indicate that they will proceed
with purchase of the Birchleigh property. Especially as they
were
just waiting for money from their investment, which money according
to respondents did not come. They then proceeded to
sign all
necessary sale documents referenced in Annex AT 5 of respondent’s
papers.
- The agent, in her
confirmatory affidavit contended that she never told applicants that
she will cancel the purchase of the Birchleigh
property. That if it
is true that the agent undertook to cancel the sale, then applicants
would not have had to sign further
documents. That the purchase that
was cancelled relates to the 1staborted purchase of a
smaller house of 1.3 million. First respondent and the agent thus
deny that applicants had cancelled to
buy the Birchleigh property.
The agent, in her
confirmatory affidavit contended that she never told applicants that
she will cancel the purchase of the Birchleigh
property. That if it
is true that the agent undertook to cancel the sale, then applicants
would not have had to sign further
documents. That the purchase that
was cancelled relates to the 1
st
aborted purchase of a
smaller house of 1.3 million. First respondent and the agent thus
deny that applicants had cancelled to
buy the Birchleigh property.
- They contend that
sellers had demanded contrary to applicant’s version, specific
performance, through their Attorneys Nortje
Attorneys. Hence the
meeting attended by Kenneth on their behalf where he disclosed to
that meeting that the investment didn’t
come through and that
they would settle the wasted costs. That after the meeting with
Nortje Attorneys first respondent proceeded
to her offices together
with Magda of second respondent and Kenneth instructed first
respondent to cancel the agreement.
They contend that
sellers had demanded contrary to applicant’s version, specific
performance, through their Attorneys Nortje
Attorneys. Hence the
meeting attended by Kenneth on their behalf where he disclosed to
that meeting that the investment didn’t
come through and that
they would settle the wasted costs. That after the meeting with
Nortje Attorneys first respondent proceeded
to her offices together
with Magda of second respondent and Kenneth instructed first
respondent to cancel the agreement.
- First
respondent denies applicant’s version that she was appointed
by the agent but argues that she was appointed by applicants
themselves nor that her appointment only related to the transfer of
the Birchleigh property. What is not explained to this Court
is why
if she was appointed by the applicant and not the agent does the
purchase agreement state as aforesaid that conveyancer,
and first
respondent herein is appointed by the ‘seller’.
First
respondent denies applicant’s version that she was appointed
by the agent but argues that she was appointed by applicants
themselves nor that her appointment only related to the transfer of
the Birchleigh property. What is not explained to this Court
is why
if she was appointed by the applicant and not the agent does the
purchase agreement state as aforesaid that conveyancer,
and first
respondent herein is appointed by the ‘seller’.
- First
respondent’s version is that she made repeated requests for
payment by applicants of cash amount for purchase of Birchleigh
property to no avail. That there was no need to give notices as the
parties agreed to settle the matter amicably per meeting
held at
leapfrog offices with ‘sellers’ Attorneys, Nortje
Attorneys. Accordingly, that first respondent acted in
accordance
with mandate given by applicants. That the sum of 400 000 paid
was not a deposit but payment of damages by applicants
for the
aborted purchase of Birchleigh property.
First
respondent’s version is that she made repeated requests for
payment by applicants of cash amount for purchase of Birchleigh
property to no avail. That there was no need to give notices as the
parties agreed to settle the matter amicably per meeting
held at
leapfrog offices with ‘sellers’ Attorneys, Nortje
Attorneys. Accordingly, that first respondent acted in
accordance
with mandate given by applicants. That the sum of 400 000 paid
was not a deposit but payment of damages by applicants
for the
aborted purchase of Birchleigh property.
- First
respondent further avers that when she became aware of demand for
specific performance by sellers of the Birchleigh property
or their
demand in the alternative, that applicants pay damages, she had
prior to the leapfrog meeting intended to resolve this
dispute,
repeatedly called Kenneth indicating to him seller’s intention
to sue if they don’t come forward with deposit.
