Case Law[2025] ZAWCHC 318South Africa
EBESA Architects (Pty) Ltd v City of Cape Town (A143/2024) [2025] ZAWCHC 318 (9 April 2025)
High Court of South Africa (Western Cape Division)
9 April 2025
Headnotes
the reference to mediation was a dilatory tactic by the appellants, aimed at avoiding paying damages for as long as possible. The court also held that the intended amendment was an attempt to withdraw an admission already made by the appellants, for which there was no explanation.
Judgment
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## EBESA Architects (Pty) Ltd v City of Cape Town (A143/2024) [2025] ZAWCHC 318 (9 April 2025)
EBESA Architects (Pty) Ltd v City of Cape Town (A143/2024) [2025] ZAWCHC 318 (9 April 2025)
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sino date 9 April 2025
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
no.: A143/2024
In
the matter between:
EBESA
Architects (Pty) Ltd
Appellant
and
The
City of Cape Town
Respondent
JUDGMENT
ELECTRONICALLY DELIVERED ON 09 APRIL 2025
A.
INTRODUCTION
[1]
This is an appeal, with leave of the Supreme Court of Appeal (SCA),
against
the judgment of my sister Mantame J of this Division, in
which she dismissed the appellant’s application for leave to
amend
its Plea and Conditional Special Plea, with costs.
[2]
The brief history of the litigation is that the respondent
(“
the City”
)
had instituted an
action against the appellant (as first defendant) and five other
defendants for damages based on two tender contracts
that were to be
executed
in tandem
.
The first tender was
granted to a joint
venture made up of the first to fifth defendant (“
the
Ebesa JV”
), while the second
tender was granted to the sixth defendant
.
[3]
After the appellant delivered a plea to the
particulars of claim, the City delivered a replication, and
thereafter amended its particulars
of claim, without objection.
Subsequently, the appellant delivered a notice of intention to amend,
to which the City objected.
As a result, the appellant brought a
formal application for leave to amend, which was opposed by the City,
and is the subject of
the judgment under appeal.
[4]
Although
the decision regarding whether to grant or refuse an application to
amend a pleading rests within the discretion of the
court, the
discretion must be exercised with due regard to certain basic
principles.
[1]
The practical
rule emerging from the case law is that amendments will always be
allowed unless an amendment is
mala
fide
or
will cause an injustice to the other side which cannot be cured by an
appropriate order for costs, or unless the parties
cannot be put back
for the purposes of justice in the same position as they were when
the pleading which it is sought to amend
was filed.
[2]
[5]
Although
the granting of an amendment is an indulgence to the party asking for
it, the modern tendency of the courts lies in favour
of an amendment
whenever such an amendment facilitates the proper ventilation of
the dispute between the parties.
[3]
The
power of the court to allow even material amendments is therefore
limited only by considerations of prejudice or injustice to
the other
side.
[4]
B.
THE AMENDMENTS
[6]
The appellant seeks to make a range of
amendments to its Conditional Special Plea and its Plea, numbered
from 1.1 to 1.3, and 2.1
to 2.9 in the notice of motion,
respectively. Before the hearing in the court
a
quo
, the appellant withdrew its
application in respect of paragraphs 2.4, 2.8 and 2.9 of its notice
of motion, whilst the relief sought
in paragraph 2.5 was not opposed
and was granted by the court
a quo
.
It is accordingly not necessary to deal with the amendments sought in
those paragraphs.
Paragraphs
1.1 & 1.2 of notice of motion (paragraphs 2 & 3 Conditional
Special Plea)
[7]
The intended
amendments
to the Conditional Special Plea
were set
out in paragraphs
1.1 and 1.2
of
the notice of motion as follows:
‘
1.
By deleting the phrase “
failing
which such a dispute would first be referred to either mediation or
adjudication, and then to arbitration”
in paragraph 2 thereof and by replacing it with “
failing
which such a dispute would be referred to mediation”
.
2.
By deleting the phrase “
nor
was the dispute ever referred to or determined by mediation,
adjudication or arbitration”
in
paragraph 3 thereof and replacing it with “
nor
was the dispute ever referred to mediation”
.”
