Case Law[2023] ZAGPPHC 625South Africa
Stratlaw (Pty) Ltd v Van Hoven N. O and Another (2809/2022) [2023] ZAGPPHC 625 (3 August 2023)
High Court of South Africa (Gauteng Division, Pretoria)
3 August 2023
Headnotes
Summary: Enforcement of an oral agreement reached after termination of a written agreement of lease – such an agreement not precluded by non-variation clause – existence of agreement dependent on evaluation of weight and credibility of oral evidence – onus discharged – landlord ordered to pay agreed amount for the valuable renovations retained in the premises.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Stratlaw (Pty) Ltd v Van Hoven N. O and Another (2809/2022) [2023] ZAGPPHC 625 (3 August 2023)
Stratlaw (Pty) Ltd v Van Hoven N. O and Another (2809/2022) [2023] ZAGPPHC 625 (3 August 2023)
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sino date 3 August 2023
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HIGH
COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
CASE
NO: 2809/2022
(1)
REPORTABLE: NO.
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED.
DATE:
3 AUGUST 2023
In
the matter between:
STRATLAW
(PTY) LTD
Applicant
and
WOUTER
VAN HOVEN N. O.
First
Respondent
SUZANNE
VAN HOVEN N.O
Second
Respondent
Summary
:
Enforcement of an oral agreement
reached after termination of a written agreement of lease –
such an agreement not precluded
by non-variation clause –
existence of agreement dependent on evaluation of weight and
credibility of oral evidence –
onus discharged – landlord
ordered to pay agreed amount for the valuable renovations retained in
the premises.
ORDERS
1.
The first and second respondents, in their
capacities as the trustees of the Wouter and Suzanne van Hoven Trust,
IT3[....]8
are ordered to pay the applicant the amount of
R262 163.20, together with interest thereon at the prescribed
mora rate of
interest from 26 August 2020 to date of payment.
2.
The first and second respondents, in their
aforesaid capacities, are ordered to pay the applicant’s costs
of the application,
including the previously reserved costs and the
costs of hearing oral evidence.
J
U D G M E N T
This
matter has been heard in open court and is otherwise disposed of in
terms of the Directives of the Judge President of this
Division. The
judgment and order are accordingly published and distributed
electronically.
DAVIS,
J
Introduction
[1]
This matter is
firstly about whether the parties have reached an oral agreement in
terms of which the Wouter and Suzanne van Hoven
Trust, IT 3[....]8
(the Trust) would retain certain renovations effected by the
applicant, Stratlaw (Pty) Ltd, as an erstwhile
tenant to a property
belonging to the Trust at an agreed price and secondly, whether such
an agreement was precluded by a non-variation
clause contained in the
previously existing lease agreement.
[2]
Customarily,
a legal point such as the second dispute referred to above, would
feature as a point
in
limine
,
a special plea or as a first issue to be decided. In this case,
however, this was not done. In fact, the second point was only
raised
at a very late stage in the proceedings. In addition, the factual
dispute regarding the existence of the agreement had been
referred
for the hearing of oral evidence by way of an order by the judge who
had initially heard the matter as an opposed motion.
[1]
[3]
Accordingly,
the determination of the existence of an agreement has to take place
in terms of an existing order. Should such a determination
be made in
favour of the applicant, it would also provide the necessary context
for any interpretive exercise in respect of the
terms of the
pre-existing lease agreement.
Background
facts
[4]
Most of the
background facts leading up to the applicant vacating the premises
and the eventual termination of the pre-existing
lease agreement are
common cause. I shall therefore summarise them as succinctly as
possible before dealing with the oral evidence.
[5]
The premises
in question were business premises situated in Brooklyn, Pretoria,
belonging to the Trust.
[6]
The premises
were rented by the applicant in terms of a written lease agreement
from 1 June 2015 to 31 May 2018 from the Trust.
After the expiry of
the lease due to the effluxion of time, the applicant (initially
known as Durbacare (Pty) Ltd but, after a
name-change, known as
Stratlaw (Pty) Ltd) continued to rent the premises on a tacit month
to month basis on the same terms.
[7]
During the
existence of the lease, save for certain improvements scheduled in an
annexure to the original agreement, the applicant
had to obtain the
prior written consent of the Trust, should it wish to effect any
other structural improvements or material alterations
to the
premises.
