Case Law[2024] ZAGPPHC 856South Africa
Roodt N.O v Registrar of Deeds Pretoria and Others (292/2022) [2024] ZAGPPHC 856 (29 August 2024)
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by Deed of Transfer No. [……] situated at […..]
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Roodt N.O v Registrar of Deeds Pretoria and Others (292/2022) [2024] ZAGPPHC 856 (29 August 2024)
Roodt N.O v Registrar of Deeds Pretoria and Others (292/2022) [2024] ZAGPPHC 856 (29 August 2024)
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sino date 29 August 2024
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: 292/2022
(1) REPORTABLE:
YES/NO
(2)
OF INTEREST TO OTHER JUDGES: YES/NO
(3)
REVISED: YES/NO
DATE:
29-08-2024
SIGNATURE:
PD. PHAHLANE
In
the matter between:
NATASJA
MELINDA ROODT N.O
Plaintiff
And
[………………]
(born
………….)
First
Defendant
[……………..]
(previously
……….) (born ……………)
Second
Defendant
REGISTRAR
OF DEEDS, PRETORIA
Third
Defendant
MASTER
OF THE HIGH COURT,
PRETORIA
Fourth
Defendant
MARLE
BOTHA
Fifth
Defendant
ABSA
BANK LIMITED
Sixth
Defendant
Delivered:
This
judgment and order were prepared and authored by the Judge whose name
is reflected herein and is handed down electronically
by circulation
to the parties’ legal representatives by email and by uploading
it to the electronic file of this matter on
Case Lines. The date of
the judgment is deemed to be
29 August 2024
Judgment
PHAHLANE,
J
Introduction.
[1]
The plaintiff
herein acting in her capacity as the executrix of the
deceased estate of the late Mr. [……],
instituted
these action proceedings for purposes of determining ownership of the
fixed property situated in
Valhalla, Pretoria,
so
that she can
be in a position to liquidate and
distribute the deceased’s estate.
The
matter is opposed by the second defendant only.
The
Plaintiff seeks an Order in the following terms:
1.
“
That the REGISTRAR OF DEEDS, PRETORIA be directed to amend
its records and endorse the title deeds of the below-mentioned
property,
to reflect that:
1.1
The Second Defendant's ownership of an undivided half share in the
immovable property known as Erf [……], City of Tshwane
Metropolitan Municipality, Gauteng measuring 1486 square metres, held
by Deed of Transfer No. [……] situated at […..]
Road, […..], Pretoria ("the property") terminated on
15 December 1995, being the date of the divorce between herself
and
the late Mr. [……….] with identity number […..]
("the deceased").
1.2
The deceased and the First Defendant each became owner of an
undivided half share in the property on 16 November 1996, being the
date of marriage between the First Defendant and the deceased; and
1.3
The First Defendant became the sole owner of the property on 29
November 2020, being the date of the deceased' demise.
2.
Costs of suit.
3.
Further and/or alternative relief”.
Common
cause facts and Factual background.
[2]
It is common cause that:
-
(a) The
deceased and the second defendant (“the ex-wife”) were
married in community of property. While married,
they acquired
immovable property which was then registered on 8 November 1991 in
both their names, with each owning an undivided
half share in the
property.
(b) The
deceased and the ex-wife got divorced on 15 December 1995 but had
prior to the divorce on 6 December 1995, entered
into a settlement
agreement, which provided,
inter alia,
for the division of
their joint estate. A decree of divorce incorporating the settlement
agreement was then granted.
(c)
Subsequent to the divorce, the ex-wife moved out of the property and
the deceased continued to reside at the property
and continued to pay
for the:
(i)
mortgage loan in respect of that property
(ii)
maintenance and upkeep of the property; and
(iii)
monthly
municipal utilities in respect of the property. The ex-wife disputes
this in her plea.
(d) On 16
November 1996 the deceased married the first defendant (“the
widow”) in community of property.
The widow moved into the
property and resided there with the deceased, and they used the
property as their matrimonial home throughout
their marriage. On 20
March 2008 the deceased and the widow concluded a “Joint Will”
in which the deceased bequeathed
his entire estate to the widow, and
thus entitling her to acquire the deceased's undivided half share in
the property upon his
death. The deceased and the widow remained
married to each other for twenty-four (24) years until the death of
the deceased on
29 November 2020.
(e) On 25
January 2021, the Master of the High Court issued a letter of
executorship and appointed the plaintiff as
the executor and
authorised her to liquidate and distribute the joint estate of the
deceased and the widow.
[3]
Subsequent thereto, the property was placed on the open market for
sale and the plaintiff
as the executor of the deceased’s estate
was presented with an offer to purchase. The fifth defendant was the
intended purchaser
of the property in terms of the Deed of Sale. It
was only after the offer to purchase was made that the plaintiff
realized that
the property was still registered in the name of the
deceased and the ex-wife.
[4]
The plaintiff avers that this was an oversight on the part of the
deceased because after
the divorce, the deceased seemingly failed to
comply with the provisions of section 45bis of the Deeds Registries
Act, 47 of 1937
("the Deeds Act"), to have the property
endorsed by the Registrar to reflect on the title deed that the
property was
solely owned by the deceased after the divorce.
4.1
The plaintiff contends that in accordance with the divorce settlement
agreement, the deceased
took ownership of the ex-wife’s
undivided half share in the property after paying her in respect of
her half share of the
joint estate. The plaintiff took the witness
stand and gave
viva voce
evidence in support of her case.
The
Evidence
[5]
The plaintiff is an employee at FNB Fiduciary Services and has been
holding the position
or title of the deceased estate manager for more
than 17 years. Apart from overseeing the administration of the
deceased estate
as part of her duties, she is also responsible for
assisting the estate administrators with the interpretation of Wills.
As the
executor of the deceased’s estate in the current matter,
she received various documents, including the Joint Will of the
deceased and the widow, which they signed on 20 March 2008 in
Pretoria.
