Case Law[2022] ZAGPPHC 316South Africa
Win Systems D.O.O. (Formerly Named Gold Club Gaming D.O.O) v DRGT Africa (Pty) Ltd (Formerly Named Simplicit-e Gaming Solutions (Pty) Ltd (8861/2021) [2022] ZAGPPHC 316 (12 May 2022)
Headnotes
based on the remaining grounds.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Win Systems D.O.O. (Formerly Named Gold Club Gaming D.O.O) v DRGT Africa (Pty) Ltd (Formerly Named Simplicit-e Gaming Solutions (Pty) Ltd (8861/2021) [2022] ZAGPPHC 316 (12 May 2022)
Win Systems D.O.O. (Formerly Named Gold Club Gaming D.O.O) v DRGT Africa (Pty) Ltd (Formerly Named Simplicit-e Gaming Solutions (Pty) Ltd (8861/2021) [2022] ZAGPPHC 316 (12 May 2022)
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sino date 12 May 2022
IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG DIVISION,
PRETORIA)
Case number: 8861/2021
REPORTABLE: NO
OF INTEREST TO OTHERS
JUDGES: NO
REVISED
12.5.2022
In the matter between:
WIN SYSTEMS D.O.O.
(FORMERLY NAMED GOLD
CLUB GAMING
D.O.O)
PLAINTIFF
AND
DRGT AFRICA (PTY) LTD
(FORMELY NAMED
DEFENDANT/
SIMPLICIT-E GAMING
SOLUTIONS (PTY) LTD
EXCIPIENT
JUDGMENT
TOLMAY, J:
INTRODUCTION
[1]
This is an exception to the plaintiff’s particulars of claim in
terms of Rule
23(1). It is alleged that the particulars of claim are
both vague and embarrassing and does not disclose a cause of action.
The
grounds of exception were reduced after amendments were affected.
This Court has to decide whether the exception should be upheld
based
on the remaining grounds.
THE BACKGROUND
[2]
The plaintiff (respondent) is the manufacturer and supplier of gaming
hardware and
software (“the equipment”). Defendant (“the
excipient”) was appointed as the distributor in South Africa
of
the respondent’s gaming equipment in terms of a Distribution
Agreement. The Distribution Agreement makes provision for
pricing to
be determined at a later date and from time to time. The claim is for
payment of the alleged daily fee and contractual
damages. The amount
claimed as the daily fee amounts to € 368 022-00. The
contractual damages allegedly suffered will
be quantified in due
course.
[3]
In a letter dated 7 August 2018 the excipient’s attorney
informed the respondent
that all future payments would be withheld
until the dispute was resolved. The letter indicates that daily fees
were payable, but
states that no payment will follow pending the
resolution of another unrelated intellectual property dispute between
the parties.
[4]
The excipient initially delivered a notice of exception setting out
twelve grounds
of exception, following an amendment the excipient
delivered a further notice of exception adding three additional
grounds. The
excipient in due course abandoned seven grounds of
exception and persisted with grounds 1, 4, 6, 7, 9 and 13 combined,
10, 12 and
14.
THE LEGAL
PRINCIPLES APPLICABLE TO EXCEPTIONS
[5]
The aim of exception procedures is to avoid the leading of
unnecessary evidence and
to dispose of a case wholly or in part in an
expeditious and cost-effective manner. Exception procedure is also
aimed at ensuring
that a proper identifiable case is set out and that
the pleading is formulated in such a manner that the other party is
put in
a position to plead thereto without any confusion.
[6]
In
Trope
v South African Reserve Bank
[1]
the
following was said about an exception relying on the allegation that
the pleading was vague and embarrassing:
“
An
exception to a pleading on the ground that it is vague and
embarrassing involves a two-fold consideration. The first is whether
the pleading lacks particularity to the extent that it is vague. The
second is whether the vagueness causes embarrassment of such
a nature
that the excipient is prejudiced (Quinlan v MacGregor
1960 (4) SA 383
(D) at 393 E – H). As to whether there is prejudice, the
ability of the excipient to produce an exception-proof plea is not
the only, nor indeed the most important, test – see the remarks
of Conradie J in Levitan v Newhaven Holiday Enterprises CC
1991 (2)
SA 297
(C) at 298G – H. If that were the only test, the object
of pleadings to enable parties to come to trial prepared to meet each
other’s case and not to be taken by surprise may well be
defeated. Thus it may be possible to plead to particulars of claim
which can be read in any one of a number of ways by simply denying
the allegations made; likewise to a pleading which leaves one
guessing as to its actual meaning. Yet there can be no doubt that
such a pleading is excipiable as being vague and embarrassing
–
see Parow Lands (Pty) Ltd v Schneider
1952 (1) SA 150
(SWA) at 152F –
G and the authorities there cited. It follows that averments in the
pleading which are contradictory and
which are not pleaded in the
alternative are patently vague and embarrassing; one can but be left
guessing as to the actual meaning
(if any) conveyed by the
pleading.”