That
applicants became aware, contrary to applicant’s version, of
the amount of R403 825,85 disbursed through statement
of
accounts they received through their daughter. That applicants
received feedback of leapfrog meeting per email remitted to
the
daughter on 10 July 2019.
First
respondent further avers that when she became aware of demand for
specific performance by sellers of the Birchleigh property
or their
demand in the alternative, that applicants pay damages, she had
prior to the leapfrog meeting intended to resolve this
dispute,
repeatedly called Kenneth indicating to him seller’s intention
to sue if they don’t come forward with deposit.
That
applicants became aware, contrary to applicant’s version, of
the amount of R403 825,85 disbursed through statement
of
accounts they received through their daughter. That applicants
received feedback of leapfrog meeting per email remitted to
the
daughter on 10 July 2019.
- Respondent
denies that she acted in a manner that didn’t protect the
interests of applicants. That whilst applicants are
pensioners they
still had full contractual capacity as adults and were at all
material times assisted by their son Kenneth and
at times their
daughter, Portia.
Respondent
denies that she acted in a manner that didn’t protect the
interests of applicants. That whilst applicants are
pensioners they
still had full contractual capacity as adults and were at all
material times assisted by their son Kenneth and
at times their
daughter, Portia.
- In argument first
respondent’s Counsel raised various arguments some of which
were not pleaded on the papers. He contended
that section 9.3 of the
agreement should be found by this Court not to be applicable as
there was a settlement. That the fact
of there having been a
settlement makes the provisions of this clause 9.3 non-applicable.
Further that for the fact that there
was settlement borne by the
statement of accounts sent to Portia, whether informal or formal
puts this matter within realm of
res judicata.
In argument first
respondent’s Counsel raised various arguments some of which
were not pleaded on the papers. He contended
that section 9.3 of the
agreement should be found by this Court not to be applicable as
there was a settlement. That the fact
of there having been a
settlement makes the provisions of this clause 9.3 non-applicable.
Further that for the fact that there
was settlement borne by the
statement of accounts sent to Portia, whether informal or formal
puts this matter within realm of
res judicata.
- Applicants
contend that the statement sent to Portia was simply note for
information and not a settlement agreement. AT3 email
correspondence
from first respondent to Portia, appears to be a statement of demand
outlining how the damages for cancellation
would be computed and
that applicants must respond thereto before end of business that
day. AT4 is found to be correspondence
to Nortje Attorneys informing
them of the outcome of the meeting they had with Kenneth Nkosi
representing his parents. This letter
makes representations which
are disputed by applicants. What is missing to this Court is any
reply either from Anna, Kenneth
or applicants themselves that points
to parties being ad idem within the meaning of settlement as argued
by first respondent’s
Counsel. Whatever the true facts might
be, this Court cannot deem a statement of demand or accounts sent to
a third party seen
against the pleadings by applicants to be a
settlement agreement that excludes applicability of clause 9.3.
especially in the
absence of plausible explanation by first
respondent on what they relied on, when in their view the
authorization was given by
applicants, to cancel the purchase
agreement. It appears to this Court that in the absence of any
extraneous evidence the parties
would have had to go back to the
purchase agreement to deal with issues of cancellation as this
agreement dealt with the purchase
of the Birchleigh property.
Applicants
contend that the statement sent to Portia was simply note for
information and not a settlement agreement. AT3 email
correspondence
from first respondent to Portia, appears to be a statement of demand
outlining how the damages for cancellation
would be computed and
that applicants must respond thereto before end of business that
day. AT4 is found to be correspondence
to Nortje Attorneys informing
them of the outcome of the meeting they had with Kenneth Nkosi
representing his parents. This letter
makes representations which
are disputed by applicants. What is missing to this Court is any
reply either from Anna, Kenneth
or applicants themselves that points
to parties being ad idem within the meaning of settlement as argued
by first respondent’s
Counsel. Whatever the true facts might
be, this Court cannot deem a statement of demand or accounts sent to
a third party seen
against the pleadings by applicants to be a
settlement agreement that excludes applicability of clause 9.3.
especially in the
absence of plausible explanation by first
respondent on what they relied on, when in their view the
authorization was given by
applicants, to cancel the purchase
agreement. It appears to this Court that in the absence of any
extraneous evidence the parties
would have had to go back to the
purchase agreement to deal with issues of cancellation as this
agreement dealt with the purchase
of the Birchleigh property.