[8]
Apart from the
fact that it was not in dispute that no such prior written consent
had been obtained, it is common cause that various
renovations had
been effected during the course of the initial lease, some structural
and others not. As conceded by the respondents
in their answering
affidavits, these were principally done via New Brook Interior Design
& Décor (New Brook) during
2015 and were noticed by the
respondents during the existence of the lease, without demur. Nothing
turns on this, however, as the
applicant does not claim reliance on
prior written consent. What is of significance, is that the consent
issue was raised by the
first respondent, Professor Van Hoven, for
the first time, many years later, in his answering affidavit of 2 May
2022 as a principal
part of the Trust’s defence.
[9]
It is also not
in dispute that the applicant had expressed an interest in purchasing
the premises and a right of first refusal to
effect such a purchase
had been included as clause 15 in the written lease agreement. In the
end, the applicant decided against
purchasing the premises and sought
to relocate to premises in a safer environment. This was, in
particular, prompted by a spate
of break-ins in the area, including a
burglary at the premises in February 2020.
[10]
Consequently,
the applicant on 25 February 2020 gave oral notice of its intention
to terminate the month-to-month lease, intending
to vacate the
premises by 31 March 2020. The notice of termination was subsequently
done in writing on 26 February 2020. By arrangement
with the Trust,
represented by Mrs Van Hoven, the deposit held by the Trust was to be
utilized as payment of the last month’s
rent. This, Prof Van
Hoven later stated, was done “…
in
line with [Mrs van der Hoven’s] caring personality
”.
The
applicant’s cause of action
[11]
The case of
the applicant, represented by its sole director, Mr Van Vuuren was
that he had met Mrs Van Hoven at the premises on
25 February 2020,
principally to inspect the damage caused by the burglary as well as
to discuss the applicant’s intended
relocation to new premises.
[12]
Pursuant to
the discussion with Mrs Van Hoven, Mr Van Vuuren made two proposals
to the Trust, represented by Mrs Van Hoven: 1) the
applicant could
remove all the renovations and alterations and return the premises to
the original state it had been in at the
commencement of the initial
lease or 2) as some of the original fixtures has been removed by Prof
Van Hoven at the time, making
it difficult or impossible to restore
the premises, to return the premises as a so-called “white
box”, that is a repainted
and vacant set of offices.
[13]
Mrs Van Hoven
however, expressed a preference for the return of the premises with
the renovations and alterations effected by the
applicant remaining
intact, save for some lighting, a projector screen and a bulkhead in
the boardroom, which the applicant wanted
to remove. The applicant
was amenable to do this, on condition that the applicant be
recompensed for the renovations and alterations
at the prices it paid
for it in 2015. For this purpose, Mr Van Vuuren e-mailed Mrs Van
Hoven the original New Brook invoices and
a composite invoice in the
name of the applicant, on 26 February 2026. This e-mail was the same
one which included the notice of
termination. Apparently this e-mail
was forwarded to Prof Van Hoven who responded from the USA, also via
e-mail later the same
day, that he would discuss the vacating of the
premises with Mr Van Vuuren upon his return to South Africa.
[14]
This was
followed up by a meeting with both Prof and Mrs Van Hoven shortly
after Prof Van Hoven’s return on 3 March 2020.
At this meeting,
Prof Van Hoven expressed dissatisfaction with some of the prices
contained in New Brook’s invoices after
which an agreement was
reached that the Trust would retain the improvements against payment
of a reduced amount. The reduction
of the amount was calculated by
way of a 50% reduction on certain of the invoice items and the
deduction of the whole amount spent
on structural work in the
bathroom. These reductions had been noted by Mr Van Vuuren on the
invoices in manuscript after which
a revised composite invoice was
issued and sent by the applicant to the Trust.
[15]
The total
revised amount was R227 968.00 plus 15% VAT, totaling
R262 163.00. The applicant had expected payment of this
amount
by 31 March 2020 but, due to the consequences of the Covid 19
emergency “lockdown” regulations imposed by the
government, the applicant granted the trust an extension to pay
within 90 days after the relaxation of the level 5 lockdown period.
[16]
Consequently,
the applicant expected payment by 31 July 2020. When this was not
forthcoming, letters of demand were sent on 26 August
2020, 9
December 2020, 18 March 2021, 4 May 2021 and finally, on 10 June 2021
via its attorneys.