5.1 She testified that in
terms of clause 2 of the Joint Will, the deceased as the first dying
spouse bequeathed his estate to the
widow as the surviving spouse
-
thus entitling the widow to inherit his entire estate. The Joint Will
further stipulates how the estate should devolve in case
the last
dying spouse does not leave a further Will, in which case, the estate
is to be divided in three equal shares to his daughter
and two
brothers.
[6]
What stands out in this Joint Will is that the deceased refers to the
property as “My
Property” (“
My Eiendom”)
,
which according to the witness means that the deceased is the owner
of the property. Clause 2 provides as follows:
“
2. Ons bemaak
die boedel van die eerssterwende van ons aan die langslewende van ons
mits hy of sy in die lewe is op die sewende
dag na die dood van die
eerssterwende van ons. Indien hierdie bemaking in gebreke bly of
indien die langslewende van ons nie 'n
latere geldige Testament
nalaat nie, bemaak ons in enige sodanige geval ons onderskeie
boedels, soos volg:
(a) Ek, die Testateur,
bemaak my boedel soos volg;
(i) in gelyke dele aan
my dogter […...], my broer [……] en my broer [……]
of die langslewendes
van hulle, die volgende:
-
my vaste eiendom
gelee te [………] Valhalla”
[7]
The plaintiff further testified that in order to complete the
liquidation distribution account,
the property had to be sold because
the widow wanted it to be sold because she is elderly. Accordingly,
the property was placed
on the open market and the deed of sale was
entered into between herself as the executor of the deceased estate
and the fifth defendant.
She explained that the fifth defendant is
currently staying in the property and has been paying monthly
occupational rent into
the trust account of the conveyancer.
[8]
She testified that after receiving the offer to purchase the
property, she referred the
documents to the conveyancer to draw up
the contract between the parties, and the conveyancer pointed out
that the property was
still registered in the name of the deceased
and the ex-wife. She approached the widow and informed her of the
situation and the
widow indicated that she was under the impression
that she was the sole owner of the property in terms of the Joint
Will and was
not aware of this unfortunate circumstance.
[9]
She also testified that prior to receiving the offer to purchase, her
office was not aware
that the property was registered in the name of
the ex-wife or that her name was on the Title Deed. She went back to
the conveyancer
to seek advice and a solution to rectify the problem,
and the conveyancer suggested that the easiest and quickest solution
would
be to approach the ex-wife to have her sign the offer to
purchase.
9.1
According to her, the conveyancer suggested that the name of the
ex-wife be included in the deed
of sale because she is referred to as
the owner and registered as such in the Deeds Office as confirmed by
the Title Deed.
9.2
She stated that this created a problem for her as the executor of the
deceased estate because
in order to give effect to the registration
of the property into the name of the new buyer, the ex-wife also
needed to sign the
deeds of sale.
[10]
One of the documents at her disposal in dealing with the deceased’s
estate was the
divorce settlement agreement, and upon perusal
thereof, she noticed that the fixed property was not included in the
settlement
agreement. There was however a Schedule attached to the
settlement agreement which according to her, reflected how the fixed
property
should be dealt with. She stated that according to the
Schedule, the property was allocated to the deceased, but the
deceased failed
to notify the registrar of deeds that he is divorced
and change ownership of the property into his name alone. She
explained that
this was an oversight on the part of the deceased, and
that it was not uncommon that when people get divorced and the other
party
takes over the property, the party taking over the property
forgets to notify the registrar to update its register.
[11]
The witness testified that she took the conveyancer’s advice
and on 22 April 2021,
Ms Kruger who was the estate administrator at
the time, sent an email to the ex-wife to explain to her that they
have received
an offer to purchase on the property and they needed
her to sign the offer because the property was still registered in
her name,
and to further inform her that she will not be receiving
any financial benefit for assisting because the issue was supposed to
have been dealt with after her divorce.
11.1 She
further testified that on 4 May 2021, the ex-wife responded to this
email stating that she needed to determine
and ascertain the exact
ownership of the property before the sale, and also requested a
complete copy of the deceased’s Will
to examine it. Her request
to have a copy of the deceased Will was declined due to the
Protection of Personal Information Act (“POPI
Act”)
and as provided for in terms of the Administration of Estates Act.
She said on 13 May 2021, the ex-wife sent a further
email in which
she claimed full ownership of the property and threatened to
institute legal proceedings so as to be granted sole
ownership of the
property.
11.2 She also
testified that on 24 May 2021, the ex-wife sent yet another email
requesting the Title Deed; copies of
the municipal documents; and
information pertaining to the expenses and upkeep of the property
because she was unable to obtain
same from the local municipal
office. Further that on 31 May 2021, the ex-wife sent an email
claiming to be the exclusive owner
of the property.
11.3 Around
13 July 2021, Ms Kruger from FNB sent an email to the ex-wife purely
as a settlement proposal that the widow
wanted to split ownership of
the property, but the ex-wife declined the offer. She explained that
the widow did not want to put
up a fight with the ex-wife anymore
because she wanted the administration of the estate to be concluded
so that she could go on
with her life. This email was responded to on
16 July 2021 wherein the ex-wife still claimed full ownership of the
property and
alleged to have had an investment partnership with the
deceased in respect of the property.
[12]
The plaintiff testified that during the administration of the
deceased estate, she found
that the property related costs such as
rates and taxes; bond repayments and home insurance; water and
electricity were paid by
the deceased, and are currently paid for by
the widow, and the homeowners association is covered by the estate.
She stated that
the deceased’s estate was advertised for thirty
days in terms of section 29 – in respect of debtors and
creditors of
the deceased estate, and that no one came to make a
claim against the estate.
