Case Law[2024] ZAGPPHC 337South Africa
DMB Truck Hire (Pty) Ltd v Lwamalaji Logistics (Pty) Ltd (23459/2022) [2024] ZAGPPHC 337 (8 April 2024)
High Court of South Africa (Gauteng Division, Pretoria)
8 April 2024
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## DMB Truck Hire (Pty) Ltd v Lwamalaji Logistics (Pty) Ltd (23459/2022) [2024] ZAGPPHC 337 (8 April 2024)
DMB Truck Hire (Pty) Ltd v Lwamalaji Logistics (Pty) Ltd (23459/2022) [2024] ZAGPPHC 337 (8 April 2024)
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sino date 8 April 2024
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
IN THE HIGH COURT
OF SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
1.
REPORTABLE:
No
2.
OF
INTEREST TO OTHER JUDGES: NO
3.
REVISED:
YES
8 April 2024
CASE
NO :
23459/2022
In the matter between:
DMB
TRUCK HIRE (Pty)
Ltd
Applicant
(Registration Number:
2019/317180/07)
and
LWAMALAJI
LOGISTICS (Pty) Ltd
Respondent
(Registration Number:
2018/532894/07)
In Re
LWAMALAJI
LOGISTICS (Pty) Ltd
Plaintiff
(Registration Number:
2018/532894/07)
And
DMB
TRUCK HIRE (Pty)
Ltd
Defendant
(Registration Number:
2019/317180/07)
JUDGMENT
ERASMUS
AJ
INTRODUCTION
AND RELIEF SOUGHT BY THE PARTIES
1.
This matter concerns a dispute
that has been brewing between the parties since 2021. The centre to
this dispute is a contract that
was signed between the parties during
June 2021. The Respondent obtained default judgment during September
2022. This default judgment
order is the subject matter of the
current application.
2.
DMB TRUCK
HIRE (Pty) Ltd, being the Applicant in the application before the
Court, approach the Court in what can only be described
as a shotgun
approach for an order setting aside an order that was granted by the
Honourable Judge Phooko AJ on 12 September 2022.
In addition to
the rescission of the order dated 12 September 2022, the applicant
also seek an order for costs only in the
event that the application
is opposed.
3.
The Respondent strenuously
opposed the application by the Applicant, and are seeking an order
that the application be dismissed
on an attorney and client scale.
ISSUES
TO BE DETERMNED
4.
This Court is now called upon
to determine: -
4.1
Should the order dated 12
September 2022 be rescinded and set aside and the Applicant be
afforded the opportunity to oppose the
action;
4.2
Who should pay the costs of the
application, and the scale of the cost.
BACKGROUND FACTS
5.
On or about 22 June 2021 and at
Centurion, the Applicant and the Respondent entered into a written
Service Level Agreement (“the
Service Level Agreement”).
In terms of the Service Level Agreement, the Applicant was to lease a
truck and trailer to the
Respondent.
6.
The material and express
alternative
implied terms of the Service Level Agreement can be summarised as
follows:
6.1
The Service Level Agreement
commenced on 15 June 2021 despite the date of signature of the
agreement (clause 4);
6.2
The Service Level Agreement
will endure for a month to month basis and such period may be
extended by agreement between the parties
(clause 4);
6.3
Should either party wish to
terminate the agreement, the party wishing to cancel must provide a
month written notice of termination
to the other party (clause 4);
6.4
The Respondent would pay an
amount of R110 000.00 for a truck and trailer every month on the
15
th
of each month (clause 7);
6.5
The Respondent was to inform
the Applicant of the place where the services was to be rendered
(clause 5);
6.6
The Respondent was to ensure
that the Applicant had unimpeded access to the property where the
services was to be rendered (clause
5);
6.7
If either party to the Service
Level Agreement commits any act of insolvency or endeavours to
compromise generally with its creditors
the other party shall be
entitled to recover all costs incurred by it on an attorney and
client scale (clause 10).
7.
