Case Law[2025] ZAWCHC 201South Africa
Walser Wine Projects (Pty) Ltd v Wine Machinery Group (Pty) Ltd (Leave to Appeal) (18693/2020) [2025] ZAWCHC 201 (21 February 2025)
High Court of South Africa (Western Cape Division)
21 February 2025
Headnotes
as follows therein at paragraph 10 (footnotes omitted):
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Walser Wine Projects (Pty) Ltd v Wine Machinery Group (Pty) Ltd (Leave to Appeal) (18693/2020) [2025] ZAWCHC 201 (21 February 2025)
Walser Wine Projects (Pty) Ltd v Wine Machinery Group (Pty) Ltd (Leave to Appeal) (18693/2020) [2025] ZAWCHC 201 (21 February 2025)
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sino date 21 February 2025
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
No: 18693/2020
In
the matter between:
WALSER
WINE PROJECTS (PTY)
LTD
Plaintiff
and
WINE
MACHINERY GROUP (PTY)
LTD
Defendant
Heard:
21 February 2025
Judgment:
21 February 2025
JUDGMENT
(application for leave
to appeal)
Handed down by email to
the parties
on 21 February 2025, that
date being the date of the Judgment
KANTOR,
AJ:
1.
The parties shall be referred to as in the action in which judgment
was handed
down on 6 December 2024 (“the judgment”),
dismissing the plaintiff’s claim with costs. Definitions
employed in
the judgment will be employed in this judgment.
2.
The plaintiff applies for leave to appeal.
3.
In terms of section 17(1)(a)(i) of the
Superior Courts Act 10 of
2013
(“the Act”) the question in an application for
leave to appeal is whether an
appeal
would have a reasonable prospect of success
.
4.
The application for leave to appeal and argument in respect thereof
did not suggest
that leave was sought in accordance with 17(1)(a)(ii)
of the Act (
there is some other compelling reason why the appeal
should be heard, including conflicting judgments on the matter under
consideration
). I agree that there is no basis for this provision
to be invoked.
The
test on application for leave to appeal
5.
The defendant argued that the amendment to the Act created a higher
threshold
for the test in an application for leave to appeal.
6.
Ramakatsa and Others v African National Congress and Another
(724/2019)
[2021] ZASCA 31
(31 March 2021)
is the most
recent decision of the Supreme Court of Appeal on the issue the test
to be applied in respect of section 17(1)(a)(i)
of the Act (see also
MEC for Health, Eastern Cape v Mkhita
2016 JDR 2214
(SCA)
, which is to the same effect as
Ramakatsa
.
Albeit marked reportable,
Ramakatsa
has not been
reported, as far as I am aware. It was held as follows therein at
paragraph 10 (footnotes omitted):
“
Turning the
focus to the relevant provisions of the
Superior Courts Act (the
SC Act), leave to appeal may only be granted where the judges
concerned are of the opinion that the appeal would have a reasonable
prospect of success or there are compelling reasons which exist why
the appeal should be heard such as the interests of justice. This
Court in
Caratco,
concerning
the provisions of s 17(1)
(a)
(ii)
of the SC Act pointed out that if the court is unpersuaded that there
are prospects of success, it must still enquire into
whether there is
a compelling reason to entertain the appeal. Compelling reason would
of course include an important question of
law or a discreet issue of
public importance that will have an effect on future disputes.
However, this Court correctly added that
‘but here too the
merits remain vitally important and are often decisive’.
I
am mindful of the decisions at high court level debating whether the
use of the word ‘would’ as opposed to ‘could’
possibly means that the threshold for granting the appeal has been
raised. If a reasonable prospect of success is established,
leave to
appeal should be granted
.
Similarly, if there are some other compelling reasons why the appeal
should be heard, leave to appeal should be granted.
The
test of reasonable prospects of success postulates a dispassionate
decision based on the facts and the law that a court of appeal
could
reasonably arrive at a conclusion different to that of the trial
court. In other words, the appellants in this matter need
to convince
this Court on proper grounds that they have prospects of success on
appeal
.
Those prospects of success must not be remote, but there must exist a
reasonable chance of succeeding. A sound rational basis
for the
conclusion that there are prospects of success must be shown to
exist.” [underling added]
7.
