Case Law[2023] ZAGPPHC 1939South Africa
Makokotlela v Khumalo and Others (A199/2020) [2023] ZAGPPHC 1939 (17 November 2023)
High Court of South Africa (Gauteng Division, Pretoria)
17 November 2023
Headnotes
Summary: Full bench appeal against refusal to rescind order made by default of intention to defend, where service of summons was affected on attorneys who no longer represented the Appellant - Rescission in terms of rule 42(1)(a) not considered a quo -the Appellant had not by way of subsequent conduct ratified irregularity - prior attorneys also had not acted as agents for the Appellant - default judgment was erroneously granted - appeal upheld.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Makokotlela v Khumalo and Others (A199/2020) [2023] ZAGPPHC 1939 (17 November 2023)
Makokotlela v Khumalo and Others (A199/2020) [2023] ZAGPPHC 1939 (17 November 2023)
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sino date 17 November 2023
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: A199/2020
1.
REPORTABLE: NO
2.
OF INTEREST TO OTHER JUDGES: NO
3.
REVISED: NO
DATE:
17 November 2023
In
the appeal between:
LIONEL
MAKOKOTLELA
Appellant
and
AMOS
KHUMALO First
Respondent
THE
SHERIFF OF THE HIGH COURT Third
Respondent
PRETORIA
CENTRAL
COMPANIES
AND
INTELLECTUAL
PROPERTY
COMMISSION Fourth
Respondent
THE
REGISTRAR OF DEEDS SERVIPIX 11 CC
Fifth
Respondent
Coram:
Swanepoel J, Strydom
AJ
et
Malatsi-Teffo
AJ
Heard
on:
11 October 2023
Delivered:
17 November 2023
Summary:
Full bench
appeal against refusal to rescind order made by default of intention
to defend, where service of summons was affected
on attorneys who no
longer represented the Appellant -
Rescission in
terms of rule 42(1)(a) not considered a quo -the Appellant had not by
way of subsequent conduct ratified irregularity
-
prior
attorneys also had not acted as agents for the Appellant -
default
judgment was erroneously granted -
appeal upheld.
ORDER
It
is ordered that:
[1]
The appeal is
upheld.
[2]
The first
Respondent is ordered to pay the costs of the appeal, as well as the
leave to appeal.
[3]
The order of
the Court a quo is set aside and replaced with the following order:
"[1] The
default judgment granted by Justice Collis AJ on 11 March 2016 under
case number 100047/2015
be and is hereby rescinded and set aside.
[2]
The
Appellant is granted leave to deliver a notice of intention to defend
within ten days of date of this order;
[3]
The
first Respondent is ordered to directed to pay the costs of the
application."
JUDGMENT
K
Strydom AJ (Swanepoel J and Malatsi-Teffo AJ concurring)
Introduction
[1]
This full
bench appeal is noted against the dismissal of a rescission
application. At its heart, however, it concerns the provisions
of
Rule 4 of the Uniform Rules of Court and its subrules. It
demonstrates how these provisions
are far from
being mere formalistic requirements
in initiating
legal proceedings. Instead, it exemplifies how those provisions are,
in fact, the codification of the tried and tested
methods of service
which, as a first step, ensure that
audi
alteram partem
principle
is upheld throughout the proceedings. A mere "approximate"
compliance with the exact provisions, on a practical
level,
invariably results in a cascade of sequential failures which
generally, in turn, lead to a similarly invariable outcome...
Background
[2]
To
understand
the
cascading
effect
referenced
in
the
introduction,
the
timeline
of events
needs
to be
set out in
some detail.
In an
attempt
at brevity,
where we
refer
to the
"Respondent",
the reference should be meant to refer to the First (and if
contextually applicable the fifth) Respondent.
[3]
In 2009 the
Respondent, whilst in a romantic relationship
with the
Appellant, paid for two properties in Pretoria. For present purposes
we will refer to these properties as the "Jaspit"
property
and the "Eiffel towers" property. Eiffel towers was
registered in the name of the Appellant, whilst Jaspit was
registered
in the name of a closed corporation Servipix 11CC ("the CC").
The appellant held 40% and the Respondent's
accountant held 60%
members'
interest in the CC. The Respondent also paid for the furnishing of
the properties. The agreement governing the ownership
and terms
thereof of Eiffel towers, the 40% interest in the CC, and the
furnishing of Eiffel towers are disputed.
[4]
The romantic
relationship came to an end in 2014. At that stage the Appellant was
residing in Eiffel towers. It appears from the
record that the
breakup was acrimonious and various legal proceedings have been
instituted between the parties. The record does
not reveal the nature
of those other applications.
[5]
For
present purposes it is only necessary to note that from 2014 to date
of this appeal, the Appellant has been represented on a
pro
bono
basis
by five sets of attorneys. UNISA law clinic, initially assisted him,
whereafter Mavhungu-Masigibri Attorneys represented him
until the
20
th
of November 2014, when they formally withdrew as attorneys of record.
[1]
Thereafter,
in order of succession, he was represented by Van der Merwe and
Bester Inc, Rautenbach and Rautenbach Inc, Maritz Smith
Inc and,
presently, by William Tingtingers attorneys.
[6]
On
the 22
nd
of January 2016, the Respondent caused summons to be served on
Mavhungu-Masigibri Attorneys,
[2]
in terms of which he essentially sought the transfer of ownership
of
Eiffel towers, the 40% members' interest in the CC and the
furnishings
at
Eiffel towers from the Appellant to himself.