At the time of the conclusion
of the Service Level Agreement, the Applicant informed the Respondent
that it had no trucks available
but will outsource trucks from
another person. This agreement would be between the Applicant and a
third party. The Respondent
had no dealings with this third party.
8.
The Respondent concluded a
12-month agreement with Xwena Logistics. The truck and trailer that
forms the subject matter of the Service
Level Agreement was rented
for the purposes of complying with the terms of the agreement between
the Respondent and Xwena Logistics.
For the purposes of this
judgment, the further terms of this agreement is not relevant.
9.
In compliance with the terms of
clause 5 of the Service Level Agreement, the Respondent informed the
Applicant that the services
will be rendered at the premises of Xwena
Logistics.
10.
On collection of the truck and
the trailer, the Respondent informed the Applicant that the routes
that was initially indicated,
changed and the Respondent informed the
Applicant of the new routes where the truck and trailer will be used.
This is consistent
with clause 5 of the Service Level Agreement.
11.
The Respondent complied with
the terms of the Service Level Agreement and on 22 June 2021 the
Respondent paid to the Applicant the
first month’s rental in
the amount of R110 000.00 as per the agreement.
12.
Upon the indication that the
routes that will be used, the owner of the truck and trailer withdrew
its truck and trailer. I pause
to mention that the Applicant is not
the owner of the truck and trailer. The Respondent never concluded
any agreement with the
owner of the truck and trailer.
13.
The obligation in terms of the
Service Level Agreement to deliver the truck and trailer always
rested on the Applicant. This obligation
was not conditional on any
provisions.
14.
Despite the payment of the
first monthly rental and the compliance by the Respondent to inform
the Applicant about the site the
truck and trailer will be used, the
Applicant failed to deliver the truck and trailer as per the Service
Level Agreement.
15.
As a direct result of the
failure to deliver the truck and trailer, the Respondent could not
deliver the truck it needed in order
to comply with the terms of the
agreement concluded between itself and Xwena Logistics. The
Respondent was also, due to time constraints,
not able to secure
another truck and trailer in order to comply with its obligations in
terms of the agreement with Xwena Logistics.
16.
As a result of this breach,
which stems directly from the breach of the agreement by the
Applicant of the Service Level Agreement,
Xwena Logistics cancelled
the contract with the Respondent. As a result of this cancellation,
the Respondent lost the income that
it would have made from the
agreement between itself and Xwena Logistics.
17.
The damages suffered by the
Respondent is computed as follows:
17.1
The general contractual damages
in the amount of R110 000.00;
17.2
Special damages in the form of
loss of income in the amount of R541 500.00.
18.
On 28 September 2021 the
Applicant sought an extension to pay the Respondent back the amount
of R110 000.00.
19.
The contract between the
Applicant and the Respondent therefore was cancelled. The Respondent
contents that the reason for the cancellation
of the agreement was as
a result of the fact that the Applicant failed to deliver a truck and
trailer and the Applicant contents
that the reason for the
cancellation of the agreement is found in the fact that the premises
where the truck and trailer will be
used, changed.
THE ROUTE THE
LITIGATION FOLLOWED
20.
On or about 26 April 2022 the
Respondent instituted an action against the Applicant for the damages
it suffered as a result of the
breach of the agreement by the
Applicant. The claim was for the following relief:
“
1. That
the Defendant is ordered to pay the amount of R651 500 to the
Plaintiff.
2. Interest on
the abovementioned amount calculated at 7.50% from 22 June 2021 to
the date of final payment.
3. Costs of suit
against the Defendant on an attorney and client scale.
4.
Further/alternative relief.”
21.
The Combined Summons and the
Particulars of Claim was served on the Applicant on 6 May 2022 by way
of affixing it to the main gate
of the chosen physical address for
services of notices. The Return of Service by the Sheriff
specifically indicates that “
The
defendant moved to Monavoni confirmed by Mr Simon.”
22.
The
dies
induciae
expired on 20 May
2022. The Applicant did not file any Notice of Intention to
Defend the action against it.
23.
