Case Law[2024] ZAGPPHC 1104South Africa
A.J and Others v R.C.F NO and Others (083964/2023) [2024] ZAGPPHC 1104 (21 October 2024)
High Court of South Africa (Gauteng Division, Pretoria)
21 October 2024
Headnotes
a meeting ...with the heirs of the T[…] F[…] estate represented by T[...] Farly (Mother and natural guardian of A[…] F[…]) and have agreed and resolved as follows:
Judgment
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## A.J and Others v R.C.F NO and Others (083964/2023) [2024] ZAGPPHC 1104 (21 October 2024)
A.J and Others v R.C.F NO and Others (083964/2023) [2024] ZAGPPHC 1104 (21 October 2024)
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sino date 21 October 2024
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION
,
PRETORIA
(1) REPORTABLE: NO
(2) OF INTREST TO
OTHER JUDGES: NO
(3) REVISED: YES
21 OCTOBER 2024
Case
no
:
083964/2023
In
the matter between:
# A[…]
J[…]
A[…]
J[…]
# FirstApplicant
First
Applicant
# J[…]
B[…]
J[…]
B[…]
# Second
Applicant
Second
Applicant
# J[…]
M[…] J[…]
J[…]
M[…] J[…]
# Third
Applicant
Third
Applicant
and
# R[...]
C[…] F[…] NO
R[...]
C[…] F[…] NO
# First
Respondent
First
Respondent
T[…]
F[…] NO
Second
Respondent
R[...]
C[…] F[…]
Third
Respondent
# T[…]
F[…]
T[…]
F[…]
# Fourth
Respondent
Fourth
Respondent
# A[…]
F[…] F[…]
A[…]
F[…] F[…]
# Fifth
Respondent
Fifth
Respondent
JOHANNES
JACOBUS ROSSOUW NO
Sixth
Respondent
MASTER
OF THE NORTH GAUTENG HIGH COURT
Seventh
Respondent
JUDGMENT
NEUKIRCHER,
J
1]
On
29 July 1994, A[…] F[…]
(the
deceased)
established and registered a family trust known as the T[…]
F[…] Trust (the Trust). The Trust is a family
trust. The
original Trust Deed was amended on 19 August 2014 by agreement
between the deceased, the trustees
[1]
and
the beneficiaries of the Trust. The new Deed of Trust (New Trust
Deed) was signed by the deceased on 23 September 2014. The
New Trust
Deed provided that, upon termination of the Trust, the Trust Property
in the possession of the trustees would be distributed
in accordance
with the deceased
'
s
will
,
with
the balance to be distributed to the named beneficiaries
.
It
also contained provisions imposing on the trustees the duty to keep
proper accounts and not to manage the trust property for
their own
benefit.
2]
The deceased passed
away on 22 February 2015. He was survived by his four children -
the three applicants
and R[...] -
and
his spouse T[...]
.
All five are
beneficiaries of the Trust
,
as is T[...]
'
s
daughter, A[…]
.
At institution of
these proceedings, A[…] was still a minor and represented by
T[...] - she has since reached the age of
majority
,
but she has
neither sought to be substituted in these proceedings, nor has she
filed any affidavits, nor has she appointed a legal
representative to
make submissions on her behalf
.
3]
The
applicants have launched the application seeking interdictory relief,
declaratory
relief
,
and
relief in terms of s20(1) of the Trust Property Control Act 57 of
1988
(the
Act)
[2]
to remove
R[...]
and
T[...]
as
trustees
.
The
notice
of
motion
,
to
be precise
,
seeks
the following
relief
:
1.1
"
Declaring
that the first and second respondents
have repudiated the
terms of the agreement entered into amongst the parties on 18 August
2015
;
1.2
Setting aside the
resolution of the first and second respondents taken on 15 December
2023
("the
December resolution”)
;
1.3
Interdicting and
restraining the first and second respondents from implementing the
December resolution
;
1.4
Ordering the first
and second respondents to provide the applicants' attorneys with all
books
,
records
and documents relating to the affairs
,
operations
,
business and
management of the Trust to date
;
1.5
Removing the first
and second respondents as trustees of the Trust and ordering the
fourth respondent to cancel the letters of authority
dated 20 October
2014 authorising the first and second respondents to act
;
1.6
Directing the fourth
respondent to provide the applicants and the proposed independent
trustee with letters of authority authorising
them to act as trustees
of the Trust;
1.7
Ordering
the
first
,
second
and
third
respondents
to
pay
the
costs
of
the application
including the costs of two counsel where employed
...
