Case Law[2024] ZAGPPHC 541South Africa
Natcorp Specialised Logistics Solutions (Pty) Ltd v Mercedes-Benz Financial Services SA (Pty) Ltd (38313/2018) [2024] ZAGPPHC 541 (13 June 2024)
High Court of South Africa (Gauteng Division, Pretoria)
13 June 2024
Headnotes
the Common law principles that are applicable to the rescission a default judgment also apply to the setting aside of the Taxing Master’s allocator. Although the specific relief that the applicant seeks in this application is the setting aside of the taxation that preceded the Taxing Master’s allocatur here concerned, the application is essentially one for the setting aside of the allocatur.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
South Africa: North Gauteng High Court, Pretoria
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## Natcorp Specialised Logistics Solutions (Pty) Ltd v Mercedes-Benz Financial Services SA (Pty) Ltd (38313/2018) [2024] ZAGPPHC 541 (13 June 2024)
Natcorp Specialised Logistics Solutions (Pty) Ltd v Mercedes-Benz Financial Services SA (Pty) Ltd (38313/2018) [2024] ZAGPPHC 541 (13 June 2024)
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sino date 13 June 2024
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: 38313/2018
(1)
REPORTABLE: YES/
NO
(2)
OF INTEREST TO OTHER JUDGES: YES/
NO
(3)
REVISED: YES
DATE:
23/06/2024
SIGNATURE
In
the matter between:
NATCORP
SPECIALISED LOGISTICS SOLUTIONS (PTY) LTD
Applicant
and
MERCEDES-BENZ
FINANCIAL SERVICES SA (PTY) LTD
Respondent
In
re:
NATCORP
SPECIALISED LOGISTICS SOLUTIONS (PTY) LTD
Applicant
and
MERCEDES-BENZ
FINANCIAL SERVICES SA (PTY) LTD
Respondent
JUDGMENT
DELIVERED ON 13 JUNE 2024
CP
WESLEY AJ
1.
In this application the applicant seeks an order that the taxation
that took place on 4 March 2021 in terms of which the respondent’s
Bill of Costs was taxed in the amount of R257 957.47
is
rescinded and set aside,
alternatively
, is declared void
ab
initio
. The applicant also seeks a cost order against the
respondent in the event of opposition.
2.
The respondent opposes the application. In its answering affidavit
the respondent seeks an order that the application is dismissed with
costs.
3.
When the application was called in court for hearing on 21 May 2024,
there was no appearance for the applicant.
4.
The applicant’s case is premised on the allegation in its
founding
affidavit that its attorney, Mr Marius Du Preez of Minnie Du
Preez Incorporated, “
did not receive any knowledge of the
proposed taxation”
, and accordingly that the applicant had
no knowledge thereof. According to the applicant, this amounted to a
breach of the
audi alteram partem
rule as the applicant was
not given an opportunity to be heard at the taxation. The applicant
avers that the taxation was accordingly
void and that it does not, in
the circumstances, have to disclose a
bona fide
defence in its
application in order to succeed. In accordance with this, the
applicant has not disclosed a defence in its papers.
5.
As submitted by counsel for the respondent, whether or not Mr Du
Preez himself had knowledge of the intended taxation is not the
issue. The issue is whether proper notice of the intended taxation
was given to the applicant by the respondent. Whilst Mr Du Preez may
or may not have known of the intended taxation, the allegation
that
the applicant did not receive notice of the intended taxation is
false. In its answering affidavit the respondent demonstrates
that
the requisite notice of the taxation was served on Mr Du Preez’s
correspondent attorneys in Pretoria on 31 July 2020,
and that the
correspondent attorneys then forwarded same to Minnie Du Preez
Incorporated on 3 August 2020 by way of email. Notice
of the taxation
was thus properly given to and received by the applicant’s
attorneys, and accordingly the applicant as well.
6.
The applicants did not deliver a replying affidavit in order to rebut
the content of the respondent’s answering affidavit as
foresaid.
7.
In
Gründer
v Gründer and another
,
[1]
it was held that the Common law principles that are applicable to the
rescission a default judgment also apply to the setting aside
of the
Taxing Master’s allocator. Although the specific relief that
the applicant seeks in this application is the setting
aside of the
taxation that preceded the Taxing Master’s allocatur here
concerned, the application is essentially one for
the setting aside
of the allocatur.
8.
The principles that are applicable to an application for the
rescission
of a default judgment under the Common law were stated in
Colyn
v Tiger Food Industries Ltd t/a Meadow Feed Mills Cape
,
[2]
in the following terms (references omitted):
“
In
order to succeed an applicant for rescission of a judgment taken
against him by default must show good cause ... . The authorities
emphasize that it is unwise to give a precise meaning to the term
good cause. As Smalberger J put it ... :
‘
When
dealing with words such as “good cause” and “sufficient
cause” in other Rules and enactments the Appellate
Division has
refrained from attempting an exhaustive definition of their meaning
in order not to abridge or fetter in any way the
wide discretion
implied by these words ... . The Court's discretion must be exercised
after a proper consideration of all the relevant
circumstances.’
With
that as the underlying approach the courts generally expect an
applicant to show good cause (a) by giving a reasonable explanation
of his default; (b) by showing that his application is made
bona
fide
; and (c) by showing that he has
a
bona fide
defence
to the plaintiff's claim which
prima
facie
has some prospect of success
... .”
9.
The false explanation that was given by the applicant for its failure
to attend the taxation
that
took place on 4 March 2021 has already been addressed herein above.
By giving a false explanation for its default, the applicant
has
negated any possibility of the court finding that the applicant has
given
a
reasonable explanation for its default or that the application is
made
bona
fide
.
In addition, even if the applicant had given a reasonable explanation
of its default and had shown that its application was made
bona
fide
,
the fact that it has not even attempted put up
a
bona
fide
defence in its application is fatal, because
“
a
party showing no prospect of success on the merits will fail in an
application for rescission of a default judgment against him,
no
matter how reasonable and convincing the explanation of his
default.”
[3]
10.
The application accordingly falls to be dismissed.
11.
In argument counsel for the respondent sought a cost order against
the applicant
on the attorney and own client scale. In answer to a
query from the court counsel for the respondent readily conceded that
it did
not give notice to the applicant that it would be seeking such
a cost order against the applicant, whether in its answering
affidavit
or otherwise. Absent any such notice, the court is not
inclined to award costs against the applicant on the attorney and own
client
scale.
12.
Costs should, however, follow the cause and the respondent is thus
entitled
to a cost order against the applicant. This cost order will
be on the party and party scale.
13.
Taking all of the circumstances into account, the party and party
cost award
to the respondent falls to awarded on Scale C in terms of
Rule 69A.
14
.
In the result I make the following order:
14.1
The application is dismissed.
14.2
The applicant is to pay the respondent’s costs on the party and
party scale, and
on
Scale C in terms of Rule 69A.
CP
WESLEY
ACTING
JUDGE OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
Appearances
For
applicant:
No
appearance
For
the respondent:
SG
Maritz SC
instructed
by Strauss Daly Attorneys
Date
heard:
21
May 2024
Date
of Judgment:
13
June 2024
[1]
1990
(4) SA 680
(C).
[2]
2003
(6) SA 1
(SCA)
at para 11.
[3]
Chetty
v Law Society, Transvaal
(1985) 2 SA 756
(A) at 765 D-E.
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