During June 2022 the Respondent
applied for default judgment.
24.
On 30 June
2022, and via e-mail, the Respondent’s attorneys of record
served the Final Notice of Set Down on the Applicant’s.
The Notice of Set Down was sent to the following email addresses:
in[…];
i[…]
;s[…];m[…].
25.
The Default Judgment was
initially set down for hearing on 13 July 2022. The Honourable Judge
De Vos J postponed the application
to 12 September 2022. The reason
for the postponement is not reflected in the evidence before me.
26.
On 18 July 2022 the Combined
Summons and Particulars of Claim was served on the registered address
of the Applicant.
27.
On 29 August 2022 the
Respondent’s legal representative and via e-mail to the
aforementioned addresses, provided the Applicant
with both the
Summons and the Set Down for the hearing on 12 September 2022.
The one email address is the email address elected
in clause 12.8.1
of the Service Level Agreement.
28.
The Applicant did not respond
to any of the emails.
29.
The matter proceeded and on 12
September 2022 the Honourable Judge Phooko AJ granted an order by
default (“the default judgment”
or “the 12
September 2022 order”). The order was granted in the following
terms:
“
1. That
the Defendant is ordered to pay the amount of R651 500 to the
Plaintiff.
2. Interest on
the abovementioned amount calculated at 7.50% from 22 June 2021 to
the date of final payment.
3. Costs of suit
against the Defendant on an attorney and client scale.
”
30.
The order was then emailed to
the Applicant on or about 26 September 2022. Despite the evidence
that the Court Order was served
on 26 September 2022, the Notice of
Motion is dated 13 September 2022. The affidavit was signed on 13
October 2022.
LEGAL PRINCIPLES &
CONCLUSION ON THE BASIS IN TERMS OF WHICH THE APPLICANT APPROACHES
THE COURT
31.
There are three avenues through
which rescission of a judgment can be obtained:
31.1
The
setting aside of a default judgment in terms of Rule 31 (2) (b); or
31.2
Rescission
of the judgment in terms of Rule 42; or
31.3
Rescission
under the common law.
32.
In the Founding Affidavit, the
Applicant does not state under which of these they bring their
application to set aside the order
by the Honourable Judge Phooko AJ
on 12 September 2022. Despite the fact that this aspect has not been
dealt with in the Founding
Affidavit, the Applicant states in
paragraph 1 of the Heads of Argument filed by it that its basis for
the rescission is “
in
terms of Rule 42 (1) (a), alternatively 32 (1) (b), and further
alternatively Common law,”.
As
I have already indicated above, this can only be described as a
shotgun approach. This approach creates the distinctive
impression that the Applicant itself knows that it is not entitled to
the order sought by it and try to achieve this goal to shoot
and hope
it hits the target.
33.
In light of the strategy
followed by the Applicant, I consider it prudent to briefly deal with
the three different avenues and the
requirements the Applicant have
to meet under any of these avenues. I state this, bearing in mind, of
course, that even if the
Applicant meets the requirements, the Court
retains a discretion as to whether rescission ought to be granted.
34.
I will now turn to briefly deal
with the requirements and reach the conclusion on the process in
terms of which the Applicant approaches
the Court for the relief
sought by it.
Setting
aside a default judgment under Rule 31 (2) (b)
35.
Rule 31 concerns default
judgments granted in action proceedings where a defendant has failed
to file a Notice of Intention to Defend
or a Plea after being barred.
A Defendant may, within 20 days of acquiring knowledge of the
judgment, apply for the Court to set
it aside, which the Court may
do, on good cause shown.
36.
Rule 31 finds application in
this matter, as the order which the Applicant wishes to have set
aside is an order that was granted
by default after its failure to
file a Notice of Intention to Defend.
Rescission
under Rule 42
37.
Rule 42 (1) of the Uniform
Rules of Court empowers a Court to rescind an order or judgment
erroneously sought or granted in certain
circumstances.
38.