"
The
Issues
4]
The issues can be
divided into two main themes
:
a)
the first revolves
around the validity of an agreement reached between the heirs and
executor of the Will
,
as well as the
trustees and the beneficiaries of the Trust on 18 August 2015 (the
August Agreement)
,
which
effectively amended the New Trust Deed
,
and whether a
subsequent resolution by the trustees on 15 December 2023 (the
December Resolution)
,
which varies
the August Agreement
,
is valid
;
b)
the second is whether
the trustees have conducted themselves in such a way that their
removal is warranted in terms of s20 of the
Act: is their removal in
the interests of the Trust and the beneficiaries?
Background
5]
As stated already
,
the deceased
,
the trustees
and the beneficiaries amended the Trust Deed on 19 August 2014
.
This was
approximately one year after the deceased signed his Last Will and
Testament (the Will)
,
in terms of
which:
a)
he bequeathed his
entire estate to T[...] and A[…] in equal shares;
b)
insofar as the Trust
was concerned
,
i
t
provides
:
"
4
.
As far as the assets
of the T[…] F[…] Trust is concerned
,
I direct the
balance of the trust assets after payment of all debts and costs
,
upon
termination of the Trust
,
shall
be
paid
to
the
beneficia
r
ies
i
n
the
follow
i
ng
manner
:
4.1
R[...] C[…]
F[…] -
25%
4.2
A[…]
F[…]
(J[…])-25%
4.3
J[…] M[…]
F[…] (J[…]) -
25%
4.4
J[…] F[…]
-
25%
..
."
6]
It is common cause
that on 18 August 2015
,
after the
passing of the deceased
,
the trustees
,
heirs
,
and
beneficiaries of the Trust and the executor of the will
,
entered into
the written August Agreement. It is also common cause that the August
Agreement records
:
a)
a resolution
passed by the
trustees
and
an agreement
between
them and the beneficiaries
;
as well as
b)
an estate agreement
between the executor and the heirs
.
7]
I emphasize that the
August Agreement was signed by all the abovementioned parties
.
Their
signatures are appended to the document at the end of all the agreed
terms and on the same date
.
This is not
disputed by any of them
.
Nor do any of
them dispute that it is their respective signature that is recorded
on the written instrument. It is also not in dispute
that the terms
set out were correctly recorded
.
8]
To
be precise
,
the August
Agreement
specifically
records
the following
:
'
'The
trustees
of
the
T[…]
F[…]
Trust
,
namely R[...]
F[…]
and
T[...] Farly
have held a meeting
.
.
.
with
the heirs of the T[…] F[…] estate represented by T[...]
Farly (Mother and natural guardian of A[…] F[…])
and
have agreed and resolved as follows:
Resolution
of the
trustees and agreement
between
trustees
and
beneficiaries
of
the T[…] F[…] Trust
.
.
.
1.
That the loan
accounts in favor of the late founder Mr
.
A[…]
F[…] (B[…]) AND Mrs
.
T[...] F[…]
(G[…]) be reduced pro-rata to R5 500 000
.
00
and will be an interest free loan repayable over terms as set out
below.
a
.
b.
c.
T[...] F[…]
'
s
repayment portion will be pa
i
d
to R[...] C[…] F[…] in lieu of payment towards shares
purchased by T[...] F[…] in the RWand RB Property CC
for a
period of time that would be sufficient to repay the difference owed
after the initial payment has been made as highlighted
in point 3
.
b
.
1
d.
The property within
the trust will stand as guarantee against the loan amount.
2.
That the wishes of
our late founder Mr
.
A[…]
F[…] with regards to Erf 3[…]
,
4[…]
E[…]
,
U[…]
street
,
R[…]
,
B[…]
valued at R1 001 000.00 and Erf 1[…]
,
3[…]
L[…],
G[…]
road
,
B[…]
P[…]
,
B[…]
.
valued
at R1 650 000.00 be d
i
stributed
as follows
:
a.
Erf 3[…]
,
E[…]
,
U[…]
street
,
R[…]
,
B[…] to
R[...] C[…] F[…]
;
b.
Erf 1[…]
,
3[…]
L[…]
,
G[…]
road
,
B[…]
Park
,
Boksbu
r
g
...