12.1 Neither
did the ex-wife approach her to claim that she was the owner of the
property or try to stop her from administering
the estate of the
deceased. She said the ex-wife only made a claim to the property
after being approached and told of the predicament
that the property
was still registered in her name and the name of the deceased. She
confirmed that a decision to sell the property
was per the
instruction of the widow as the sole beneficiary of the Joint Will,
and that the fifth defendant was allowed to move
into the property to
avoid the property from being vandalized because it was vacant at the
time.
[13]
The plaintiff stated that the deceased and the ex-wife had in terms
of the settlement agreement,
intended that the deceased should retain
the property because the deceased made cash payments to the ex-wife
in relation thereto,
for the benefit of his sole and exclusive
ownership to the property. She explained that the intention of the
parties is evident
from the documents she received from the
deceased’s attorney, which I will deal with later in the
judgment.
[14]
Under
cross-examination
, she confirmed that Ms Kruger was the
estate administrator, and was supposed to report to her regarding her
duties. She confirmed
that as the executor, she was responsible for
the winding up of the estate, but she was not aware of the letter
sent by Ms Kruger
to the ex-wife on 13 July 2021 in which it is noted
that the widow does
not want to contest ownership
of the property
–
and explained that
she did not see the letter before it was sent. She testified
that she received legal advice that the property formed part of the
deceased estate and that is why the matter had to be brought to
court.
14.1 The
witness was accused of bringing this matter to court in “an
attempt to fix the problems caused by someone
at FNB after the fifth
defendant was allowed to move into the property without the consent
of the ex-wife”. It was then put
to her that the property does
not belong to the estate because the only portion that fell into the
estate is the half share of
the deceased, and she refuted that and
stated that nothing untoward was done by the widow or Ms Kruger, or
in the administration
of the estate.
14.2 She
confirmed that although clause 4 of the settlement agreement deals
with the “division of the movable
assets” –
according to the schedule and Mr Ehlers’ proposal in his
correspondence with the ex-wife’s attorney,
the amount of
R24 940.00 paid to the ex-wife was in respect of the immovable
property which had to remain with the deceased.
Mr Ehlers is the
attorney who represented the deceased at the time of the divorce.
[15]
The plaintiff testified that Mr Ehlers’ documents were found
together with the deceased’s
other documents and that Mr Ehlers
could not be traced. In this regard,
Mrs Jessican van der
Westhuizen,
a candidate attorney at Glover Kannieappan Inc. (ie.
The plaintiff’s attorney) testified that in an effort to get
hold of
Mr Ehlers, she called his office number that was on the
letterhead, but the number was no longer in service. On 21 September
2023,
she wrote an email to the LPC to enquired if Mr Ehlers was
still practicing as a legal practitioner, and requested to be
provided
with his contact details because she could not reach anyone
on Mr Ehlers’ numbers. The LPC responded in a letter dated 11
October 2023 that Mr Ehlers is no longer practicing and has been
registered by the LPC as a non-practising attorney. She testified
that she personally instructed the tracing agent, Mr Andre Taljaard
from KGB Security to trace Mr Ehlers and unfortunately, nothing
came
of it.
[16]
Mr Hendrick Johannes Lombardt
, the widow’s son, also
testified in support of the plaintiff’s case. He testified that
his mother moved into the property
in 1996 before getting married to
the deceased and resided there until the deceased passed away. He
said his mother vacated the
property after the death of the deceased
and is currently living with him in Vryheid in KZN due to her old
age, safety and for
health reasons.
16.1 He
discovered documents at the house of the deceased when they were
packing and emailed them to the plaintiff before
the dispute could
even arise. He also found a bank statement reflecting the bond amount
which was apparently deducted from the
deceased bank account
-
and the bank statement did not reflect the name of the ex-wife. There
was also a deposit slip with the deceased’s handwriting
in
respect of the settlement amount of R99 470.45 towards the
property.
16.2 He
explained that the deceased was already on pension shortly before
making the payment and had indicated that
he would be paying off his
bond after receiving his pension money.
16.3 He
testified that the Homeowners insurance documents do not make
reference to the ex-wife, and the widow is currently
paying for the
insurance by debit order. Further that the statements from Tshwane
municipality do not reflect the name of the ex-wife
and that the
tenants staying in the property pay for water and electricity
directly to the municipality.
16.4 He
confirmed that the deceased maintained the property during the course
of his marriage to the widow and made
improvements and major
renovations to the property.
Issues
in dispute
[17]
The dispute in this matter relates to ownership of the property. It
is undeniable that
the
winding up of the deceased
estate has remained in limbo since 2021 because the parties are at
loggerheads with regards to
ownership of the property.
[18]
The ex-wife contends that she is entitled to 50% of the property by
virtue of having had
been married to the deceased in community of
property. She stated in her plea that the widow became entitled to
the deceased's
quarter share when he became deceased and is currently
entitled to a half-share in the property.
[19]
This court is called upon to determine who the
owner of the property is,
more specifically pertaining to the
period in time directly at the divorce of the deceased and the
ex-wife.
[20]
The plaintiff testified that in addition to the divorce settlement
agreement, she also
received documents from the deceased’s
attorney which I referred to above. These are correspondence between
Mr Ehlers and
the ex-wife’s attorney at the time of the
divorce. It is not in dispute that Mr Ehlers was involved in the
negotiations leading
up to the drafting of the divorce settlement
agreement. It is also not in dispute that these documents reflect the
similar terms
of the divorce settlement agreement between the
deceased and the ex-wife and formed part of the discovered documents.
[21]
Mr Wagener appearing for the second defendant (“the ex-wife”)
in the current
matter raised an objection against Mr Ehlers’
documents and argued that they constitute hearsay since Mr Ehlers, as
the author,
was not available to testify in respect of those
documents. He further argued that the court should only consider them
as documents
found from the deceased, and that no value should be
placed on them.