[7]
The
Respondent's claim as per the particulars of claim) is based on a
partially written, partially oral contract, in terms of which
the
Appellant, at all relevant times, acted as his nominee in the
acquisition and holding of ownership in the property or member's
interest. He explained that, as he (the Respondent)
did not want
property registered in his name or serve as a director in a company,
he bought a shelf company (the CC) as a vehicle
to register and
invest assets in. Given their relationship of trust, he appointed the
Appellant as his nominee to hold
40%
interest
in
the
CC
and to acquire
the
Eiffel
property.
The
particulars
of
claim
make
no reference to Jaspit property, which was registered in the name of
the CC and, instead,
only refer to
the 40% interest in the CC, held by the Appellant.
[8]
The
alleged terms of the agreement were that the Appellant would, as
remuneration for holding the members' interest, be entitled
to live
in the Eiffel property and use the furnishing
whilst
living there. However, upon demand, the Appellant would transfer the
Eiffel property and the 40% interest in the CC to the
Respondent. In
support of the veracity of the terms in the written portion of the
agreement, the Respondent annexed an affidavit
(hereinafter "the
impugned affidavit"), purportedly deposed to by the Appellant on
the 7th
of
September 2009.
[3]
The
affidavit, on the face of it, confirms the terms as alleged by the
Respondent.
[9]
The
particulars
of
claim
state
the
residential
address
of
the
Appellant
as
the
Eiffel
property
and
that
the
Appellant
was
"..
(l)egally
represented
by
Attorneys
MAVUNGUMASIGIBIRI
INC.."
[4]
[10]
It is common cause
that service was effected on
Mavhungu-Masigibri
Inc Attorneys.
Default
judgment application before Collis AJ
[11]
The
Appellant did not file a notice of intention to defend the action and
the Respondent duly applied for default judgment in terms
of Rule 31
on the 24th
of
February 2016.
[5]
[12]
In
the founding affidavit, the Respondent repeated the averments as per
the particulars of claim regarding the merits of his claim.
Regarding
procedural entitlement he indicated that
"...(o)n
22 January 2016 the Sheriff of the High Court served the combined
summons and annexure on the first defendant, care
of
his
attorneys,
Mavhungu-Masigibri
Inc Attorneys"
[6]
[Emphasis
our
own] and that the
dies
for
filing a notice of intention to defend had lapsed.
[13]
On
the 11t
h
of March 2016, Collis AJ granted an order in line with the prayers in
the particulars of claim.
[7]
("The default order")
[14]
The
Respondent
sent
the default judgment
order,
as well as various other documents aimed at transfer of interest and
ownership, to the Appellant
personally,
via email, on the8th of April 2016.
[8]
In response thereto, on the same date, the Appellant replied:
"I
have received your e-mail, however I am of the opinion that you are
not following the right protocol
in
this
regard.
Please
liaise
with
the
relevant
parties
in
this
regard
(Ms
Mpho
Masibigri
-
as
per our agreement, given that she is our
mediator
and
Mr
Christo Bester
-
as
the lawyer representing
me
from
the Law Society."
[Emphasis
our own]
[9]
[15]
In
March 2017, the Respondent, via its agent, launched eviction
proceedings against the Appellant on the strength of the default
order which had authorized the transfer of ownership of the Eiffel
property to him. The Appellant opposed the eviction and indicated,
on
the 27th of July 2017,
that
he intended to bring the rescission application
against
the default order within 15 days.
[10]
[16]
In
his
answering
affidavit
appellant
indicated
that
the
basis
for
the
rescission
application would be that the summons on the action was not properly
served and that, in terms of merits, the impugned
affidavit relied
upon by the Respondent to prove the written terms of the agreement
was
fraudulent. To this end he had engaged a forensic graphologist to
deliver a report.
The
rescission application before Avvakoumides AJ
[17]
The
Appellant served his rescission application on the 7thof September
2017.
[11]
[18]
In his
founding affidavit the Appellant indicated that service of the
summons on Mavhungu-Masigibri attorneys in 2016, when they
had
withdrawn as his attorneys of record in 2014, was irregular. As a
result, the summons never came to his attention and he therefore
did
not instruct his attorney of record at the time, Mr Bester, to defend
the matter.
[19]
In
support of his contention that he has a
prima
facie
defence
to the claim, appellant attached the report of a forensic
graphologist, which concluded that his signatures on the various
pages of the affidavit are exact duplications and that these pages
"...
are
not genuine documents and in all probability falsified by
photocopy/computer manipulation (Copy Paste)."
[12]
[20]
With regards
to the delay in bringing the application he indicated that, when the
order
was
emailed to him on the 8thof April 2016, he indicated that it should
be sent to his attorney at the time, Mr Bester. It is evident
that
the Respondent
did
not send the order to Mr Bester. Mr Bester ceased acting for the
Appellant in August 2016, whereafter the firm Rautenbach and
Rautenbach Inc were appointed to act
pro
bono
on
his behalf.
They,
however, indicated that they were unable to act on his behalf and
withdrew shortly after their appointment.
On
the 20th of February 2017, Maritz and Smith Inc were appointed as his
pro
bono
attorneys.
They wrote a letter to the Respondent on the 9
th
of
March 2017, indicating that the summons never came to the Appellant's
attention
and requesting that the summons, pleadings, as well as the sheriff's
return be sent to them.