TO A[…] M[…]
J[…]
;
c.
The condition of the
transfers are as follows
:
i.
That
there
are
no
unforeseen
restrictions
and
preventative steps
taken by way of the law or other
.
ii.
I
t
is further understood that the transfer values of each property will
be deducted from that beneficiary
'
s
dividend at the end of the trust term.
d.
Any costs payable for
the transfer of the above said property be for the individual
beneficiaries account and will not be borne
by the Trust.
3.
Income distribution
agreement: a
.
b
.
c.
Monthly
distribution agreement
i.
R F[…]
,
acting in his
capacity as the T[…] F[…] Trust administrator
...
will reduce
his distribution
portion
from 50% to 40% and carry the administration costs of the trust
(administration costs limited to legal fees
,
accounting
fees and fees to run the office including petrol
,
telephone and
data as well as his time)
ii.
The balance of the
income after the loan and administration distribution portion will be
equally divided by the remaining beneficiaries
as laid out in the
Trust Deed namely:
1.
T[...] F[…]
2.
A[…]
F[…]
3.
J[…]
F[…]
4.
A[…] M[…]
J[…]
5.
J[…] J[…]
4.
The trustees have
further resolved
...
that the loan
owed to the T[…] F[…] Trust by RW and RB Property CC
(R671 621
.
00
as at 2013 financial statements) be reduced to an interest free loan
of R500 000
.
00
on the following conditions
...
5.
It is also understood that
the T[…] F[…] Trust is a testamentary trust and that
the beneficiaries as named in the
trust deed are only going to
benefit from
the
trust
while
the
trust
is
active
whereupon
the
arrival
of
the
termination
date in December 2024 the beneficiaries are named in the final will
and testament of the founder and their father the
late Mr
.
A[…]F[…]
will be the only beneficiaries of the trust namely:
a.
J[…] B[…]
25%
b.
A[…] M[…]
J[…] 25%
c.
R[...] C[…]
F[…] 25%
d.
J[…] M[…]
J[…] 25%
The
estate agreement
1.
The T[…] F[…]
estate (represented by way of any representative)
,
executor and
heirs will have no further claim against the T[…] F[…]
Trust other than what is highlighted above and
in point 2 below
.
2.
That
T[...]
F[…]
and
A[…]
F[…]
be
furnished
with
a
legitimate
attorney's
agreement covering the terms of the loan as set out above and at the
expense of the trust should it be deemed that this
resolution is not
sufficient.
3.
That the
beneficiaries of the T[…] F[…] Trust as laid out in
the
final will and
testament
have
no claim to the estate of their father Mr
.
A[…] F[…]
."
9]
Thus,
it
is clear from
the above:
a)
that T[...]
represents the heirs in negotiating the terms of the agreement. Given
that A[…] was a minor at the time, this
is logical;
b)
the terms on which
the Trust would repay certain loans to the deceased estate, the
manner in which rental
income
would be
distributed, the administration costs of the Trust and the explicit
arrangements on termination of the Trust
including
explicit
provisions relating to how the assets would be distributed
.
10]
It is also common
cause that
,
subsequent to
the conclusion of the August Agreement, the parties all conducted
themselves in accordance with the provisions of
that
Agreement:
a)
payments were made
towards the amounts owed by T[...] and A[…] to the Trust;
b)
R[...] received some
payments from T[...] towards the members
interest
in the RW and RB Property CC (the CC)
;
c)
the mentioned
immovable properties were transferred to R[...] and A[…];
d)
monthly
payments
were
made
to
the
applicants
(although
not
in
the proportions
envisaged by the August Agreement).
11]
However
,
according to
the applicants, R[...] then made payments to himself in excess of
what was agreed upon
,
and it appears
that there was tension and discontent amongst the parties as a result
of the way in which he, in particular, conducted
himself as trustee.
12]
The final straw for
the applicants came when R[...] and T[...] passed the December
Resolution which
,
it is common
cause
,
is
completely at odds with the terms of the August Agreement. Amongst
others
,
the
December resolution:
a)
made it clear that
R[...] and T[...]
no
longer considered
themselves
bound by the August Agreement;
b)
provides for the
distribution of the Trust assets,
including
the
distribution of income, other than that provided for in the August
Agreement
;
c)
distributes
Trust assets to R[...]
'
s
three sons who were not heirs in terms of the deceased
'
s
will
,
nor
beneficiaries of the Trust
[3]
.