In
Smartpurse Solutions (Pty) Ltd v Firstrand Bank Ltd
[2025] 1 All SA 552
(GJ)
, the court delivered an in-depth
historical exposition of the test for leave to appeal over the past
century. The court found at
paragraph 68 that what an applicant must
demonstrate is that there is a “reasonable prospect of success”
on appeal.
8.
In my view, the effect of
Ramakatsa
and
Mkhita
,
effectively presented in
Smartpurse
, is that the test
on application for leave to appeal remains the same as it has been
for over a century, the use of the word ‘would’
in
section 17(1) of the Act did not create a higher threshold and the
wavering in the cases in this respect has been put to bed.
The
application for leave to appeal
9.
I have considered the application for leave to appeal and the
submissions made
on behalf of the parties. This includes the
application for leave to appeal which runs to 25 pages and the heads
of argument filed
by the defendant which run to 39 pages.
10.
The judgment is lengthy (64 pages) and traverses many topics.
11.
I do not intend to re-traverse these topics, nor to consider in
detail the content of the application
for leave to appeal and the
defendant’s written submissions. My reason for this is because
I am of the view that one particular
aspect alone precludes a
conclusion that would satisfy the test as explained in
Ramakatsa
:
“The test of reasonable prospects of success postulates a
dispassionate decision based on the facts and the law that
a court of
appeal could reasonably arrive at a conclusion different to that of
the trial court.”
12.
I will deal briefly with this aspect and two others related to it
which further reinforce my conclusions.
In regard to the further
detail as to these aspects and the judgment, my view is that the
reasoning and result in respect thereof
in the judgment has not been
assailed in any material respect and that the submissions in the
defendant’s heads of argument
in the application for leave to
appeal (save in respect of there being a higher threshold) add
somewhat forcefully to that reasoning
and result.
13.
Danilewicz, one of the exeprts, explained the role
of iron and iron oxide (rust) in wine. Corroded iron or rust does not
have some
special property affecting wine beyond the role of a
catalyst, and that, if it did, this
would be a new concept in
chemistry which would be studied intensely. The plaintiff’s
counsel made it clear that he was not
going to suggest otherwise:
“
MR
COETSEE:
When you say it has got a lot of iron in it, then I am supposing you
are referring to the measured Fe level, but then you say the
ordinary
Fe3
+
,
what do you mean by the ordinary Fe3
+
?
MR DANILEWICZ:
I think I meant to the Fe3
+
,
that is normally present in wine. It is not an imaginary Fe
that has special catalytic properties. Because all the time
you have
got this proposal that rust produces this, what they call, corroded
iron and somehow corroded iron implies to have a special
property. So
when I say ordinary Fe3
+
,
I mean the one that is present in wine, the one that I know, not the
one that I have never heard of.
MR COETSEE
:
You can accept that I will be asking you about Fe2
+
and Fe 3
+
the way you know it. I will not be referring you, or suggesting, or
hinting at some mysterious other form of iron. It will be either
Fe2
+
,
or Fe3
+
.
That you can take as a given Dr Danilewicz.”
“
DR
DANILEWICZ:
… The idea that the point was made that during the bottling
procedure, there was no rust visible Mr Ellis suggested
that you
don't have to see the rust. It could be there, not visible. And it
could dissolve or go into the wine, and you wouldn't
be able to
measure it. That is totally not possible. So I don't know what
exactly you’re drifting [
sic
-
should
be "driving"] at, but that's what I understand the
situation is, as far as metals and rust are concerned. The thing
is
that if there was another species, some very, very potent catalyst,
you've got to remember there'd have to be two because they
enter the
Redox cycle. And as far as I know, there is no other. And I don't
know, if there were, it would be an extremely interesting
phenomenon
which I think people would be looking at intensely. Because if it
happens in iron, it could happen in all the other
metals, in cobalt,
nickel, manganese. You know, that would be new concept in chemistry.
MR COETSEE
:
You can accept, Dr Danilewicz, I'm not going to suggest to you that
there's a new concept in chemistry." (emphasis added)
14.