[13]
No
response was forthcoming. The Appellant's current attorney, Mr
Tingtinger, only managed to obtain copies of the pleadings in
the
action on 19 July 2017.
[14]
It
would therefore only have been at that stage that the basis of the
Respondent's claim and impugned affidavit came to the Appellant's
attention
[21]
On
the 14
th
of August 2017, Mr Tintinger requested the Respondent to provide the
original affidavit for examination by the graphologist.
[15]
In
response, on the 16th
of
August 2014, the Respondent indicated that he is not in possession of
a
"clearer
copy"
of
the affidavit. He made no reference to the existence of location of
the original affidavit.
[16]
In
view of this response, the Appellant raised issue with whether the
original was filed when the default application was granted.
[17]
[22]
In his
answering affidavit to the rescission application, the Respondent did
not deny that the summons was served on attorneys who
did not
represent the Appellant at that time. However, he stated that:
"The
fact remains, that service of the relevant summons was accepted by
that attorney on behalf of the Applicant/First Defendant.
It is
nowhere explained why she would have done so in the absence of the
requisite authority from the Applicant/First Defendant.
This was our
agreement. Significantly in his subsequent letter dated 8 April 2016
(annexure “LLM16” the Applicant/First
Defendant himself
confirms that this was our agreement. His challenge has been met. In
any event at the very least, there existed
ostensible authority to
such effect. It is common cause there was no notice of intention to
defend or entry of appearance by or
on behalf of the Applicant/First
Defendant under Case Number 100047/2015. So I was entitled to take
default judgment. Procedurally,
there was undeniably nothing amiss
with the request for and the granting of default judgment under the
circumstances."
[18]
[23]
The
Respondent also disputed the correctness of the findings of the
graphologist and questioned who the author thereof was with
reference
to it being signed by a KP Landman and a Lt Col KFC Landman, despite
the report being couched in the singular. He attached
a report from
his own expert document examiner Mr. Cecil Greenfield, stating that
it refutes the report of the Appellant.
[19]
The finding in terms of the report, however, is not couched in such
absolute
terms.
The
Respondent's
expert
also
only
had
sight
of
a
copy
of
the
impugned
affidavit.
He : states that:
"Therefore
based on the results of the tests made with the available material, I
was unable to prove, with any degree of certainty,
that questioned
signature and sets of initials are forgeries.
"
[20]
[24]
Disconcertingly,
the Respondent
in
his answering affidavit, confirmed that he was not in possession
of
the original, stating that "..
.(t)he
original affidavit at issue is, to the best of my recollection, in
the possession of the Applicant I First Defendant;..'
[21]
The
Respondent did not
indicate
on
what
basis
the
copy
was
admitted
before
Collis
AJ
when
the
default
application
was heard.
[25]
Ultimately, on
the 28th of February 2020 Avvakoumides AJ handed down judgment
dismissing the application for rescission.
The
appeal
[26]
On
the
morning
of
the
hearing
of
the
appeal,
the
Respondent
sent
an email
to
the registrar
of Swanepoel J, requesting a postponement of the hearing. He
indicated that he had mis-diarized the date of the hearing
and had
therefore not briefed counsel to attend to the appeal hearing.
Counsel for the Appellant elucidated the sequence of events
in Court.
The day prior to the hearing he had contacted the advocate who
drafted the Respondent's heads of argument in the appeal
to discuss
the upcoming hearing, whereupon the advocate informed him that she
was not briefed for the hearing of the appeal. She
evidently
contacted the Respondent as he, on the morning of hearing emailed the
Appellant requesting a postponement. The Appellant
indicated via
email that they would not consent to such a postponement. In response
the Respondent indicated that, as he had only
become aware of the
hearing the previous
day, he also
did not have the opportunity to brief counsel to attend to an
application for postponement. He further indicated that
he could not
personally attend to the postponement application as he was attending
to a bereavement
in the Eastern
Cape where he had limited connectivity.
[27]
Given the fact
that we were in possession of a complete
record,
containing the Respondent's various affidavits containing his
submissions on the issues for determination before us, as
well as his
heads of argument drafted for purposes of appeal, we declined to
postpone the hearing of the matter. However, given
that the
Respondent did not present argument on the day of hearing, we had
regard to every argument (and possible legal permutation
thereof)
raised by the Respondent as evidenced from the entirety of the
record.
Discussion
[28]
Before
venturing into a detailed analysis of the merits of the rescission
application and the reasoning in the dismissal thereof,
we deem it
prudent to first address two problematic aspects that are evident
from the judgment delivered by Avvakoumides
AJ.
[29]
In the first
instance, the judgment indicates that the Court a relied on a factual
error in its reasoning. When
discussing
the
willfulness
of
the
Appellant's
default, the
following
is
stated in the judgment:
"This
applicant states that the service of the summons was served
[sic]
upon the
applicant's erstwhile
attorneys
after
they
withdrew
on
behalf
of
this
Applicant.
However,
the
same
attorneys addressed an email to the Applicant advising him of the
summons
..."
and
"...
on
27 January 2016, the attorneys communicated
with
the applicant
and
alerted him to the summons."
[22]
[30]
There
is,
in
fact,
no
correspondence
on
record
from
Mavhungu-Masigibri
Attorneys
alerting the Appellant to the summons, prior to the granting of the
default judgment. Neither the Respondent's answering
affidavit in the
rescission application, nor his heads of argument in the appeal,
refer to the existence of any such correspondence.
