Case Law[2024] ZAGPPHC 930South Africa
Nissan South Africa (Proprietary) Limited v Senyatsi (1319/21) [2024] ZAGPPHC 930 (26 September 2024)
High Court of South Africa (Gauteng Division, Pretoria)
26 September 2024
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Nissan South Africa (Proprietary) Limited v Senyatsi (1319/21) [2024] ZAGPPHC 930 (26 September 2024)
Nissan South Africa (Proprietary) Limited v Senyatsi (1319/21) [2024] ZAGPPHC 930 (26 September 2024)
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sino date 26 September 2024
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO:
1319/21
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
Date:
26-09-2024
Signature:
In the matter between:
NISSAN SOUTH AFRICA
(PROPRIETARY)
PLAINTIFF
LIMITED
AND
SENYATSI, BENNITA
PHASHA
DEFENDANT
JUDGMENT
THIS
JUDGEMENT HAS BEEN HANDED DOWN REMOTELY AND SHALL BE CIRCULATED TO
THE PARTIES BY WAY OF E- MAIL / UPLOADING ON CASELINES.
ITS DATE OF
HAND DOWN SHALL BE DEEMED TO BE
SEPTEMBER
26, 2024
NTANGA AJ:
- Introduction
Introduction
1.
Plaintiff is Nissan South Africa Proprietary
Limited, a private company with Registration No. 1963/007428/07, as
cited in the action.
2.
Defendant is Bennita Phasha Senyatsi, as cited in
the action. Defendant is a former employee of Plaintiff.
3.
Plaintiff caused summons to be issued by the
Registrar of this court against Defendant for payment of the sum of
R412 209.98
plus interest and other ancillary relief. The
claimed amount is in respect of pro rata costs of travel and monthly
stipends paid
to the Defendant. Which costs were incurred by
Plaintiff for Defendant’s participation in the African Business
Education
Initiative For Youth (ABE) of the Japan International
Cooperation Agency designated for upskilling of employees.
- Plaintiff’s
Cause of Action
Plaintiff’s
Cause of Action
4.
According to Plaintiff’s particulars of
claim, Plaintiff’s cause of action arises from a written
agreement described
as agreement for participating in the African
Business Education Initiative For Youth (ABE) of the Japan
International Cooperation
Agency (“JICA Agreement”).
- Background
Background
5.
Plaintiff’s cause of action arises from a
written agreement entered into between Plaintiff and Defendant in
terms whereof
Defendant was nominated by Plaintiff to participate in
the African Business Education Initiative for Youth of the Japan
International
Agency. The JICA Agreement was entered into on August
11, 2016.
6.
Prior to entering into the JICA Agreement,
Defendant was employed by Plaintiff effective on October 1, 2014, as
a Fleet Manager.
7.
The material terms of the JICA Agreement are as
follows:
7.1
Nissan South Africa (Pty) Ltd (“NSA”) uses various
programmes, whether internally
or externally, as part of the
development of its key talent. One of such external programmes is the
African Business Education
Initiative for Youth (ABE) run by the
Japan International Cooperation Agency (JICA).
7.2
The JICA Programme (“the Programme”) is a structured
developmental Programme, through
which identified key talent, within
the NSA employee talent pool, is awarded the opportunity to study
full-time at a Japanese university,
for a period of two years
whereafter the identified candidate will undertake a 6 (six) month
internship at an identified location
within the global Nissan
Cooperation workplace network.
7.3
NSA envisages that the Programme will contribute to its long-term
strategy and viability, and
the Programme will assist the Employee to
develop an active role within NSA managerial structure after the
Employee gains experience
during the Programme.
7.4
NSA undertakes to subsidise the Programme by providing the following
benefits to the Employee
subject to all and compulsory deductions
being effected:
7.4.1
personal travel expenses in the form of two return tickets
between
country of departure (Republic of South Africa) and Japan for the
duration of the Programme;
7.4.2
a stipend as set out in Annexure 1 thereto in lieu of the
Employee’s
salary for the duration of the Programme; and
7.4.3
ensuring that contributions towards the Employee’s
retirement
fund, based on the total amount of the stipend as stipulated in
Annexure 1, are effected.
7.5 NSA
shall secure the Employee’s employment after completion of the
Programme and shall, based on the
availability of roles upon the
Employee’s return, endeavor to provide the Employee with a role
similar to and at the same
job level the Employee occupied upon her
departure.
7.6 NSA
may, at its’ discretion and based upon the Employee’s
performance during the Programme and
availability of opportunities,
agree on an accelerated talent programme with the Employee.
7.7 The
Employee shall be afforded a month of leave for the month of August
2016 in order for the Employee to
make proper preparation for the
commencement of the Programme. Remuneration for the month of August
shall not be adjusted.
7.8 The
Employee is obliged:
7.8.1 to participate in
the Programme in accordance with the below mentioned time periods:
7.8.1.1 a two-year
academic study at a university in Japan commencing on August 27,
2016, ending on September 30, 2018;
7.8.1.2 6 (six) month
internship period from October 1, 2018 to March 31, 2019, will be
undertaken,
or any reasonable
extended period as required by JICA or the internship programme,
which will be negotiated with NSA prior to commencement;
7.8.2 to provide the
Employer with a quarterly report on his/her progress during the
Programme;
7.8.3 during the
Programme to liaise with and report back to the Human Resources
Department on all financial and administrative
related activities. In
the event that the Employee requires any assistance in relation to
personal matters then the Employee may
engage with the Human
Resources Department to facilitate any solutions if practically
possible to do so;
7.8.4 at all times to
bear in mind that she is a representative of NSA, both in her private
and business capacity, and shall at
all times during the Programme
maintain and display behavior expected of a Nissan Employee;
7.8.5 at all times,
display behavior that shall enhance the relationship between NSA and
NML;
7.8.6 upon completion of
the Programme, to remain in NSA’s employ for a period of two
and a half years; and
7.8.7 as NSA incurs
significant costs in relation to this Programme, should the Agreement
be terminated prior to the Employee completing
the Programme and/or
serving his agreed minimum post completion period as set out in
Clause 5.5;
7.8.8 NSA reserved its
right to claim and the Employee undertakes to refund to NSA:
7.8.8.1 the full costs of
the Programme; plus
7.8.8.2 interest thereon
calculated at a rate of prime plus 2%, on a pro rata basis.
7.9 Clause 14 of the JICA
Agreement provides that:
“
The
Employee acknowledges that after completion of the Programme, this
Agreement shall become null and void and the provisions of
the new
Agreement to be entered into between the Parties shall apply
”
.
- Plaintiff’s Case
Plaintiff’s Case
8.
Plaintiff led its evidence through a single
witness, Mr Letsholo who testified that he is an Industrial Human
Resource Business
Partner at NSA. He works in the contract management
division of NSA, and he is familiar with the Programme.
Notwithstanding that
he was not involved in the drafting and
execution of the agreement, he has knowledge of the JICA Agreement.
The JICA Agreement
falls under his division, and they attend to
administration thereof, for instance, payments that must be effected
in terms of the
agreement. He described it as an acceleration
Programme to which they upskill employees. He testified that NSA
bears the costs
for traveling, accommodation, food, the Programme and
stipend.
9.
He testified that the purpose of NSA’s
incentive for the Programme is to ensure existence of correct talent
pool to enable
the employees to plough back to NSA once the Programme
is completed.
10.
He testified that in fulfilment of its obligations
NSA paid stipend in lieu of salary to the Defendant. NSA paid flights
tickets
for the Defendant’s travel to and from Japan. He
testified that Nissan Global is a service provider to NSA and that
the expenses
claimed in these proceedings were paid for by NSA.
11.
He further testified that on her return after
completion of the Programme, Defendant remained in the Plaintiff’s
employment
for fifteen (15) months instead of thirty (30) months as
agreed in the JICA Agreement.
12.
Under cross-examination he testified that
Plaintiff uses a travel agent, and its administrators pay American
Express in relation
to travel expenses. When asked about who paid for
the expenses, he confirmed knowledge of the fact that NSA paid for
the travel
expenses.
13.
Further under cross-examination Mr Letsholo
testified that from the onset NSA made a commitment that it will
subsidise and sponsor
the Programme. He disputed the version put to
him that the money for the Programme came from Nissan Global and
testified that NSA
paid for the Programme. In any event, Plaintiff’s
case is not for the claim of Programme expenses but rather for
stipend
paid in lieu of salary and flight tickets.