[22]
On the other hand, Ms Denichaud appearing for the plaintiff referred
to the decision in
University
of Johannesburg v Auckland Park Theological Seminary and Another
[1]
(“the UJ case”) and submitted that it was imperative that
the court considers the documents because they are relevant
extrinsic
evidence which show the contextual background, negotiations,
proposals, and the circumstances which led to the conclusion
of the
settlement agreement. She further submitted that in compliance with
the provisions of section 3(1)(c) of Act 45 of 1988
[2]
,
in the interest of justice, the court must have regard to
these
documents
in order to interpret the terms of the settlement agreement.
22.1 With
specific reference to section 3(1)(c) of the hearsay rule,
Ms
Denichaud submitted that Mr Ehlers’ documents
are admissible in circumstances where the
court
has regard to
the following:
(i)
the nature of the proceedings
–
that these are civil proceedings which relates to the
interpretation of the settlement agreement, and that it is in the
interest
of justice to have regard to the documents because they
support and assist in the interpretation of the settlement agreement.
(ii)
the nature of the evidence
–
this relates to the
correspondence between two
attorneys who settled the divorce and negotiated the terms of the
settlement agreement in circumstances
where Mr Ehlers acting for the
deceased wrote to the ex-wife’s attorney who was responsible
for drafting the settlement agreement
in accordance with the terms
set out by Mr Ehlers. It was submitted that the nature of the
evidence supports the contention that
it is in the interest of
justice to have regard to the documents.
(iii)
the
purpose for which the evidence is tendered
–
the purpose is to give a clear picture of what was in
the joint estate, and further solve the problem and the uncertainty
created
by the settlement agreement. It was submitted that the
interest of justice favours the purpose for which the documents are
presented.
(iv)
the
probative value of the evidence
–
it was submitted that
the probative value of the
evidence is high in that it completely dispels any question or doubt
as to the interpretation of the
settlement agreement, and that it is
in interest of justice that the documents be considered and taken
into account.
(v)
the
reason why the evidence is not given by the person upon whose
credibility the probative value of such evidence depends
–
in this regard, the plaintiff and her two witnesses testified that
they tried to get hold of Mr Ehlers and could not trace
him. Mrs van der Westhuizen testified that her efforts to trace Mr
Ehlers
were unsuccessful and was informed by the LPC that Mr Ehlers
is no longer practicing, and informed by Mr Taljaard from KGB
Security
that he could also not locate Mr Ehlers. It was submitted
that nothing else could have been done to bring Mr Ehlers to court,
considering
that the POPI Act prevented any personal information such
the identity number of Mr Ehlers from being disclosed as
testified
to by Mrs van der Westhuizen that this contributed to the
difficulty in tracing Mr Ehlers.
(vi)
any
prejudice to a party which the admission of such evidence might
entail
– in this regard,
it was submitted that
allowing the documents would not
prejudice the ex-wife because her version/construction of the
settlement agreement that she owns
50% of the property is contrary to
the express terms of the settlement agreement.
The
basis of this submission is that if she could have taken sole
ownership of the property after the divorce, then the document
would
have prejudiced her and proved a contrary version to the one she is
currently making.
(vii)
any
other factor which should in the opinion of the court be taken into
account, is of the opinion that such evidence should be
admitted in
the interests of justice
– it was submitted that it is
in the interest of justice to allow all the documents to assist the
court in the interpretation
of the settlement agreement.
[23]
Having heard
submissions made by both parties, and considering the principles laid
down in the
UJ
case
,
I ruled that it was in the interest of justice that the plaintiff
refers to the contents of the
documents in her evidence
– and the documents were as such, admitted into evidence. The
court further took into account that
the intrinsic evidence would
assist in determining the true rights of the parties.
[24]
This court was also mindful of the submission made on behalf of the
plaintiff – that
without the court’s intervention, the
executor would not be able to liquidate and distribute the deceased’s
joint estate,
and the beneficiary in the deceased’s Joint Will,
being the widow, would not be able to get an inheritance.
The
proper approach to interpretation and evaluation.
[25]
In order to determine ownership of the property
at the time of the divorce,
the court
must interpret the settlement agreement which was made an
order of court and incorporated into the decree of divorce. The
Preamble
of the settlement agreement clearly indicates that the
parties came to an agreement that it was their intention to have a
division
of the joint estate. In principle, this ordinarily means
that the joint estate had to be completely and equally divided
between
the parties at the time of the settlement.
[26]
The settlement agreement does not say anything about the immovable
property. The only relevant
clause which seems to be the bone of
contention as it relates to the meaning and intention of the parties
in respect of the division
of the joint estate is clause 4. This
clause makes reference to the division of movable assets (“
roerende
bates
”) which relates to cash payment of the sum of
R24 940 which was to be made by the deceased to the ex-wife
within a period
of three months. On the other hand, there is an
express statement at clause 7 which stipulates that the parties will
have no claim
against each other in future.
[27]
Mr Wagener argued that Mr Ehlers’ documents and settlement
agreement did not change
the status of the immovable property since
the ex-wife owned half of the property by virtue of having had been
married to the deceased
in community of property. He further argued
that “the deceased was represented by an attorney during the
divorce –
and that if the parties had intended the property to
be transferred to the deceased, his attorney would have gone to the
deeds
office to ensure that the endorsement in terms of section 45bis
was made”.
27.1 He
however conceded that Mr Ehlers’ documents indeed mentions that
the property should go to the deceased.
He specifically stated as
follows:
“
It is true that the letter of Mr. Ehlers
suggests that the division of the property would be that the deceased
would keep the property”.
27.2 He
submitted that the letter of Mr. Ehlers is in conflict with the
settlement agreement, considering that Mr Ehlers
was not in court to
explain why there was a conflict, hence, the submission was made that
his documents constitute hearsay.