- Respondent
seeks an order dismissing the application. In this regard
confirmatory affidavit of the Agent, Louisa supports first
respondent version. Louisa in her confirmatory affidavit complains
that she is constrained to respond fully as she has not been
joined
to the proceedings and seriously false allegations have been
levelled against her.
Respondent
seeks an order dismissing the application. In this regard
confirmatory affidavit of the Agent, Louisa supports first
respondent version. Louisa in her confirmatory affidavit complains
that she is constrained to respond fully as she has not been
joined
to the proceedings and seriously false allegations have been
levelled against her.
- In
reply Applicants contended that the basis of their case is premised
in para 10 of founding affidavit. That reference to Agent
was just
for background and that therefore argument of non-joinder be
dismissed by the Court. At paragraph 12 applicants deny
respondent’s
version and puts her to proof thereof.
In
reply Applicants contended that the basis of their case is premised
in para 10 of founding affidavit. That reference to Agent
was just
for background and that therefore argument of non-joinder be
dismissed by the Court. At paragraph 12 applicants deny
respondent’s
version and puts her to proof thereof.
- They
argue in reply that the basis of this application is non-compliance
with clause 9 of the offer to purchase the Birchleigh
property. That
therefore the dispute is capable of being adjudicated upon through
application proceedings. That 1strespondent acted ultra vires when she transferred
R403 825,85 as she did so without their mandate. Applicants
conceded in
argument that there were no facts submitted to support
claim for general damages. Applicant’s representative
abandoned
this argument of general damages in Court. They, however,
maintained that there was no free will nor volition when they
purchased
the Birchleigh property. They denied that they mandated
Kenneth to cancel but agree that Kenneth indicated in that meeting
that
his family had no financial means to pay the Birchleigh
property.
They
argue in reply that the basis of this application is non-compliance
with clause 9 of the offer to purchase the Birchleigh
property. That
therefore the dispute is capable of being adjudicated upon through
application proceedings. That 1
st
respondent acted ultra vires when she transferred
R403 825,85 as she did so without their mandate. Applicants
conceded in
argument that there were no facts submitted to support
claim for general damages. Applicant’s representative
abandoned
this argument of general damages in Court. They, however,
maintained that there was no free will nor volition when they
purchased
the Birchleigh property. They denied that they mandated
Kenneth to cancel but agree that Kenneth indicated in that meeting
that
his family had no financial means to pay the Birchleigh
property.
- The preceding paragraphs
and the different versions put by the parties quite evidently, in
this Court’s view, point to a
dispute of fact which this Court
is incapable of resolving in the absence of viva voce evidence, and
taking a view on the credibility
or otherwise of various witnesses
to this dispute. There is dispute about whether Kenneth gave the
instructions to cancel the
Birchleigh agreement and for applicants
to pay damages of R403 825,85. Applicants themselves concede in
reply that Kenneth,
their son, attended that meeting that sought to
resolve the dispute about the sale or performance regarding the
Birchleigh property.
What they dispute is that Kenneth gave
instruction to cancel the agreement.
The preceding paragraphs
and the different versions put by the parties quite evidently, in
this Court’s view, point to a
dispute of fact which this Court
is incapable of resolving in the absence of viva voce evidence, and
taking a view on the credibility
or otherwise of various witnesses
to this dispute. There is dispute about whether Kenneth gave the
instructions to cancel the
Birchleigh agreement and for applicants
to pay damages of R403 825,85. Applicants themselves concede in
reply that Kenneth,
their son, attended that meeting that sought to
resolve the dispute about the sale or performance regarding the
Birchleigh property.