14.
Mr Letsholo conceded that he does not work in the
finance department of NSA but confirmed that the expenses claimed
were paid for
by NSA. He further confirmed that the amount claimed
was for a stipend paid to Defendant in lieu of salary plus flight
tickets.
15.
When asked about clause 14 of the JICA Agreement
Mr Letsholo testified that the new agreement is in line with NSA’s
undertaking
to offer Defendant a new contract of employment on her
return from completing the Programme. He testified that Defendant was
offered
a new contract of employment in fulfillment of NSA’s
obligation in terms of the JICA Agreement. He disputed the
Defendant’s
version put to him that the new contract of
employment replaced the JICA Agreement and the previous contract of
employment. He
testified that the new contract of employment was
entered into in fulfilment of NSA’s obligation in terms of the
JICA Agreement.
16.
Also, when a version was put to him that Defendant
will testify that the agreement of November 2018 replaced the two
agreements
(i.e. the employment agreement dated August 29, 2014, and
the JICA Agreement), Mr Letsholo disputed this and testified that the
last agreement was entered into to secure Defendant’s
employment in compliance with the JICA Agreement.
17.
On absence of a repayment provision in the
November 2018 contract of employment Mr Letsholo testified that it is
a standard appointment
letter. He testified that these are specific
tailor-made requirements of NSA that they would like to be
incorporated in the agreement.
- Defendant’s
Case
Defendant’s
Case
18.
Defendant pleaded lack of jurisdiction on the
ground that in terms on clause 16 of the JICA Agreement, Plaintiff
and Defendant consented
and agreed to Magistrate Court’s
jurisdiction in respect of any litigation arising out of the
agreement. However, at commencement
of the proceedings, she decided
to abandon this argument.
19.
In her plea, Defendant admitted the terms of the
JICA Agreement and pleaded that these terms were rendered null and
void, based
on the following:
19.1 Clause 14 of
the JICA Agreement states:
“
14.
Acknowledgement
The
Employee acknowledges that after completion of the Programme, this
Agreement shall become null and void and the provisions of
the
Agreement to be entered into between the Parties shall apply
”
.
20.
Based on the signature of the new contract of
employment and her appointment as a Product Manager, Defendant
pleaded that the terms
of the JICA Agreement were rendered
null
and void
, and that the employment terms
were then regulated by the provisions of the new contract of
employment.
21.
Defendant further pleaded that the terms of clause
4 and 5 of the JICA Agreement were not incorporated into the new
contract of
employment for the Product Manager position.
22.
Clause 4 and 5 of the JICA Agreement set out
obligations of both Plaintiff and Defendant arising out that
agreement.
23.
In essence, Defendant pleaded that her resignation
was not in breach of the JICA Agreement and that her duty to refund
Plaintiff
had been nullified in terms of clause 14 of the JICA
Agreement when the new contract of employment as a Product Manager
was concluded.
24.
Defendant closed her case without leading
evidence.
- Admissibility
of Plaintiff’s Evidence
Admissibility
of Plaintiff’s Evidence
25.
Defendant
argued that Mr Letsholo’s evidence was entirely hearsay as he
was not involved in the negotiation and conclusion
of the JICA
Agreement as well as the New Agreement. Secondly, Defendant argues
that Plaintiff failed to apply for Mr Letsholo’s
testimony to
be admitted under section 3(1)(c) of the
Law of Evidence Amendment
Act No. 45 of 1988
.
[1]
26.
On hearsay evidence
Section 3
of
Law of Evidence
Amendment Act provides
that:
“
3.
Hearsay evidence
(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; and
(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
.
(2)
The provisions of subsection (1) shall not
render admissible any evidence which is inadmissible on any ground
other than that such
evidence is hearsay.
(3)
Hearsay evidence may be provisionally admitted
in terms of subsection (1) (b) if the court is informed that the
person upon whose
credibility the probative value of such evidence
depends, will himself testify in such proceedings: Provided that if
such person
does not later testify in such proceedings, the hearsay
evidence shall be left out of account unless the hearsay evidence is
admitted
in terms of paragraph (a) of subsection (1) or is admitted
by the court in terms of paragraph (c) of that subsect
.
(4)
For the purposes of this section-
‘
Hearsay
evidence
’
means
evidence, whether oral or in writing, the probative value of which
depends upon the credibility of any person other than the
person
giving such evidence
;
…”
.
[2]
27.
Zeffert
and Paises describes the primary reason behind exclusion of hearsay
evidence as “
its
general unreliability – the fact that it rested for its
evidential value on the untested memory, perception, sincerity
and
narrative capacity of a declarant or actor who was not subjected to
the oath, cross-examination or any other procedural devices
to which
our adversary system of trial procedure subjects a witness giving
original evidence’.
[3]
This
is substantiated in reference to S v Molin
[2008] ZACC 2
;
2008 (2) SACR 76
(CC), at
para 34 where the Constitutional Court stated the ‘rationale of
excluding hearsay as inadmissible is a recognition
of the
unreliability and unfairness emanating from such evidence’ and
that its ‘unreliability and susceptibility is
said to be based
on the so-called ‘hearsay dangers’ of insincerity and
defective memory, perceptive powers and narrative
capacity
”
.
[4]
28.
In President of the Republic of South Africa and
Others v M & G Media
2011 (2) SA 1
(SCA) the Supreme Court of
Appeal stated that:
“
[38]
A court is not bound to accept the ipse dixit of a witness that his
or her evidence is admissible. Particularly in cases of
this kind, in
which information is within the peculiar knowledge of the body,
proper grounds need to be demonstrated for the admissibility
of the
evidence. Merely to allege that that information is within the
‘personal knowledge’ of a deponent is of little
value
without some indication, at least from the context, of how that
knowledge was acquired, so as to establish that the information
is
admissible, and that it is hearsay, to enable its weight to be
evaluated. In this case there is no indication that the facts
to
which Mr Chikane purports to attest came to his knowledge directly,
and no other basis for its admission has been laid. Indeed,
the
statement of Mr Chikane that I have referred to is not evidence at
all: it is no more than bald assertion
”
.
[5]
29.
It was
clearly emphasized by the Supreme Court of Appeal that the court is
not concerned with probability.
[6]
A bald assertion based on the position of a witness is not enough,
the witness must clearly set out the basis for admission of
his
evidence and as the Supreme Court of Appeal has stated, there must be
an indication that the facts came to his knowledge including
how this
came about.
30.
Mr
Letsholo in his evidence testified that: “
he
works in the contract management division of Plaintiff, and that he
is familiar with the Programme. Notwithstanding that he was
not
involved in the drafting and execution of the agreement, he has
knowledge of the JICA Agreement. The JICA Agreement falls under
his
division, and they attend to administration thereof, for instance,
payments that must be effected in terms of the agreement”.
[7]
31.
The
issue then is whether this evidence meets the test as set out by the
Supreme Court of Appeal in President of the Republic of
South Africa
and Others v M & G Media
[8]
.
The Court is satisfied that Mr Letsholo in his evidence has set out
basis that is sufficient for his evidence to be admitted.
32.
In Maharaj v Barclays National Bank Ltd
1976 (1)
SA 418
(A) the Supreme Court of Appeal stated that:
“
The
mere assertion by a deponent that he ‘can swear positively to
the facts’ (an assertion which merely reproduces the
wording of
the Rule) is not regarded as being sufficient, unless there are good
grounds for believing that the deponent fully appreciated
the meaning
of the words
”
.
[9]
33.
In Howard & Decker Witkopen Agencies and
Four-Ways Estates (Pty) Ltd. v De Sousa 1971 (1) 937 (T.P.D.) the
court stated that:
“
The
law in relation to the proof of private documents is that the
document must be identified by a witness who is either (1) the
writer or signatory thereof, or (2) the attesting witness, or
(3) the person in whose lawful custody the document is, or
(4) the
person who found it in possession of the opposite party, or (5) a
handwriting expert, unless it: (a) is produced under
a discovery
order, or (b) may be judicially noticed by the Court, or (c) is one
which may be handed in from the Bar, or (d) is
produced under a
subpoena duces tecum, or is an affidavit in interlocutory
proceedings, or (f) is admitted by the opposite party.