[28]
Ms Denichaud on the other hand argued that the crux of the
interpretation of the settlement
agreement is related to Mr Ehlers’
documents and it was imperative that the court considers
(a)
the text of the settlement agreement;
(b)
the purpose of
agreement;
(c)
the contextual evidence that is presented;
(d)
the factual matrix;
(e)
the circumstances leading to the
conclusion of the settlement agreement; and
(f)
the knowledge
of those who negotiated and produced the settlement agreement. She
submitted that all these aspects are made clear
from the contents of
Mr Ehlers’ documents which the court has to consider.
28.1 Counsel
further submitted that the parole evidence rule also
does
not exclude the court from having regard to these documents. The
basis of this submission is that the court in the
UJ
case
also recognised that
the interpretation rule within the
parole evidence rule does not preclude the contextual evidence which
gives context and background
to the contract which can be used by the
court in its interpretation of that contract, and when seeking to
ascertain whether the
circumstances give rise to the intention of the
parties at the time of the conclusion of the contract.
[29]
She submitted in her heads of argument that the interpretation rule
which determines when,
and to what extent extrinsic evidence may be
adduced to explain the meaning of the words contained in a written
agreement does
not preclude contextual evidence
which
gives context and background to the agreement which can be used by a
court in its interpretation of that agreement, and when
seeking to
ascertain whether the circumstances give rise to the intention of the
parties at the time of the conclusion of that
agreement.
[30]
The principles laid down in
the
UJ
case
are
as follows:
(a)
A holistic approach must be followed. This means that interpretation
is to be approached holistically:
simultaneously considering
the
text, context and purpose.
i.
From the
text of
the settlement agreement
, there is
no description of
the assets, such as furniture or household
items. Similarly, it does not describe the immovable property.
However, the text clearly
says that there must be a division of the
joint estate when regard is had to the preamble. What the text does
not say is how that
division has to take place. Accordingly, the text
is not helpful in this regard.
ii.
The court explicitly pointed out that
context
and purpose
must be taken into
account as a matter of course, whether or not the words used in the
contract are ambiguous.
In the present case, there is no
confusion or ambiguity of the terms or of the language in the
settlement agreement because there
is no description of the immovable
property. At the very least, all the court has to decide on is the
meaning of the words: “division
of the joint estate” as
it appears from the settlement agreement. The court will do this by
having regard to the next aspects
which I discuss hereunder.
(b)
A
court interpreting a contract has to – from the onset –
consider the contract’s factual matrix, its purpose,
the
circumstances leading up to its conclusion, and the knowledge at the
time of those who negotiated and produced the contract
[3]
.
In respect of the current matter, in order to determine true
ownership of the property, the true nature of the rights flowing
from
the resettlement agreement; and what was decided by the parties at
the time of the divorce, the court has to undertake the
unitary
exercise of interpreting the settlement agreement in light of the
aspects that I have just highlighted.
i.
With regards to
the factual matrix
of this matter, the
property was bought in 1991, and the deceased and the ex-wife lived
in the property for four (4) years before
they were divorced. One of
the important factors to be considered is the fact that after the
divorce, the deceased remained in
the property and the ex-wife moved
out of the property.
ii.
Another important factor to consider, as submitted on behalf of the
plaintiff, is the twenty-eight
(28) years that was spend in the
property by the deceased and the widow. It is indisputable that
during these 28 years, at no stage
before the deceased’s death
did the ex-wife claim ownership of the property – otherwise
this would have been raised,
either in her pleadings or during
argument. In my view, this indicates that the deceased was vested
with ownership of the property.
iii.
With regards to
the purpose of the settlement agreement
,
it is accepted that the nature of the divorce proceedings is to bring
an end to the marital relationship. In this regard, Ms Denichaud
argued that the purpose cannot include the purpose of what the
ex-wife is contending for – ie. that she and the deceased
can
continue holding on to the property and remain co-owners of a
matrimonial home post-divorce.
iv.
She submitted that if this notion were to be allowed, it would fly in
the face of the purpose
of the settlement agreement which says that
the joint estate must be brought to an end, and the parties can no
longer co-own the
property after the divorce.
v.
As indicated
supra
, the ex-wife alleged in an email dated 16
July 2021 that she “owns the complete property which was
purchased in partnership
with the deceased as an investment”.
This aspect was never pleaded, and neither did the ex-wife produce
any documents or
evidence to rebut and confirm her investment
partnership or external agreement of ownership outside the realm of
the joint estate.
In the absence of any evidence, this version of
what the ex-wife is contending for, falls to be dismissed because it
has no merit.
vi.
Mr. Wagener argued that in terms of clause 7 of the settlement
agreement, nothing had to
happen with the immovable property because
the deceased and the ex-wife co-own the property. I do not agree with
this argument
because it disregards the preamble of the settlement
agreement
[4]
and one of the
principles in the
UJ
case
which relates to having regard to the contextual evidence that is
presented, and the circumstances which led to the conclusion
of the
settlement agreement.
(c)
One
of the aspects to be considered in terms of the
UJ
principle
is
that the parties would have to adduce evidence to establish the
context and purpose of the relevant contractual provisions
[5]
.
That evidence could include the pre-contractual exchanges between the
parties leading up to the conclusion of the contract and
evidence of
the context in which a contract was concluded.
i.
With regards to the matter at hand, it is not in
dispute that the Mr Ehlers’ documents reflect the intention
that
the division of the estate meant that the deceased should
keep the property. Not only was this intention the only aspect
reflected
in the documents, but the terms or rather all the clauses
of the settlement agreement are repeated in the corresponding
paragraphs
in Mr Ehlers’ documents marked as annexures “
A2”
and
“A3” respectively.
- In
this regard,paragraph 2of
“A3” which relates to therights of the father
andaccess to the minor child isthe exact
replication ofclause 1of
the settlement agreement.
In
this regard,
paragraph 2
of
“A3” which relates to the
rights of the father
and
access to the minor child is
the exact
replication of
clause 1
of
the settlement agreement.