What they dispute is that Kenneth gave
instruction to cancel the agreement.
- This Court agrees that
it simply cannot determine this issue without various witnesses
being called and granting parties opportunity
to cross examine. This
Court concurs that it cannot take a view on the credibility or
otherwise of any of the parties involved
on paper. The issue which
remains is whether this dispute of fact can be deemed to have been
anticipated by applicants making
the application inappropriate for
motion proceedings as argued by respondents.
This Court agrees that
it simply cannot determine this issue without various witnesses
being called and granting parties opportunity
to cross examine. This
Court concurs that it cannot take a view on the credibility or
otherwise of any of the parties involved
on paper. The issue which
remains is whether this dispute of fact can be deemed to have been
anticipated by applicants making
the application inappropriate for
motion proceedings as argued by respondents.
THE LAW
- This
Court recalls the dictum inPlascon
Evans Paints v Van Riebeeck Paints[2]which confirmedStellenbosch
Farmers Winery Ltd v Stellenvale Winery (Pty)(Ltd)[3]that where there is dispute as to the facts a final interdict should
only be granted in motion proceedings if the facts as stated
by
respondents together with the admitted facts in the applicant’s
affidavit justify such an order, or where it is clear
that the
facts, though not formally admitted, cannot be denied and must be
regarded as admitted. This dictum, generally held,
were said by
Corbett JA to require clarification.
This
Court recalls the dictum in
Plascon
Evans Paints v Van Riebeeck Paints
[2]
which confirmed
Stellenbosch
Farmers Winery Ltd v Stellenvale Winery (Pty)(Ltd)
[3]
that where there is dispute as to the facts a final interdict should
only be granted in motion proceedings if the facts as stated
by
respondents together with the admitted facts in the applicant’s
affidavit justify such an order, or where it is clear
that the
facts, though not formally admitted, cannot be denied and must be
regarded as admitted. This dictum, generally held,
were said by
Corbett JA to require clarification.
- In this regard Corbett
JA noted that where in proceedings on notice of motion disputes of
fact have arisen on the affidavits,
a final order, whether it be an
interdict or some other form of relief, may be granted if those
facts averred in the applicant’s
affidavits which have been
admitted by the respondent, together with the facts alleged by the
respondent, justify such an order.
That in certain instances the
denial by respondent of a fact alleged by applicant may not be such
as to raise a real, genuine
or bona fide dispute of fact.
In this regard Corbett
JA noted that where in proceedings on notice of motion disputes of
fact have arisen on the affidavits,
a final order, whether it be an
interdict or some other form of relief, may be granted if those
facts averred in the applicant’s
affidavits which have been
admitted by the respondent, together with the facts alleged by the
respondent, justify such an order.
That in certain instances the
denial by respondent of a fact alleged by applicant may not be such
as to raise a real, genuine
or bona fide dispute of fact.
- The
Court held that if in such a case the respondent has not availed
himself of his right to apply for the deponents concerned
to be
called for cross-examination under rule 6(5)(g) of the Uniform Rules
of Court and the Court is satisfied as to the inherent
credibility
of the applicant’s factual averments, it may proceed on the
basis of the correctness thereof and include this
fact among those
upon which it determines whether the applicant is entitled to the
final relief which he seeks. The Court noted
at 635C that where the
denials of the respondent are so far fetched or clearly untenable,
the Court may be justified in rejecting
them merely on the papers.
The
Court held that if in such a case the respondent has not availed
himself of his right to apply for the deponents concerned
to be
called for cross-examination under rule 6(5)(g) of the Uniform Rules
of Court and the Court is satisfied as to the inherent
credibility
of the applicant’s factual averments, it may proceed on the
basis of the correctness thereof and include this
fact among those
upon which it determines whether the applicant is entitled to the
final relief which he seeks. The Court noted
at 635C that where the
denials of the respondent are so far fetched or clearly untenable,
the Court may be justified in rejecting
them merely on the papers.