The only
correspondence between Mavhungu-Masigibri Attorneys and the Appellant
is an email dated the 27th of January 2016 (i.e
after default
judgment had already been granted) which merely states that "We
have received more documents on your behalf
from Amos Khumalo inc."
[31]
Based on this
incorrect fact, the Court a quo came to the conclusion that the
Appellant knew of the summons timeously, but chose
to ignore it. Once
it is appreciated that Avvakoumides AJ, viewed the Appellant's
conduct in this light, his ultimate dismissal
of the application,
becomes understandable.
Unfortunately,
this misconception by the Judge (that the principle of audi alteram
partem had been complied with insofar as notice
to the Appellant is
concerned), permeated his entire evaluation of the application.
[32]
The second
problematic aspect is the failure to engage with the provisions for
rescission in terms of Rule 41(2)(b). The judgment
makes it clear
that the application was only evaluated with reference to rescissions
in terms of Rule 31(2)(b) or, in the alternative,
in terms of the
common law.
[33]
Whilst the Appellant's founding affidavit in the rescission
application only referenced those two grounds, it is trite
that"...
the
fact that an application is specifically brought in terms of
one
Rule
does
not
mean
it
cannot
be
entertained
in
terms
of
another
Rule
or
on
the
common
Jaw, provided the requirements thereof are met.
[23]
[34]
In view of the Appellant's submission that the summons was served
irregularly and never came to his attention, the Court
should have
considered whether the default order was erroneously granted from the
outset, as envisaged by rule 42 (1) (a) of the
Uniform Rules. We do
note, however, that the failure to do so, in all probability, stems
from the incorrect factual finding that
summons had come to the
attention of the Appellant, before default judgment was granted.
[35]
In view of our finding in this regard, it is necessary for this
Court, as a starting point, to first evaluate the merits
of the
Appellants claim for rescission based on Rule 42(1)(a)
Analysis
of rescission in terms of Rule 42(1)(a)
[36]
The
rule caters for mistakes in the proceedings which may either be
apparent from the record of proceedings or may subsequently
become
apparent from the information made available in an application for
rescission of judgement.
[24]
[37]
The
Appellant submits that the default order by Collis AJ was erroneously
granted. The Appellant therefore has to show that "...
there
existed at the time the order was made facts of which the court was
unaware and which, if the court had been aware thereof,
would have
induced the court not to grant the order sought.”
[25]
[38)
The
Supreme Court of Appeal, in
Lodhi,
qualified
the type of facts that would be relevant for purposes of a rescission
application in terms of rule 42(1)(a). Such facts
would be those that
demonstrate whether the plaintiff was procedurally entitled to the
order. It held that, where judgment is granted
against a party in
respect of whom notice of proceedings was required, the absence of
such notice would result in the judgment
being granted erroneously as
the party was not procedurally entitled thereto.
[26]
[39]
As
was stated in the oft-quoted case of
Bakoven
Ltd "In contradistinction to relief in terms of Rule 31(2)(b) or
under the common Jaw, the applicant need not show
'good cause' in the
sense of an explanation
for
his default and a
bona
fide defence
Once
the applicant
can
point to an
error
in the proceedings, he is without further ado entitled to
rescission”
[27]
[In
line references omitted]
[40]
For purposes
of an assessment
under Rule
42(1)(a), regard is therefore to be had to the facts that were before
Collis J at the time when she granted the default
judgment.
[41]
The
Respondent's founding affidavit in the default application stated
that service was effected on the Appellants attorneys
of record. The
Court was not aware of the fact that the attorneys had withdrawn as
attorneys of record almost a year and a half
earlier, nor that the
Respondent was not in possession of the original of the attached
impugned affidavit on which the claim was
based.
[42]
The founding
affidavit does not indicate on which basis the service was effected
on attorneys instead of on the Appellant personally,
in circumstances
where the residential address of the Appellant was cited in the same
application (and, for that matter, formed
an essential part of the
relief sought). There were no averments that such service was on the
basis of an agreement inter partes,
nor that Mavhungu-Masigibri
Attorneys had ostensible authority to bind the Appellant or that they
acted as the Appellant's agent
for purposes of service in terms of
Rule
4(1)(a)(vi). All that was before the Collis AJ was an averment that
summons was served
"on
his attorneys of record''.
[43]
In the
Appellant's
heads of
argument in the appeal it is argued that service on an attorney is
incompetent, unless such an attorney already represented
the party in
the matter at the time of service. This argument is based on service
on terms of Rule 4aA, which states that:
"Where
the person to be served with any document initiating
application
proceedings
is already represented by an attorney of record, such document may be
served upon such attorney by the party initiating
such proceedings."
[44]
The
sub rule, in fact, does not sanction the service of summons the
initiation of action proceeding on attorneys. As the commentary
to
the rule in Erasmus makes it clear, this sub rule finds
application in interlocutory applications where there is already
an
attorney of record for the respondent.
[28]
Simply
put, even if Mavhungu-Masigibri Attorneys had not withdrawn as
attorneys of record in 2014, service of the summons
on
them on the basis of the sub-rule would in any event have been
irregular.
[45]
The
Respondent does not deny that Mavhungu-Masigibri Attorneys did not
represent the Appellant as attorneys of record at time of
service of
the summons. He argues that the service on the attorneys was by
agreement, that the summons
had
come to the attention of the Appellant and that he, through his
conduct following receipt of the default order, waived any objection
to such improper service.