- Paragraph
3of “A3” is alsothe
exact replication ofclause 2of
the settlement agreement dealing with maintenance ofR300 forthe minor child.
Paragraph
3
of “A3” is also
the
exact replication of
clause 2
of
the settlement agreement dealing with maintenance of
R300 for
the minor child.
- Paragraph
8of “A3” isthe
exact replication ofclause 3of
the settlement agreement dealing with the ex-wife’s waiver to
claim spousal maintenance.
Paragraph
8
of “A3” is
the
exact replication of
clause 3
of
the settlement agreement dealing with the ex-wife’s waiver to
claim spousal maintenance.
- Paragraph 6of
“A2” andParagraph 6of
“A3”dealing with50%of the pension fund interest to be paid to the ex-wife is also found
inclause 5of the settlement agreement.
Paragraph 6
of
“
A2” and
Paragraph 6
of
“
A3”
dealing with
50%
of the pension fund interest to be paid to the ex-wife is also found
in
clause 5
of the settlement agreement.
- Paragraph
7of “A3” isthe
exact replication ofclause 6of
the settlement agreement which states thateach party should
pay their own legal fees.
Paragraph
7
of “A3” is
the
exact replication of
clause 6
of
the settlement agreement which states that
each party should
pay their own legal fees.
- Paragraph
4of
“A3” andParagraph
4of
“A2” are alsoreplication
ofclause
3of
the settlement agreement. These relates to the cash payment ofR24 940
by the deceased to the ex-wife as indicated above[6].
Paragraph
4
of
“A3” and
Paragraph
4
of
“A2” are also
replication
of
clause
3
of
the settlement agreement. These relates to the cash payment of
R24 940
by the deceased to the ex-wife as indicated above
[6]
.
[31]
As far as clause 4 of the settlement agreement is concerned, the
plaintiff contends that
referral to the amount of R24 940 takes
into account the immovable property because a 50%
-
50% split
was made and accounted for in “A2”. This is so because it
is clear from these documents, with particular
reference to paragraph
3 of “A2”, including the schedule admitted as annexure
“A4” which reflects the calculation
of all the items
which formed part of the assets, what the value of the joint estate
was. The total value of the joint estate was
R103 480.00 and
dividing this amount equally between the parties meant that the
residue for each party would be R51 740.
31.1 However,
the schedule and the documents reflect the total value of the
deceased’s potion of the joint estate
being R76 580, which
includes the property, and that of the ex-wife being R26 800. In
order to achieve equal division
of the joint estate, the deceased had
to compensate the ex-wife with R24 940 so that she could reach
the amount of R51 740
which would have placed them on equal
footing. That amount was paid to the ex-wife and accordingly, this
meant that the joint estate
was divided equally on a 50%
-
50%
basis. Hence clause 4 of the settlement agreement, as well as
paragraph 4 of “A2” and the last portion of “A4”
reflected that “
man moet vrou betaal
:
R24 940”
.
31.2 In the
circumstances, I find that the immovable property fell within the
joint estate and was allocated to the
deceased upon divorce in terms
of the settlement agreement.
[32]
It is important to note that the documentary and factual evidence
presented by the plaintiff
remained unchallenged because the ex-wife
elected not to avail herself to testify, and there was no version
from her that was put
to the witnesses. With this in mind, I take
note that she would have been the perfect person to tell the court of
their intention;
the negotiations leading up to the conclusion of the
settlement agreement; and what exactly was concluded between herself
and the
deceased – since Mr Ehlers’ whereabouts is
unknown, and the deceased is not alive to tell the court what their
intentions
were in respect of the settlement agreement, and
specifically with regards to the property. It is for this reason that
the constitutional
court in the
UJ case
highlighted the
importance of considering extrinsic evidence, which in this case
clearly shows what was to happen with the property.
[33]
One of the aspects which this court had to carefully consider in
determining ownership
of the property and the true nature of the
rights of the parties, was correspondence between the ex-wife and Ms
Kruger from FNB.
[34]
The plaintiff stated at paragraph 19.3 of her particulars of claim
that after the divorce,
the deceased continued to pay for the
(a)
mortgage loan in respect of the property registered in favour of the
sixth defendant;
(b)
maintenance and upkeep of the property;
and
(c)
the monthly municipal utilities in respect of the
property. This evidence was corroborated by Mr Lombard who testified
that the
deceased paid the bond every month and used his pension
money to settle the bond; that he paid for rates, taxes and the
monthly
owner’s insurance; that he paid for maintenance and
upkeep of the property – and not the second defendant. The
evidence
of these witnesses as it relates to bond settlement, was
further confirmed by an ABSA bank deposit slip marked as annexure E1,
in which the deceased made payment of R99 470.45 in respect of
the property. The ex-wife denied this in her plea without giving
any
counter evidence.
[35]
Having said that, logic dictates that if the property really belonged
to her as she claims,
she would not have had any difficulty obtaining
the municipal documents and information pertaining to the expenses
and upkeep of
the property - as she explained in her email dated 24
May 2021.
[36]
Most importantly, to show that the property does not belong to her,
she specifically stated
in her email dated 4 May 2021 that she wanted
to “
ascertain the exact ownership of the property”
before the property could be sold. It is clear from this
email that the ex-wife was not even saying that she is the owner of
the
property or claiming a part thereof. She just wanted to
investigate ownership and only started claiming full ownership in her
email
dated 13 May 2021.
36.1 Counsel
on behalf of the plaintiff correctly submitted that this clearly
indicates that the ex-wife was never the
owner of the property, and
she knew it, because it was only after being approached and informed
of “an oversight” that
– her name was on the title
deed – that she used the opportunity to claim the property as
her own.
