Case Law[2024] ZAGPPHC 293South Africa
Nissan South Africa (Proprietary) Ltd v Senyatsi (1319/21) [2024] ZAGPPHC 293 (22 March 2024)
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Nissan South Africa (Proprietary) Ltd v Senyatsi (1319/21) [2024] ZAGPPHC 293 (22 March 2024)
Nissan South Africa (Proprietary) Ltd v Senyatsi (1319/21) [2024] ZAGPPHC 293 (22 March 2024)
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sino date 22 March 2024
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: 1319/21
REPORTABLE: NO
OF
INTEREST TO OTHER JUDGES:NO
REVISED:
NO
Date:
22 March 2024
In
the matter between:
NISSAN
SOUTH AFRICA
(PROPRIETARY)
LTD
PLAINTIFF
AND
SENYATSI,
BENNITA PHASHA
RESPONDENT
JUDGMENT
THIS
JUDGEMENT HAS BEEN HANDED DOWN REMOTELY AND SHALL BE CIRCULATED TO
THE PARTIES BY WAY OF E- MAIL/ UPLOADING ON CASELINES. ITS
DATE OF
HAND DOWN SHALL BE DEEMED TO BE 22 MARCH 2024
NTANGAAJ:
1.
This is an
application of absolution from the instance in
i
tiated
by the Defendant after Plaintiff had closed its case
.
This
application is made
i
n
terms of Rule 39(6) of the Uniform Rules regulating the conduct of
proceedings of the several Provincial and Local
Divisions of the
Supreme Court of South Africa.
2.
This matter commenced
for trial proceedings on March 11
,
2024.
Plaintiff lead evidence by calling one witness and thereafter closed
its case on the second day of proceedings
on March 13
,
2024
.
3.
Subsequently
,
Defendant
indicated her intention to apply for absolution from the instance
,
which she did
.
4.
Defendant argued that
Plaintiff
i
s
required to make a prima facie case and it has failed to do so. Its
failure justifies Defendant in bringing this application.
Defendant
argued that Plaintiff
failed to call witnesses who were directly involved in drafting and
execution of the JICA Agreement
,
and this
failure is fatal to Plaintiff's case.
5.
Defendant further
argued that Plaintiff's case
i
s
founded on the agreement for participating in the African Business
Education Initiative for Youth (ABE) of the Japan International
Cooperation Agency ("JICA Agreement
"
)
.
Defendant
argues that Plaintiff cannot go beyond clause 14 of the JICA
Agreement.
6.
Defendant argued that
clause 14 is a resolutive clause and that once a new contract was
entered into the JICA Agreement ceased to
exist. Clause 14 of the
JICA Agreement provides that:
"14.
The Employee acknowledges that after completion of the Program
,
this Agreement
shall become null and void and provisions of the new Agreement to be
entered into between the Parties shall apply."
7.
Defendant also argued
that Plaintiff had failed to prove quantum as it merely relied on the
spreadsheet. Defendant argues that the
amounts in the spreadsheet are
based on a miscalculated average net monthly stipend of R25 806.94.
Defendant argues that this net
monthly average is for twenty-six
months and for thirty months the net monthly average for thirty
months should be R22 366
.
00.
Secondly, Defendant argues that payment for the programme was made by
Nissan Global not Nissan South Africa as alleged.
8.
Defendant also
disputes Plaintiff's claim that it made payment for the flight
tickets and argues that what was produced during Plaintiff's
evidence
was an invoice from Global Business Travel (American Express) and
this is not a proof of payment for the flight tickets.
9.
Defendant finally
argued that Plaintiff failed to prove existence of
the contract it
relied on and that it failed to lead evidence on the quantum.
Defendant argues that there are no proven damage on
the part of the
Plaintiff.
10.
Plaintiff responded
by arguing that the issue is whether Plaintiff has made out a prima
facie case or not. It argued that its evidence
has established
a prima facie case.
It argued that it is absurd to expect
it to bring the
person who effected payment of the expenses which are the subject of
its claim against the Defendant. It argued
that Defendant did not
dispute that she received the stipend.
11.
Plaintiff argued that
the evidence of hearsay is
i
ncorrect.
Plaintiff referred to clause 3
.
3
of JICA Agreement which reads
:
"
3.3
NSA envisages that the Program will contribute to its long-term
strategy and viability
,
and the
Program will assist the Employee to develop an active role within NSA
managerial structures after the Employee gains experience
during the
Program.
"
12.