[8]
The appellant states that the amendments are
sought to ensure that the provisions of the
the Contract Data,
which is the document that regulates the resolution of disputes
between the parties,
are correctly pleaded.
According to the appellant, clause 12.1.2 thereof provides that the
interim settlement of disputes is to
be by way of mediation, and is
silent regarding adjudication and arbitration, which are currently
mentioned in the
Conditional Special Plea
.
[9]
The City’s objection
is that the
amendments
are contrary to the clear wording of the Contract Data. Specifically,
that they are incomplete and inconsistent with
the wording clause in
12.2.4 of the Contract Data, which is the applicable provision, and
which, according to the City, contains
the words ‘
or final
settlement by litigation’
after the word ‘
mediation’
.
The City argues that
clause
12.2.4 is the
applicable provision because
it is common cause
that the date of practical completion of the contract was 17
July 2019, which means the date for resolution by mediation had
passed.
As a result, the effect of the
amendment
would be prejudicial to it because if
the matter proceeded to
mediation, its claim may have become prescribed.
[10]
The court
a quo
agreed with the City and held that the
reference to mediation was a dilatory tactic by the appellants, aimed
at avoiding paying
damages for as long as possible. The court also
held that the intended amendment was an attempt to withdraw an
admission already
made by the appellants,
for
which there was no explanation
.
[11]
The court
a quo
remarked that none of the appellant’s amendments were
consequential upon the City's amendment to its particulars of claim,
which it said was a clear indication that the appellant was seeking
to change the formulation of its defences. The court also held
that
the City’s claim was not determinable at the time that the
contractual works were still ongoing for submission to mediation,
adjudication or arbitration, and that its loss could only be
determined upon practical completion of the contract.
[12]
It is necessary to have regard to the
pleadings in detail.
T
he original
paragraphs 2 and 3 of the Conditional Special Plea, which were sought
to be amended, read as follows:
“
Take
notice further that in the alternative and in the event that the
Court should find that the agreement between the plaintiff
and the
[JV] as pleaded by the plaintiff in paragraphs 9 to 14 of its
particulars of claim has not terminated, the [appellant]
raises the
following Conditional Special Plea:
…
2
Clause 12 of the [Standard Professional Services Contract July 2009
(Edition
3 of CIDB document 10/14 “the Conditions”]
determines that the plaintiff and the Joint Venture (“JV”)]
would negotiate in good faith with a view to settling any dispute,
failing which such a dispute would first be referred to either
mediation or adjudication and then to arbitration.
3
The
plaintiff made no attempt to settle any dispute by way of negotiating
in good faith with the JV, nor was the dispute ever referred
to or
determined by mediation, adjudication, or arbitration”
[13]
In response to the above, the City replicated as follows:
“
Ad
paragraph 2 thereof
The
plaintiff was not in a position to assess the loss at that time due
to the actual work delays which were not anticipated, nor
could they
be quantified.
Ad
paragraph 3
Plaintiff
admits these allegations.”
[14]
Thus, far from disputing the applicability of mediation as a dispute
resolution
mechanism, in addition to adjudication and arbitration,
the City admitted it in its replication. Its explanation for not
being
able to comply with those dispute resolution mechanisms was
that it
was not in a position to assess the loss
at that time
due to work delays which were not anticipated, nor could they be
quantified.
[15]
Given that this was in response to the appellant’s
conditional plea which was pleaded “
in
the alternative and in the event that the Court should find that the
agreement between the plaintiff and the JV as pleaded by
the
plaintiff in paragraphs 9 to 14 of its particulars of claim
has
not terminated
”,
the time period referred to in the replication could only be a
reference to the duration of the agreement between the parties.
In other words, the effect of the replication was to admit the
applicability of mediation during the existence of the agreement,
and
to explain that at the time, the City was not in a position to assess
or quantify its losses.