Where
the party against whom a private document, a deed of sale, not
complying with the above, is sought to be relied on, has neither
admitted its authenticity nor that the contents thereof are correct,
its contents cannot be used either as evidence or purposes
of
cross-examination
”
.
[10]
34.
In Metedad v National Employers’ Employers’
General Insurance CO LTD
1992 (1) SA 494
(WLD) the Court stated that:
“
This
section invests the court with discretion, to be judicially exercised
in the interests of justice. It seems to me that the
purpose of the
amendment was to permit hearsay evidence in certain circumstances
where the application of rigid and somewhat archaic
principles might
frustrate the interests of justice. The exclusion of the hearsay
statement of an otherwise reliable person whose
testimony cannot be
obtained might be a far greater injustice than any uncertainty which
may result from its admission. Moreover,
the fact that the statement
is untested by cross-examination is a factor to be taken into account
in assessing its probative value
”
.
[11]
35.
In affirming the Metedad judgment the Supreme
Court of Appeal in Makhathini v Road Accident Fund
2002 (1) SA 511
(SCA) stated that:
“
The
purpose of the Act is to allow the admission of hearsay evidence in
circumstances where justice dictates its reception
”
.
[12]
36.
The
issue between the parties is whether Defendant is in material breach
of the JICA Agreement and whether the new contract of employment
has
rendered the JICA Agreement
null
and void
as
envisaged in clause 14 of the Agreement. In interpreting the
agreement, it is important to consider how the agreement was entered
into and the intention of the parties. It is trite that effect must
be given to what the transaction really is.
[13]
37.
It is not in dispute that the JICA Agreement was
entered into between Plaintiff and Defendant, and neither is the
authority of the
signatory of the agreement on behalf of Plaintiff.
Defendant’s contention is that failure to call the person who
signed the
agreement on Plaintiff’s behalf makes Mr Letsholo’s
evidence hearsay. In applying the factors or considerations set
out
in
Section 3
of
Law of Evidence Amendment Act it
is important to
consider what the Constitutional Court said in Kapa v
S
2023
(4) BCLR
370 (CC) where the Court stated that:
“
Hearsay
evidence is inadmissible, unless the court is of the opinion that it
is in the interests of justice for it to be admitted,
taking into
account the factors referred to in
section 3(1)(c)(i)
to (vi)
”
.
[14]
38.
In
this regard, in Kapa v S
[15]
the Constitutional Court followed the judgment of S v Ndhlovu
2002
(6) SA 305
(SCA) where the Supreme Court of Appeal stated that:
“
The
problem, however, is that the provision conflates the admissibility
of evidence with its reliability. That aside, statute’s
fundamental test, namely the ‘interests of justice’, as
well as the criteria it posits as relevant to that test, must
now be
interpreted in accordance with the values of the Constitution and the
‘norms of the objective value system’
it embodies.
Nothing in the statute inhibits this normative reconfiguration
”
.
[16]
39.
The
JICA Agreement was entered into to enhance Plaintiff’s
objective of contributing towards its long-term strategy and
viability.
The Programme envisaged in the JICA Agreement was
developed to assist Plaintiff’s employees to develop an active
role within
Plaintiff’s managerial structures after the
Employee gained experience during the programme.
[17]
40.
The purpose of Mr Letsholo’s evidence was to
establish the contractual relationship between Plaintiff and
Defendant as well
as the intention of the parties when entering into
the agreement, including inferences which can be drawn therefrom.
This Court
has no reason to doubt the reliability of Mr Letsholo’s
evidence and the reliability of the JICA Agreement. The Court is
satisfied that Mr Letsholo’s evidence demonstrated the true
intention of the parties to the JICA Agreement.
41.
It is
trite that the discretion to admit hearsay evidence should be
exercised with due consideration of factors set out in the
Law of
Evidence Amendment Act No. 45 of 1988
, an arbitrary rejection of
hearsay evidence may constitute a material error in law.
[18]
42.
It does not appear to the Court that Defendant is
prejudiced by failure to call the person who signed the JICA
Agreement on behalf
of the Plaintiff. The issue that arose is whether
the JICA Agreement has become
null and
void
on signature of the new contract
of employment. This is a matter of interpretation which should
consider factors as indicated above.
43.
Upon consideration of the factors set out in
section 3(1)(c)(i)
to (vii) and circumstances dealt with herein
above, the Court regards it in the interest of justice that Mr
Letsholo’s evidence
be admitted as evidence.
- Inference
on failure to call available witness to testify
Inference
on failure to call available witness to testify
44.
Defendant argued that adverse inference should be
drawn for Plaintiff’s failure to call the individuals who
concluded the
JICA Agreement. She argued that these individuals have
knowledge of the facts and circumstances giving rise to both the JICA
Agreement
and the new contract of employment. Defendant relied on the
judgment of Munster Estates (Pty) Ltd v Killarney Hills (Pty) Ltd
19
79 (1) SA 621
AD and quoted a summary of the finding of the then
Appellate Division as follows:
“
The
failure of a party to call a witness is excusable in certain
circumstances, such as when the opposition fails to make out a
prima
facie case. But an adverse inference must be drawn if a party fails
to…place evidence of a witness who is available
and able to
elucidate the facts as this failure leads naturally to the inference
that he fears that such evidence will expose facts
unfavorable to him
or even damage his case
”
.
45.
The
paragraph quoted by Defendant is instead found in Tshishonga v
Minister of Justice & Constitutional Development 2007 (4)
SA 135
(LC).
[19]
46.
The
Appellate Division in Munster Estates (Pty) Ltd v Killarney Hills
(Pty)
[20]
followed the
decision of Elgin Fireclays Ltd v Webb
1947 (4) SA 744
(A) where the
Appellate Division stated that:
“
It
is true that if a party fails to place the evidence of a witness, who
is available and able to elucidate the facts, before the
trial Court,
this failure leads naturally to the inference that he fears that such
evidence will expose facts unfavourable to him.
But the inference is
only a proper one if the evidence is available and it would elucidate
the facts
”
.
[21]
47.
When
interpreting the judgment of Elgin Fireclays Ltd v Webb
[22]
the Appellate Division as it was then stated that:
“
In
my opinion, however, it is to be doubted whether WATERMEYER CJ
intended laying down a general and inflexible rule to be applied
without more in every case where a party fails to call as his witness
one “who is available and able to elucidate the facts”.
Whether the inference, that the party failed to call such a person as
a witness because he “fears that such evidence will
expose
facts unfavourable to him”, should be drawn could depend upon
the facts peculiar to the case where the question arises
”
.
[23]
48.
It is important to consider all circumstances in
this case whilst dealing with the issue of whether inference should
be drawn against
Plaintiff as argued by the Defendant. It is
undisputed that the JICA Agreement was entered into between Plaintiff
and Defendant.
It is also undisputed that Defendant attended the
Programme in Japan as set out in the JICA Agreement. It is also
common course
that at completion of the Programme, Defendant was
offered a new contract of employment as stipulated in the JICA
Agreement. Regarding
the costs of the Programme, Defendant’s
submission was that the costs were paid by Nissan Global, which
version was disputed
by Plaintiff’s witness who testified that
Plaintiff is the one who paid the costs claimed against Defendant in
these proceedings.
The issue in dispute is whether when entering into
the new contract of employment, the JICA Agreement became
null
and void
as stipulated in clause 14.
49.
Regarding the failure to call the individuals who
entered into the agreement, no explanation was given by the
Plaintiff. Correctly
so, the Defendant invoked the trite principle
that the court ‘may draw inference against a party that fails
to call a witness
who is available and able to testify”.
50.
What then must be considered is whether there are
issues that needed to be elucidated by the witnesses that were not
called by the
Plaintiff. In respect of two individuals who
participated in the conclusion of the agreement the evidence is that
they are no longer
in its employ. One has retired and Mr Letsholo has
no knowledge of the whereabouts of the other one. No explanation was
given for
the failure to call them as witnesses. Defendant argues
that this failure is fatal to Plaintiff’s case as these
individuals
would give evidence to the meaning of clause 14 of the
JICA Agreement or the parties’ true intention when the
agreement was
concluded.
51.