Rule 42 (1) reads as follows:
“
Variation
and Rescission of Orders
(1)
The court may, in
addition to any other powers it may have, mero motu or upon the
application of any party affected, rescind or
vary:
(a)
An order or judgment
erroneously sought or erroneously granted in the absence of any party
affected thereby;
(b)
An order or q in which
there is an ambiguity, or a patent error or omission, but only to the
extent of such ambiguity, error or
omission;
(c)
An order or judgment
granted as the result of a mistake common to the parties.”
39.
A litigant
must establish the jurisdictional facts in subrule (1) of Rule 42
before a Court may exercise its discretion to set aside
the order.
[i]
40.
The Applicant failed to place
any of the jurisdictional factors before the Court in order to place
it within the ambit of Rule 42.
This Rule therefore clearly does not
find application in the current application.
Rescission
Under the Common Law
41.
Under the
common law, the Court is empowered to rescind a judgment obtained
on
default of appearance
,
provided sufficient cause for the default has been shown.
[ii]
The Appellate Division in
Chetty
held that the term “
sufficient
cause
”
(or “
good
cause”)
has
two elements for rescission of a judgment by default. These are
41.1
that
the party seeking relief must present a reasonable and acceptable
explanation for his default; and
41.2
that
on the merits such party has a
bona
fide
defence
which,
prima
facie
carries
some prospect of success.
[iii]
42.
For there
to be good cause, both of these elements must be met. A failure to
meet one of them may result in refusal of the request
to rescind.
[iv]
43.
On the consideration of the
evidence before me, it is clear that the Common Law also finds
application. I will therefore also consider
these requirements.
44.
In
addition: It is possible to rescind a final judgment at common law or
other, but very limited grounds, namely fraud and
iustus
error
.
[v]
Neither of these were
pleaded by the Applicant and, on the facts before me, neither is
present in the current matter.
45.
I will now turn and deal with
the evidence that was placed before me.
APPLICANT’S
EXPLANATION FOR ITS DEFAULT
46.
The first hurdle the Applicant
needs to cross is the explanation why it never defended the action
against it. The Applicant offers
the following explanation: “
The
summons was served at my old residential area, of which I no longer
reside at, even the Applicant area of my business was changed
due to
unforeseen circumstances that occurred between the property owner and
myself. The above-mentioned address in paragraph 2
is the current
address of the Applicant and the process of notifying all the clients
is underway.”
47.
It concludes by stating that
the Summons never came to its knowledge.
THE DEFENCES RAISED
BY THE APPLICANT WITH REFERENCE TO THE MERITS OF THE CLAIM AGAINST IT
48.
In an attempt to cross the
second hurdle to succeed with its quest to have the Judgment set
aside, the Applicant raises the following
: -
48.1
This Court does not have the
necessary jurisdiction as the parties agreed in the Service Level
Agreement to the jurisdiction of
the Magistrate’s Court (clause
10.3 of the agreement);
48.2
The termination of the Service
Level Agreement was as a result of the change of routes by the
Respondent;
48.3
There was no dispute about the
refund of the R110 000.00 and the Respondent simply could have
completed the refund forms and
gets his refund.
49.
During argument I allowed the
Applicant’s counsel to explore further grounds on which there
may be a
bona fide
defence
to the claim of the Respondent and the basis on which the order was
granted.
50.
At the
outset I need to emphasize that not even this attempt was successful
in assisting the Applicant to proof that it has a
bona
fide
defence
against the claim against it. I hasten to state that despite the fact
that these arguments were allowed, I am of the view
that if any
fruitful argument was raised, it will be a misdirection of this Court
to adjudicate this application on aspects that
was not canvassed by
the Applicant in its papers – neither in the founding papers
nor on reply. Parties cannot substantially
extend their case during
arguments. The other party is entitled to know what case they must
meet on the papers.
[vi]
That
being said, and as I have stated above, not even an extended argument
assisted the Applicant in its quest to have the default
judgment
order set aside.
APPLICATION OF THE
PRINCIPLES TO THE FACTS
51.