[16]
In the Contract Data, the word ‘mediation’ is only used
in clause
12.1.2, not in clause 12.2.4. The
relevant
provisions of the Contract Data state as follows:
“
Clause
12.1.2
:
Interim
settlement of disputes is to be by mediation.
…
Clause
12.2.4
:
Final
settlement is by litigation.”
[17]
Contrary to what was claimed in the City’s
objection, clause 12.2.4 does not provide for ‘
final
settlement by litigation’
after
the word ‘
mediation’
.
There is no mention of the word ‘mediation’ at clause
12.2.4. It is in clause 12.1.2 that ‘mediation’
appears
as the only dispute resolution mechanism available for interim
settlement of disputes, which the City had originally admitted.
[18]
Moreover, there is no mention of
‘adjudication’ or ‘arbitration’ in clause
12.1.2, and in that regard the
appellant is correct when it states
that the amendment is intended to reflect the wording of that
provision. If the conditional
special plea is left unamended, it
places upon the parties an additional obligation to refer a dispute
regarding an extant contract
to adjudication and/or arbitration,
which is not provided for in the Contract Data.
[19]
An issue that took prominence at the appeal
hearing is the so-called withdrawal of a clear and unequivocal
admission of liability
on the part of the appellant regarding the
fact that
the date of practical completion of the contract was
17 July 2019, and that as a result, the date for dispute resolution
by mediation
had passed.
In support of this
argument, the City refers to paragraphs 17 to 19 of the particulars
of claim, which state as follows regarding
the timeframe that is said
to be common cause:
“
SECOND
TENDER - [SIXTH DEFENDANT]
15.
On 4 March 2016 the City published a tender which closed on 5 April
2016 in respect of the
Bloemhof: Network Control Centre (“the
NCC”) and High Voltage Depot (“the HVD”) under
Tender Number 267Q/215/16
(“the second tender”).
16.
The services in terms of the second tender had to be executed
in
tandem
with the professional services awarded in terms of the
first tender.
17.
The City awarded the second tender to [the
6
th
defendant] on 6
th
March 2017 with a
contract value of 97.3 million (excluding vat) which was accepted by
[the sixth defendant] on the same date.
18.
The duration of the contract was for a
period of 11 months commencing on 1 June 2017 and ending on
12 June
2018.
19.
The completion date was further revised to 17 July 2019 and practical
completion was achieved
on 17 July 2019.”
[20]
The appellant pleaded as follows to these
paragraphs:
“
Ad
paragraphs 15 to 21 thereof
19.
Other than to admit that on or about 6 March 2017, the plaintiff and
the sixth defendant concluded a construction
contract (“the
Construction Contract”) in terms whereof the sixth defendant
would attend to the design and construction
of the Bloemhof Network
Control Centre and High Voltage Depot of the plaintiff (“the
Works”) the first defendant does
not have any personal
knowledge of the allegations in these paragraphs.”
[21]
Far
from admitting the date of completion of the contract, the appellant
pleaded ‘no knowledge’, which is permissible
in terms of
Uniform Rule 22(2).
[5]
A plea of
‘no knowledge’ does not constitute a “
clear
and unequivocal admission of liability”
as contended by the City, and is in fact closer to a denial.
[6]
[22]
Besides,
it is abundantly clear from the contents of the plea that the
appellant denies that the services contract was extended,
and instead
pleads that it was terminated on 30 June 2016.
[7]
This is evident from, amongst others, paragraphs 16 to 18 and 21 of
the plea, where the following is pleaded:
“
16.
The first defendant pleads that upon the award of
the First Tender to the JV and the acceptance thereof on
23 July
2013, the JV and the plaintiff concluded the Services Contract, which
agreement only remained operational for the period
from 1 July 2013
to 30 June 2016. The Services Contract thus terminated upon the
expiry of such period.
17.
Clause 3.2 of the written joint venture
agreement concluded between the first to fifth defendants,
a copy of
which is annexed to the plaintiff’s Particulars of Claim,
marked “POC1” (“the JV Agreement”)
determined
that the operation of the JV and the validity of such agreement would
terminate if,
inter alia
, all obligations and rights of the JV
and its members in connection with the contract with the plaintiff
have ceased.