Defendant further argued that no admissible
evidence was adduced on behalf of the Plaintiff to sustain its
reliance on the JICA
Agreement and consequently the implied
contention that the Defendant’s obligations survived beyond
November 1, 2018. I will
deal with this issue later in the judgment.
52.
Other than indicating that the individuals who
were involved in the conclusion of the JICA Agreement were no longer
in the employ
of the Plaintiff, no averments were made by either
Plaintiff or Defendant that their evidence would be unfavourable for
either
of the parties. The issue then is whether these individuals
were in a better position to elucidate the facts in relation to the
JICA Agreement better than Mr Letsholo. In his testimony Mr Letsholo
indicated that he was familiar with the JICA Agreement and
the
Programme. He was responsible for administration related to the JICA
Agreement. He understood the purpose and objective of
the JICA
Agreement. In essence, his evidence demonstrated that he is
acquainted with the facts relating to the JICA Agreement.
53.
To
succeed in its case plaintiff must prove on a balance of
probabilities the existence of a contract between itself and the
Defendant.
Also, it must prove that Defendant is in breach the
material terms of the contract it based its cause of action on.
[24]
54.
The issue then is whether the failure to call
individuals involved in conclusion is fatal to Plaintiff’s
case. The Court is
of the view that Plaintiff proved existence of the
contract between itself and Defendant. Plaintiff’s evidence was
sufficient
in making out a case in respect of breach of contract. The
JICA Agreement and the new contract of employment dated November 1,
2018, are two distinct agreements in that the new agreement was
simply a contract of employment placing Defendant to a new position
as envisaged in the JICA Agreement. The Court does not believe that
the individuals who were involved in conclusion of the JICA
Agreement
would elucidate the facts relating to the agreement more than Mr
Letsholo did in his testimony.
55.
For the reasons set out above the Court therefore
finds that no negative inference should be drawn against Plaintiff
for failure
to call the individuals who were involved during
conclusion of the JICA Agreement.
- On
whether clause 14 of the JICA Agreement is a resolutive condition
On
whether clause 14 of the JICA Agreement is a resolutive condition
56.
Defendant argued that clause 14 of the JICA
Agreement constitutes a resolutive clause. She argued that Plaintiff
did not present
admissible evidence to show that the wording of
clause 14 of the JICA Agreement reveals the intention for the
Defendant’s
obligations under clauses 5.6 and 9.1 to survive
the termination of the JICA Agreement.
57.
To substantiate her argument Defendant relied on
the judgment of Gravitek CC v Cartmel Investment (Case No. 7526/2015)
where the
court held that:
“
[19]
A resolutive condition is the antithesis of a suspensive condition.
The contract concluded between the parties is immediately
binding
with all rights and obligations coming into existence at the
inception of the contract and will remain binding subject
to the
future event in the stipulated condition being fulfilled.
[20]
If a resolutive condition is subsequently fulfilled, the agreement
will terminate immediately with retrospective effect, with
the
contracting parties being lawfully required to be restored to the
position they were in prior to the conclusion of the agreement,
that
is the status quo ante
”
.
[25]
58.
This Court is called upon to determine whether
clause 14 of the JICA Agreement is a resolutive condition and whether
conclusion
of the new contract of employment was a fulfilment of a
resolutive condition.
59.
It is this Court’s view that the new
contract of employment was consequential to the JICA Agreement. It is
illogical to suggest
that the new contract of employment terminated
the JICA Agreement.
60.
Coming to clause 14 of the JICA Agreement, it is
important to give effect to the commercial meaning of the agreement.
This agreement
gives reciprocal obligations to both Plaintiff and
Defendant. Firstly, Plaintiff is obliged to appoint Defendant and pay
expenses
and/or disbursements on behalf of the Defendant as set out
in the agreement. This includes payment of a stipend in lieu of
Defendant’s
salary for the duration of the Programme. Secondly,
Plaintiff is obliged on completion of the Programme to employ
Defendant in
a job position similar to the position she occupied
before commencement of the Programme. In return, Defendant is obliged
upon
completion of the Programme, to remain in Plaintiff’s
employ for a period of two and a half years.
61.
The new contract of employment is a distinct and
separate agreement. It is consequential and flows from the JICA
Agreement. The
Court does not agree with the argument that the new
contract of employment gave rise to a resolutive agreement as set out
in clause
14 of the agreement. This argument fails to appreciate the
clear distinction between the two agreements. In Wynus Car Care
Products
(Pty) Ltd v First National Industrial Bank Ltd
[1991] ZASCA 34
;
1991 (2) SA
754
(A) the then Appellate Division stated that:
“
The
argument fails to appreciate the clear distinction between separate
agreements which are, for practical and commercial considerations,
linked and interdependent and those which the parties in addition
wish to be reciprocal in the legal sense. The transaction plainly
involved more than the lease of the equipment and it is clear that
the system would be inoperative and the equipment of no use
to the
appellant unless CICS performed in terms of the maintenance agreement
and the services agreement…The transaction
was a multi-faced
one. It was for the parties to decide how they would formalize every
aspect of their relationship. They elected
to do so in three separate
and distinct agreements and, unless the terms of the agreements
considered as a whole clearly evince
the intention that there would
be reciprocity between the obligations undertaken in each, there is
no room for an interference
to that effect
”
.
[26]
62.
On interpretation of contracts the Court in V, C F
v V, M (A5021/12) [2016] ZAGJHC 24 November 2016 stated that:
“
The
fundamental consideration in determining the terms of a written
contract or its application to an event that arose during the
course
of their relationship is to discern the intention of the parties from
the words used in the context of the document as a
whole, the factual
matrix surrounding the conclusion of the agreement and its purpose or
(where relevant) the mischief it was intended
to address (KPMG
Chartered Accountants (SA) v Securefin and Another
2009 (4) SA 399
(SCA) at para 39 and Novartis SA (Pty) Ltd v Maphil Trading Ltd
2016
(1) SA 518
(SCA at paras 27, 28, 30 and 35)
”
.
[27]
63.
Upon analysis of legal authorities, the Court in
V, C F v V, M (A5021/12) [2016] ZAGJHC 24 November 2016 summed up the
position
in of applicable law of interpretation as follows:
“
Put
in another way; a court is now at liberty to depart from the words
used, even when they are clear and unambiguous when considered
in the
context of the document as a whole if, having regard to admissible
background and surrounding factors, it is evident that
they would
lead to a result contrary to the purpose and intention of the parties
or legislature as the case may be
”
.
[28]
64.
In Natal Joint Municipal Pension Fund v Endumeni
Municipality
2012 (4) SA 593
(SCA) the Court acknowledged development
of our law on interpretation of documents, legislation and contracts
and stated that:
“…
[18] Over the last
century there have been significant developments in the law relating
to the interpretation of documents, both
in this country and in
others that follow similar rules to our own…Interpretation is
the process of attributing meaning
to the words used in a document,
be it legislation, some other statutory instrument, or contract,
having regard to the context
provided by reading the particular
provision or provisions in the light of the document as a whole and
the circumstances attendant
upon its coming into existence. Whatever
the nature of the document, consideration must be given to the
language used in the light
of the ordinary rules of grammar and
syntax; the context in which the provision appears; the apparent
purpose to which it is directed,
and the material known to those
responsible for its production.
Where
more than one meaning is possible each possibility must be weighed in
the light of all these factors. The process is objective,
not
subjective. A sensible meaning is to be preferred to one that leads
to insensible or unbusinesslike results or undermines the
apparent
purpose of the document. Judges must be alert to, and guard against,
the temptation to substitute what they regard as
reasonable, sensible
or businesslike for words actually used. To do so in regard to a
statute or statutory instrument is to cross
the divide between
interpretation and legislation; in a contractual context it is to
make a contract for the parties other than
the one they in fact made.
The ‘inevitable point of departure is the language of the
provision itself’, read in context
and having regard and
production of the document”.
[29]
65.
Whilst the Supreme Court of appeal clarified the
law regarding interpretation of contracts, it clearly issued a
caution to courts
not to make a contract for the parties.
66.