[2]
[7]
To determine whether a pleading is vague and embarrassing the
pleading must be read
as a whole, as the exception is not directed at
a particular paragraph.
[3]
An
exception based on vagueness and embarrassment is intended to rectify
any defect or incompleteness in the manner in which the
pleading is
structured, which will result in embarrassment to the party required
to plead and strikes at the formulation of the
cause of action.
[4]
It should furthermore only be allowed if the excipient will be
seriously prejudiced, if the offending allegations are not expunged
and can only be taken if the vagueness relates to the cause of
action.
[5]
[8]
A court must consider whether the pleading lacks particularity to an
extent amounting
to vagueness. A statement is vague if it is either
meaningless, or capable of more than one meaning.
[6]
A two-fold consideration is required when determining whether a
pleading is vague and embarrassing, the first is whether the pleading
lacks particularity to the extent that it is vague. The second
consideration is whether the vagueness leads to prejudice.
[7]
The ultimate test when determining an exception is whether the
excipient is prejudiced.
[8]
The
onus is on the excipient to proof both vagueness, embarrassment and
prejudice.
[9]
[9]
If the exception is based on an absence of a cause of action the
court should deal
with the exception sensibly and not in an
over-technical manner.
[10]
[10]
Importantly, it must be remembered that for purposes of deciding an
exception the court takes
the facts alleged in a pleading as
correct,
[11]
except if the
facts are manifestly false and so divorced from the truth that they
cannot be proven.
[12]
[11]
Before dealing with the separate complaints certain general
observations need to be made. In
this particular instance the
excipient in various instances failed to read the particular of claim
as a whole and followed on overly
technical approach. When
considering exceptions, the preferable approach should be to inquire
whether unnecessary evidence and
protracted litigation could be
avoided by upholding the exception and whether a party is placed in
the position to identify the
cause of action, understand the claim
against it and ultimately the case it should meet.
FIRST CAUSE OF
COMPLAINT
[12]
The first cause of compliant is that there is no cause of action
based on the Distribution Agreement
or any written variation thereof.
[13]
The excipient complains that the plaintiff’s case appears to be
based on a Distribution
Agreement concluded on 29 February 2012 (the
Distribution Agreement) between the defendant under its former name,
Simplicit-e Gaming
Solutions (Pty) Ltd, and Gold Club d.o.o., a
Slovenian company.
[14]
The complaint is that the three products which forms the subject
matter of the present dispute,
namely Duma, Sunstriker and Lion Share
are not described in the Distribution Agreement and the definition of
“
Products
” and therefore it is contended no amount
can be payable in respect of these products
[15]
The excipient argues that the non-variation clause contained in the
Distribution Agreement, prohibits
the introduction of the
aforementioned three products and the Wide Area Progressive Gaming
Machines (“WAP” ) without
a proper written variation of
the agreement. The respondent argues that when the Distribution
Agreement was concluded on 29 February
2012 the three products were
not in existence. These products were developed and supplied to the
excipient after conclusion of
the Distribution Agreement.
[16]
The Distribution Agreement envisages, within its express terms, that
there would be on-going
development by the respondent of gambling
games and products that would be made available to the excipient.
This is provided for
in clauses 7 and 8 of the Distribution
Agreement. It therefore does not pass muster, at exception state at
least, to argue that
the introduction of these products amounts to a
variation that would require a formal variation of the Distribution
Agreement.
This inference is supported by two emails which are
attached to the particulars of claim, as POC 2.1 and POC 2.2, wherein
amounts
payable per day for the additional products are confirmed. At
this stage the recordal of the price payable by the respondent’s
managing director proofs a valid variation of the agreement.