18.
Accordingly, the JV agreement and thus the
JV itself terminated on the termination of the Services
Contract.”
[23]
Again, at paragraph 21 of the plea the
following is stated:
“
At
the time that the Construction Contract was concluded and the Works
had to be performed in terms thereof, both the Services Contract
and
the JV had been terminated. As such, although the first to fifth
defendants continued to render certain services to the plaintiff
in
respect of the Works, they did not do so in terms of the Services
Contract or as the JV.”
[24]
By
no stretch of the imagination can these quoted portions be
interpreted as an admission regarding the completion date of the
contract. As a result, I am unable to agree that, by seeking the
amendments, the appellant sought to withdraw an admission or that
the
amendment was aimed at introducing a change of tact regarding
formulation of the appellant’s defences. In any event,
the case
law shows that even an amendment amounting to the introduction of a
new cause of action may be permitted, provided it
is
bona
fide
.
[8]
Nor is there any evidence of
mala
fides
by
the appellant seeking the amendment.
[25]
Since
the timeframes of the completion of the Works in terms of the
contract are not common cause between the parties, the issue
of
whether prescription arises is also not common cause, and as a
result, the application for leave to amend is not the appropriate
stage to decide that issue, but at a later stage once, once amendment
has been granted.
[9]
It has not
been shown that the City will be precluded from raising it at the
appropriate time.
[10]
[26]
Moreover, the question of whether the Works as
defined in the contract had in fact reached completion stage, is an
issue that may
properly be taken up as part of the adjudication of
the merits. Similarly, whether or not the mediation clause is still
applicable
to the merits of the dispute between the parties is a
matter of interpretation of the contracts between them, which may
more appropriately
be dealt with at trial stage, not at the stage of
deciding whether or not to grant leave to amend. Whether or not the
amendment
sought is consequential upon the City’s amendment is
not the determining factor for the granting of leave to amend, and
does
not appear to be relevant in relation to the amendments under
consideration.
[27]
To
conclude this section, there is no reason to conclude from the record
that either of the intended amendments may be characterised
as those
which would cause an injustice to the City that cannot be compensated
by costs, or in respect of which it cannot be put
back for the
purposes of justice in the same position as it was when the pleading
which it is sought to amend was filed.
[11]
Paragraph
1.3 of the notice of motion (Prayer of Conditional Special Plea)
[28]
The next amendment sought to be made is in
the prayer of the Conditional Special Plea, as follows:
“
By
deleting the Prayer and by replacing it with “
Wherefore
the first defendant prays that the action be stayed pending the
referral to and finalization of the mediation of any dispute
relating
to the plaintiff’s claims”
.
[29]
The unamended prayer reads as follows:
“
Wherefore
the first defendant prays that the action be stayed pending the
resolution or determination of the plaintiff’s claims
in terms
of clause 12 of the conditions.”
[30]
The parties’ arguments in relation to this
amendment are linked to the discussion above in relation to
paragraphs 1.1 and
1.2 of the notice of motion, and specifically
whether, in terms of the Contract Data, mediation is an available
course for the
parties, and accordingly, the considerations already
discussed find application.
[31]
An
additional observation that may be made here is that, in both the
unamended plea and the amendment, the appellant seeks a stay
of
proceedings, pending resolution by some other means which include
mediation. There is no new cause of action sought to be introduced
by
the amendment which was not included in the unamended special plea.
And the City has already replicated to the unamended special
plea by
denying the applicability of mediation. Seen in this light,
the
amendment sought to be introduced is not one which will place either
party in a position
they
cannot be put back for the purposes of justice in the same position
as they were when the pleading which it is sought to amend
was
filed
.
[12]
[32]
Moreover, the stay sought amounts to a dilatory plea.
It
is not the appellant’s case that litigation will not be
available to the City. What the appellant seeks in the amendment
is a
stay pending mediation, which is the only other mechanism (other than
litigation) mentioned in clause 12. That is in accordance
with the
provisions of the Contract Data. This is another indication that the
City will not suffer prejudice that cannot be cured,
because if the
amendment is granted, litigation will still continue in due course.