- From
the papers in this case respondents want this Court to believe that
they were appointed by the applicants and where at all
material
times serving their interests when the evidence before Court as
reflected in the agreement of sale at paragraph 2.3
at the very
least, notes that respondents, Tuso Attorneys as transferring
attorneys are appointed by the seller. This may very
well have been
a clerical error. But seen against other provisions in the purchase
agreement pointing to the first respondent
being entitled to penalty
charges and damages against applicants in the event of cancellation
leaves this Court with a lot of
questions around real facts
surrounding cancellation of the purchase agreement.
From
the papers in this case respondents want this Court to believe that
they were appointed by the applicants and where at all
material
times serving their interests when the evidence before Court as
reflected in the agreement of sale at paragraph 2.3
at the very
least, notes that respondents, Tuso Attorneys as transferring
attorneys are appointed by the seller. This may very
well have been
a clerical error. But seen against other provisions in the purchase
agreement pointing to the first respondent
being entitled to penalty
charges and damages against applicants in the event of cancellation
leaves this Court with a lot of
questions around real facts
surrounding cancellation of the purchase agreement.
- Rule 6(5)(g) provides
that where an application may not properly be decided on affidavit
the Court may dismiss the application
or make such order as to it
seems meet with a view to ensuring a just and expeditious decision.
This rule notes that the Court
has discretion to direct that oral
evidence be heard on specified issues with a view to resolving any
dispute of fact or it may
refer the matter to trial with appropriate
directions as to pleadings and definition of issues.
Rule 6(5)(g) provides
that where an application may not properly be decided on affidavit
the Court may dismiss the application
or make such order as to it
seems meet with a view to ensuring a just and expeditious decision.
This rule notes that the Court
has discretion to direct that oral
evidence be heard on specified issues with a view to resolving any
dispute of fact or it may
refer the matter to trial with appropriate
directions as to pleadings and definition of issues.
- The
crux of first respondent’s Counsel on this point was that for
the fact that a dispute of fact has arisen, applicants
should have
anticipated that. Thereby making their case ill-advised for motion
proceedings lending it to dismissal. The ratio
inRoom
Hire Co (Pty)(Ltd) v Jeppe Street Mansions (Pty)(Ltd)[4]is that a Court has discretion where a dispute of fact arises to a)
dismiss the application;
The
crux of first respondent’s Counsel on this point was that for
the fact that a dispute of fact has arisen, applicants
should have
anticipated that. Thereby making their case ill-advised for motion
proceedings lending it to dismissal. The ratio
in
Room
Hire Co (Pty)(Ltd) v Jeppe Street Mansions (Pty)(Ltd)
[4]
is that a Court has discretion where a dispute of fact arises to a)
dismiss the application;
b) direct that viva voce
evidence be heard, or
- send the dispute to
trial.
send the dispute to
trial.
Murray
AJP noted
[5]
that in a Court’s
exercise of its discretion as set out
above, an application may
even be dismissed with costs, particularly when
the applicant should have
realized when launching his application that a
serious dispute of fact
is bound to develop.
- The
Court noted that it is not proper that an applicant should commence
proceedings by motion with knowledge of the probability
of
protracted enquiry into disputed facts not capable of ascertainment,
but in the hope of inducing the Court to apply Rule 9
to what is
essentially the subject of an ordinary trial action.
The
Court noted that it is not proper that an applicant should commence
proceedings by motion with knowledge of the probability
of
protracted enquiry into disputed facts not capable of ascertainment,
but in the hope of inducing the Court to apply Rule 9
to what is
essentially the subject of an ordinary trial action.
- On
the facts applicants clearly concede that a dispute of fact has
arisen. They even offered to put first applicant forward for
oral
evidence in their papers, if the Court so elected.
On
the facts applicants clearly concede that a dispute of fact has
arisen. They even offered to put first applicant forward for
oral
evidence in their papers, if the Court so elected.