[17]
When neither
payment nor any request for extension of time was forthcoming, the
application for payment was launched on 20 January
2022. The
answering affidavit was delivered on 3 May 2022 whereafter the
respondents had to be compelled to deliver their heads
of argument,
when they had failed to do so after receipt of the applicant’s
heads of argument. This led to the matter eventually
being heard and
dealt with by Wesley AJ as pointed out in paragraph 2 above.
The
case for the Trust
[18]
The case for
the Trust was made out in an answering affidavit deposed to by Prof
Van Hoven and in respect of which Mrs Van Hoven
had delivered a brief
confirmatory affidavit.
[19]
In his
answering affidavit, Prof Van Hoven repeatedly denied the applicant’s
locus
standi
,
claiming that the Trust had “never” contracted with the
applicant and that any cession by Durbacare (Pty) Ltd to Stratlaw
(Pty) Ltd was prohibited by the terms of the written lease agreement.
This stance was displayed without any research of facts and
despite
the applicant’s attorneys as long ago as in the demand of 10
June 2021 having indicated the name-change of the applicant,
with
retention of the same company registration. This was clearly a
spurious and unfounded attempt at a defence.
[20]
In his answering affidavit
further, much was
made
by Prof Van Hoven of the fact that no prior written consent had been
obtained for the renovations and alterations. Repeated
references to
the terms of the agreement were made in this regard. These
allegations completely missed the point that the applicant
never
claimed that any such consent had been requested or obtained.
[21]
Prof Van Hoven
elevated this issue by claiming, with reference to the email of 26
February 2020 from the applicant to Mrs Van Hoven
whereto the initial
New Brook invoices had been attached, that the applicant was falsely
attempting to fabricate a purported consent.
Justifiably, Mr Van
Vuuren deemed this insinuation to be defamatory and it was clearly
made without any foundation. It amounts
to another spurious defence.
[22]
On behalf of
Mrs Van Hoven, Prof Van der Hoven “submitted” in his
affidavit that no payment obligation had been assumed
by her on 25
February 2020. The applicant, however, was relying, not so much on
the discussion with Mrs Van Hoven, but on the alleged
agreement
reached with the Trust, represented by both Prof and Mrs Van Hoven
after 3 March 2020.
[23]
Furthermore,
Prof Van Hoven accused the applicant of having launched the
application as an abusive procedure in the hope of obtaining
evidence
and discovery in circumvention of a trial. I find this to be another
spurious accusation devoid of a factual basis. Prior
to the launch of
the application, the applicant had absolutely no inkling as to why
the Trust had not made payment. All its demands
had gone unanswered
without explanation. Even when Mr Van Vuuren had finally gotten hold
of Mrs Van Hoven telephonically before
the final demand by the
applicant’s attorney, she only said that the Trust was not
going to pay, without furnishing any reason
or explanation. In the
absence of any prior version put forward by the Trust, I find that
the applicant was justified in not foreseeing
a factual dispute, let
alone opposition on the spurious bases referred to above. To the list
of spurious defences I add the misguided
and unfounded contention by
Prof Van Hoven that the Trust should also have been cited as a
respondent and to claim a fatal misjoinder
in this regard.
[24]
The only
actual dispute eventually raised, was the denial of an agreement in
the terms claimed by the applicant. It is this dispute
which Wesley
AJ had referred to oral evidence in the following terms:
“
8.1
The application is postponed … for the hearing of oral
evidence in terms of Uniform Rules 6(5)(g) on the issue
set out in
paragraph 8.2 above.
8.2
The issue upon which oral evidence is to be led at the aforesaid
hearing is whether or not the oral contract on
which the applicant
relies was concluded between the parties, as alleged by the applicant
in its founding papers
”
(lastmentioned being
a reference to the initial and subsequently allowed supplementary
founding affidavits).
The
oral evidence
[25]
When the
matter came before me, evidence was led by Mr Van Vuuren, Mrs Van
Hoven and Prof Van Hoven.