[33]
In
the answering papers, the City also complained that the appellant
delayed by some two months before taking any steps to seek
to remedy
its plea, thus causing delays. It is not clear in what way the
alleged delay has caused any prejudice to the City, and
especially
those which cannot be cured by costs. After all, a party is entitled
to seek an amendment at any stage of the proceedings
right up to the
moment of judgment.
[13]
In any
event, we were informed that the main action is years away from being
adjudicated, given the number of interlocutory issues
raised by the
various defendants in the matter.
Para
2.1 of notice of motion (para 15 of the plea)
[34]
It is most convenient to deal with this amendment
by tracing the development of the pleadings. The City’s
original particulars
of claim stated as follows:
“
Ebesa
JV successfully tendered to do the professional services which had to
be performed in three areas: North, South and East of
the City during
the three-year period commencing on 1 July 2013 until 30 June 2016,
with an estimated value of 50 million (excluding
vat).”
[35]
The appellant admitted this paragraph.
Thereafter, the City amended its particulars by adding the underlined
portion below, to read
as follows:
“
Ebesa
JV successfully tendered to do the professional services which had to
be performed in three areas: North, South and East of
the City during
the three-year period commencing on 1 July 2013 until 30 June 2016
which professional services were
extended until practical completion on 17 July 2019
,
with an estimated value of 50 million (excluding vat).
[36]
It is immediately apparent that the City’s
amendment introduced the very issue in respect of which the parties
disagree, namely
the duration of the contract. This is why the
appellant sought to effect its own amendment, by adding the
underlined portion below:
“
Other
than to deny that the Services Contract was extended
,
the first defendant admits the allegations in these paragraphs.”
[37]
The amendment was a consequence of the City’s amendment. It was
not a
withdrawal of an admission because, as already discussed above,
it is abundantly clear from the unamended plea that the appellant
does not agree that the contract was extended.
[38]
In support of its objection against this
amendment, the City relies on the contents of the joint venture
agreement,
which is annexed to its particulars of claim,
to
advance its case that
the obligations of the members of Ebesa
JV have not ceased. In particular, the City refers to clause 3.2
thereof, which provides
as follows:
“
3.
Joint Venture General
…
3.2.
Termination
The
operation of the Joint Venture and the validity of the Agreement
shall terminate if and when it becomes evident that the Joint
Venture
will not be awarded the Contract or, if the Joint Venture secures the
Contract, when all obligations and rights of the
Joint Venture and
the Members in connection with the Contract and the Agreement have
ceased
and/or been satisfactorily discharged
.
”
[39]
This
termination clause makes it clear that Ebesa JV would only cease when
“
all
obligations and rights of the Joint Venture and the Members in
connection with the Contract and the Agreement have ceased”
or
once the contract has been satisfactorily discharged. Based on this
clause, the City argues that the fact that the appellant
has pleaded
that the third and sixth defendants are liable elsewhere in the plea,
this means the obligations and rights of the
members of Ebesa JV have
not ceased.
The
court
a
quo
agreed with the City, stating that there was no basis for the
appellant’s denial of the extension of the services
contract
[14]
. As I have
already mentioned, whether there is merit in either party’s
claim regarding the extension of the contract is clearly
a matter for
determination at trial stage.
[40]
The court also noted that the particulars of claim
were amended to include the allegations regarding extension of the
contract without
any objection from the appellant. It is relevant in
this regard that, before the City’s amendment to its
particulars, the
appellant had already pleaded that the services
contract, the JV Agreement and Ebesa JV had all terminated on 30 June
2016, as
set out in the numerous paragraphs already adverted to
earlier. The fact that it did not object when the City sought to the
amend
its particulars by inserting allegations of extension of the
services agreement, does not mean that the appellant changed its
position
as reflected in its plea.
[41]
And
the fact that the appellant did not agree that the services contract
was extended was not a basis for objecting to the City's
amendment.