[29]
[46]
We will
address each of these arguments below.
"Service
on the attorneys was by agreement"
[47]
In
opposing the application for rescission, the respondent averred that
there was an agreement between the parties that service
could be
affected on Mavhungu-Masigibri Attorneys.
[30]
As
proof, he relied on the email sent by the Appellant in response to
the Respondent's email attaching the default judgment order
on the
8
th
of April 2016.
[31]
The
relevant portion of the email reads as follows:
"I
have received your e-mail, however I
am
of the
opinion that you are not following the right protocol in this regard.
Please liaise with the relevant parties in this regard
(Ms
Mpho Masibigri
-
as per our
agreement, given that she is our
mediator
and
Mr
Christo Bester
-
as the
lawyer representing me
from
the Law Society."
[Emphasis
my own]
[48]
We agree with
the appellant's contention that the e-mail, having been sent after
default judgment was obtained, hardly proves an
agreement that was in
existence at the time of issuance of the summons. However, even if
one assumes that the "agreement"
contained in the e-mail
was in place at the time of issuance of the summons, it does not
assist the respondent's case. To the contrary,
the effect of this
submission by the Respondent is that, on his own version, the
agreement was that Ms Mpho Masibigri was a mediator
and Mr Christo
Bester was the attorney of record. As such, in stating to Collis J
that the summons was served on the Appellant's
attorney, whilst
knowing it was served on the mediator (and not the known attorney),
the Respondent had willfully mislead the Court
in the default
judgment application.
"The
Appellant ratified the defective service by his subsequent conduct"
[49]
In
his answering affidavit to the rescission application, the Respondent
argued that, in accepting the summons, Mavhungu-Masigibri
Attorneys
had ostensible authority,
[32]
which
bound the Appellant. Pertinent reliance on the doctrine has, wisely,
not been pressed in the appeal before us.
[50]
Instead, the
Respondent's
heads of
argument
on
appeal, now contain a more nuanced argument seemingly based on the
ratification, alternatively waiver of entitlement to objection
to
irregular service as evidenced by the Appellant's conduct subsequent
to the issuance of the summons and subsequent service of
the default
judgment order.
[51]
In
formulating this argument, the Respondent relied heavily on the 1905
judgment of
Deputy
Sheriff, Witwatersrand v Golberg
("Goldberg")
[33]
and the commentary in Erasmus under Rule 4(1)(a)(vi),
which
deals with service on an
agent.
[34]
[52]
The
argument
is
however
fundamentally
flawed.
On
a
fundamental
level,
this
was, simply
out,
not
the basis for procedural entitlement presented before Collis AJ
during the default judgment application.
[53]
Subrule
1(a)(vi), reads as follows:
"..
.by
delivering
a
copy thereof to
any agent
who
is duly authorised
in writing
to accept service
on behalf of the person upon whom service is to be effected;"
[Emphasis our own]
[54]
In view of the
peremptory provision of the subrule, any reliance on service on.an
agent should have been accompanied by the necessary
averments that
a) the person is an agent, and who is b) duly authorized in writing
to accept service. The caselaw referred to by
the Respondent supports
a contention for possible ratification where (b) is not present. It
does not however relieve the respondent
from alleging (a): that the
service was affected on the Appellant's agent.
[55]
Even if
the Appellant's subsequent conduct pointed to a ratification of the
irregular service, the argument would still fail in
light of the test
under Rule 41(1)(a)(vi): When the default order was granted no facts
were placed before Collis AJ to support
such an argument. If reliance
was placed on service on attorneys acting as agents of the Appellant,
the Respondent
would have had
to inform the Court that the attorneys were not duly authorized in
writing to do so. Had the Court been alerted to
this, no order could
have been made as service would have been irregular. In any event,
"attorneys of record" has a distinctly
separate meaning to
"attorneys acting as agents".
"Defective
service is irrelevant as the summons came to Appellant's attention"
[56]
As a general
proposition there may be an argument to be made that, where it is
established that a summons and the content of the
particulars of
claim came to the attention of a defendant, he cannot evade the
consequences
of non-action
by relying on the Plaintiffs failure to adhere to the technicalities
of Rule
4.
[57]
In
Prism
Payment Technologies v Altech information Technologies,
[35]
Lamont
J said the following about the purpose of rule
'The
purpose of rule 4 is to provide for
a
mechanism
by which relative certainty can be obtained that service has been
effected upon
a
defendant.
If certain minimum standards have been complied with as set out in
the rule, then the assumption is made that the service
was sufficient
to reach the defendant's attention and his failure to take steps is
not due to the fact that he does not have knowledge
of the summons.
The converse is not true
-
namely
that if service is not effected as required by the rule, the
service
is not effective
-
in
that the purpose for which service is required was fulfilled, namely
the defendant came to know of the summons.
The
rules, as was pointed out by Roux J in United Reflective Converters
(Pty) Ltd v Levine
1988 (4) SA 460
(W), set out procedural steps.
They
do not create substantive law.
Insofar
as the substantive law is concerned, the requirement is that
a
person
who is being sued should receive notice of the fact that he is being
sued by way of delivery to him of the relevant document
initiating
legal proceedings.
If
this purpose is achieved, then, albeit not in
terms
of the
rules,
there has been proper service.'