[17]
The complaint depends on the interpretation of the Distribution
Agreement. This issue will be
clarified by evidence during the trial.
A court determining an exception is not in a position to interpret
the contract where from
a reading of the contract and e-mails,
different interpretations are possible. Taking into account that the
approach to be applied
in the interpretation of the documents is that
the words, context and the provisions and background of the document
need to be
considered.
[13]
The
pleading, read as a whole sets out a cause of action. It may well be
that the respondent may not be able to prove that its
interpretation
is the correct one, but that will be for the trial court to determine
as a resultthis ground of exception is dismissed.
THE FOURTH GROUND
OF COMPLAINT
[18]
This complaint is that the alleged variation of the Distribution
Agreement is not properly pleaded
and that Annexures POC 2.1 to POC
2.2 do not constitute amendments to the Distribution Agreement.
Paragraph 8 of the particulars
of claim reads as follows:
“
8.
Following upon the conclusion of the Distribution Agreement, and in
or about March 2014, the defendant,
represented by Charl Geyser, and
Gold Club represented by Bostjan Stopar agreed that the defendant
would pay Gold Club, in respect
of every gaming machine that the
defendant placed with its customer from time to time, in addition to
the initial purchase price
for each machine, the sum of € 3.50
per day, per machine (hereinafter referred to as “the daily
fee”). Annexed
hereto as:
8.1.
“POC2.1” is correspondence dated 4 May 2015 from Mr.
Geyser to Mr. Stopar confirming the daily
fee payable in respect of
the Duma and Sunstriker Gaming Machines; and
8.2.
“POC2.2” is correspondence dated 27 August 2016 from Mr.
Geyser to Mr. Stopar confirming the
daily fee payable in respect of
the Lion’s Share Gaming Machine as well as again confirming the
daily fee for the Duma and
Sunstriker Gaming Machines.
”
[19]
It was argued by the excipient that the two attached emails do not
refer to any agreement having
been concluded during March 2014, or
refer to the Distribution Agreement. For the reasons set out under
the first ground of complaint.
and having regard to the fact that the
Distribution Agreement envisaged the development of new products, it
is clear that evidence
will have to be led to determine the veracity
of the allegations. In
Spring
Forest Trading CC v Wilberry (Pty) Ltd t/a Ecowash and Another
[14]
it was found that the validity of a cancellation of an agreement that
contained non-variation clauses could be proven by way of
e-mails.
The facts may be distinguishable, but the principle is the same. In
any event, in POC 7 the defendant’s attorney
confirmed the
inclusion of the three aforementioned products. The pleading is not
excipiable on this basis.
THE SIXTH COMPLAINT
[20]
In paragraph 10 of the particulars of claim, the following is
alleged:
“
10.
On or about 22 October 2016 and in furtherance of the Split-Off, Gold
Club conveyed, transferred and assigned to
the Plaintiff, among other
assets, all of Gold Club’s Intellectual Property (as defined in
the Share Purchase Agreement and
hereinafter referred to as ‘the
Intellectual Property’), which would include all rights and
obligations under the Distribution
Agreement as varied, including the
right to charge for the daily fee, to the extent that it had not
previously been transferred
to the Plaintiff as part of the
Split-Off. A copy of the Share Purchase Agreement and the
Intellectual Property Assignment Agreement
are annexed hereto as
“POC4” and “POC5” respectively.
”
[21]
The excipient complains that the respondent failed to identify which
provisions of POC 4 and
POC 5 it relies on. It is argued by the
excipient that POC 4 is irrelevant as it appears to be a share
purchase agreement concluded
by Gold Club d.o.o, Loris Pozar and an
unrelated entity. POC 4 however, serves to prove that the session and
assignment were concluded.
This much is clear from a reading of the
pleading in its entirety.
[22]
The respondent explains that POC 5, which is the Intellectual
Property Assignment Agreement,
refers, within its terms to the share
purchase agreement and, POC 4 was attached for that purpose only. The
respondent argues,
and correctly so, that if it is irrelevant, as the
defendant asserts, it can plead so without embarrassment or
prejudice. A reading
of paragraph 10 makes it clear what the
allegations are, and in this instance, it is not necessary to refer
to specific parts of
POC 4 and POC 5, when the paragraph is
considered in context.