In Brisley v Drostsky (423/2000) [2002] ZAENGTR 2
(28 March 2022) SCA the Court stated that:
“
Aware
of the then-existing objections (which are still raised today –
in different words, but in substance the same) from
academic and
other sources against the enforcement of the non-variation clause,
this court attached greater value to the parties’
initial
exercise of their contractual freedom than to their power to undo
those initial choices without restraint. The legislature
often does
this by prescribing that certain types of contract must be in
writing, as must all amendments to them. The parties do
this by
agreeing in advance that a contract comes into being only when
certain formalities are complied with. The purpose is to
limit or
prevent disputes.
Naturally,
the parties remain free to ignore the formalities and to behave as if
a particular law does not exist. But if a dispute
arises, anyone is
entitled – and the court is obliged to apply the strict law.
And why should it be otherwise in an autonomous
contractual
relationship? There is also a common myth that this type of provision
exists only for the benefit of the economically
powerful and that it
produces inequality in contractual relationships. This is probably
why the constitutional principles of equality
was relied upon. But
this serves to protect both parties. One can only wonder how the
tenant would have reacted if the lessor had
claimed that an increased
rent had been agreed orally
”
.
[30]
67.
The
then Appellate Division stated in SA Sentrale Ko-op Graanmaatskappy
BPK v Shifren en Andere 1964 (4) (A) stated that it would
be an
obvious deviation from the elementary and fundamental general
principle that contracts freely and seriously concluded by
competent
parties will, in the public interest, be enforced.
[31]
68.
The
Supreme Court of Appeal stated in Magna Alloys and Research (SA) Pty
Ltd v Ellis
[1984] ZASCA 116
;
1984 (4) SA 874
(A) that it is in the public interest
that persons abide by agreements they have entered into.
[32]
69.
Brisley v Drostsky (423/2000) [2002] ZAENGTR 2 (28
March 2022) SCA the court stated that:
“
The
task of courts in general, and of this court in particular, is to
weigh up these fundamental values, which sometimes come into
conflict
with one another, and when it seems necessary, to make adjustments,
gradually and with caution.
…
To
all of a sudden give judges a discretion to disregard contractual
principles when they have been deemed unreasonable or unfair
is in
conflict with this method. The result, after all, would be to
disregard the principle of pacta sunt servanda, since the
enforceability of contract terms will depend on what a particular
judge considers to be reasonable and fair in the circumstances.
The
criterion is then no longer the law but the judge. From the
contracting parties’ perspective, they will not be able to
act
on the general expectation that, when there is a dispute between
them, will be enforced according to its terms. They would
have to
wait and see if the individual judge regards the terms as reasonable
and fair… Wide judicial discretion is not such
a value, and we
are not able ‘to discern any societal value which is imperiled
by the application of Shirfren or by the refusal
to introduce a
‘special duty theory’ into contract law”
.
[33]
70.
In
National Health Laboratory Service v Mariana Lloyd-Jansen van Vuuren
2015 (5) SA 426
(SCA) the Supreme Court of Appeal stated that the law
of interpretation has evolved since the decision of Coopers &
Lybrand
& Others v Bryant 1995 (3) SA 761 (A)
[34]
where the Court set out the principles of interpretation as follows:
“
The
correct approach to the application of the “golden rule”
of interpretation after having ascertained the literal
meaning of the
word or phrase in question is, broadly speaking, to have regard:
(1)
to the context in which the word or
phrase is used with its interpretation to the contract as a whole,
including the nature and
purpose of the contract…
(2)
to the background circumstances which explain
the genesis and purpose of the contract, i.e. to matters probably
present to the minds
of the parties when they contracted …;
and
(3)
to
apply extrinsic evidence regarding the surrounding circumstances when
the language of the document is on the face of it ambiguous,
by
considering previous negotiations and correspondence between the
parties, subsequent conduct of the parties showing the sense
in which
they acted on the document, save direct evidence of their own
intentions
”
.
[35]
71.
The
Court in National Health Laboratory Service v Mariana Lloyd-Jansen
van Vuuren followed decision of Bothma-Batho Transport (Edms)
Bpk v S
Bothma & Seun Transport (Edms) Bpk 2014 (2) SA 494 (SCA)
[36]
where the Court held that:
“
Whilst
the starting point remains the words of the document, which are the
only relevant medium through which the parties have expressed
their
contractual intentions, the process of interpretation does not stop
at a perceived literal meaning of those words but considers
them in
the light of all relevant and admissible context, including the
circumstances in which the document came into being. The
former
distinction between permissible background and surrounding
circumstances, never very clear, has fallen away. Interpretation
is
no longer a process that occurs in stages but is ‘essentially
one unitary exercise’. Accordingly, it is no longer
helpful to
refer to the earlier approach
.”
[37]
72.
What
seems to be the current legal position is that the words of the
contract should be read in the context of the document as a
whole and
in light of the relevant circumstances.
[38]
The applicable law as clarified by the Courts is now that the enquiry
is no longer restricted to the words used, the intended scope
or purpose of the contract is also to be taken into consideration
when interpreting a contract.
73.
As indicated herein above, the purpose of the
Programme envisaged in the JICA Agreement is to contribute to
Plaintiff’s long-term
strategy and viability and develop the
employee (in this case the Defendant) to develop an active role
within Plaintiff’s
managerial structures after the Defendant
gained experience from the Programme. It is apparent that the
agreement does not envisage
Defendant to immediately leave
Plaintiff’s employ after completion of the Programme. She is
required to remain in the Plaintiff’s
employ for two and a half
years after completion of the Programme.
74.
Upon consideration of the intended scope and
purpose of the JICA Agreement this Court finds that Defendant’s
obligation to
remain in Plaintiff’s employment survives
termination of the agreement. This court finds that clause 14 of the
JICA Agreement
when considering its scope and purpose cannot be a
resolutive condition.
- Parol
Evidence Rule
Parol
Evidence Rule
75.
Where
parties reduce their agreement to writing, with intention that the
document be an integration of all that has gone before
and hence the
sole memorial of their agreement, no other evidence is admissible to
contradict, vary, add to or subtract from the
terms of writing.
[39]
76.
Defendant argues that the JICA Agreement was
integrated into a written memorial of the parties’ agreement
and Plaintiff sought
to contradict, add to or modify the writing by
asking the honourable Court to ignore clause 14 without claiming
rectification.
She argued further that it is not competent for the
Plaintiff to seek to amend, vary or contradict the provisions of the
JICA Agreement
under the guise of an exercise in interpretation.
77.
In Coopers & Lybrand and Others v Bryant
[1995] ZASCA 64
;
1995
(3) SA 761
AD the then Appellate Division stated that:
“
The
correct approach to the application of the ‘golden rule’
of interpretation after having ascertained the literal
meaning of the
word or phrase in question is, broadly speaking, to have regard:
(1)
to the context in which the word or phrase is used
with its interrelation to the contract as a whole, including the
nature and purpose
of the contract as a whole, including the nature
and purpose of the contract, as stated by Rumpff supra;
(2)
to the background circumstances which explain the
genesis and purpose of the contract, i.e. to matters probably present
to the minds
of the parties when they contracted…; and
(3)
to apply extrinsic evidence regarding the
surrounding circumstances when the language of the document is on the
face of it ambiguous,
by considering previous negotiations and
correspondence between the parties, subsequent conduct of the parties
showing the sense
in which they acted on the document, save direct
evidence of their own intentions…”.
78.
Referring to the foregoing decision of Coopers &
Lybrand and Others v Bryant, the Supreme Court of Appeal in
Bothma-Batho Transport
v S Bothma & Seun Transport stated that:
“
That
summary is no longer consistent with the approach to interpretation
now adopted by South African courts in relation to contracts
or other
documents, such as statutory instruments or patents. Whilst the
starting point remains the words of the document, which
are the only
relevant medium through which the parties have expressed their
contractual intentions, the process of interpretation
does not stop
at a perceived literal meaning of those words but considers them in
the light of all relevant and admissible context,
including the
circumstances in which the document came into being. The former,
being distinction between permissible background
and surrounding
circumstances, never very clear, has fallen away. Interpretation is
no longer a process that occurs in stages but
is ‘essentially
one unitary exercise’. Accordingly, it is no longer helpful to
refer to the earlier approach”.
[40]
79.
In KPMG Chartered Accountants (SA) V Securefin and
Another
2009 (4) SA 399
SCA the Court stated that:
“
First,
the integration (or parol evidence) rule remains part of our law.