This is in line with the well-trodden principle
of
rather allowing amendments to ensure that the real dispute between
litigants is adjudicated.
[15]
Had
the appellant objected to the City's amendment, the objection would
have been met with the criticisms currently levelled at
the City, to
the effect that they seek to argue the merits of the matter, in
circumstances where the amendment will not result
in prejudice that
cannot be cured.
[42]
Since the appellant had already admitted the
contents of the paragraphs which the City amended by alleging
extension of the contract,
the appellant could only but seek to amend
that admission, which it now seeks to do. If the appellant is not
permitted
to effect a consequential amendment to its plea in
keeping with the amended particulars
, it is the
party which
stands to be irreparably prejudiced.
Paragraphs
2.2 and 2.3 notice of motion
(paras 23 & 24 of the
plea)
[43]
The next amendment is a response to paragraph 23
of the particulars of claim, where the City pleaded as follows:
“
Ebesa
JV performed professional work in respect of the project under the
management and control of Andre Broderick who coordinated
and managed
the project for the City.”
[44]
In its plea the appellant originally pleaded as
follows:
“
Not
only did the first to fifth defendants, and not the JV, render
services to the plaintiff in respect of the Works, Alwyn Laubscher
of
the fourth defendant was appointed as the principal agent in respect
of the Works.”
[45]
The intended amendment is to read as follows:
“
The
first to fifth defendants, and not the JV, rendered services to the
plaintiff in respect of the Works.”
[46]
Thus effectively, the appellant seeks to delete the allegation that
Alwyn Laubscher
of the fourth defendant (“
Laubscher
”)
was appointed as the principal agent in respect of the Works.
The
explanation for this amendment is that the original plea was prepared
under severe time pressure, and the legal representatives
did not
have adequate time to properly consider the vast amounts of documents
relating to the matter. Nor did they have time to
properly consult
with the representatives of the appellant or any of the other
defendants in the main action. It was only after
receipt of the
amended particulars that it became apparent to the legal
representatives that the allegation that Laubscher was
the principal
agent was erroneous, and was not supported by the contents of the JV
agreement and the services contract.
[47]
The City was not satisfied with this explanation,
citing the amount of time that the appellant took before delivering
its plea,
which was some six weeks. It also states that the
information regarding the identity of the principal agent constitutes
factual
information which was at all times within the appellant's
knowledge as a member of the Ebesa JV, and should accordingly stand.
This is particularly so given that no grounds were advanced for its
withdrawal, and given that the appellant failed to explain when
and
how the mistake arose.
The City’s overriding objection
is that the appellant is seeking to retract an admission which it
previously made, which
is impermissible and prejudicial to it. The
court
a quo
agreed with all the City’s objections.
[48]
There
are several difficulties in this regard. The first concerns whether
the allegation made in the plea constitutes an admission.
The City’s
averment that “
Ebesa
JV performed professional work in respect of the project under the
management and control of Andre Broderick who coordinated
and managed
the project for the City’
,
remains denied, both in the current plea and in the plea that is to
be amended. The City had not pleaded that Laubscher was the
principal
agent, and had instead identified someone else. It was the appellant
who volunteered the name of Laubscher. And the City
did not
replicate
thereto, thus effectively denying the allegations in the plea.
[16]
[49]
Furthermore, Laubscher is the fourth defendant in the main
proceedings. Although
it does not appear that he has disputed the
allegations contained in the unamended plea
concerning him, one imagines a scenario where he may well do so in
due course. This
appears to be more than a possibility given the
Service Agreement attached to the particulars of claim, which does
not contain
Laubscher’s name and instead identifies one “PAC
Engelbrecht” in his capacity as “Principal Agent/Team
Leader”. Without deciding the factual correctness of that
document, it would be inequitable in those circumstances, if the
fourth defendant were bound to an averment made in the plea of the
appellant.