I have already indicated
that the applicant approached the Court in the widest possible sense.
I have dealt with the requirements
and already concluded that the
Applicant is before the Court either in terms of the provisions of
Rule 31 or the provisions of
the Common Law. Ruile 42 of the Uniform
Rules of Court does not find application for the reasons already
mentioned.
52.
I will turn to deal with the
requirements separately.
Explanation for
Default
53.
The first hurdle the Applicant
needs to cross is to provide the Court with a proper explanation for
its default.
54.
I have already indicated that
the version of the Applicant is that he left the chosen address and
that he is in the process of informing
his clients of his new
address. No further information is provided. This explanation by the
Applicant as to the reason for its
default is nothing other than
vague and sketchy.
55.
In terms of clause 12.8 of the
Service Level Agreement, the parties agreed as follows:
“
All notices and
any other communications whatsoever (including, without limitation,
any approval, consent, demand, query or request)
by either party in
terms of this Agreement or relating to it shall be given in writing,
and shall be sent by registered post, or
by delivery by hand to the
Parties at their relevant addresses as set out below.
12.8.1 If to Owner
Telefax:
0[…]
E-mail
Address:
M[…]
56.
Clause 12.11 goes further and
determines as follows:
“
The parties
choose as their physical address in clause 12.8 as their respective
domicilia citandi et executandi at which all documents
relations to
any legal proceedings to which they are a party may be served. If
those addresses are change to other addresses which
are not physical
address in the Republic of South Africa, then the original addresses
shall remain the domicilium citandi et executandi
until they nominate
a new physical address within the Republic of South Africa in
writing, to be its new domicilium citandi et
executandi.”
57.
The Applicant did not select a
physical address.
58.
In paragraph 1.1, however, the
registered office of the Applicant is indicated as “
C[…]
L[…], W[…] road, S[…]”
59.
The Summons was initially
served in terms of the provisions of Rule 4(1) (a) (iv). The address
where the service occurred is in
line with the address indicated in
paragraph 1.1 of the Service Level Agreement.
60.
In a further attempt to bring
the proceedings to the Applicant’s attention, the proceedings
were also served on the registered
business address. This is evident
from the Return of Service dated 18 July 2022.
61.
I have already dealt with the
explanation provided by the Applicant. The explanation by the
Applicant goes weak on detail. It does
not take me into its
confidence advising me as to when it left the chosen address. It
merely states it left the address. One would
expect that an applicant
will advise the Court in its Founding Affidavit as to when the move
happened.
62.
There is also no indication by
the Applicant what steps it took to provide a forwarding address or
its new address. It merely states
that it is in the process of
advising its clients of the new address. The reason why the Applicant
is so secretive about this information,
is unclear. The Applicant is
clearly aware of the fact that it needs to provide written notice of
the change of address. This especially
in light of the fact that it
is clear from the contents of the affidavit that the Applicant is
blissfully aware of the fact that
it needs to inform clients of the
change of address.
63.
This view is further supported
by the contents of clause 12.9 of the Service Level Agreement where
the parties agreed as follows:
“
Either party
may, by written notice to the other party, change any of the
addresses at which the designated person for whose attention
those
notices, or other communications are to be given.”
64.
Without taking the Court into
its confidence as to the time frames when it left the address and the
steps it took to inform its
clients (including the Respondent), I
cannot but to come to the conclusion that this is a hollow
explanation as to the default
of the Applicant.
65.
Merely to state that the
Summons did not come to its attention because it left the address and
think the Court will come to its
assistance is simply not sufficient.
66.
At this point I then need to
pause and state that the Applicant left the it to the Respondent to
place the relevant facts before
the Court. The Respondent states that
the Applicant on 29 November 2021 informed the clients of the
intended relocation to a new
business address, but that the numbers
and the email address remains the same. The relocation notice
reads as follows:
“
The purpose of
this letter is to notify you that DMB TRUCK HIRE will be moving to a
new location on 1 December 2021. As of that
date, we will be in
operation at new location, which is located just 7km away from the
current location. Our phone numbers and
email addresses will remain
the same, as well as our website address and social media accounts
kindly contact our office WhatsApp
number (0615367693) to request a
pin location. We looking forward to continuing to serve your needs
and fulfil our commitments
towards your business at our new
location.”