However, it is frequently ignored by practitioners and
seldom
enforced by trial courts. If a document was intended to provide a
complete memorial of a jural act, extrinsic evidence may
not
contradict, add or modify its meaning (Johnson v Leal
1980 (3) SA 927
(A) at 943B). Second, interpretation is a matter of law and not of
fact and, accordingly, interpretation is a matter for the court
and
not for witnesses (or, as said in common-law jurisprudence, it is not
a jury question)… Third, the rules about admissibility
of
evidence in this regard do not depend on the nature of the document,
whether statute, contract or patent (Johnson & Johnson
(Pty) Ltd
v Kimberly-Clark Corporation and Kimberly-Clark of South Africa (Pty)
Ltd 1985 BP 126 (A) ([1985] ZASCA 132 (at www.saflii.org.za)).
Fourth, to the extent that evidence may be admissible to
contextualise the document (since ‘context is everything’)
to establish its factual matrix or purpose or for purposes of
identification, ‘one must use it as conservatively as possible’
(Delmas Milling Co Ltd v Du Plessis
1995 (3) SA 447
(A) at 455B-C).
The time has arrived for us to accept that there is no merit in
trying to distinguish between ‘background
circumstances’
and ‘surrounding circumstances’.
The
distinction is artificial and, in addition, both terms are vague and
confusing. Consequently, everything tends to be admitted.
The terms
‘context’ or ‘factual matrix’ ought to
suffice…
”
.
[41]
80.
In Johnston v Leal 1980 (3) AD the court stated
that:
“
As
far as the parol evidence rule is concerned, this rule may allow the
admission of extrinsic evidence in cases where it would
not be
admissible by reason of the Act… The court in dealing with
parol evidence must first interpret the document and then
weigh the
evidence sought to be adduced against the meaning of the document. If
the evidence conflicts with the document, it is
not admissible.
…
Although
parol evidence may be admitted to show that a contract is void for
illegality or failure to comply with the terms of a
statute as stated
by Hoffman Evidence, it appears from the case cited by him, i.e.
Campbell Discount Co v Gall (1961) 2 All ER
at 106, that the evidence
admitted in that case was to show that the real transaction was not
that which was reflected in the document
(which had been in blank)
and that accordingly, the real transaction was subject to the
Hire-Purchase Acts. It appears from O’Connor
v Hume (1954) 2
All ER at 306D-G that whilst parol evidence is not admissible to
‘strike out’ an important provision
in a written
agreement, it would be admissible if the instrument is affected by
illegality
”
.
[42]
81.
Having
regard to the authorities mentioned herein above, what then needs to
be determined is whether Mr Letsholo’s evidence
sought to vary,
add or subtract from the terms of the JICA Agreement. The Court’s
evaluation of his evidence is that it provided
circumstances in which
the JICA Agreement came into being. Defendant pointed out that at no
stage did the Plaintiff present admissible
evidence on the meaning of
clause 14 or argue that the wording of clause 14 of the JICA
Agreement did not reflect the intention
of the parties. Indeed, there
was no evidence proffered which sought to suggest that clause 14 of
the JICA Agreement is not a true
reflection of the intention of the
parties. The Court has indicated above that the effect of clause 14
of the JICA Agreement is
a matter of interpretation. This Court
aligns with the principle set out in KPMG Chartered Accountants (SA)
V Securefin and Another
2009 (4) SA 399
SCA where the Supreme Court
of Appeal stated that interpretation is a matter of law and not of
fact and, accordingly, interpretation
is a matter for the court and
not for witnesses.
[43]
82.
It is this Court’s finding that based on the evidence adduced
before it, the parties agreed on the underlying nature and
purpose of
the JICA Agreement, the issue of parol evidence does not arise.
Having taken into account the contents of the JICA Agreement,
its
purpose, what it meant to achieve and having considered the contents
of the JICA Agreement as a whole, the issue of parol evidence
should
not enter the discussion.
- Onus
Onus
83.
It is trite that Plaintiff who sues on a contract
must prove existence of the contract. Plaintiff must satisfy the
Court that there
is in existence a contractual relationship between
itself and the Defendant that entitles it to institute a contractual
claim against
the Defendant. That is in so far as the onus in
relation to the merits. Secondly, Plaintiff bears the onus to prove
that it is
entitled to the amount that it is claiming. In this case,
Plaintiff bears the onus to prove that the amount of R412 209.98
is due and payable by the Defendant.
84.
In Pillay v Krishna and Another 1946 (A) 946 the
Court stated that:
“
Commenting
on this passage Solomon CJ, said in Spain’s case, at p 79: …
In this statement of the law by Kotze JP, the
Natal Provincial
Division in its judgment in this case concurred, and I think we
should also accept it, except in so far as it
refers to the onus
being placed on the Respondent. For the onus to prove his case always
lies on the Appellant: if, in the circumstances
stated by Kotze JP,
no evidence is given by the Respondent,
provisional
sentences will be granted:
on
the other hand, if evidence is called by the Respondent, it will be
for the Court to determine whether, in the circumstances,
a
sufficiently clear case has been made out by the Appellant to justify
the granting of provisional sentence
”
.
[44]
85.
In
Goliath v MEC: Health Eastern Cape
2015 (2) SA 97
(SCA) the Court
pointed out that there is an important distinction between an onus of
proof and an obligation to adduce evidence.
[45]
The evidential burden may shift from the Plaintiff, but the onus does
not. This is primarily because the onus is important for
determination of which party should fail on a given issue. What the
Court is called upon to do is at the end of the trial to determine
whether based on evidence adduced before it, Plaintiff has discharged
the onus of proof resting upon it on a preponderance of
probabilities.
86.
In South Cape Corp. v Engineering Management
Services 1977 (3) AD the Court stated that:
“
As
was pointed by Davis, A.J.A. in Pillay v Krishna and Another, 1946 at
pp. 952-3, the word onus has often been used to denote,
inter alia,
two distinct concepts: (i) the duty which is cast on the particular
litigant, in order to be successful, of finally
satisfying the Court
that he is entitled to succeed on his claim or defense, as the case
may be, and (ii) the duty cast upon a
litigant to adduce evidence in
order to combat a prima facie case made by his opponent. Only the
first of these concepts represents
onus in its true and original
sense
…
In
this sense the onus can never shift from the party upon whom it
originally rested. The second concept may be termed, in order
to
avoid confusion, the burden of adducing evidence in rebuttal
(“weerleggingslas”). This may shift or be transferred
in
the course of the case, depending upon the measure of proof furnished
by the one party or the other
”
.
[46]
87.
In these proceedings, only the Plaintiff adduced
evidence, there is therefore no argument regarding the shifting of
evidential burden.
What this Court is left with is to determine
whether on analysis of all evidence adduced before it, Plaintiff has
satisfied its
onus and whether a sufficiently clear case has been
made out by the Plaintiff to justify granting judgment in its favour.
88.
In Ex Parte Minister of Justice: In re R v
Jacobson and Levy 1931 AD the Court stated that:
“
If
the party on whom lies the burden of proof, goes as far as he
reasonably can in producing evidence and the evidence “calls
for an answer” then, in such case, he has produced prima facie
proof, and, in an absence of an answer from the other side,
it
becomes conclusive proof…”.
[47]
89.
In Monteoli v Woolworths (Pty)
2000 (4) SA 735
WLD
the court stated that:
“
[25]
It is absolutely trite that the onus of proving negligence on a
balance of probabilities rests with the plaintiff.
…
[27] Sometimes,
however, a plaintiff is not in a position to produce evidence on a
particular aspect. Less evidence will suffice
to establish a prima
facie case where the matter is peculiarly in the knowledge of the
defendant.
…
[29]
In such situations, the law places an evidentiary burden upon the
defendant to show what steps were taken to comply with the
standards
to be expected. The onus nevertheless remains with the
plaintiff”.
[48]
90.
At
issue is whether Plaintiff has discharged the onus of proving its
case and if so, whether the evidential burden shifted to the
Defendant. Before addressing this issue, it is important to note that
Plaintiff relied on a single witness testimony to support
its case.
The Court is required to exercise judicial
discretion
when evaluating single witness testimony. It is trite that such
testimony should be clear and satisfactory in all material
respects.
[49]
On evaluation of
evidence adduced by the Plaintiff the Court is of the view that Mr
Letsholo’s evidence was clear and satisfactory.