[23]
The excipient continues to argue, that as far as Schedule 1 to
Annexure POC 5 is concerned, no
reference is made to trade mark
registrations or applications for Duma, Sunstriker and Lion’s
Share. The respondent argues
that the Schedule refers to Trademark
Assignments and the present dispute between the parties is not a
trademark dispute. As a
result, there is no need to refer to Duma,
Sunstriker and Lion’s Share. It also follows that as part of
the agreements referred
to in paragraph 10, the addendums to the
agreements attached for the sake of completeness, even if they are
not strictly speaking
relevant.
[24]
Schedule 2 refers to Duma and Sun Stricker, (which is a misspelling
of Sunstriker). Lion’s
Share does not appear in the Schedule as
it forms part of the agreement entered into from 30 November 2016,
which is after the
Assignment Agreement. As set out above, the
Distribution Agreement makes provision for the development of new
products.
[25]
Paragraph 10 of the particulars of claim
must be read in context of the alleged cession and assignment and the
rest of the particulars
of claim and is neither vague nor
embarrassing. The excipient seems to attempt to read the paragraph
and the annexures in isolation,
without applying the principal that
the pleading should be read as a whole. There is no merit in this
complaint and it is dismissed
THE
SEVENTH COMPLAINT
[26]
This complaint deals with an alleged invalid and contradictory
addendum to the Distribution Agreement.
[27]
Paragraphs 11 to 13 of the particulars of
claim read as follows:
“
11.
The addendum records that all rights of Gold Club pursuant to the
Distribution Agreement were transferred de iure following
a split off
with effect from August 2016 to the plaintiff.
“
12.
The addendum records that all rights of Gold Club pursuant to the
Distribution Agreement were transferred de iure following
a Split-Off
with effect from August 2016 to the Plaintiff.”
13.
A copy of the addendum is annexed hereto and marked “POC 6”.
[28]
The addendum records that the Distribution Agreement was concluded on
29 February 2012 and that
all rights of Gold Club d.o.o. were
transferred to the respondent. The agreement to which the excipient
is a party records its
acceptance of the cession to the plaintiff.
The defendant raises a number of exceptions based upon the assertion
that no such cession
took place.
[29]
The excipient complains that annexure “POC6” which is
dated 15 August 2017 (i.e.
after the alleged variation of the
Distribution Agreement was concluded during or about March 2014) is
not a valid addendum to
the Distribution Agreement. However, it is
required to read the pleading as a whole and keeping in mind that the
disputed facts
need not be determined at this point in time. This
implies that the validity of the addendum cannot be determined at
exception
stage.
[30]
There is no merit at all in the submission that because the
respondent was not a party to the
Distribution Agreement it could not
have concluded a valid addendum. Apart from the other evidence of the
cession and assignment,
the addendum records the cession.
[31]
The excipient argues furthermore that even if the addendum is valid,
it contradicts the version
of the respondent. To support this
argument, it says that the specific purpose of Annexure POC 6 is to
include Pyramid Jackpot
. The excipient says
that the other provisions dealing with the “obligation”,
“Fee” and “Property
Rights” relate
specifically to Pyramid Jackpot and not to any of the additional
products.
The addendum does not
contradict the provisions of the Distribution Agreement, as varied by
the addition of Duma, Sunstriker and
Lion’s Share, merely
because it deals with “Pyramid Jackpot”, it also records
that there are no other changes
to the Distribution Agreement. This
is particularly relevant to the present dispute.
[32]
This is yet another instance where the excipient fails to read
pleading as a whole and there
is no merit in this complaint and the
excipient can plead without embarrassment or prejudice to it.
THE
NINTH AND THIRTEENTH COMPLAINTS
[33]
In these complaints the excipient alleges that no cause of action
arises from Annexure POC 7.
[34]
The relevant part of paragraph 16 reads as follows:
“
16.
Despite acknowledging that the Defendant was obliged to pay
€
3,50
per day per
machine for every machine placed with its customers, on 7 August
2018, the Defendant notified the Plaintiff that it
would cease to
make payment of this amount. A copy of the notification is annexed
hereto as “POC7”.