[26]
Mr Van Vuuren
testified exactly in conformity of the version of the applicant’s
case set out above. He identified each of
the invoices and e-mails
sent first to Mrs Van Hoven and, after the adjustments had been
negotiated by him with both Prof and Mrs
Van Hoven, testified about
the invoices sent for the second time, but with his deduction of the
respective items indicated in manuscript
by himself. He added that,
in consequence of it having been negotiated that the lights, the
projector screen and the bulkhead would
not be included in the
renovations left behind but would be removed and retained by the
applicant, he pointed out to Prof Van Hoven
at the premises, the
indentations in the ceiling left by the bulkhead. He asked Prof Van
Hoven whether he should have the removal
contractor, a certain Mr H
Nortje repair and repaint the ceiling or not. Prof Van Hoven enquired
as to the costs, which was indicated
to be R1 500.00 whereupon
Prof Van Hoven preferred to be paid the amount rather than have the
contractor do the job. Mr Van
Vuuren complied with this request and
paid over the R1 500.00. He also testified as to the 90-day
extension granted to the
Trust, having taken into account the effects
which the Covid 19 restriction of travel might have had on Prof Van
Hoven’s
business relating to bringing foreign veterinarians
into South Africa for training. He also testified about the various
demands
for payment subsequently sent to the trust.
[27]
During
cross-examination, Mr Van Vuuren explained how the initial incorrect
referral to a date for the second meeting with the Van
Hovens in his
founding affidavit came about, which meeting had taken place after
Prof Van Hoven’s return to South Africa
on 3 March 2020. This
aspect had been addressed in the supplementary founding affidavit and
again in reply. It was put to Mr Van
Vuuren that he had demanded
R260 000.00 (which is close to the eventual invoice amount) but
that Prof Van Hoven had refused,
offering only R100 000.00. Mr
Van Vuuren dismissed this as a blatant lie. It was also put to Mr Van
Vuuren that Mrs Van Hoven
had no power to bind the trust to which Mr
Van Vuuren responded that even during the negotiations about the
initial lease, all
discussions were with Mrs Van Hoven with the
Professor merely subsequently having signed the agreement. Mr Van
Vuuren had no doubt
in his mind that Mrs Van Hoven could negotiate on
behalf of the Trust, but despite this, the applicant was relying on
the agreement
subsequently reached with both the Van Hovens as
trustees. Mr Van Vuuren was asked about adding VAT to his invoice and
he explained
that New Brook had charged the applicant VAT and that
the applicant was in terms of the Income Tax Act and the VAT Act
similarly
obliged to raise VAT.
[28]
Despite
probing questioning, Mr Van Vuuren never wavered or changed his
version about the agreement negotiated on behalf of the
applicant.
Both in how he presented the applicant’s version of events and
how he conducted himself in the witness box, he
impressed as a
credible witness. The e-mails sent also provided written
corroboration of his version of events.
[29]
Prof Van Hoven
testified that he had indeed returned from the USA in early March but
testified that the meeting with Mr Van Vuuren
was only on 12 March
2020. He said Mr Van Vuuren was friendly when he arrived but then
produced invoices regarding renovations
to which Prof Van Hoven
objected as he had never seen the quotes, had not been a party to any
agreement in terms of which improvements
could have been made and had
not consented thereto. He knew that “certain things had to be
fixed” and that’s
why he was prepared to pay R100 000.00.
He thought that was more than reasonable but when Mr Van Vuuren
rejected this offer,
that was the end of the negotiations. He was
aware of subsequent demands but his response to the fact that demands
had been sent
was simply that the Trust would not pay the amount
claimed. He conceded having not reacted to the invoices sent by Mr
Van Vuuren
with the adjusted amounts indicated thereon. When asked
whether his wife could have negotiated on behalf of the Trust he was
quite
vehement in his response that she could not and that no
agreement could have been concluded by way of discussions with her.
He
conceded though, that Mrs Van Hoven had said that “they”
might have to reimburse the applicant, but no figures or amounts
had
been discussed.
[30]
During
cross-examination Prof Van Hoven conceded that the first time a
reason for objection to pay was raised, was in his answering
affidavit. He also conceded that the deposit of the applicant had
been accepted as payment for the last month’s rental. He
also
conceded that all the improvements and renovations mentioned in the
invoices under discussion had been left in the premises
by the
applicant (save for the exclusions already mentioned above). Prof Van
Hoven also conceded that he had seen the e-mail from
Mr Van Vuuren
(with the initial invoices) after his return from the USA.
[31]
Mrs Van Hoven
testified that she had indeed visited the premises on 25 February
2020. Her brother was a handyman and she wanted
to assess the damages
caused by the burglary. She had a discussion with Mr Van Vuuren and
was of the opinion that the improvements
were indeed useful and
beneficial to the premises. These included blinds and renovation of
the bathrooms, the kitchen and the boardroom.