Pla
i
ntiff
argued that the purpose of the program was to train Defendant to
enable her to make valuable contribution to Plaintiff
.
Plaintiff
further argued that the contract must be interpreted in reference to
its context and purpose.
13.
Crisply
,
this Court is
required to determine whether Plaintiff has established a prima facie
case
.
Should
the finding be that prima fac
i
e
has been established, then the application for absolution from the
instance will not succeed
.
Should the
Court find that Plaintiff failed to establish a prima facie case
,
then the
application for absolution from the instance will succeed.
14.
Further this Court is
called upon to determine whether the Plaintiff established
a prima facie case
for its quantum.
Should
the finding be in the negative
,
then the
application from absolution from the instance
should succeed
,
if the finding
is that a prima
facie case has been
established to prove a quantum
,
then the
application should not succeed.
15.
Rule 39(6) provides
that:
"
At
the close of the case for the Plaintiff
,
the defendant
may apply for absolut
i
on
from the instance
,
in which event
the defendant or one advocate
on
his behalf
may
address
the
court
and
the plaintiff
or
one advocate on his behalf may reply. The defendant or his advocate
may thereupon reply on any matter arising out of the address
of the
plaintiff or his advocate."
16.
In commentary of
Uniform Rules of Court, Erasmus states that:
"In
deciding
whether absolution from the instance should be
granted
at
the close of plaintiffs case it must be assumed
that,
in the absence of very special considerations, such as the inherent
unacceptability of the evidence adduced, the evidence
is true".
[1]
Erasmus further states in the commentary
that
"The
court
will
refuse
the application unless it is satisfied that that no reasonable court
could draw the inference for which the plaintiff contends.
The court
is not required, in the case of application for absolution at the end
of the plaintiffs case, to weigh up different possible
inferences,
but merely to determine whether one of the reasonable
inferences
is in favor of the plaintiff.
[2]
17.
In
Claude Neon Lights (SA) Ltd v Daniel
[3]
the
then Appellate Division formulated the test for absolution as
follows:
"When
absolution from the instance
is
sought at the
close of the plaintiffs
case,
the test to be
applied
is
not whether
the
evidence led by the plaintiff established what would finally be
required to be established, but whether there is evidence upon
which
a Court, applying its mind reasonably to such evidence
,
could or might
(not should or ought to) find for the plaintiff."
18.
In the application test set
out in the Claude Neon Lights (SA) Ltd v Daniel decision, in this
case it is common cause that Plaintiff
entered
the
JICA
Agreement.
After
conclusion
of
the
JICA
Agreement,
Defendant attended the training programme in Japan
as envisaged in the
JICA Agreement. Stipend was paid to the Defendant in accordance with
the JICA Agreement. Flight tickets for
Defendant's travel were issued
through American Express, a
service provider of
the Plaintiff.
19.
Defendant disputes
that expenditures related to flight tickets and
the program were paid
by the Plaintiff. In this regard Defendant argues that Plaintiff has
failed to lead evidence on quantum or
causality. Defendant
substantiated this by arguing that Plaintiff
failed to call people
who made payment as witnesses.
20.
What is clear is that
the JICA Agreement regulated obligations of both Plaintiff and
Defendant. In the main Plaintiff undertook
to subsidize the program
by covering personal expenses for traveling to Japan and a stipend in
lieu of a salary. Plaintiff also
undertook that after completion of
the Program it shall, based on the
availability of roles
upon Defendant's return, endeavor to provide
the Defendant with a
role like and at the same job level the Defendant occupied upon her
departure
.
21.
It is a common cause
that upon Defendant's return from the Program she was offered a new
employment contract to which she accepted
and continued to work for
Plaintiff for fifteen months. It is Defendant's contention that this
new contract of employment brought
an
end
to
the
JICA
Agreement
and
that
the
JICA Agreement became
null and void as contemplated in clause 14.
22.
This Court is then
required to decide after taking all of this evidence adduced on
behalf of Plaintiff, whether a prima facie case
has been established.
In simple terms, this court is to make an evaluation of whether
Defendant has a case to answer
.
23.
In making an
evaluation of Plaintiffs case this court is bound to follow the test
outlined in the Claude Neon Lights (SA) ltd
v Daniel decision
.
This Court
must determine whether Plaintiffs evidence places
it in a position
where it could
or might
find for the
Plaintiff
.
On
evaluation of Plaintiffs evidence, JICA Agreement was entered into
between the parties to achieve two purposes
,
firstly
,
to develop
Defendant's
skill
and capability to serve the Plaintiff.