[37]
The plaintiff testified that after receiving emails from the
ex-wife on 31 May 2021
and 16 July 2021 in which she claimed full
ownership of the property, the widow was tired of the back and forth
surrounding the
issue of the property and did not want to put up a
fight with the ex-wife anymore because she wanted the administration
of the
estate to be finalized, and accordingly decided to make an
offer to the ex-wife to have a share in the property, and even gave
her the supporting documents to explain and expedite the finalisation
of the estate.
37.1 In this
regard, the plaintiff testified that the ex-wife was soliciting a
bribe and wanted to be compensated for
her signature, as can be seen
on the email of 29 July 2021.
37.2 The
emails from the ex-wife speak volumes about her behaviour and the
great lengths she would go to, in order to
get her hands on the
property that she knows has been allocated to the deceased in terms
of the settlement agreement.
37.3 In her
email dated 16 July 2021 in which she alleged to have had an
investment partnership with the deceased in
respect of the property,
she stated that she has obtained the deceased’s death
certificate. Further stated as follows: “
Wills and
Testaments are part of the public domain, but require my physical
presence, or someone having my power of attorney to
go to the
Masters’ Office to obtain one”.
37.4 On 29
July 2021 the ex-wife sent an email to the plaintiff and stated the
following:
“
As my
repeated
request for a certified copy of the Will has been ignored, even
though part of Public Domain (sic), I must conclude that
the contents
thereof could or will compromise whatever situation has arisen by
your administration of the deceased estate. I will
therefore obtain a
copy by other means, which will delay the matter even more, and
further costs to my claim for compensation,
should I decide to do so,
not excluding existing occupational rent.
Further, please note
for the record, that I hold “FNB Fiduciary Pty Ltd”
responsible for any and all expenses, loss,
damage and/or legal
transgressions or causing prejudicial and detrimental loss of rights
and interests in the execution of the
matter, should any occur.
As a consideration of
intent, be advised that I am going to contact the occupants/purchaser
of the property for their details of
events pertaining to their
situation”.
[38]
Not only did the ex-wife claim sole ownership of the property, but
she went as far as accusing
Ms Kruger and FNB of fraud and
threatening to institute legal action and also demanded compensation.
This is evident from one of
her emails in which she stated the
following: “
I need to optimize my own
interests to the fullest extent, possibly considering legal action
for compensation, although preferably,
the bank with its vast
experience and resources may suggest an alternative solution to
satisfy all concerned and thereby maintain
its reputation”.
[39]
What is more worrying and questionable about the attitude of the
ex-wife, which in my view
is a serious red flag, is reflected in her
email dated 29 September 2021 addressed to the plaintiff where she
clearly tells the
plaintiff to be dishonest and that the plaintiff
should allocate the property to her so that she can sell the property
to the prospective
buyer. The following is noted at paragraph 2 of
her email:
“…
. you
are free and able to do the following:
2.1
As
the executor of the estate, to issue myself with the letter stating
that I'm the sole legal owner of the property and may register
it as
such.
2.2 I could then sell
the property to Mrs. Botha at an unbiased valuation.
2.3 Your obligation as
executrix would be concluded and nobody and or the bank be accused of
fraud.
Take note that I have
made the effort to source your personal e-mail address so that you
may implement my recommendation as your
own, thereby redeeming your
integrity and standing amongst your peers. You can of course inquire
from your legal department as
to the legal validity of this course of
action
without disclosing the source
.
If this “suggestion”
is not accepted before Wednesday 13 October 2021, I would have no
alternative but to report the
matter to first, your superiors, and or
the Fraud Division of the law”.
[40]
The above emails clearly strengthen the submission made on behalf of
the plaintiff that
the ex-wife is not the sole owner of the property,
and neither does she own half share of the property when regard is
had to the
documents of Mr Ehlers; the evidence of the plaintiff; the
rights and the negotiated intention at the time, which ultimately led
to the drafting of the settlement agreement.
40.1
Furthermore, this court takes into account the contents of clause 2
of the Joint Will in which the deceased used
the possessive pronoun
of describing the property as “my property” (“
My
Eiendom”)
to indicate that the property belonged to him,
otherwise, one would have expected him in his Will, to say “the
joint property
co-owned….”
[41]
While it was submitted on behalf of the plaintiff that the court
should take a dim view
of the stance taken by the ex-wife, Mr Wagener
on the other hand conceded that the emails were unfortunate and
embarrassing, and
stated that: “
there were nasty emails from
my client, I must admit – I’m not proud of it. There is
some kind of needle between FNB
and the second defendant – and
that is why we are here in court”.
[42]
It is rather shocking, to say the least, that in an attempt to get
her hands on the property
and claim it as hers, the ex-wife would go
to such lengths to manipulate and threaten the executor of the
deceased’s estate.
What is more worrying is that, when she was
not successful with her threats, she tried to facilitate a bribe, and
wanted to be
compensated by stating that the bank has vast resources,
- and when that did not work, she then came up with a plot that she
had
masterminded, and presented it to the plaintiff to take to her
superiors, and gave her an ultimatum, and make threats that if the
plaintiff does not comply with the suggestion she made, she would
report her to her superiors and to the fraud division.
[43]
The threats did not end there because according to the plaintiff,
when her attorney wrote
to the ex-wife to request her physical
address so that she could be served with court documents, she
threatened the plaintiff’s
attorney with legal action. The
plaintiff said to date, the ex-wife has not instituted any legal
proceedings against either herself,
her attorney or FNB.
[44]
In what seem to be another attempt to have a share in the deceased’s
property when
her threats could not work, the ex-wife now claims 50%
of the property by virtue of having had been married to the deceased
in
community of property. This is a drastic change to her stance,
having regard to what she was initially contending for in all her
emails where she claimed full ownership of the property. She stated
in her plea that the widow is currently entitled to
half-share
in the property
[7]
.
This is similar to what the widow offered her in the settlement
proposal sent to her on 13 July 2021 which she refused and demanded
full ownership of the property.