[58]
The
aforementioned is however not authority for a proposition that
litigants have carte blanche to effect service as they deem fit,
provided that the other party becomes aware of the fact that he is
being sued. Mbongwe J aptly addresses this misconception
in
BMW
South Africa (Pty) Ltd v William and
Another,
[36]
:
"[24]
The
rules of the court were formulated to regularise processes of the
courts. Exceptions were provided for, subject to adherence
to the
provisions in the rules addressing and catering for the exceptional
circumstances. It is not for
a
party to
bend the rules relating to the service of an initiating court
process
to
suit its own circumstances.
"
[59]
Lamont
J's
pronouncements
in
the
latter
part
of
the
extract
from
the
judgment
in
Prism Payment
Techologies,
supra,
should be read in context with the first part thereof where he
explains the purpose of rule 4 as setting minimum standards
for
service that would create an assumption "...
that
the service
was
sufficient
to reach the defendant's attention and his failure to take steps
is
not due to
the fact that he does not have knowledge
of the
summons."
[60]
he rationale underlying such an assumption has to be found in the
fact that those methods of service contained in the Rule,
were not
arbitrarily prescribed, but are the codification of what, on a
practical level, have been shown to the Courts to give
proper effect
to the right of a defendant. Implicit herein is that the prescribed
methods in general ensure that a defendant is
only informed of action
instituted against him, but is also sufficiently aware of the basis
thereof to enable him to make an informed
decision regarding his
defence.
[61]
For purposes
of the present matter, the import of
these
decisions is as follows: It was, in the first place not for the
Respondent
to
elect his own method of service. If circumstances existed that
necessitated a deviation from rule 4, those should have been fully
disclosed to Collis AJ. Even if there were exceptional circumstances
present that justified deviation from the rule, the Respondent
would still
have had to prove to the Court hearing the application for default
judgment, that the summons, its content and annexure
effectively came
to the attention of the Plaintiff. Where service is affected outside
of the scope of rule 4, the assumption that
the Defendant was given
proper notice of the action and the basis therefore, does not exist.
[62]
At the time of
the application for default judgment, Collis AJ was under the
mistaken impression that Mavhungu-Masigibri Attorneys
were still
appellant's attorneys. Respondent's representatives did not correct
that material misrepresentation. That was not the
case. The order,
accordingly, was erroneously granted and stands to be rescinded.
[63]
This finding
effectively disposes of the appeal. However, in affording the
Respondent every possible permutation
of argument,
given his absence at the hearing of the appeal, we will briefly
discuss why the order should also be rescinded in terms
of common law
and Rule 31(2)(b).
Rescission
at common law 131(2)(b)
[64]
In the
rescission application, Avvakoumides AJ held that the Appellant was
not entitled to rescission of the default order on the
basis of
either the common law or Rule 31(2)(b). As we have already found that
the order should be rescinded, we will only briefly
address why we
disagree
with
his
reasoning
in
reaching
this
conclusion.
We
do
so
by
referencing
the
requirements for rescission that are, by and large common to both
common law and Rule 31(2)(b).
Willfulness
of the default
[65]
We have
already found that the Court a quo factually erred in finding that at
the time of the granting of the default, the Appellant
was aware of
the summons and the particulars of claim. As such there is no basis
for holding that the Appellant was in willful
default.
The
existence of
a
defence
[66]
The
Court
a
quo found that:
"
...the Applicant
has
failed
to
set out
a
bona
fide
defence as is required In terms of Rule 31(2)(b
)
[37]
or
as required in terms of common law. In reaching this conclusion it
reasoned as follows:
[67]
The
fact that the
Appellant,
in his replying
affidavit,
did
not
address
the question
of
authorship
of
the graphologist's
report
raised
by the Respondent
"..
.is
ominous
to
say
the
least."
[38]
a)
The report of
the Respondent's expert is in direct contrast to that of the
Appellant's.
b)
The Court a
quo also referenced the failure by Appellant to address, in reply, a
confirmatory affidavit from a police officer confirming
that the
impugned affidavit was signed in his presence. (The implication
of the
reference is seemingly that, as the Appellant had not in reply
disputed the affidavit, it is admitted.)
[68]
In evaluating
the merits of the Appellant's defence, the learned Acting Judge both
misconstrued the Appellant's defence and the
test for a
prima
facie, bona fide
defence:
c)
At
rescission stage the Appellant (regarding merits) only has to prove
that he has
"...
a
bona
fide
defence,
which
prima
facie
,
carries
some
prospect
of
success."
[39]
He
was
not
required to deal with the merits of the case or to produce evidence
that the probabilities are in his favour.
[40]
The inclusion of the expert report by the Appellant in the rescission
application, was therefore not strictly necessary as, were
they to be
proven at trial, the facts as alleged in his founding affidavit would
constitute a complete defence to the respondents'
claims. The report
itself would serve to prove some of those facts at trial, however, at
rescission stage it, at most, serves as
proof that the defence raised
is bona fide.
d)
An
interrogation into the authorship or relative weight of two
(supposedly) contrasting experts was therefore inappropriate and
surpassed the bounds of what is necessary to determine whether a
prima facie
defence
exists. The Court should have limited its enquiry to
a)
whether the defence raised constitutes defence on the face of it and,
b) to avoid abuse of process, whether
in raising such a defence the
Appellant was
bona fide.
Explanation
of delay
[69]
The
Court
a
quo
found
that the
Appellant
failed
to
satisfactorily
explain
the
delay
in bringing of
the rescission application (for purposes of condonation in terms of
Rule 31(2)(b) or in terms of an explanation
of delay in
terms of common law).