That an increased iron concentration will affect the rate of
oxidation of the wine but not the
amount or extent of oxidation, as
testified by Danilewicz, was accepted by the plaintiff’s
counsel during his cross-examination:
"
DR
DANILEWICZ
:
So, I agree that if you add iron in either form, in this first phase
of oxidation,
you
will increase the rate of oxidation, but you will not increase the
amount of oxidation
.
Do you see what I mean? At the end of the phase, at the end of
this rapid phase, the iron won't increase the amount
of oxidation.
It
won't increase the amount of SO
2
that is
used
.
(emphasis added)
[. . . ]
MR COETSEE
:
You can accept that there's no dispute about what you've just
discussed."
15.
Danilewicz explained that:
15.1.
An increase in the iron content of wine, including if accompanied by
copper, accelerates the rate of oxidation
but does not increase the
amount or extent of oxidation.
15.2.
The amount or extent of oxidation depends on the availability of
oxygen.
15.3.
In wine, oxidation cannot occur in the absence of oxygen.
16.
He repeatedly pointed out, without contradiction, that the redox
cycle responsible for the oxidation
of wine (explained in detail in
the judgment) was dependent on oxygen. Absent oxygen, oxidation of
wine cannot take place and sulphur
dioxide (SO
2
) would not
be consumed in the presence of Fe
3+
(explained in detail
in the judgment).
17.
Oxidation of wine requires the presence of oxygen. The more oxygen
present, the greater the prospect
and extent of the oxidation.
18.
Conversely, Danilewicz explained that in the absence of (sufficient)
oxygen (or once it is depleted),
no amount of iron in the wine will
cause oxidation:
“
And when I
said to you that there were other oxidants, well, there are, but they
don't happen to be in wine. The oxidant in wine
is oxygen. I don't
think there's any presence of any significant sources of oxidation in
wine, oxygen is the oxidant in wine. In
other systems, it might be
something else, potassium chromate, potassium manganate. There are
lots of oxidants that could be, but
not in wine, it's oxygen. And the
iron that you're adding through this, in this process, will do
nothing at all unless there's
oxygen. Unless the cycle works, the
iron can't cycle.”
19.
This means that in the absence of oxygen, there is no functioning
redox cycle and oxidation does
not happen, no matter the presence of
Fe3+.
20.
Danilewicz was not challenged on any of the above
aspects.
21.
The question is whether iron or iron oxide (rust)
from the Filler (if it was there at the time of the winemaking and in
contact
with the wine flowing through it) was a material cause of the
oxidation.
22.
This brings into focus portion of the plaintiff’s
summary of its case:
2.1 As a result of
the lack of pickling and passivation, iron ions (in the form
identified as Fe3+) leached into the plaintiff’s
wines;
2.2 The leached
Fe3+ altered the chemical composition of the wine in that, as it
entered the redox cycle, it oxidised polyphenols
to create quinones
which, in turn, bound free SO2;
2.3 The alteration
of the chemical composition of the wines caused detrimental
organoleptic changes in the wines;
2.4 The chemical
reactions and resulting organoleptic changes (which occurred
independently of oxygen) damaged or spoiled
the plaintiff’s
wines; and
2.5 Even if the
wines became spoilt as a result of another or contributing cause, the
lack of pickling and passivation would,
in such a case, still have
been
a
cause (not necessarily
the
cause) of the wine
becoming spoilt.
23.
In essence, it appears to me that the plaintiff
argues that what is described in 2.2 of its above-quoted summary
resulted in the
damage to and spoiling of the wines in question.
24.
Danilewicz explained, quoted in paragraph 18
above, that various materials can cause oxidation in different
substances (i.e. can
be oxidants), but that wine only oxidizes if
oxygen is present (i.e. the only oxidant in the case of wine is
oxygen). Put another
way, without oxygen being present in the wine or
the air in the wine bottle headspace (the area between the cork and
the wine),
the wine cannot oxidise. He was not contradicted on this.
It is noted that this is subject to there not being a problem
resulting
in the ‘Oxygen Transmission Rate’ (“OTR”)
through or past the cork being excessive, but that is a much slower
process (usually over a year) which does not apply to the instant
matter in which the wines were alleged to have been spoilt within
a
few months.