16.1 The
acknowledgment of liability set out in the letter marked POC 7, is to
be found in a letter dated 07 August 2018 from Shirlaine
Farrell, the
defendant’s duly authorized and instructed attorney, who was
authorized and instructed to admit that her client’s
obligation
to pay the daily fee (albeit coupled with a unilateral decision to
suspend paying same pending the outcome of a related
dispute)
“
The
monthly fees, initially paid by our Client to [plaintiff] and now
also Best Gold Bet d.o.o. (which our Client is confused and
concerned
about, given that the aforementioned Company is not a party to the
agreement and is not the developer or owner of the
Gamestar Platform)
comprise fees payable for the use in South Africa of the Gamestar
Platform, future game development and ad hoc
product support. Those
payments have never been payments of license fees for the
intellectual property subsisting in our Client’s
Products,
because such intellectual property has always belonged to our Client
and as such, pending the resolution of this dispute,
our Client is
withholding any future payment of these fees until this matter is
resolved.”
16.2
The defendant’s attorney’s reference to ‘monthly
fees’ is a reference to the daily fee of 3.50 per
day per
machine computed over a month.
16.3 The
defendant’s attorney’s reference to payments ‘paid
by our Client’ were those payments that
defendant had made to
plaintiff or its agent, Best Gold Bet d.o.o.
16.4 The defendant’s
attorney’s reference to ‘the agreement’ is a
reference to the agreement between the
parties in terms of which the
defendant paid the daily fee of € 3.50 per day per machine.
16.5 The defendant’s
attorney’s statement that ‘our Client is withholding any
future payment of these fees until
this matter is resolved’ is
a communication of an intention not to withhold the daily fee of €
3.50 per day per machine
until the dispute regarding the intellectual
property referred to in that letter was resolved.
16.6 Accordingly the
defendant thereby admitted owing the daily fee of € 3.50 per day
per machine but unilaterally decided
to suspend paying it until the
said dispute was resolved.
[35]
The excipient argues that the Distribution Agreement does not
regulate payment of fees payable
for the use in South Africa of the
Gamestar platform, future game development and ad hoc product support
and is therefore, not
“
the agreement
” referred to
in the paragraph of Annexure “POC7” quoted under
paragraph 16.1 of the particulars.
[36]
The excipient also argues that the respondent does not indicate on
which part of Annexure POC
7 it relies as the contents of the
annexure contradicts what is pleaded in paragraph 16 of the
particulars of claim.
It is however
clear from the contents of POC7 that the excipient’s duly
authorised attorney acknowledged her client’s
obligations to
the respondent under the Distribution Agreement and makes it clear
that the monthly amounts payable was not in respect
of licence fees.
In its amendment, the respondent pleaded as follows in paragraph 16.7
of the particulars of claim:
16.7
In terms of:
16.7.1
The agreement pleaded in paragraph 8 and 9 above: and/or,
16.7.2
the agreement referred to by the defendant’s attorney in
her
letter of 7 August 2018, POC 7,
The
defendant was obliged to continue paying the daily fee of €3.50
per day per machine to the plaintiff for so long as defendant
used in
South Africa the Gamestar Platform on the machines and such payment
had to be made on a monthly basis.”
[37]
The aforesaid makes it clear that the respondent relies on the
agreement set out in POC 7 in the alternative, there is accordingly
no merit is these complaints and they are dismissed.
THE
TENTH CAUSE OF COMPLAINT
[38]
The excipient contends that the respondent claims the daily fee of €
3.50 based on a variation
of the Distribution Agreement, this it says
is contradicted by POC 8 which refers to the Sun Master Agreement.
In this complaint the excipient argues that the
Sun Master Agreement is a different agreement from the Distribution
Agreement and
has no relevance to the present matter.
Paragraph 18 of the particulars of claim
where reference is made to POC 8 reads as follows:
“
A
schedule setting out the number of Duma, Sunstriker and Lion’s
Share machines which the defendant had placed with customers
and in
respect of which it was obliged to pay the plaintiff € 3.50 per
machine, per day as at 28 February 2018 is annexed
hereto as “POC
8”.
[39]
The respondent argues that the Sun
Master Agreement is clearly a different agreement from the
Distribution Agreement and has no
relevance to the present matter.
The respondent points out that POC8 is an email from the defendant’s
managing director annexing
a copy of the agreement, which from the
context of the email and from the annexures, is clearly the agreement
that the defendant
has in place with Sun International for the
placement of the Duma Sunstriker and Lion’s Share machines.