13]
The entire defence
put up by both R[...] and T[...] is dependent on whether the August
Agreement is valid. I say this because
,
in their
answering affidavits
,
neither R[...]
nor T[...] take issue with either the manner in which the terms of
the August Agreement are recorded in the written
document
,
nor do they
take issue with the fact that they signed the August Agreement as
Trustees
,
heirs and
beneficiaries
.
Nor do they
dispute that the signatures that appear on the last page of the
August Agreement were appended
by
,
inter alia
,
them.
14]
In fact
,
R[...] goes
further
:
in
his answering affidavit, he not only confirms that following the
August Agreement the Trustees conducted themselves in accordance
with
that agreement until November 2021
,
he also states:
"..
.
I pause to mention that at the time the August Document was
concluded
,
I
believe the August Resolutions to have been validly passed
.
"
15]
In fact
,
it appears
that R[...]
'
s
rejection of the August Agreement is based on T[...]
'
s
conduct
,
as
he states:
"
27
.
Subsequently
,
T[...] F[…]
,
both in her
capacity as the second and fourth respondent
,
began to
dispute the validity of the August Resolutions
,
specifically
the first Resolution
,
which saw the
reduction of the loan amount due to her
.
..
"
and
that
"
(g)iven
that the August Resolution were (sic) considered to be invalid
..
.
the second respondent and I
,
as we are
authorised to do in terms of the New Deed, passed a resolution on 15
December 2021
."
16]
R[...] seeks then to
base the alleged invalidity of the August Agreement not just on
T[...]'s rejection of its terms, but also on
an email received from
the A[…] on 2 April 2021 which he alleges evidences that
applicants also consider the August Agreement
to be invalid
.
But an
analysis of this letter clearly demonstrates that this allegation is
incorrect. That email requests that an independent Trustee
be
appointed to the Trust to "look after the interest of all the
beneficiaries" given "the dispute between the Trustees
with
an ongoing court matter
."
17]
The letter also
details that the dispute is the following:
"
The
beneficiaries dispute [is] with (R[...] C[…] F[…]) and
his monthly Distributions
.
We are in
dispute as his monthly income exceeds the loan repayments and we
would prefer to have the loan accounts repaid quicker
.
As
per this dispute between the beneficiaries and R[...] (Trustee and
Administrator) we request that with immediate effect all
Distributions payments to him are ceased until this matter can be
resolved
.
Loan
accounts must be continued to T[...] F[…] (Trustee)
.
.
."
18]
In essence
,
the dispute
revolves around the fact that
,
despite the
fact that R[...] undertook to reduce his payments in the August
Agreement
,
he
reneged on that and ended up taking more than the lion
'
s
share of agreed distribution funds.
19]
But all this goes to
show is the immense mistrust between the parties and the origin of
the allegations that the trustees abused
their powers
.
Whether R[...]
did or did not abide by the terms of the August Agreement or did or
did not receive more that he was entitled to
has no bearing
on the validity
of the August
Agreement
-
at best it has a bearing on whether he should be removed as a
trustee.
20]
R[...] also attempts
to clothe the August agreement with invalidity by using the phrase
"
in
my mind
"
when
describing the purpose and content of the August agreement. For
example he states:
a)
"
19.
In my mind
,
the August
Document served two purposes
...
";
and
b)
"
20.
In my mind
,
paragraphs 1
to 5 of the August Documents set out the August Resolution passed by
the Trustees while the paragraphs numbered 1 to
3 under the heading
"
The
Estate Agreement
"
naturally
comprised the Estate Agreement.
"
21]
But
what was in his mind is entirely
irrelevant
-
R[...]'s subjective intention is not relevant in the interpretation
of what is a very clear and unambiguous document. It is also
clear
that
,
in
creating
the August Agreement, everyone acted in concert
-
this
is
clear
from the wording and their signatures
.
In
fact
,
the
affidavits before court confirm this too.
[4]
22]
The high watermark of
T[...]'s case is to be found in three main paragraphs in her
answering affidavit. These are
the
following
:
a)
"
29.1…
I have from the beginning disputed the contents of the "so-called
August agreement" and the way it was presented to me
for
signature and its execution ... "
b)
"33.2
I have to further indicate
that a number of the provisions of the so-called August resolution
did not represent the agreement between
the parties as the provisions
therein was not what second respondent had agreed on."
c)
"
37
.