67.
This in itself is non-complaint
with the terms of the Service Level Agreement.
68.
What further adds insult to the
injury of the Applicant’s lack of a proper explanation as to
its default, is that it states
that the order of 12 September 2022
came to its knowledge as it was sent to it via email. What is,
however, left unaddressed in
the affidavits by the Applicant is the
fact that the Summons and the Set Down of the Default Judgment
application for 12 September
2022 was emailed to the very same
address to which the Court Order was send. There is absolutely no
explanation how the order came
to the attention of the Applicant but
not the Summons and the Notice of Set Down.
69.
I cannot turn a blind eye for
the lack of an explanation of this.
70.
The Applicant dismally failed
to give a proper explanation for its failure to enter an appearance
to defendant the action. The first
leg in order to succeed with the
application is therefore not met.
Bona fide defence
against the claim against it
71.
The second leg that needs to be
proved is that there is a
bona
fide
defence which,
prima
facie
carries some prospect
of success.
72.
I have already summarised the
three grounds raised by the Applicant illustrating that it has a
bona
fide
defence herein above.
I will deal with each and every ground separately.
73.
The first ground raised by the
Applicant is the ground of jurisdiction. In this regard the Applicant
presumably relies on clauses
10.3 and 13 of the Service Level
Agreement. It states that this Court does not have the necessary
jurisdiction to adjudicate the
matter as the parties agreed to the
jurisdiction of the Magistrate’s Court. In this regard the
following:
73.1
At the outset, the issue of
jurisdiction does not go to the heart of the defence against the
merits of the matter. This aspect does
not deal with the merits of
the matter. If a court finds in favour of the Applicant on this
argument, it will not mean it is the
end of the road for the
Respondent. The matter will then only proceed in a different forum.
This therefore cannot be a
bona
fide
defence to the merits
of the claim the Respondent has against the Applicant.
73.2
That being said, the terms of
clause 10.3 of the Service Level Agreement is clear. It reads as
follows:
“
In the event
that one party institutes legal action against the other party as a
result of this agreement, the party instituting
the legal action
shall have the right,
but
shall not be obliged
,
to institute legal action in any Magistrates court having
jurisdiction irrespective of the quantum of such claim and/or
action.”
[own emphasis added]
73.3
It is clear in the wording of
the clause, that the decision as to which court to approach is vested
in the person who approaches
the Court. There is nothing compelling
the Respondent to approach the Magistrates Court.
73.4
I do take a very dim view of
the fact that the Respondent is attempting to use this as clause in
order to create a
bona fide
defence where the wording
of clause 10.3 is clear. Especially where this aspect is not raised
in the Founding Affidavit or the Replying
Affidavit explaining why
this part of the agreement giving either party the decision which
court to appraoch should not find application.
This failure will have
a direct impact when I exercise my discretion when it comes to the
costs order.
73.5
In light of the fact that the
answer to this alleged defence is found in the wording of the
agreement, it is not necessary for me
to deal with the legal
principles of jurisdiction and the provisions of contract where the
parties agreed to the jurisdiction of
the Magistrates Court.
74.
The second ground raised by the
Applicant is that the agreement was cancelled as a result of the
change of the routes by the Respondent.
In this regard, the
following:
74.1
Without
saying it in so many words, this aspect raised by the Applicant
speaks to the claim for Special Damages as is claimed by
the
Respondent. This amounts to R541 500.00;
74.2
It
is common cause between the parties that at the time of the signature
of the Service Level Agreement, the Applicant had no trucks
available
to satisfy the terms of the agreement but it undertook to source the
necessary truck and trailer from a third party;
74.3
It
is further common cause that the Applicant then indeed did source the
relevant truck and trailer from a third party, and that
the
Respondent was not part of the agreement with the third party who
rented the truck and trailer to the Applicant.