[70]
The
basis for this finding was that the Appellant had not explained the
basis for the delay between when the order was emailed to
him on 6
April 2016 and raising the issue of rescission in opposing the
eviction proceedings in March 2017. The Court a quo opined
that the
Appellant simply failed to inform his attorney (at the time) and
subsequent attorneys thereof until he was forced
into
action by the eviction proceedings. In
opposing
the eviction proceedings, the Appellant had indicated that filing of
the rescission application would occur in July 2017.
It was however
only filed in September 2017. The Appellant explained that he was
awaiting
the
graphologist's
report.
The
Court
a
quo
found
that
this
explanation
"
insufficient.
"
[41]
.
[71]
The important
of an enquiry as to whether or not the summons and particulars of
claim came to
the
attention
of
the defendant
prior
to
default
judgment
(regardless
of method
of service)
here comes clearly to the fore. Apart from the obvious need for a
court to ensure that audi alteram partem is adhered
to, the outcome
of such an enquiry, affects the contextualization
of
a
party's
actions
in,
for
instance,
any
determination
relating
to
reasonableness.
[72]
The Court a
quo was convinced that the Appellant was fully aware of the summons
and concomitantly, the Respondent's
claim
and basis
thereof. Assuming
that it
was correct in
this regard, it is easy to conclude that, having flagrantly ignored
both the summons and the default order, the true
(and only) reason
for launching the rescission proceedings was to frustrate the
eviction proceedings. The timing of (and concomitantly,
the delay in)
bringing the rescission application, in coinciding with the eviction
proceedings, is indicative of a litigant who
having made no serious
attempts to further his defence, now only does so to frustrate the
litigation process.
[73]
However,
when the Appellant's conduct and explanation for delay is viewed from
the perspective of a person who, until the 19
th
of July 2017
[42]
had
not even had sight of the summons, the particulars of claim or the
impugned affidavit, his explanation of the delay becomes
far more
reasonable. When the default order was emailed to him, as part of a
bundle of documents, he, as a layman, would not have
been aware of
how it was obtained or, seemingly, the import of the order itself. He
therefore requested that it be sent to his
attorney, Mr Bester and
concludes:
"Thank
you
for
your time and I will
await
their notification
if
there
is
a
need
for me to par take
(sic)
in
this regard."
Reliant
on pro bono representation, the first attorney who had the
opportunity to view the default order, was Mr Michael Maritz,
who,
wrote to the Respondent on the 8th of March 2017 requesting the
return of service, founding affidavit and annexures thereto.
He made
it clear that
"..the
particular
matter
wherein the attached Court Order was granted, was not brought
to
the attention of our client."
[43]
The
respondent's only reply to the request was the launching of an
eviction application on the 8th of April 2017. Similarly, when
the
Appellant's current attorney in June 2017 requested these documents,
the
Respondent
no
longer
had
any
interest
in
corresponding
with
attorneys
of
record.
Therefore,
the first time that Appellant was in a position to formulate an
application for rescission would have been in July 2022
when Mr
Tintinger managed to obtain the court file and the irregular service,
alleged terms of the agreement and the impugned affidavit
came to his
knowledge. The delay in bringing the application for rescission is
therefore completely justifiable. Well before launching
the eviction
application, the Respondent had been made aware that the summons had
not come to the Appellants attention. The respondent's
steadfast
refusal to provide the Appellant's attorneys with the pleadings
showing the basis for the granting of the default order
and then
relying on the order to evict the Appellant is, to borrow a phrase
from Avvakoumides AJ
"
...ominous
to say the least."
Finding
on appeal
[74]
In view of all
the aforementioned, we find that the appeal should be upheld.
Costs
[75]
The
Appellant has argued that the first and fifth respondents should be
ordered to pay the costs of the appeal. The normal principle
is that
costs follow the result. There is no reason to deviate from this
principle. We note that the Appellant's
entitlement
to be awarded costs, despite being represented on a pro bono
basis,
[44]
has
now been entrenched in
Section 92
of the
Legal Practice Act, 2014
.
[76]
We
are however disinclined to order that the fifth respondent should pay
costs. The following astute observation made in
Botha
v African Bitumen Emulsion (Ply) Ltd
[45]
warrants restatement: -'...
it
may perhaps be desirable to impress upon judicial officers the
necessity of adjusting critically their orders as to costs if
these
orders are not sometimes to produce results which are unintentional
and unjust.
'
[77]
The fifth
respondent
is
the
same
CC
in which the
Appellant, through
the
rescission, seeks to regain
his 40%
member's interest
in. If
the first
respondent, for whatever
reason, is
unable to satisfy the cost order, the unintended consequence granting
such a cost order against the fifth respondent
would be that the
Appellant would have to hold an asset in his own estate liable for
his costs.
[78]
In
any event, regardless of this possible unintended consequence, it is
evident from the record that the fifth respondent took no
real part
in opposing the rescission application, the leave to appeal
application or the appeal before us. The first respondent
was the
driving force behind the oppositions
and
noted opposition by the fifth respondent in name only.
Save
for mentioning the fifth respondent in the headings of the various
oppositionary
filing
notices and the like, he only mentions that he is a member
of
the fifth respondent in
the
first and fifth respondents' answering affidavit to the rescission
application.