Secondly
,
upon
completion of the Program it appears that the parties intended for
Defendant to apply her improved skill for the benefit of
the
Plaintiff. The JICA Agreement seems to have been entered into to
benefit both Plaintiff and Defendant. It does not seem to
have been
entered into to benefit one party to the agreement.
The program was
undertaken for the purpose of contributing to Plaintiffs long
term strategy.
24.
For the purposes of
determination of absolution from the
i
nstance
it is not necessary at this stage to determine whether Plaintiff has
proved its case on a balance of probab
i
lities.
It suffices for this court to enquire whether Plaintiff has
established a prima facie case
.
25.
Both
Plaintiff and Defendant submitted that this Court should follow the
interpretation principle set out in Natal Joint Municipal
Pension
Fund v Endumeni Municipality
[4]
where the Court set out the proper approach to interpretation
principle as follows
:
"
[18)
Whatever the nature of the document
,
consideration
must be given to the language used in the light of the ordinary rules
of grammar and syntax; the context in which
the provision appears
;
the apparent purpose
to which it is directed and the material known to those responsible
for its production. Where more than one
meaning
is
to
be
preferred
to
one
that
leads
to
insensible
or
unbusinesslike
results or undermines the apparent purpose of the document.
Judges
must be alert to
,
and guard
against
,
the
temptation to substitute what they regard as reasonable or
businesslike for the words used
,
The
'
inevitable
point of departure is the language of the provision itself
,
-read
in context and having regard to the purpose of the provision and the
background to the preparation and production of the document.
"
[5]
26.
Plaintiff
relied on the matter of National Health Laboratory Service v Mariana
Lloyd
-
Jansen
van Vuuren
[6]
.
In
this decision the Supreme Court of Appeal stated that the law of
interpretation has evolved since the decision of Coopers &
Lybrand & Others v Bryan
t
[7]
where
the court set out the principles of interpretation as follows
:
"
The
correct approach to the application of the
"
golden
r
ule
"
of
i
nterpretation
after having ascertained the literal meaning of the wo
r
d
or phrase
i
n
question is
,
broadly
speaking
,
to
have regard
:
(1)
to the context in
which the wo
r
d
or phrase is used with its
i
nterpretation
to the contract
,
including
the nature and
purpose of the contract.
(2)
to the background
circumstances which explain the genesis and purpose of the contract
,
i.e. to
matters probably present to the minds of the parties when they
contracted .
..;
and
(3)
to apply extrinsic
evidence regarding the surrounding circumstances
when the language of
the document is on the face of it ambiguous
,
by considering
previous negotiations and correspondence between the parties
,
subsequent
conduct of the
parties showing the sense in which they acted on the document
,
save direct
evidence of their own intentions.
"
27.
The
Court
in
National
Health
Laboratory
Serv
i
ce
v
Mar
i
ana
Lloyd-Jansen van Vuuren followed decision of Bothma-Batho Transport
(Edms) Bpk v S Bothma & Seun Transport (Edms) Bpk
[8]
where the court held that:
"
Whilst
the starting point remains the words of the document
,
which are the
only relevant med
i
um
through which the parties have expressed their contractual
intentions
,
the process of
interpretation does not stop at a perceived literal meaning of those
words but considers them in the light of all
relevant and admissible
context
,
including the
circumstances
in
which the document came into
being
.
The former
distinction between permissible background and surrounding
circumstances
,
never very
clear
,
has
fallen away. Interpretation is no longer a process that occurs in
stages but is
'
essentially
one unitary exercise
'
.
Accordingly
,
it is no
longer helpful to refer to the earlier approach.
"
28.
In
considering whether novation has occurred
,
the
Court
i
n
National Health Laboratory Service v Mariana Lloyd-Jansen van Vuuren
stated that the court is entitled to have regard to the conduct
of
the parties
,
i
ncluding
any evidence relating their intention
.
[9]
29.
The issue raised by
the Defendant is that when applying the language interpretation to
the JICA Agreement
,
clause 14 is
unambiguous and that it became null and void at its termination.
Defendant further argued that the new contract of
employment brought
an end to the JICA Agreement.
30.
This was disputed by
Plaintiff who argued that
i
n
applying the Natal Joint Municipal Pension Fund v Endumeni
Municipality judgment
,
this Court
must in addition consider the context and purpose which gave rise to
the JICA Agreement.
31.