1
...
I have already dealt with the issues
around the so-called August resolution and have no intention of
repeating the same here ...
"
23]
Whilst there are
several other references to the August Agreement littered throughout
T[...]
'
s
affidavit
,
they are
always in the same context ie that it is null and void. But
conspicuous by their absence are any allegations as to why
she makes
this denial, when she took issue with the signed August Agreement,
why she did so or the terms she alleges are at variance
with the
actual recorded agreed terms.
24]
In
argument, Mr Maphelela
[5]
made
several important concessions
:
a)
that there are no
documents to indicate the date on which the alleged d
i
spute
commenced - his submission was that I can
"
take
judicial note
"
of the dispute
date. No basis was laid for this submission nor was I referred to any
authority in support of this confounding submission;
b)
that all the relevant
parties had
in
fact,
signed
the August agreement;
c)
that
although
he argued that
immediately
after the
August Agreement was signed
,
T[...]
realized that
"
it
did not align with her intentions
",
there were
no
documents supporting any of these contentions. Once again I was told
that
"because
of the facts",
I can "take judicial notice" of all of this
.
25]
Mr Maphelela also
submitted that the August Agreement is invalid as:
a)
A[…]'s share
of the estate and Trust was reduced and this without the consent of
the Master of the High Court;
b)
A[…] was a
minor when the August Agreement was signed -
therefore
it
cannot bind
her and is invalid.
26]
But what these
submissions ignore is:
a)
firstly, none of these
issues were raised on the papers. The applicants have therefore not
been given an opportunity to respond
to them and they (even if there
were merit in them
,
which there is not)
are simply no more than
"trial
by ambush
"
.
Counsel's conduct in raising them in answering argument is to be
deprecated
;
b)
secondly T[...] has
acted as guardian of A[…] at all times and her actions bind
her daughter
;
c)
A[…]
is now a major at no
stage has she sought to
impugn
any decision
taken by her mother at any stage whilst she was a minor
.
Therefore
these arguments are dismissed
.
27]
Had
T[...]'s denouncing
of
the August agreement
as
invalid
been
made because of a want of consensus
[6]
or
a misrepresentation
[7]
I
would
,
at
the very least have expected some from particularity as to when
T[…]
realized
the
August
Agreement
was
at
variance
with
her
understanding
of its terms
;
-
why she maintains
this position
;
-
what the actual terms
were
;
-
why she signed the
August Agreement
;
-
why she allowed the
terms to be recorded as they appear.
28]
But even more
importantly
,
it
remains
undisputed that several of the August Agreement terms were
implemented eg. the property transfer to R[...] and A[…]
-
the
question is
why she allowed this? It also begs the question as to why the August
Agreement was implemented between August to December
2021.
29]
"
If
by a mere denial in general terms a respondent can defeat or delay an
applicant who comes to Court on motion
,
then
motion proceedings are worthless
,
for
a respondent can always defeat or delay a petitioner by such a
device
.
It
is necessary to make a robust
,
common
-
sense
approach to a dispute on motion as otherwise the effective
functioning of the Court can be hamstrung and circumvented by
the
most
simple and blatant stratagem
.
The
Court must not hesitate to decide an
issue
of
fact on affidavit merely because
it
may
be difficult to do so. Justice can be defeated or seriously impeded
and delayed by an over-fastidious approach
t
o
a d
i
spute
raised
in
affidavits
."
[8]
30]
The
respondents
have
attempted
to
argue
that
there
is
a
material
dispute
of
fact on the papers
and
that,
as
a
result,
the
Plascon-Evans
[9]
test
must be applied
in
their
favour. It is trite that relief should be granted only if the facts
as stated by respondent
together
with the admitted
facts
in the applicant's
affidavits,
justify
the grant of the order. But:
a)
in
certain instances the denial by the respondent of a fact alleged by
applicant may not be such as to
raise
a
real, genuine or bona fide dispute of fact
[10]
';
and
b)
where
the allegations or denials by respondent are so far-fetched or
clearly untenable, the court is justified in rejecting them
merely on
the papers
[11]
.
31]
In my view, the
complete lack of particularity of T[…]'s version is such that
her version does
not
raise a real,
genuine or bone fide dispute; and given the paucity of particularity
regarding that, her version is so untenable that
it falls to be
rejected merely on
the
papers
.