74.4
The
Respondent cannot be bound by the terms of that agreement. The only
provisions that are binding between the Applicant and the
Respondent
is those found in the Service Level Agreement.
74.5
It
is common cause that the Respondent informed the Applicant of the
premises where the truck and trailer will be used. There is
no
dispute about the fact that the route where the truck and trailer was
to be used changed when the Respondent attempted to take
delivery of
the truck and trailer;
74.6
The
Service Level Agreement, with specific reference to the place where
the truck and trailer will be used, provides as follows:
“
Lessee
undertakes:
5.2
To ensure that the owner has unimpeded access to the property
where the Services are to be rendered.
5.5
To grant the owner full authority to access the Premises for
the purposes of carrying out the Services and protecting
renter’s
business, property and persons.
OPERATIONAL
OBLIGATIONS
·
The Truck and Trailer must
only operate within the borders of South Africa”
74.7
There
is no provision in the Service Level Agreement stipulating what the
Applicant wishes the case to be. There is no provision
in the Service
Level Agreement stating that the truck and trailer was to be used
only on a specific premises. I was during argument
also not directed
to such a provision in the Service Level Agreement.
74.8
The
only requirement is that the Respondent should inform the Applicant
of the premises and ensure the necessary access to the premises.
It
is common cause that this was done by the Respondent.
74.9
It
seems that the Applicant is attempting to enforce the terms of the
agreement it has with the third party onto the Respondent.
This can
never be, especially in light of the common cause fact that the
Respondent is not part of that agreement.
74.10
There
can be no doubt that the Respondent failed to adhere to the terms of
the agreement. As a result (which fact is not denied)
the Respondent
lost a contract as it could not provide the truck and trailer. There
is no evidence that this was as a result of
the actions by the
Respondent.
74.11
In
a further attempt to substantiate the rescission, the Applicant
expresses the view that the Respondent will be undue enriched
as the
Respondent is the sole course of the termination of the Service Level
Agreement. Enrichment is unjustified where there is
no sufficient
legal ground for the transfer of value from one state to the other or
the retention of such benefit.
74.12
This
ground is without any merits, and the Applicant failed to place
sufficient facts before the Court to illustrate this argument.
I have
already deal with the allegations that the Respondent is the cause of
the cancellation of the Service Level Agreement. This
can never be.
74.13
This
is without any merits.
75.
The third ground raised by the
Applicant in order to establish a
bona
fide
defence is that there
is no dispute for the refund of the R110 000.00. In this regard,
the following:
75.1
This in itself is an admission
of at least a portion of the order / indebtedness. There is no
defence to this amount raised. To
state that the Respondent should
have completed forms for the refund is not a defence.
75.2
This does not create a ground
for the recission of the judgment. The Applicant, in fact, admits to
the entitlement of the payment
of R110 000.00 in paragraph 7.2
of the Founding Affidavit.
75.3
That being said, this does not
raise a defence for the special damages claimed by the Respondent. I
have already herein above dealt
with the special damages.
75.4
It also needs to be mentioned
that the Respondent sketches a different picture. It proves that the
refund forms were indeed submitted
to the Applicant for the refund.
The Applicant asked the Respondent to complete the forms on 16 August
2021. On the forms it is
indicated that the refund will be made
within 14 days. On 26 September 2021 the Applicant acknowledged that
the Respondent completed
the forms. The Applicant pleaded to the
Respondent for more time to make the refund.
75.5
The undisputed facts are that
the Applicant admits the indebtedness to the Respondent in this
regard and despite the Respondent
taking the required steps, the
repayment by the Applicant was simply not forthcoming.
CONCLUSION ON THE
MERITS OF THE APPLICATION
76.