No negative
inference could be made by the Court on the probability and
truthfulness of his testimony. There was no indication
of this
witness breaking down under cross-examination.
91.
In respect of merits, Plaintiff has satisfied the
existence of a contractual relationship between the parties that
would entitle
it to institute a contractual claim against the
Defendant. Concerning clause 14 of the JICA Agreement, the Court has
already made
a ruling that this is not a resolutive condition as
indicated hereinabove. The Court finds that Plaintiff discharged its
onus to
establish existence of a contractual relationship between
Plaintiff and Defendant. In any event, the existence of the JICA
Agreement
is not in dispute, at issue is whether clause 14 of the
JICA Agreement rendered the agreement
null
and void
on conclusion of the new
contract of employment, which should consequently result in falling
away of obligations set out in the
JICA Agreement.
- Do
obligations set out in the JICA Agreement survive termination of the
agreement?
Do
obligations set out in the JICA Agreement survive termination of the
agreement?
92.
On whether the obligations set out in the JICA
Agreement survive termination of the agreement, this Court is of the
view that this
is a matter for interpretation as such it is a matter
of law and not of fact and, accordingly is a matter for the Court and
not
for witness.
93.
Obligations
of the parties in terms JICA Agreement are already set out herein
above.
[50]
It is common cause
that the new contract of employment entered into between Plaintiff
and Defendant made no reference to the obligations
set out in the
JICA Agreement.
94.
The Court has set out herein above the law that
obtains in our country in relation to the interpretation of
contracts, statute and
documents.
95.
Whilst the parties did not seriously argue
novation, it is worth considering whether parties considered novation
in their agreement.
In National Health Laboratory Service v Mariana
Magdalena Lloyd-Jansen Van Vuuren
2015 (5) SA 426
(SCA) the Court
stated that:
“
It
follows that in order to establish whether novation has occurred, the
court is entitled to have regard to the conduct of the
parties,
including any evidence relating to their intention
”
.
[51]
96.
The Supreme Court of Appeal in National Health
Laboratory Service v Mariana Magdalena Lloyd-Jansen Van Vuuren
followed the decision
of Proflour (Pty) Ltd & another v Grindrod
Trading (Pty) Ltd t/a Atlas Trading and Shipping & another where
the Court referred
to the decision of Electric Process Engraving and
Stereo Co v Irwin
1940 AD 220
where the Court stated at 226-227 that:
“
The
law on the subject was clearly enunciated as far back as 1880 in the
well-known case of Ewers v The Resident Magistrate of Oudtshhoorn
and
Another, (Foord) 32, where DE VILLIERS, C.J. said: The result of the
authorities is that the question is one of intention and
that, in the
absence of any express declaration of the parties, the intention to
effect a novation cannot be held to exist except
by way of necessary
inference from all the circumstances of the case
”
.
[52]
97.
Having considered the foregoing authorities on
novation, the Court is of the view that taking into consideration the
intention of
the parties in the JICA Agreement there is no indication
of intention to novate. The two agreements are distinct in that the
JICA
Agreement relates to the Programme as indicated therein and the
second agreement is a contract of employment consequential to the
JICA Agreement. The Court has already set out the purpose of the JICA
Agreement herein above. This includes the obligations of
the parties
thereto.
98.
The Court has already made a ruling that clause 14
of the JICA Agreement does not constitute a resolutive clause. The
Court therefore
does not agree with the submission that when the
parties entered into a new contract of employment it rendered the
obligations
set out in the JICA Agreement as of no force or effect.
99.
Clause 3.3 of the JICA Agreement indicates the
purpose of the Programme as set out in the agreement. Clause 4 of the
JICA Agreement
sets out Plaintiff’s obligations which include
securing Defendant’s employment after completion of the
Programme. Clause
5 of the JICA Agreement sets out the Defendant’s
obligations and terms of her participation in the Programme. Upon
completion
of the Programme the Defendant was obliged to remain in
Plaintiff’s employ for a period of two and a half years. In
terms
of clause 9 of the JICA Agreement Defendant was obliged to
compensate Plaintiff full costs of the Programme plus interest should
the agreement be terminated prior to the employee completing the
Programme and/or serving the agreed period in Plaintiff’s
employ as set out in clause 5.
100.
It is common cause that Defendant attended the
Programme until completion. Secondly, Defendant received a stipend
and benefits from
Plaintiff as envisaged in the JICA Agreement until
completion of the Programme. Upon completion of the Programme
Plaintiff fulfilled
its obligation by employing Defendant in terms of
the new contract of employment. The new agreement was simply an
employment contract
of the Defendant after the completion of the
Programme, unlike the JICA Agreement whose purpose was to contribute
towards Plaintiff’s
long-term strategy and viability and to
assist Defendant to develop an active role within Plaintiff’s
managerial structures
after Defendant gained experience during the
Programme. As stated herein above, the new contract of employment is
consequential
to the JICA Agreement, and it was an implementation of
what had been agreed in the JICA Agreement following completion of
the Programme.
Defendant continued to be in the employ of Plaintiff
for 15 months instead of 30 months as required in terms of clause 5.6
of the
JICA Agreement.
101.
In essence, and as the Court put it in a similar
matter in the decision of National Health Laboratory Service v
Mariana Magdalena
Lloyd-Jansen Van Vuuren followed the decision of
Proflour (Pty) Ltd & another v Grindrod Trading (Pty) Ltd t/a
Atlas Trading
and Shipping & another, the new contract of
employment was a continuation of the JICA Agreement as envisaged in
clause 4.2
of the JICA Agreement. The Court does not agree with the
submission that when the new contract of employment was entered into,
the JICA Agreement ceased to exist. This Court has already made a
ruling that clause 14 is not a resolutive condition based on the
reasons stated above.
102.
The Court is satisfied that having read the words
of the JICA Agreement in the context of the agreement as a whole, the
purpose
and the factual matrix, the Defendant’s obligation in
terms of clause 5.6 of the JICA Agreement did not cease to exist when
the parties entered into a new contract of employment. To accede to
the interpretation as submitted by the Defendant would not
make
commercial sense as this will defeat the purpose of the agreement. It
is the Court’s finding that this obligation survived
termination of the JICA Agreement on completion of the Programme.
- Quantum
Quantum
103.
In relation to quantum, Plaintiff claimed payment
of the sum of R412 209.98 being the pro rata costs for travel
and monthly
stipends paid to the Defendant. Plaintiff submitted that
it is not claiming for the costs of the academic programme. To
substantiate
its claim, Plaintiff relied on the flight tickets and
pays lips.
104.
The amount claimed represent fixed expenses
incurred in relation to the travel costs of flight tickets from the
Republic of South
Africa to Japan and monthly stipend paid to
Defendant in lieu of the salary for the duration of the Programme.
Plaintiff’s
evidence is that these expenses were paid by the
Plaintiff i.e. Nissan South Africa (Pty) Ltd.
105.
Plaintiff relied on a spreadsheet attached to its
particulars of claim as annexure (“NSA5”) to substantiate
its claim
for the sum of R412 209.98.
106.
During cross-examination it was put to the
Plaintiff’s witness that the amount of R25 806, 94 which
seems to be used
as average amount does not appear in the pay slips
relied on by the Plaintiff, the response was that Plaintiff spent
R35 000.00
per month and the amount of R25 806. 94 is the
balance after statutory deductions. This response is not sustained by
the pay
slips. The net monthly salary indicated in the pay slips
varies from month to month. Annexure NSA5 shows a long list of net
pay
from September 2016 to September 2018 and the amounts indicated
therein vary from month to month.
107.
It was put to Plaintiff’s witness that when
you divide the amount of R670 980.50 by twenty-six months you
get the sum
of R25 806.84 and if you divide the same amount by
thirty months you get R22 366.01. It was also put to the
Plaintiff’s
witness that half of the sum of R670 980.50 is
R335 540.25. On calculation of the figures appearing in the
spreadsheet,
the Court agrees with the figures indicated by the
Defendant during cross-examination.
108.
Defendant argued that the costs of the Programme
were not paid by Nissan South Africa (Pty) Ltd but instead was paid
by Nissan Global.
Plaintiff’s witness insisted that the money
was paid from Plaintiff’s funds and not Nissan Global as put to
him.