This is
especially
important
given the
facts that in motion proceedings
,
the affidavits
constitute the pleadings and the allegations
must be proven by
adducing admissible evidence. T[…] has failed to adduce any
evidence, never mind any admissible evidence.
32]
R[...]'s
version
fares
no
better
regarding
the August Agreement
-
he
bases his rejection
on T[…]'s
"lack
of consensus".
He gives absolutely
no cogent version why the August Agreement
should
be found
invalid beyond
what T[…]
avers and
,
as such
,
he
too
fails
to
raise
a real,
genuine
or
bona
fide
dispute.
His
version
too
is so
lacking
in substance that it falls to be rejected on the papers. In my view
,
their denial
of the August Agreement amounts to little more than obfuscation
.
33]
Thus
,
given
the terms of the August Agreement and the fact that all the parties
accepted those terms in writing, the Trustees were not
at liberty to
vary the August Agreement without the consent of the heirs and
beneficiaries and contrary to the terms of the Will.
Thus
,
by
passing the resolution of 15 December 2021, the R[...] and T[…]
have exhibited conduct that amounts to little more than
a deliberate
and unequivocal intention not to be bound by the August Agreement
and, in doing so, they have breached the August
Agreement. In any
event
,
R[...]
and T[…] unequivocally stated in the
i
r
respective affidavits that they do not consider themselves bound by
the August Agreement.
[12]
But
the applicants have elected to uphold the August Agreement and thus
the relief sought in Prayer 1 of the Notice of Motion is
competent.
34]
The purpose of the December
resolution is clear: it evinces the intention to trans
f
er
two of the major trust assets to parties who are neither heirs nor
beneficiaries of the T
r
us
t:
the one
property
,
known
colloquially as Monte Carlo would be sold to the RW and RB Property
CC
"
in
full settlement of the loans
".
The other
property
,
colloquially
known as Las Vegas
,
would be
"
awarded"
to R[...] (14
,
29%)
,
JO A[…]
J[…]
F[…]
(28
,
57%);
L[…]
A[…]
F[…]
(28
,
57%)
and
L[…] F[…]
F[…] (28
,
57%).
The latter three are R[...]
'
s
sons and they are neither heirs nor Trust beneficiaries
.
35]
But
what the
"
set
off
'
[13]
to
the
RW and RB Property CC
[14]
completely fails to set out is either the value of those loans
or
the
value
of
the
immovable properties
.
There
is thus no explanation
of
the
monies owed by the
Trust
and
the value of the properties used to set off the debt. Thus the
rationale behind this decision is completely lacking. The transfer
also appears to benefit the RW and RB Property CC
,
which
is also not a beneficiary of the Trust. There is thus no rationale
behind the transfer other than what appears to be an undue
benefit to
persons and parties not entitled to that benefit. Thus it appears
that the only parties who ultimately benefit from
this are R[...] and
T[…] and R[...]
'
s
sons
.
36]
The December
Resolution furthermore changes the payment of administration costs of
the Trust that was agreed upon in the August
Agreement. This solely
benefits R[...]
.
37]
Insofar as the
applicants seek final interd
i
ctory
relief
,
they
are required to prove the following:
a)
that they have
a clear
right;
b)
that there is an
injury committed or reasonably apprehended
;
and
c)
that
they have no other satisfactory available remedy.
[15]
38]
The clear right in my view
rests on the August Agreement
,
which is
valid. The harm lies in the fact that the implementation of the
December Resolution will see two
i
mmovable
properties
transferred
to
parties
who
are
neither
heirs
nor
Trust
beneficiaries,
and this to the detriment of the existing heirs and Trust
beneficiaries and in contravention
of
the August
Agreement. As the trustees have been released from the obligation to
provide security, the beneficiaries are put at risk.
There is also no
suitable alternative remedy available to the applicants: they have
attempted to submit the dispute to mediation
,
but to no
avail; they have also sought the intervention of the Master of the
High Court but without success
.
They have
therefore no suitable alternative remedy available to them other than
these proceedings
.
39]
"
A
trustee
may
be
removed
even
if his
conduct
complained
of
was
bona
fide.
Mala tides
or
even misconduct
are
not necessary
requirements
for his removal.
Whenever trust assets
are endangered a trustee should be removed. Some circumstances which
justify
the
removal of a trustee by
a
Court
in
terms of s 20(1)
of
the Trust
Property
Control Act
57
of 1988 are the following
:
1.