25.
I have explained in detail in the judgment how
oxidation in wine occurs in what is known as a redox reaction or
cycle (as testified
without contradiction by Danilewicz and as
confirmed by Mr Coetsee). It will not be repeated here.
26.
Key to understanding this matter is an
appreciation that the redox cycle continues until:
26.1.
the oxygen is depleted, in which event the wine
will not become oxidised; or
26.2.
the SO
2
is
depleted (or reduced to below 10mg/l), in which event the wine will
start to become oxidised.
27.
It is common cause that iron is always present in
wine, in varying degrees. Danilewicz explained that iron and rust are
dissolved
in wine and the latter is taken up in the form of Fe3+.
They do not, however, cause oxidation. They only act as a catalyst to
speed
up the rate of oxidation.
28.
It is important to reiterate that Danilewicz
explained that (he was not challenged on this):
28.1.
The effect of adding iron or iron oxide (rust) to
wine is to speed up the rate of oxidation.
28.2.
It has no effect on the amount or extent of
oxidation which occurs.
29.
There was no expert evidence that rust causes the problems. On the
contrary, the unchallenged
expert evidence of Danilewicz is that wine
is acidic and removes iron and rust taking it up in the form of Fe3+.
There is nothing
in the redox cycle which was not there before. Mr
Coetsee, who appeared for the plaintiff, criticised this last
sentence (which
is contained in paragraph 101 of the judgment). What
I was articulating was that the redox cycle does not have any new
substance
when Fe3+ is added because Fe3+ is already there as part of
that cycle (i.e. the uptake of further Fe3+ is simply a case of some
more of it being introduced to what is there already).
30.
The result of all of the aforegoing, in my view,
is that
there is no reasonable prospect of an appeal court
finding that the uptake of iron/rust from the Filler caused the
oxidation of
the Wines and therefore there is no reasonable prospect
of success on appeal.
31.
Having debated much of the above with Mr Coetsee in oral argument, he
argued that the uptake of
Fe3+ from rust changes the chemical
composition of wine by there being more FE3+ which results in an
increased rate of oxidation
and that increased rate is what spoilt
the wine. There is no basis in the evidence for an increased rate of
oxidation
per se
being a cause which spoils wine and none was
canvassed with any of the witnesses, including the experts. In my
view it is directly
contradicted by the expert evidence, some of
which is considered above. The only effect of added Fe3+ is to speed
up the rate of
oxidation and not for that increased rate
per se
to itself cause oxidation.
32.
There are further problems with the plaintiff’s case in this
context which are dealt with
in detail in the judgment. Suffice it to
mention them briefly:
32.1.
In the bottling process, any portion of the wine is in the Filler for
a matter of seconds,
at most a minute or two, and even less is in
contact with any corrosion on the Filler. Even though, in my view,
its pick-up makes
no difference to the extent of oxidation, as
considered above and in considerable detail in the judgment, there
was in any event
no evidence as to the quantity of rust/iron which
could be picked up from a few seconds or a minute or two’s
contact with
rust on the Filler. On this basis, too, the plaintiff
has in my view failed to make out a case and has no reasonable
prospect of
success on appeal.
32.2.
Related to, but standing independently of, the above aspect is that
there was no evidence
as to the quantity of rust/iron which would be
required to cause the wine to spoil (again, even though its pick-up
makes no difference
as explained above and in considerable detail in
the judgment). It would have been a simple task for the plaintiff to
conduct a
test with iron/rust and wine, but this was not done. On
this basis, too, the plaintiff has failed to make out a case.
Conclusion
33.
In my view, plaintiff has not established a
reasonable prospect of success on appeal.
34.
The application for leave to appeal therefore
falls to be dismissed.
35.
There is no reason for costs not to follow the
result.
36.
The parties were agreed that the employment of two
counsel was warranted and that scale C in terms of Rule 67A should
apply, the
matter being complex.
37.
The following order is granted:
The
plaintiff’s application for leave to appeal is dismissed with
costs, including the costs of two counsel where so employed,
with
scale C in terms of Rule 67A applying.
A Kantor
Acting Judge of the
High Court
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