- Paragraph 9.3 of the
agreement reads “Should there be a dispute as to who the
defaulting party is and/or whether the agreement
has been validly
cancelled, the conveyancer must hold the deposit payment referred to
in clause 4.1.1. in trust until such dispute
is finalized either by
agreement between the Purchaser and the seller or in terms of a
Court order.
Paragraph 9.3 of the
agreement reads “Should there be a dispute as to who the
defaulting party is and/or whether the agreement
has been validly
cancelled, the conveyancer must hold the deposit payment referred to
in clause 4.1.1. in trust until such dispute
is finalized either by
agreement between the Purchaser and the seller or in terms of a
Court order.
- The evidence before this
Court that this disputed amount for which applicants wish to rely on
in paragraph 9.3 may have been “disbursed”
and not held
in trust until this dispute is resolved or there is an appropriate
Court order makes the proposition by respondents
that this Court
must simply dismiss the application on the basis of ‘anticipated
dispute of facts’ even if not borne
by evidence on record
before this Court untenable, inequitable and unjust. Especially seen
against what this Court deems to be
a simple declaration prayed for
by applicants in paragraph 3 of their notice of motion, which is
competent through motion proceedings.
The evidence before this
Court that this disputed amount for which applicants wish to rely on
in paragraph 9.3 may have been “disbursed”
and not held
in trust until this dispute is resolved or there is an appropriate
Court order makes the proposition by respondents
that this Court
must simply dismiss the application on the basis of ‘anticipated
dispute of facts’ even if not borne
by evidence on record
before this Court untenable, inequitable and unjust. Especially seen
against what this Court deems to be
a simple declaration prayed for
by applicants in paragraph 3 of their notice of motion, which is
competent through motion proceedings.
- With
respect, this court cannot agree with respondents that by virtue of
applicants invoking their rights under paragraph 9 of
the sale
agreement which they are entitled to and can litigate this right
speedily and cheaply through motion proceedings, that
the exercise
of that right should be deemed by this Court worthy of sancture
simply because a dispute of fact has arisen.
With
respect, this court cannot agree with respondents that by virtue of
applicants invoking their rights under paragraph 9 of
the sale
agreement which they are entitled to and can litigate this right
speedily and cheaply through motion proceedings, that
the exercise
of that right should be deemed by this Court worthy of sancture
simply because a dispute of fact has arisen.
- This
Court does not find that this factual dispute, with the evidence
before it, could be found within the meaning and context
of sancture
anticipated inRoom Hire.The
record before this Court does not point it to any major anticipated
dispute by applicants before this motion proceedings were
initiated.
What it has, in spite of many irrelevant facts, is that applicants
sold their Tembisa property. Entered into a purchase
agreement for
Birchleigh property. The agreement was cancelled. A statement of
accounts was sent to applicant’s daughter,
in respondent’s
view setting out the settlement of the dispute. Which settlement in
their view makes section 9.3 of agreement
not applicable. Applicants
were paid R171 000 from the sale of their property. They now
want the balance of R403 825,85
paid to them. Respondents now
on papers before this Court dispute this demand as meritless as that
amount now claimed by applicants
was authorized by them to be paid
as penalties. The dispute over how the R403 825,85
penalty came about has come up
in the affidavits. Counsel for
respondent argues in his heads of argument that the first respondent
became aware of this dispute
is when the affidavit was filed. This,
in this Court’s view is the point that requires resolution and
cannot be said to
have been anticipated by applicants to put their
motion within the realm of sancture. What it does point to is a
dispute of fact
that has arisen and may be incapable of resolution
simply on the papers.
This
Court does not find that this factual dispute, with the evidence
before it, could be found within the meaning and context
of sancture
anticipated in
Room Hire.
The
record before this Court does not point it to any major anticipated
dispute by applicants before this motion proceedings were
initiated.