Where the trustee
,
without
furnishing any explanation for his conduct
,
removes trust
funds from an apparently safe investment with a financial institution
and transfers them to his personal account.
The Courts have often
laid down that any person in a position of trust has no business to
mix his own funds with trust funds
.
It is a very
improper procedure for such a person to pay trust funds into his
pr
i
vate
account.
2.
Where the trust deed
requires that
,
if a decision
is to be taken, especially the sale of immovable property
,
notice must be
given to all the trustees so that they may decide thereon
,
and the
trustee deliberately refrains from informing one of his co
trustees of the intended decision. Such conduct may very
well amount
to ma/a
tides.
3.
Where
the
trustee
does
not
ascertain
from the
trust
deed
what
the
rights
and obligations of
the office of trustee entails
.
4.Where
the trustee treats the trust and its assets as his own
,
for example by
selling the trust assets without the proper approval
of
the other
trustees as required by the
trust
deed.
5.
Where the trustee
expresses
no independent
views about matters
affecting the trust, but relies entirely
upon a dominant
co-trustee
and approves
of his (wrongful)
conduct.
6.
Where
the trustee
,
without
objection, allows grave misconduct on the part of a co- trustee in
the administration of trust property
,
and
thus exercises no control at all over the trust property.
"
[16]
40]
Section 20 provides
that a court may remove a trustee if it
is
in the
interest of the beneficiaries to do so. In my view, R[...] and T[…]
have conducted themselves
in
a
less
than stellar
manner and certainly not in a manner befitting that of a
trustee.
That
much
is clear from
their
conduct
which is highly prejudicial to the beneficiaries of the Trust.
Furthermore
,
it is also
clear that their conduct has evidenced a propensity for putting their
own personal interests above those of the beneficiaries
.
This goes
against
the
entire ethos
and purpose of the Trust Property Control Act and the Trust in
general. Given
that
they
are
incapable
of
acting in their
interests,
in my view
they should be
removed.
41]
A
further
quiver to this
bow is the undisputed fact that the applicants were not given the
financial
statements of
the
Trust
until
such
time
as
they were formally demanded
.
Both R[...]
and T[…]
excused
this
conduct
because they say that the dispute
that
arose
prevented the financial statements from being finalized. Even
were
one to assume that this excuse passes muster, they fail to explain
why the financial statements for 2021
could
not have been
finalized -
after
all, the dispute arose after the cut-off date for those. And the fact
that the financial statements had to be formally demanded
also does
not avail their cause.
42]
It
is clear that R[...] and T[…] pay scant
regard
to
the terms of the Will and have scant regard for the fact that the
beneficiaries have already accepted the benefits bestowed on
them
[17]
.
They
also have scant regard for the agreement reached, in writing, between
all the relevant parties
on
18
August 2021
[18]
. Their conduct
is to be frowned on.
43]
I am
therefore
of the view
that, all of the above considered,
their
removal
is well founded and necessary.
44]
Mr
.
Miltz
[19]
has
asked for an amendment
of
the costs order sought in the Notice of Motion he asks that R[...]
and T[…] be ordered to pay the costs
de
bonii propriis.
I
am
of
the
view
that
,
given
my findings this is the appropriate order -
the
Trustees were
not
acting
in
the
interests
of the heirs and Trust beneficiaries -
they
were acting in
their
own
self-interests. There is therefore no reason that the Trust should
have to stand in for these costs
[20]
.
Given
the complexity of the matter and the
i
ssues
raised
costs
on scale C are warranted
.
THE
ORDER
45]
Therefore the order
is
:
1.
It is declared that
the first and second respondents have repudiated the terms of the
agreement
entered
into
amongst the parties on 18 August 2015.
2.
The
resolution
of
the
first
and
second
respondents
taken
on
15
December
2023 ("the December Resolution") is set aside
.
3.
The first and second
respondents are interdicted and restrained from implementing the
December Resolution
.
4.
The first and second
respondents are ordered to provide the applicants' attorneys with all
books
,
records
and documents relating to the affairs
,
operations
,
business and
management of the Trust to date.
5.
The first and second
respondents are removed as trustees of the Trust and the fourth
respondent is ordered to cancel the letters
of authority dated 20
October 2014 authorising the first and second respondents to act.
6.
The fourth respondent
is directed to provide the applicants and the proposed independent
trustee with letters of authority authorising
them to act as trustees
of the Trust.
7.