[40]
Although paragraph 18 refers to a schedule only, POC 8 consists of
various e-mails, the relevance
of which is not explained. It is not
clear from POC 8 that its purpose is to set out the number of Duma,
Sunstriker and Lion Share
in respect of which the excipient was
obliged to pay the daily fee. In this regard the particulars of claim
are vague and embarrassing
and requires amendment.
THE
TWELFTH CAUSE OF COMPLAINTS
[41]
The excipients in this complaint argues that the Content of Annexures
POC 10.1 to POC 10.27 and
annexures to the letter of demand contained
in POC 11 contradicts the respondent’s version.
[42]
The relevant part of the particulars of claim reads as follows:
“
19.
On 5 February 2019 the plaintiff gave the defendants 60 days’
notice of termination of the Distribution Agreement.
A copy of the
notice is annexed hereto marked “POC 9“.
19.1
That notice constituted a notice of cancellation of the agreement(s)
referred to in 16.7 above, alternatively, the plaintiff
communicated
its election to cancel these agreements by terminating the
defendant’s use of the Gamestar Platform in or about
May 2019.
20.
Copies of the relevant and unpaid invoices payable by the defendant
to the plaintiff are annexed hereto
as “POC 10.1” and
“POC 19.26” and a credit note dated 28 March 2019 is
attached as “POC 10.27”.
21.
In the light of the defendant’s failure to pay the daily Fee,
the defendant is indebted to the
plaintiff in the sum of the arrear
daily fees due as at the date of cancellation, being €
368 022,00, and despite demand
dated 5 February 2019, the
defendant refuses and/or neglects to pay same to the plaintiff. A
copy of the demand for payment is
annexed hereto as “POC 11.”
[43]
The excipient says that the invoices and
credit note attached as Annexures “POC10.1” to “POC10.27”
to the
particulars of claim and the annexures to the letter of demand
(Annexure “POC11”) are issued by the respondent and do
not relate to amounts due under the Distribution Agreement.
[44]
T
he invoices and credit note refer to
“
Software License Fee
”
and contradicts the version of the respondent that the amounts were
payable in respect of the additional products in terms
of the
Distribution Agreement, as varied. The excipient says that no
allegations relating to any software license agreement relating
to
the products have been pleaded.
The
excipient states the invoices and credit notes attached as Annexure
POC 10.1 to POC 10.27 and the annexures to the letter of
demand do
not relate to the amounts due under the Distribution Agreement.
[45]
Although the description on invoices of the services rendered cannot
impact upon the rights and
obligations of the parties under the
Distribution Agreement, the pleading must at least explain why the
invoices and credit notes
do not refer to the daily fee, or why it
refers to “
software licence fee”
in the light of
the fact that the respondent’s claim that its claim is for the
daily fee.
[46]
This paragraph requires an amendment and the exception is upheld as
far as this complaint is
concerned.
THE
FOURTEENTH COMPLAINT
[47]
The fourteenth complaint is that there is no cause of action based on
the “informal agreement”
referred to in paragraph
16.11.2. of the particulars of claim.
[48]
Paragraph 16.11 reads as follows:
“
16.11
On 26 November 2018 the defendant filed in the United States Patent
and Trademark Office before the Trademark Trial and Appeal Board a
document referenced as Opposition No. 91242656 Serial no. 87/635049
Mark Sunstriker (“the Opposition Document”) in which it,
under the hand of its attorney being duly authorised and instructed
by the defendant so to do, pleaded as follows:
“
16.11.1
[Defendant] struck and (sic) informal agreement with Gold Club
relating to development work
for its Wide Area Platform products and
integration of its Wide Area Platform gaming software on the machines
of Gold Club (Par.
11);
16.11.2
After the acquisition date by plaintiff of Gold club a Mr Ferdo
Salamun,
in communication with Charl Geyser, agreed that the
plaintiff would charge a usage fee to defendant for running
defendant’s
Wide Area Platform gaming products on the Gamestar
Platform of the plaintiff; the usage fee was suggested by defendant
and accepted
by plaintiff as a Euro 3.50 per slot, machine, the same
usage fee charged by gold club to defendant previously; (par 18);
16.11.3
Consistent with the agreement noted in paragraph 18 (of the
Opposition document),
defendant pays a Euro 3.50 day for each slot
machine (“usage fee”) to plaintiff in South Africa solely
for the use
of the Gamestar Platform on which the defendant runs its
Wide Area Platform gaming products; (par 19);
16.11.4 The fee is a
usage fee charged to run defendant’s gaming software for its
Wide Area Platform products on plaintiff’s
Gamestar Platform
machines.”