[46]
The content
of the opposition is however framed in
the
first person singular for the most part. The record also does not
reveal the basis of his authority to act for the fifth respondent,
save for the reference to him being a member thereof.
[79]
We note that
the costs pertaining to the leave to appeal were ordered to be "costs
in the appeal"
Accordingly,
the
first
Respondent
is,
likewise,
solely
liable
for
those
costs,
as well as the
costs of
the
costs of the rescission application.
Order
[83]
The following order
is therefore granted:
[1]
The
appeal
is
upheld.
[2]
The
first
Respondent is
ordered
to
pay the
costs
of
the
appeal,
as
well
as
the
leave to appeal.
[3]
The order of the Court a quo 1s set aside and replaced with the
following order:
[1]
The default judgment granted by Justice Collis AJ on 11 March 2016
under case number 100047/2015 be
and is hereby rescinded and set
aside.
[2]
The Appellant is granted leave to deliver a notice of intention to
defend within ten days of date of
this order.
[3]
The
first
Respondent is
ordered to
directed to pay the costs of the application.·
K
Strydom
[Acting
Judge of the High Court, Gauteng Division, Pretoria]
I
concur
JJC
Swanepoel
[Judge
of the High Court Gauteng Division, Pretoria]
I
concur
LM
Malatsi – Teffo
[Acting
Judge of the
High Court, Gauteng Division. Pretoria]
DATE
OF HEARING:
11
OCTOBER 2023
DATE
OF JUDGMENT: 17 NOVEMBER 2023
APPEARANCE
ON BEHALF OF THE APPELLANT:
Adv
PJ Greyling
Instructed
by [attorney]: William Tintinger
APPEARANCE
ON BEHALF OF THE FIRST AND FIFTH RESPONDENT:
Adv
RA Britz
Instructed
by [attorney]: Amos Khumalo Attorneys
[1]
Volume
2 page 177
[2]
Volume
I page I
[3]
Volume
I page 28-31
[4]
Volume
I page 8
[5]
Volume
I page 37 - 45
[6]
Volume
I page 53
[7]
Volume
I page 66 to 69
[8]
Volume 2 page 187; “Annexure LLM15”
[9]
Volume
2 page 188; "Annexure LLM 16"
[10]
Volume
2 page 113
[11]
Volume
I page 73
[12]
Volume
2 page 157
[13]
Volume
I page 85
[14]
Volume
I page 86
[15]
Volume
2 page 162 - 169
[16]
Volume
2 page 170
[17]
Volume
I page 90
[18]
Volume
3 page 204 -205
[19]
Volume
3 page 202
[20]
Volume
3 page 217
[21]
Volume
3 page201
[22]
Volume
3 page 259 - Judgment by Avvakoumides AJ paras 9 and 1.
[23]
City
of Tshwane Metropolitan Municipality v Brooklyn Edge ((Pty) ltd) ltd
and another (290/2015) [2016] ZAGPPHC I088; [2017) I
All SA 116 (GP)
11 November 2016 paragraph 39. Bakhoven Limited v CJ Howes (Pty) ltd
1992 (2) SA 466
(E) at 471 E-F. Promedia Drukkers en Uitgewers Edms
Bpk v Kaimowetz
1996 (4) SA 411
(C) at 4178-
[24]
Kgomo
and Another v Standard Bank of South Africa 2016 (2) SA I84(GP).
[25]
Stander
and another v ABSA Bank 1997 (4) 873 (E)
[26]
Lodi
2 Properties Investment CC and Another v Border Developments (Pty)
ltd
2007 (6) SA 87
(SCA) at para 24.
[27]
Bakoven
Ltd v OJ Howes (Pty) ltd
1990 (2) SA 446
at page 471E to H
[28]
Erasmus
Superior Court Practice B1 – 26.
[29]
Respondent's
heads of argument CL 450 -452
[30]
Volume
2 page 204 and 205; para 17
[31]
Volume
2 page 188; "Annexure LLM 16"
[32]
Volume
2 page 204 and 205; para 17
[33]
Deputy
Sheriff, Witwatersrand v Golberg 1905 TS 680
[34]
Erasmus
"Superior Courts Practice" Volume 2 D 1-36
[35]
Prism
Payment Technologies v A/tech information Technologies
2012 (5) SA
267
(GSJ) at 271H-272A,
[36]
BMW
South Africa (Pty) ltd v William and Another (31587/21) (2022)
ZAGPPHC 450 (27 Juoe 2022)
[37]
Volume
3 page 262 - Judgment by Avvakoumides AJ para 17
[38]
Volume
3 page 26 1 - Judgment by Avvakoumides AJ para 16
[39]
Pro
Media Drukkers en Uitgewers (Edms) Beperk v Kalmowitz and Others
1888 (4) SA 41I
at page 417
[40]
EH
Hassim Hardware (Pty) ltd v Fab Tanks CC 2017 JDR 1655 (SCA)
[41]
Volume
3 page 264-Judgment by Avvakoumides AJ para 21
[42]
Volume
I page 86
[43]
Volume
2 page 154
[44]
This
entitlement, prior to the enacted of the Legal Practice Act.2014.
was, for instance, fully analysed in Zeman v Quickelherge
&
Others(1) (2011) 32 ILJ 53 (LC),
[45]
Botha
v African Bitumen Emulsion (Ply) Ltd
1960 (2) SA 6
(TPD) 10A.
[46]
Volume
2 page 196.
sino noindex
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