She acknowledged that
these had indeed increased the value of the premises. She reiterated
that during this discussion, she conveyed
the sentiment that “they”
were prepared “to come to the table” to discuss the value
of what the applicant
had put into the premises. In respect of the
meeting after Prof Van der Hoven had returned from the USA on the 3
rd
of March 2020, she testified that it had indeed taken place on 12
March 2020. At this meeting Mr Van Vuuren’s invoices were
discussed and her husband stated that the maximum he would be
prepared to pay, was R100 000.00. She couldn’t remember
Mr
Van Vuuren’s response and the Van Hovens then left. She did
remember though, the subsequent e-mail with amended invoices.
Although she had acknowledged receipt, she couldn’t understand
how the amount was labelled “outstanding”. Mrs
Van Hoven
responded to a question regarding the applicant’s relocation
that Mr Van Vuuren had told her the applicant was
moving to a gated
area in Lynwood which was safer and needed money for the relocation.
She then thought: “well, he did do
all these renovations, maybe
we can come to an agreement”. She said that, in the end this
did not happen.
[32]
In
cross-examination Mrs Van Hoven conceded that she had received Mr Van
Vuuren’s first email of 26 February 2020 with the
initial
invoices and that she had forwarded that to her husband in the USA.
She said that although she was a co-trustee and attended
negotiations, she was a “traditional” house-wife and that
her husband was “conservative”. As he was head
of the
household, she could not take any decisions and this was also the
case with the Trust. She conceded that, apart from acknowledging
receipt of the second e-mail and amended invoices, the Van Hovens
never responded to this e-mail or any of the subsequent demands.
[33]
My distinct
impression of the Van Hovens were that Prof Van Hoven was an
over-confident and stubborn person, almost to the point
of being
arrogant and bombastic. That is certainly the picture that came
across in his manner of giving evidence. While tolerant
of his wife
and her actions, he deemed it of lesser consequence and he was
completely dismissive of the applicant’s version
or contentions
regarding discussions with Mrs Van Hoven. Mrs Van Hoven indeed came
across as a dutiful and subservient wife.
Evaluation
[34]
The applicant
contends that an express agreement had been reached in respect of
payment for the renovations which the applicant
had agreed to leave
behind at the previously rented premises. Structural alterations,
such as those affected to the bathroom which
could not be removed,
were not claimed and were excluded from the amended invoice, while
most of the other renovations were claimed
at 50% of the prices paid
by the applicant some five years previously. The resultant amount was
R 262 163.00 and this represented
what had been agreed on. The
respondents’ version was that no agreement had been reached as
only R100 000.00 had been
tendered.
[35]
The
technique customarily employed in resolving two irreconcilable
versions is that described by the Supreme Court of Appeal in
SFW
Group Ltd and Another v Martell et Cie & Others
[2]
as follows:
“
[5]
On the central issue, as to what the parties actually decided, there
are two irreconcilable versions …. The
technique generally
employed by courts in resolving factual disputes of this nature may
conveniently be summarized as follows.
To come to a conclusion on the
disputed issues a court must make findings on (a) the credibility of
the various factual witnesses;
(b) their reliability; and (c) the
probabilities. As to (a), the court’s finding on the
credibility of a particular witness
will depend on its impression
about the veracity of the witness. That in turn will depend on a
variety of subsidiary factors, not
necessarily in order of
importance, such ‘as (i) the witness’ candour and
demeanour in the witness-box, (ii) his bias,
latent and blatant,
(iii) internal contradictions in his evidence, (iv) external
contradictions with what was pleaded or put on
his behalf, or with
established facts or with his own extracurial statements or actions,
(v) the probability or improbability of
particular aspects of his
version, (vi) the calibre and cogency of his performance compare to
that of other witnesses testifying
about the same incident or events.
As to (b), a witness’ reliability will depend, apart from the
factors mentioned under
(a)(ii), (iv) and (v) above, on (i) the
opportunities he had to experience or observe the event in question
and (ii) the quality,
integrity and independence of his recall
thereof. As to (c), this necessitates an analysis and evaluation of
the probability or
improbability of each party’s version on
each of the disputed issues. In the light of its assessment of (a),
(b) and (c)
the court will then, as a final step, determine whether
the party burdened with the onus of proof has succeeded in
discharging
it
”.