Plaintiff's witness
explained the context and purpose of the programme which gave rise to
the JICA Agreement. On evaluation of Plaintiff's
evidence
,
I am of the
view that a prima facie case has been established and Defendant has a
case to answer
.
I must point
out that the court is not making a finding on whether Plaintiff has
proved its case on a balance of probabilities
.
It will be
premature to make such a finding.
32.
The Court is not in a
position to pronounce
on
credibility of evidence adduced as that may upset trial proceedings
prematurely.
33.
With
regard to the quantum
,
the
court in Claude Neo Lights (SA) Ltd v Daniel stated that "If in
the Court below
,
respondent's
counsel had applied for absolution from the instance on the ground
that insufficient evidence as to damages had been
led
,
it
would unquestionably have been open to appellant to attempt to meet
that argument by asking leave to re-open his case for the
purpose of
leading further evidence relative to quantum loss
."
[10]
34.
In this matter
,
no application
was made for
re-opening
the
case after
Defendant
had
argued
for
absolution
from
the
instance
both
on merits and
quantum. Plaintiffs damages claim arise from three categories,
namely:- (i) Programme expenses; (ii) Stipend paid
in
lieu of
salary; and (iii) Flight ticket expenses from Johannesburg to Japan.
35.
Defendant argued that
Plaintiff failed to adduce evidence to prove that it has paid for
these expenses. Her submission was that
Plaintiffs
witness
could
not testify
on payment
of these
expenses as he is not
the person who actually made payments. Plaintiffs witness did concede
that he is not the person that actually
pressed a button to
effect payment, his testimony was limited to his knowledge that the
expenses were approved for payment. He testified
that all the
expenses were paid by Plaintiff and the source of funds was income
derived from selling cars.
36.
Whilst Defendant
placed a version that programme expenses were paid by Nissan Global,
no version was placed on the Plaintiffs witness
as to who paid for
the stipend and flight tickets. Plaintiff bears the onus to prove its
damages, however, at this stage of
the
proceedings,
the Court is not able to make a finding of whether damages have been
proved.
37.
I am satisfied that
Defendant has a case to answer regarding the damages claimed by the
Plaintiff. The Court is of the view that
a prima facies case for
damages has been established.
I
must point out
that this is not a finding that Plaintiff has proved its damages.
38.
I therefore make the
following order
:
1.
The application is
dismissed
.
2.
The Defendant is
directed to pay the costs of the application
.
M
NTANGA
ACTING
JUDGE OF THE HIGH COURT
PRETORIA
DIVISION
Date
of Hearing
:
13
March 2024
Date
of Judgement:
22
March 2024
Appearances
:
Applicant's
counsel:
Adv
M R Maphuthu
Respondent's
counsel:
Adv
De Han
[1]
Erasmus,
Superior Court
Practice
,
second
edition, volume 2
at
D1-531.
[2]
Erasmus,
Superior Court
Practice
,
second
edition, volume 2 at
D1-532.
[3]
Claude
Neon Lights (SA)
Ltd
v
Daniel
1976
(4)
SA 403
(A).
[4]
N
a
t
a
l
Join
t
Muni
ci
p
a
l
P
e
n
s
ion
F
u
n
d
v
E
ndum
e
n
i
M
un
ici
p
a
li
ty
20
1
2
(4) SA 262
(SCA)
.
[5]
Nata
l
Joint
Munici
p
al
Pe
n
sion
F
u
n
d
v
En
du
meni
Municipality
2012
(4)
SA 262 (SCA).
[6]
National
Hea
l
t
h
Laboratory
Service v Maria
na
Lloy
d
-Jansen
van Vuuren 2015 (5) SA 426 (SCA).
[7]
Co
op
e
r
s
& Ly
b
rand
& Ot
h
ers
v
B
ryant
1995 (3) SA 761 (A).
[8]
Bo
t
hm
a-
B
atho
Tra
n
s
p
o
rt
(E
dm
s)
Bp
k
v S
Bo
t
hm
a
& Se
un
Tr
an
s
po
rt
(E
d
ms)
Bp
k
20
1
4
(2) SA
49
4
(SCA).
[9]
N
ation
al
Hea
lth
L
abora
t
o
ry
S
ervic
e
v
M
a
ri
a
n
a
Lloy
d-
Janse
n
van
Vu
u
ren
2015 (5) SA 426
(
S
CA)
.
[10]
C
laud
e
Neo
n
L
i
g
h
ts
(SA) Lt
d
v
D
anie
l
1
9
76
(4)
SA 403 (A).
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