[45]
The court takes into account the plaintiff’s evidence and
counsel’s submission
that in an attempt to settle the matter,
the widow made a proposal only because she wanted to avoid
litigation; legal fees; stress
and discomfort of a trial, but the
ex-wife completely refused that offer and insisted on full ownership,
just to come to court
and claim what she was originally offered.
[46]
I have thoroughly considered all the circumstances in this matter,
and having had regard
to the contents of the emails from the ex-wife,
I agree with Ms Denichaud’s submission that the ex-wife is
being opportunistic
in her approach, and wanted to claim the property
that was never hers in the first place. I further concur with her
that the ex-wife
cannot contend for co-ownership as she did in her
plea because that would be contrary to the terms and purpose of the
settlement
agreement. Similarly, it would be contrary to clause 7 of
the settlement agreement which stipulates that the parties will have
no claim against each other in future. Consequently, I am of the view
that co-ownership in the property came to an end at the time
when the
joint estate was divided, and I find that the ex-wife does not have a
claim and is not entitled to have any claim in the
property.
[47]
Having considered the matter before me and applying the above
principle, and having heard
submissions by both parties, it is my
considered view that payment of the amount of R24 940 in clause
4 of the settlement
agreement brought an end to all co-ownership in
the joint estate because it was made in exchange for the deceased to
have sole
and exclusive ownership of the immovable property and to
retain the property. Accordingly, it is my considered view that the
deceased
became the sole owner of the property at the time of the
divorce.
[48]
With regards to costs, Ms Denichaud pressed for attorney and client
costs, and argued that
since the plaintiff in this matter is the
executor of the deceased estate – by law, the deceased estate
will bear the legal
costs, and it will be prejudicial to the widow
because she is the only beneficiary of the deceased estate. She
further argued that
the ex-wife was informed on more than three
occasions that if the matter was to be pursued in court due to her
frivolous actions,
punitive costs would be sought against her, taking
into account that when the plaintiff’s attorney, Mr Glover,
asked her
on several occasions to provide him with her physical
address so that she could be served with court documents, she
refused.
[49]
In some of her emails in response to Mr Glover, her response was:
“
keep your nose out of my business
”. In
another email, her response was: “
you have no case
”.
In another email, she stated that her “
address is not
relevant because Mr Glover has no case, and the matter will be
handled by the Bank’s Ombudsman
”. She even went
to an extent of stating that Mr Glover’s behaviour is an
embarrassment to the legal profession, and
that she would institute
harassment proceedings. All her emails were in response to a simple
request that she should provide her
physical address so that she
could be served with legal documents. She was also warned of the
costs order that
[50]
It was submitted that the actions of the second defendant (the
ex-wife) were
mala fide,
– taking into account
that she refused to give her addressed to be served; opposed this
matter and filed a plea, knowing
that she would not come to court to
testify. I agree with this submission and accordingly, the costs
should follow the Order, and
the second defendant should pay the
costs on attorney and client scale.
[51]
In the circumstances, the following order is made:
1.
“
The REGISTRAR OF DEEDS, PRETORIA is directed to amend its
records and endorse the title deed of the below-mentioned property,
to
reflect that:
1.1
The Second Defendant's ownership of an undivided half share in the
immovable property known as Erf [……], City of Tshwane
Metropolitan Municipality, Gauteng measuring 1486 square metres, held
by Deed of Transfer No. [……] situated at […..]
Road, […..], Pretoria ("the property") terminated on
15 December 1995, being the date of the divorce between herself
and
the late Mr. [……….] with identity number […..]
("the deceased").
1.2
The deceased and the First Defendant each became owner of an
undivided half share in the property on 16 November 1996, being the
date of marriage between the First Defendant and the deceased; and
1.3
The First Defendant became the sole owner of the property on 29
November 2020, being the date of the deceased' demise.
2.
The second defendant is ordered to pay the costs on an attorney
and client scale.
PD.
PHAHLANE
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
APPEARANCES
For
the Plaintifff
:
Adv. C. Denichaud
Instructed
by
:
GLOVER KANNIEAPPAN INC
Parktown,
Johannesburg
Tel:
011 482-5652
C/O
FRIEDLAND HART SOLOMON & NICOLSON
Monument
Park, Pretoria
Tel:
(012) 424-0200
For
the defendant
:
Adv. Mr. Wagener
Instructed
by : MICHAEL WAGENER
Cape
Town Tel: 083 998 0091
Email:
michael@charterpartycases.com
C/O
H VAN DYKE ATTORNEY
Wapadrand,
Pretoria
Email:
heleen@vandykecosts.co.za
Heard
: 01
November 2023
Judgment
Delivered
: 29
August 2024
[1]
[2021] ZACC 13
;
2021 (8) BCLR 807
(CC);
2021 (6) SA 1
(CC) (11 June
2021).
[2]
section 3(1)(c) of Act 45 of 1988 of the Law of Evidence Amenment
Act 45 of 1988 provides as follows:
(1)
Subject to the provisions of any other law, hearsay evidence shall
not be admitted as evidence at criminal or civil proceedings,
unless-
(a) each party against
whom the evidence is to be adduced agrees to the admission thereof
as evidence at such proceedings.
(b)
the person upon whose credibility the probative value of such
evidence depends, himself testifies at such proceedings; or
(c)
the court, having regard to –
(i)
the nature of the proceedings
(ii)
the nature of the evidence
(iii)
the purpose for which the evidence is tendered
(iv)
the probative value of the evidence
(v)
the reason why the evidence is not given by the person upon whose
credibility the probative value of such evidence depends
(vi)
any prejudice to a party which the admission of such evidence might
entail
(vii)
any other factor which should in the opinion of the court be taken
into account, is of the opinion that such evidence should
be
admitted in the interests of justice
[3]
Para 73 of the UJ case.
[4]
See para 25 supra.
[5]
See para 67 of the UJ case.
[6]
At para 26.
[7]
See para 18 above.
sino noindex
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