For the reasons mentioned I
find the following on the purported defences:
76.1
The argument that this Court
does not have jurisdiction is ill-founded. This does not create a
bona fide
defence
to the merits of the claim by the Respondent. No trial Court can come
to a different conclusion on this question and it
will be pointless
to test this question on trial. This does not raise a
bona
fide
defence;
76.2
There can be no doubt that
there is no provision in the Service Level Agreement that the truck
and trailer should be used at only
one specific premises. The only
requirement was that the Respondent should inform the Applicant and
provide access and that the
truck and trailer should be used within
the boarders of South Africa. If this is tested on trial, no other
outcome will be reached.
This is therefore not a
bona
fide
defence as is required
in terms of either the rules or the common law;
76.3
The Applicant admits that it is
indebted to the Respondent in at least the amount of R110 000.00.
The Applicant then attempts
to put a rider on this payment and states
that the necessary refund forms ought to be completed. The Respondent
illustrate that
this was done, but that the payment simply was not
forthcoming. This does not create a basis for a
bona
fide
defence. This confirms
the indebtedness for at least that portion of the judgment.
77.
For the reasons mentioned, I
cannot but to find that the Applicant failed to meet the requirements
to rescind the order dated 12
September 2022.
REQUEST FOR
PUNATIVE COSTS BY THE RESPONDENT
78.
The Respondent seeks and order
that the application be dismissed, and that the costs should be paid
by the Applicant on an attorney
and client scale.
79.
The terms of the Service Level
Agreement are clear. The party approaching the Court is entitled to
the costs on an attorney and
client scale. There are no facts before
me why I should deviate from this. In fact, the actions and the
fashion in terms of which
the Applicant approached the Court confirms
that a order should be made on an attorney and client scale.
CONCLUSION
80.
“
Like
all things in life, like the best of times and the worst of times,
litigation must, at some point, come to an end.”
[vii]
81.
For the reasons mentioned
herein above, the Applicant failed to place sufficient evidence
before the Court to have the order that
was granted by the Honourable
Judge Phooko AJ on 12 September 2022 rescinded. Any order for
rescission will unnecessarily drag
out the inevitable. Hopefully this
order will bring and end to the litigation between the parties.
ORDER
82.
The following order is
therefore made:
82.1
The application is dismissed;
82.2
The Applicant is to pay the
costs on an attorney and client scale.
Erasmus
AJ
Acting
Judge of the High Court of South Africa
Gauteng
Division, Pretoria
Appearances:
For
the Applicant:
Adv L Makgopa
Cell: 073 096 4392
For
the Respondent:
Adv A C Diamond
Cell: 083 704 4155
Date
of delivery:
8 April
2024
[i]
Minister
for Correctional Services v Van Vuren; In Re Van Vuren v Minister
for Correctional Services
[2011]
ZACC 9
;
2011 (10) BCLR 1051
(CC) at para 7
[ii]
Chetty
v Law Society, Transvaal
1985
(2) SA 756
(A) at 764
[iii]
Chetty
at
765
[iv]
Government
of the Republic of Zimbabwe v Fick
[2013]
ZACC 22
;
2013 (5) SA 325
(CC);
2013 (10) BCLR 1103
(CC) at para 85
[v]
Kr
Sibanyoni Transport Services CC v Sheriff, Transvaal High Court
[2005] ZAGPHC 118
;
2006
(4) SA 429
(T) at para 6. See, too, Harms in LAWSA, Volume 4, Third
Edition Replacement, at 601
[vi]
The
Constitutional Court, albeit in the context of raising new arguments
on appeal, noted the following basic principle in
Prince
v President of the Law Society of the Cape of Good Hope
[2000] ZACC 28
;
2001 (2) SA 388
;
2001 (2) BCLR 133
at para 22 : “
It
is not sufficient for a party to raise … only in the heads of
argument, without laying a proper foundation for such
a challenge in
the papers or the pleadings. The other party must be left in no
doubt as to the nature of the case it has to meet
and the relief
that is sought.”
[vii]
Zuma
v Secretary of the Judicial Commission of Inquiry into Allegations
of State Capture, Corruption and Fraud in the Public Sector
Including Organs of State
[2021]
ZACC 28
at para 1
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