The third and fourth
respondents are ordered to pay the costs de bonis propriis to be
taxed in accordance with Scale C.
# NEUKIRCHERJ
NEUKIRCHER
J
# JUDGE
OF THE HIGH COURT
JUDGE
OF THE HIGH COURT
# GAUTENGDIVISION,PRETORIA
GAUTENG
DIVISION,
PRETORIA
Delivered:
This judgment was
prepared and authored by the Judge whose name is reflected and is
handed down electronically by circulation to
the parties/their legal
representatives by email and by uploading it to the electronic file
of this matter on Caselines
.
The date for
hand-down is deemed to be 21 October 2024
Instructed
by
:
For
the first, second and
third
Applicants :
Adv
I Miltz SC
,
with him
Adv D Whittington
Instructed
by:
Du
Preez & Associates
For
the first and third
Respondents:
Adv
M Phalane
Instructed
by:
Cliffe
Dekker Hofmeyr Inc
For
the second
,
fourth and
fifth
Respondent:
Adv
TC Maphelela Advocate
Instructed
by:
TN
Nkuna (Trust)
Matter
heard on
8
May 2024
Judgment
date
21
October 2024
[1]
The
first and second respondents
,
who
will be referred to
in
this
judgment as R[…] and T[…]
.
[2]
"
20
.
(1)
A
tr
us
t
ee
may
,
on
the application of the Master or any person having an interest in
the trust property
,
at
any time be removed from his office by the court if the court is
satisfied that such removal w
i
ll
be in the
i
nterests
of the trust and its beneficiaries
."
[3]
Either
in terms of the original Trust Deed or the New Trust Deed
[4]
Cecil
Nurse (Pty) Ltd v Nkola
2008
(2) SA 441
(SCA) para 15
"
If
,
whatever
a man's real intention may be
,
he
so conducts
himself
that
a
reasonable
man
would believe that he was assenting to the
terms
proposed
by
the
othe
r
party
,
and
that other party upon that belief enters into the contract with h
i
m
,
the
man thus conducting himself would be equally bound as if he had
intended to agree to the other party's
terms.
"
Per
Smith
v
Hughes
(1871)
LR
6 QB 597 at 607 [also reported at
(1861
-
73] All ER Rep 632
[5]
On
behalf of T[...]
[6]
Which
appears to be her argument
[7]
Sonap
Pe
trol
eum
(SA)
(Pty)
Ltd
(formerly
known as
Sonarep
(SA)
(Pty)
Ltd)
v Pappadogianis
[1992] ZASCA 56
;
1992
(3)
SA
234
(
A)
at 2391
-
240B
[8]
Soffiantini
v Mould
1956
(4)
SA 150 (E) at154F
–
H
[9]
Plascon-Evans
Paints
(TVL)
Ltd
.
v
Van Riebeeck Paints
(Pty)
Ltd
[1984] ZASCA 51
;
1984
(3)
SA
623
(A)
at
635B
-
C
[10]
Plascon-Evans
at 634 I-J
[11]
Plascon-Evans
at 635 B-C
[12]
Schlinkmann
v V
a
n
der Walt
1947
(2) SA 900
(E) at 919
;
Datacolor
International
(
Pty)
Ltd v ln
ta
m
ar
ke
t
(
P
t
y
)
Lt
d
200
1
(
2
)
SA
28
4
(
A
)
[13]
I
use the term loosely
[14]
Of
which R[...] and T[…] are the directors
[15]
Setlogelo
v Setlogelo
1914 AD 441
;
Plason
-
Evans
(supra) at
[16]
Tjimstra
No
V
Blun
t-M
ackenzie
No and Others
2002
(1)
SA
459
(T)
;
Gowar
and Another v Gowar and O
th
ers
20
1
6
(
5)
SA
225
(SCA)
[17]
Gowar
and Another v Gowar and Others
2016
(5)
SA 225
(SCA)
para
43
[18]
Bearing
in
mind that
once
a beneficiary accepts a benefit under the trust he acquires
rights
and
the
trust
deed
cannot be
varies
without
his consent: Potgieter and Another v Potgieter
NO
and Others 2012
(1)
SA637
(SCA)
para
28
[19]
For
Applicants
.
Thank
you guys
they
keep
you
can keep up with the pink and blue
[20]
Stander
and Others v Schwulst and Others
2008 (1) SA 81
(C) para 36-37
sino noindex
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