[50]
As
the SCA stated in
Saayman
v Road Accident Fund
[17]
:
“
In
the context of civil proceedings an admission is a statement against
interest which has the effect of binding the party on whose
behalf it
is made. If that effect is absent the statement cannot amount to an
admission and the well-established rules relating
to the withdrawal
of admissions cannot apply to it. In fact a withdrawal is, strictly,
unnecessary and prejudice to the other party
is not an issue. An
admission, in its formal sense, also requires at least an intention,
explicit or inferred, and unequivocal,
to remove a fact that depends
on proof from the field of contention.”
[51]
The allegation sought to be withdrawn was clearly made against the
interests
of a party other than the appellant, namely Laubscher. This
is a clear indication that it is not an admission. It demonstrates
why the averment made in the plea concerning the identity of the
principal agent cannot be held to be binding upon the appellant
(or
upon the fourth defendant), and remains an issue that remains for
determination at trial.
[52]
Furthermore,
as is regularly found in trials, t
here
is every possibility that the name of the principal agent may well
change during oral evidence.
As
the court stated in
Robinson
v Randfontein Estates Gold Mining Co. Ltd
[18]
“
pleadings
are made for the Court and not the Court for the pleadings”
,
and “
no
Court would so interpret the rules, unless thereto compelled by the
plain meaning thereof, as to create a situation wherein the
Court
loses its power to allow such amendments to the pleadings as are
designed to ensure that the real issue between the parties
is
determined.”
[53]
In
any event, although the amendment seeks to remove the name of
Laubscher from paragraph 23 of the plea, the fourth defendant
(Laubscher) remains identified as one of the parties
[19]
who rendered services to the plaintiff in respect of the Works,
though not as part of the Ebesa JV. The appellant’s averment
that the Ebesa JV was not involved is not new and is consistent with
the remainder of the plea as already discussed earlier. The
remainder
of the City’s particulars at issue remain denied. Thus, it is
difficult to see what prejudice is to be visited
upon the City by the
amendment.
[54]
It is correct that an applicant seeking an
amendment must provide a satisfactory explanation for such an
application. But, as the
case law indicates, that is only one of the
factors to be taken into account when deciding whether or not to
grant such an application.
Another significant consideration which
applies in this case is that there has not been a withdrawal of an
admission, as already
adverted above.
[55]
But,
an inadequate explanation will not always be a bar to grant of an
amendment. As the court held in
Zarug
v
Parvathie
[20]
:
‘
No
matter how negligent or careless the mistake or omission may have
been and no matter how late the application for amendment may
be
made, the application can be granted if the necessity for the
amendment has arisen through some reasonable cause, even though
it be
a bona fide mistake.’
In
my view, the appellant’s explanation falls within the confines
of this quote, and, although it may more appropriately be
described
as negligent or reckless, there is no evidence of
mala
fides
in the explanation furnished for its laxity.
[56]
There
is also to consider that
the
effect of the refusal of the amendment in this case is that the
appellant is now bound by what it has already explained is an
error
in its pleadings. It is not unforeseeable that, at some stage during
the trial, the issue will raise its head, with either
the appellant
seeking to resile from the allegation, or the fourth defendant
seeking to deny it, by leading evidence to refute
it. That is the
exact opposite of the principal objectives to be taken into account
when considering this kind of application,
namely
a
proper ventilation of the real dispute between the parties
[21]
,
and ensuring that as many relevant facts and material as possible are
placed before a court, to facilitate and expedite the determination
of the real issue between the parties
[22]
.
[57]
As
the court stated in
Whittaker
v Roos and Another; Morant v Roos and Another
[23]
:
“…
The
object of the Court is to do justice between the parties. It is not a
game we are playing, in which, if some mistake is made,
the forfeit
is claimed. We are here for the purpose of seeing that we have a
true account of what actually took place, and
we are not going to
give a decision upon what we know to be wrong facts. It is presumed
that when a defendant pleads to a declaration
he knows what he is
doing, and that, when there is a certain allegation in the
declaration, he knows that he ought to deny it,
and that, if he does
not do so, he is taken to admit it. But we all know, at the same
time, that mistakes are made in pleadings,
and it would be a very
grave injustice, if for a slip of the pen, or error of judgment, or
the misreading of a paragraph in pleadings
by counsel, litigants were
to be mulcted in heavy costs. That would be a gross scandal.