[36]
In respect of
(a) mentioned above – the credibility of witnesses, I have
already expressed certain views and observations.
Mr Van Vuuren made
a favourable impression as a witness, much more so than Prof Van
Hoven. Mrs Van Hoven generally also made a
favourable impression,
except insofar as she attempted to corroborate the version her
domineering husband. I base these observations
on a number of
factors. Firstly, it is based on the witnesses’ respective
demeanour and candour displayed in the witness
box. Secondly, it is
based on Prof Van Hoven’s blatant bias and on Mrs Van Hoven’s
subservient following thereof.
[37]
With reference
to subsidiary factors such as internal contradictions, there were
none in the case of Mr Van Vuuren, while there
was a list of
contradictory versions in respect of Prof Van Hoven. These are
principally to be found in the differences between
his versions in
his answering affidavit and his oral evidence. While much of the
Trust’s “defence” in the answering
affidavit
centered around the issue of an absence of prior consent to the
effecting of renovations, this did not feature in his
oral evidence.
His objection against payment in his oral evidence was not based on
the lack of consent issue as such, but that
he had never seen the
quotations or previously been aware of the amounts involved. He
described it in his oral evidence as Mr Van
Vuuren’s “expensive
taste”. The clear impression was that he did not want to pay as
he had deemed the amounts
to be excessive. This contradicts the
previous position taken on behalf of the Trust.
[38]
A further
contradiction was the repeated “defence” raised in the
papers about the identity of the applicant, its
locus
standi
and
the alleged requirement of a cession which was absent. Although the
points
in
limine
raised in the papers had been abandoned at the hearing (and
apparently already during argument before Wesley AJ), if they had
been actual or real defences in which Prof Van Hoven had believed in,
he would have raised them on 12 March already. The fact that
he did
not raise them then and query Mr Van Vuuren about them, but saw fit
to only depose to them on oath at the time when the
Trust was called
upon to put its reason for non-payment on paper, only to abandon
these “defences” again later, weighs
heavily and
negatively against his credibility.
[39]
The list of
contradictions inherent in his versions, also impacts on the
probabilities. If the applicant had offered to either remove
or leave
the renovations and improvements (a fact about there is no dispute),
why then would it leave the renovations if, on Prof
Van Hoven’s
version, no agreement had been reached on payment? Surely then,
absent an agreement, the applicant would simply
have removed the
renovations in the same fashion as the lights, the projector screen
and the bulkhead had been removed. And the
respondent’s
counsel’s argument that the reason for not removing the
renovations was that items such as paint and the
alteration of the
bathroom could not be removed, also does not hold water – the
applicant had removed the renovation items
relating to the bathroom
in toto
from the amended invoices and never claimed for them in any event.
[40]
Another
inherent improbability is the fact that, if an agreement had not been
reached as reflected by Mr Van Vuuren in the second
e-mailed set of
amended invoices, why had an over-confident and well-travelled
businessman such as Prof Van Hoven not immediately
reacted thereto?
And why, if there was no such agreement, had he not reacted to the
numerous demands as vehemently as he had in
court against any
suggestion that the Trust owes the applicant money?
[41]
Which brings
me to another contradiction: in the opposing papers, every effort was
made to point out that the Trust was not only
never obliged to pay
the applicant anything, but never contemplated doing so. In oral
evidence however, the tune was different.
The Van Hovens both
testified that, primarily based on Mrs Van Hoven’s approach to
the matter, that the Trust was quite prepared
to pay the applicant
for the renovations by which had increased the value of the property,
the only issue was that this willingness
was limited to the maximum
of R100 000.00. Neither this willingness nor the R100 000.00
featured in the answering affidavit.
In fact, the position taken
there was radically different. In more than one instance, Prof Van
Hoven contended that “…
the
alleged alterations and improvements were not worth the payment
claimed as the premises were returned to the Trust, not in their
original state nor was (sic) the alternations and improvements in
good condition after 5 years of occupation …
”
and “…
after
vacating the premises, it was clear that a lot of damages were done
to the premises and the deposit had already been returned.
The
premises were left in such a state of disrepair that I had to obtain
further contractors to repair the damages caused by Mr
Van Vuuren and
Durbacare upon exiting the premises
”.