What it has, in spite of many irrelevant facts, is that applicants
sold their Tembisa property. Entered into a purchase
agreement for
Birchleigh property. The agreement was cancelled. A statement of
accounts was sent to applicant’s daughter,
in respondent’s
view setting out the settlement of the dispute. Which settlement in
their view makes section 9.3 of agreement
not applicable. Applicants
were paid R171 000 from the sale of their property. They now
want the balance of R403 825,85
paid to them. Respondents now
on papers before this Court dispute this demand as meritless as that
amount now claimed by applicants
was authorized by them to be paid
as penalties. The dispute over how the R403 825,85
penalty came about has come up
in the affidavits. Counsel for
respondent argues in his heads of argument that the first respondent
became aware of this dispute
is when the affidavit was filed. This,
in this Court’s view is the point that requires resolution and
cannot be said to
have been anticipated by applicants to put their
motion within the realm of sancture. What it does point to is a
dispute of fact
that has arisen and may be incapable of resolution
simply on the papers.
- This
Court therefore finds that a dispute of fact exists that is
incapable of resolution on paper and in its discretion in terms
of
rule 6(5)(g) refers this dispute to trial to determine whether in
terms of paragraph 9.3 of the purchase agreement, that agreement
was
validly cancelled with consequential penalties.
This
Court therefore finds that a dispute of fact exists that is
incapable of resolution on paper and in its discretion in terms
of
rule 6(5)(g) refers this dispute to trial to determine whether in
terms of paragraph 9.3 of the purchase agreement, that agreement
was
validly cancelled with consequential penalties.
Conclusion
- This
Court therefore concludes that it cannot conclude this dispute
between applicants and respondents simply on affidavits in
the light
of factual dispute that has arisen without hearing viva voce
evidence. That the interest of justice requires
hearing evidence
from relevant parties involved on whether the purchase agreement was
validly cancelled with consequential penalties.
This
Court therefore concludes that it cannot conclude this dispute
between applicants and respondents simply on affidavits in
the light
of factual dispute that has arisen without hearing viva voce
evidence. That the interest of justice requires
hearing evidence
from relevant parties involved on whether the purchase agreement was
validly cancelled with consequential penalties.
Costs
- Both
applicants and first respondent have asked for costs of this
application. It is this Court’s view, however, that conclusion
of this dispute after hearing oral evidence will give proper
guidance on the issue of costs, as costs go with the result.
Both
applicants and first respondent have asked for costs of this
application. It is this Court’s view, however, that conclusion
of this dispute after hearing oral evidence will give proper
guidance on the issue of costs, as costs go with the result.
Order
- Having
heard Attorney for applicants and Counsel for respondents, and
having read the notice of motion and other documents
file of record
Having
heard Attorney for applicants and Counsel for respondents, and
having read the notice of motion and other documents
file of record
IT IS ORDERED THAT:
1.
That a dispute envisaged in
clause 9.3 of purchase agreement exists
between
the parties.
2.
That the matter under case number 4957/22 is referred to trial to
determine whether the Team JP Estate Agents Agreement of Sale
was
validly cancelled in terms of clause 9.3 of said agreement or any
other relevant agreement by the parties with resultant penalties.
3. The
affidavits filed of record by the parties in this matter are
considered
for
purposes of this trial to be pleadings, subject to normal rules of
this Court.
4.
Costs will be costs in the cause.
SST KHOLONG
ACTING JUDGE OF THE
HIGH COURT
OF SOUTH AFRICA,
GAUTENG DIVISION
PRETORIA
Appearances:
For the
Applicant:
Ms. Nkosi of Nkosi (Nonhlanhla) Attorneys
For the
Respondent:
LJS Madiba for 1st Respondent
Instructed
by: Tuso Attorneys
Date Heard:
22 January 2024
Date Judgement delivered:
6 February 2024
[1]
1949
(3) SA 637
(A) at 651
[2]
[1984] ZASCA 51
;
1984
(3) SALR 623(A)
at 634H
[3]
1957
(4)SA 234 (c )
[4]
1949
(3) SA 1155
(T) at 1168
[5]
Op
cit 1162
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