109.
Notwithstanding the version put on the Plaintiff’s
witness regarding the party who made payment for the traveling and
stipend
claimed against the Defendant. There is no evidence before
Court indicating that these costs were paid by someone else. It is
not
in dispute that Defendant traveled from the Republic of South
Africa to attend the Programme in Japan and that the flight tickets
were arranged by the Plaintiff. It is also not in dispute that for
the duration of the Programme, Defendant received monthly stipend
from the Plaintiff as determined in the JICA Agreement.
110.
Regarding the actual amounts in respect of the
stipend the court has a difficulty with the amount of R25 806.94
indicated as
a net monthly income. The Court agrees with the
calculation submitted by the Defendant that when you divide the
amount of R670 980.50
by twenty-six months you get the sum of
R25 806.84 and if you divide the same amount by thirty months
you get R22 366.01.
Therefore, for the period of thirty months
the correct amount should be R22 366.01. If you multiply this
amount by fifteen
months you get the sum of R335 490.25. This is
in respect of the monthly stipend paid to Defendant in lieu of the
monthly
salary.
111.
In respect of flight tickets, the amount indicated
in the spreadsheet is the sum of R35 031.29. Half of this amount
and as
correctly pointed out by the Defendant is R17 515.64.
112.
The total amount after recalculation is therefore
R353 005.89.
113.
Notwithstanding the apparent miscalculation of the
costs by Plaintiff, the court is satisfied that it has proved its
quantum and
is entitled to a reduced proven amount.
114.
Under the circumstances, Plaintiff is entitled to
a reduced proven amount of R353 005.89 calculated as follows:
R335 490.25
being the half of the total amount of R670 980.50
recorded as total net salary for the duration of the Programme plus
R17 515.64
being the half of the amount R35 031.29 recorded
as total costs for flight tickets.
115.
I therefore make the following order:
1.
It is declared that the obligation recorded in
clause 5.6 of the agreement concluded on August 11, 2016, continued
to exist notwithstanding
the conclusion of a new contract of
employment on November 1, 2018, between Plaintiff and Defendant.
2.
It is declared that Defendant is liable to the
Plaintiff to pay an amount R353 005.89 pursuant to clause 5.6 of
the JICA Agreement.
3.
It is declared that Defendant is liable to the
Plaintiff for an interest on the amount of R353 005.89 at the
rate of 09.00%
(prime lending rate of 07.00% plus 02.00%) per annum
with effect from November 2020 (date of demand) until the date of
final payment.
4.
The Defendant is directed to pay the costs of suit
on a party-to-party scale.
M NTANGA
ACTING JUDGE OF THE
HIGH COURT
GAUTENG DIVISION,
PRETORIA
Date of Hearing: 27 June
2024
Date of Judgement: 26
September 2024
Appearances:
Plaintiff’s
Counsel:
Adv M R Maphutha
Instructed by:
Kamfer Attorneys Incorporated
Defendant’s
Counsel: Adv LSA De
Haan
Instructed
by:
Maenetja Attorneys
[1]
Law
of Evidence Amendment Act No. 45 of 1988
.
[2]
Law
of Evidence Amendment Act No. 45 of 1988
.
[3]
Zeffert
and Paizes:
The
South African Law of Evidence
(2017)
3
rd
ed.
[4]
S v
Molin 2008 (2) SACR 76 (CC), 2008 (3) SA 608 (CC).
[5]
President
of the Republic of South Africa and Others v M & G Media
2011
(2) SA 1
(SCA) para 38.
[6]
President
of the Republic of South Africa and Others v M & G Media
2011
(2) SA 1
(SCA) at para 39.
[7]
See
para 8 supra.
[8]
President
of the Republic of South Africa and Others v M & G Media
2011
(2) SA 1
(SCA) para 38.
[9]
Maharaj
v Barclays National Bank Ltd
1976 (1) SA 418
(A).
[10]
Howard
& Decker Witkopen Agencies and Four-Ways Estates (Pty) Ltd. v De
Sousa 1971 (1) 937 (T.P.D.) at para-G.
[11]
Metedad
v National Employers’ Employers’ General Insurance CO
LTD 1992 (1) SA 494 (WLD).
[12]
Makhathini
v Road Accident Fund
2002 (1) SA 511
(SCA)
at
para 27.
[13]
ERF
3183/1 Ladysmith (Pty) Ltd and Another v Commissioner for Inland
Revenue 1996 (3) SA 942 (A) at 953 C-D.
See also
Zanndberg v Van Zyl 1910 AD 302.
[14]
Kapa
v
S
2023
(4) BCLR 370 (CC);
2023 (1) SACR 583
(CC) at para 32.
[15]
Kapa
v
S
2023
(4) BCLR 370 (CC);
2023 (1) SACR 583
(CC) at para 32.
[16]
S v
Ndhlovu
2002 (6) SA 305
(SCA) at para 16.
[17]
See
clause 3.3 of the JICA Agreement.
[18]
See
Matsokoleng v Shoprite Checkers (2013) 2 BLLR 130 (LAC).
[19]
Tshishonga
v Minister of Justice & Constitutional Development
2007 (4) SA
135
(LC) at para 112.
[20]
Munster
Estates (Pty) Ltd v Killarney Hills (Pty) Ltd
1979 (1) SA 621
AD.
[21]
Elgin
Fireclays Ltd v Webb
1947 (4) SA 744
(A) at Para C-D.
[22]
See
note 20 supra.
[23]
See
note 19 supra at para D-F.
[24]
Highveld
7 Properties (Pty) Ltd and Others v Bailes 199 (4) 1307 SCA.
[25]
Cravitek
CC v Cartmel Investments CC and Others (7526/2015) [2019] ZAKZDHC 11
(21 June 2019.
[26]
Wynus
Car Care Products (Pty) Ltd v First National Industrial Bank Ltd the
[1991] ZASCA 34
;
1991 (2) SA 754
(A) at 758 A-D.
[27]
V, C
F v V, M (A5021/12) [2016] ZAGJHC 24 November 2016.
[28]
See
note 27 supra.
[29]
Natal
Joint Municipal Pension Fund v Endumeni Municipality 2012 (4) SA 593
(SCA).
[30]
Brisley
v Drostsky (423/2000) [2002] ZAENGTR 2 (28 March 2022) SCA.
[31]
SA
Sentrale Ko-op Graanmaatskappy BPK v Shifren en Andere 1964 (4).
[32]
Magna
Alloys and Research (SA) Pty Ltd v Ellis 1984 (4) SA 874 (A).
[33]
See
note 30 supra.
[34]
Coopers
& Lybrand & Others v Bryant 1995 (3) SA 761 (A).
[35]
National
Health Laboratory Service v Mariana Lloyd-Jansen van Vuuren 2015 (5)
SA 426 (SCA).
[36]
Bothma-Batho
Transport (Edms) Bpk v S Bothma & Seun Transport (Edms) Bpk 2014
(2) SA 494 (SCA).
[37]
See
note 35 supra.
[38]
See
Joint Municipal Pension Fund v Endumeni Municipality and V, C F and
V, M supra.
[39]
Hutchison
et al, (2011) The Law of Contract, Oxford University Press: South
Africa.
[40]
See
note 36 supra.
[41]
KPMG
Chartered Accountants (SA) v Securefin and Another
2009 (4) SA 399
SCA at 409-410G-J.
[42]
Johnston
v Leal 1980 (3) AD at 931-932G-H.
[43]
See
note 41 supra.
[44]
Pillay
v Krishna and Another 1946 (A) 946.
[45]
Goliath
v MEC: Health Eastern Cape 2015 (2) SA 97 (SCA).
[46]
South
Cape Corp. v Engineering Management Services 1977 (3) AD.
[47]
Ex
Parte Minister of Justice: In re R v Jacobson and Levy 1931 AD.
[48]
Monteoli
v Woolworths (Pty)
2000 (4) SA 735
WLD.
[49]
See S
v Artman and Another
1968 (3) SA 339
(AD) and R v Mokoena
1956 (3)
SA 81
AD.
[50]
See
Para 7 above.
[51]
See
para 35 supra.
[52]
See
note 35 supra and
Electric
Process Engraving and Stereo Co v Irwin
1940 AD 220.
sino noindex
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