[49]
In paragraph 16.11 of the particulars of claim reference is made to
papers filed in the United
States Patent and Trademark Office before
the Trademark Trial and Appeal Board. Reference is made to an
“
informal
” agreement referred to in Opposition No.
912142656. The “
informal
” agreement referred to is
not the Distribution Agreement and is not pleaded or relied upon.
[50]
The respondent merely argues that the informal agreement is relied to
in the alternative as pleaded
in the particulars of claim. However,
this is not clear from paragraph 6.11 or the rest of the particulars
of claim and requires
amendment to clarify the reliance on this
informal agreement.
[51]
The exception on ground fourteen is upheld.
CONCLUSION
[52]
A perusal of the excipient’s complaints reveal that the
excipient in relation to several
complaints did not read the
particulars of claim as a whole. This resulted in an over technical
approach, which lost sight of the
ultimate purpose of pleadings. The
excipient also attempted to address the parties’ different
versions on exception stage
in instances where it was not appropriate
to do so. The interpretation of the Distribution Agreement, the
correspondence between
the parties and the significance and purpose
thereof will ultimately be determined at the trial. On the other
hand, there are some
issues, as set out above that requires
amendment. In the light of the partial success of the excipient, each
party should pay its
own costs.
[53]
The following order is made:
1.
The exception is dismissed on grounds 4, 6, 7, 9, and 13.
2.
The exception in relation to the 10
th
, 12
th
,
and 14
th
complaint is upheld.
3.
The respondent is given 15 days from date hereof to amend its
particulars of
claim.
4.
Each party to pay its own costs.
R G TOLMAY
JUDGE OF THE HIGH
COURT, PRETORIA
DATE OF
HEARING:
8 FEBRUARY 2022
DATE OF
JUDGEMENT:
12 MAY 2022
ATTORNEYS FOR
EXCIPIENT/
DEFENDANT:
SHIRLAINE FARRELL ATTORNEYS
ADVOCATE FOR
EXCIPINET/
DEFENDANT:
ADV B H SWART (SC)
ADV L G KILMARTIN
ATTORNEYS FOR
RESPONDENT/
PLAINTIFF:
SPOOR & FISHER
ADVOCATE FOR
RESPONDENT/
PLAINTIFF:
ADV L J MORISON (SC)
[1]
1992
(3) SA 208
(T) (“Trope”).
[2]
Ibid
p 211 A – E.
[3]
Jowell
v Bramwell-Jones and Others
1998 (1) SA 836
(W) at p 899 G; Nel and
Others N.O. v McArthur 2003(4) SA 142 (T) 149 F.
[4]
Trope
and Others v South African Reserve Bank
[1993] ZASCA 54
;
1993 (3) SA 264
(A) at 268F,
269I.
[5]
Levitan
v New Haven Holiday Enterprises CC
1991 (2) SA 297
(C) p 298 A.
[6]
Wilson
v South African Railways & Harbours
1981 (3) SA 1016
(C) p 1018
H – 1019B.
[7]
Trope
p 211 B.
[8]
Trope
p 211 B; Francis v Sharpe 2004(3) 230 (C), p 240 E – F,
Amalgamated Footwear & Leather Industries v Jordan &
Co Ltd
1948(2) SA 891 (C) p 893.
[9]
Lockhat
v Minister 1960(3) SA 765 (N) p 777 A; Colonial Industries Ltd v
Provincial Insurance Co Ltd
1920 CPD 627
, p 630.
[10]
Telematrix
(Pty) Ltd t/a Matrix Vehicle Tracking v Advertising Standard
Authority SA
2006 (1) SA 461
(SCA) p 465 H.
[11]
Fase
v Minister of Safety and Security 1991(3) SA 786 (CC) at par 73, par
81, Marney v Watson 1978(4) SA 140 (C) at 144.
[12]
Natal
Fresh Produce Growers Association & Others v Agroserve (Pty) Ltd
& Others 1990(4) SA 749 (N) at 755B-C.
[13]
Natal
Joint Municipal Pension Fund v Endumeni Municipality 2012(4) SA 593
(SCA).
[14]
2015(2)
SA 118 (SCA).
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