None of this featured in the subsequent oral evidence.
[42]
It must also
be borne in mind that in the answering affidavit Prof Van Hoven had
alleged that he, Mrs Van Hoven and the Trust were
seriously
“prejudiced” by having to face an opposed motion without
the benefit of a trial (with oral evidence). He
even claimed
vexatiousness on the part of Mr Van Vuuren and claimed punitive
costs. Apart from patent bias displayed hereby, once
the matter had
been referred to oral evidence, none of the contradictions mentioned
above had been clarified.
[43]
I therefore
find that, of the witnesses, Mr Van Vuuren was a credible witness and
Prof Van Hoven was not. Similarly, on the crucial
aspect of the
agreement to pay the reduced amount contained in the second set of
invoices, I find Mrs Van Hoven’s evidence
unreliable.
[44]
On a
conspectus of all of the above therefore, the applicant’s
version of the oral agreement is accepted and the version of
the
respondents is rejected.
[45]
Never one to
give up hope, the Trust, clearly at the instigation of Prof Van Hoven
and his legal team, raised a point not taken
hithertofore, and sought
to rely on a non-variation clause contained in the prior lease
agreement. While this clause had been referred
to in the answering
affidavit, it was therein only raised in the context of precluding a
transfer between Durbacare (Pty)Ltd and
Stratlaw (Pty)Ltd or in the
context that it precluded an amendment of the agreement relating to
the issue of prior written consent
prior to effecting improvements.
[46]
Contrary to
the position taken in the answering affidavit, at the end of the
hearing of oral evidence, it was argued on behalf of
the Trust that
the non-variation clause precluded a subsequent oral agreement as had
been found above to exist.
[47]
The
non-variation clause in question, reads as follows: “
11.
Variations: The terms of this agreement form the sole contractual
relationship between the parties and no variation of the agreements
shall be binding or affect the terms hereof unless such variation or
cancellation is reduced to writing and signed by the parties
”.
[48]
In
support of its contention, counsel for the Trust referred the court
to the well-known Shifren-principle
[3]
dealing with the validity and applicability of non-variation clauses
in contracts.
[49]
In
the present instance, the applicant was not claiming any variation of
the lease agreement. The applicant was quite content to
remove the
renovations and to effect or install them at the new premises to
which it was relocating. The applicant tendered to
either return the
premises to their original state or as a “white box”. It
was in these circumstances and
after
the parties had already agreed to termination of the lease and the
vacating of the premises, that a
new
and
separate
agreement had been entered into. Purposely interpreted in this
context
[4]
I find that the
non-variation clause contained in the terminated lease agreement did
not preclude the subsequent separate agreement.
[50]
In the
premises, the applicant is entitled to judgment in its favour. The
applicant was not as vituperative as the respondent in
pursuing its
case and only claimed costs on party and party scale. I find no
reason why the customary rule that costs should follow
the event
should not apply.
Orders
[51]
The following
is made.
1.
The first and
second respondents, in their capacities as the trustees of the Wouter
and Suzanne van der Hoven Trust, IT 3[....]8are
ordered to pay the
applicant the amount of R262 163.20, together with interest
thereon at the prescribed more rate of interest
from 26 August 2020
to date of payment.
The
first and second respondents, in their aforesaid capacities, are
ordered to pay the applicant’s costs of the application,
including the previously reserved costs and the costs of hearing oral
evidence.
N
DAVIS
Judge
of the High Court
Gauteng
Division, Pretoria
Date
of Hearing:
20 April
2023
Judgment
delivered:
3 August 2023
APPEARANCES:
For
the Applicant:
Adv
W T D Ridgard
Attorney
for the Applicant: Deneys
Zeederberg Attorneys, Pretoria
For
the Respondents:
Adv A Coertze
Attorney
for the Respondents: Cavanagh & Richards
Attorneys,
[1]
Wesley
AJ on 1 February 2023.
[2]
[2002]
JOL 10175 (SCA); 2003 (1) SA 11 (SCA)
[3]
Being a reference to
SA
Sentrale Ko-Op Bpk v Shifren en Andere
[1964]4 All SA 520 (A); 1964(4)SA 760(A).
[4]
As
required by
Natal
Joint Municipal Pension Fund v Endumeni Municipality
[2012]2
All SA 262(SCA); 2012(4)SA 593(SCA)
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