Therefore, the court will not look to technicalities,
but will see
what the real position is between the parties.”
[58]
The
above excerpt exemplifies the practical approach adopted by our
courts over the years, now including the Constitutional Court
[24]
,
to generally allow an
amendment
unless the application to amend is
mala
fide
or
unless such amendment would cause an injustice to the other side
which cannot be compensated by costs, or in other words,
unless the
parties cannot be put back for the purposes of justice in the same
position as they were when the pleading which it
is sought to amend
was filed.
I
have not found any evidence of
mala
fide
motives in the appellant’s application for the amendment. In
fact, as I have already indicated, the unamended plea potentially
has
an adversarial effect on the fourth defendant more than the
appellant.
Paragraph
2.6 notice of motion
(paras 44 of the plea)
[59]
The City amended paragraph 37 of its
particulars by replacing the struck-through text below with the bold
text:
“
In
consequence of the aforesaid negligence”
[In breach of their aforesaid
obligations]
, the video screen wall had
to be demolished and rebuilt and a new structural support system had
to be built in an already completed
area of the new NCC building,
with concomitant delays in the practical completion date of the
project and
financial
losses for the City.”
[60]
After the amendment above, the appellant sought to
amend paragraph 44 of its plea by deleting the struck-through text
below, and
inserting the underlined portion:
“
Other
than to deny that it
was negligent
or
breached any of its obligations
or duties to the plaintiff
and that it
is liable for any delay or losses suffered by the plaintiff, if any,
the first defendant admits the allegations in this paragraph”.
[61]
The struck-through deletion was not opposed
and was granted. The underlined insertion remains at issue. The City
states that the
amendment amounts to retracting an admission, and it
will suffer prejudice if it is allowed. In both the notice of
objection and
the answering affidavit opposing the amendment it is
stated that the amendment to City’s particulars of claim did
not constitute
a basis for an amendment because, save for the word
‘negligence’, it read exactly the same as the original
particulars.
The court
a quo
effectively agreed with the City, referring to its reasoning in
respect of paragraphs 2.1 and 2.2 which I have already dealt with
in
paragraphs 34 to 42 above.
[62]
It is difficult to understand the City's
objection in this regard. The appellant continues to admit the City’s
allegations
that “
the video screen
wall had to be demolished and rebuilt and a new structural support
system had to be built in an already completed
area of the new NCC
building, with concomitant delays in the practical completion date of
the project and financial losses for
the City
”.
It also continues to deny negligence and breach of any obligation or
duty towards the City. The phrase it wishes to insert
amplifies its
denial of liability by specifying liability for any delay or losses
suffered by the City. Even in the heads of argument
on appeal, the
City has not specified what admission it claims is sought to be
withdrawn by the amendment. No case for prejudice
has been made out
in my view if the amendment is granted.
Paragraph
2.7 notice of motion
(paras 48 of the plea)
[63]
The appellant wishes to delete the struck-through
portion at paragraph 48 of its plea, as follows:
“
The
completion of the Works was delayed by numerous factors such as,
inter alia
,
the approval of
the requisite building plans was delayed as the applications for
rezoning, subdivision and consolidation of the properties on which
the Works had to be performed was not timeously attended to recorded
or registered by the plaintiff”
[64]
It is unconscionable that the City has raised an
objection in regard to this amendment, which is quite clearly a
stylistic or grammatical
amendment. Yet the City states it amounts to
a withdrawal of an admission. Similar to the amendment discussed
immediately above,
the City also complains here that this amendment
is not consequential upon the amendment to its particulars. But that
is no bar
to an amendment. There is no discernible prejudice to be
visited by the City if this amendment is granted.
[65]
For all the reasons discussed, the appeal ought to
succeed.
C.
COSTS
[66]
There is no reason why costs should not follow the
result. The appellant has been successful on appeal and is entitled
to its costs
on appeal.
[67]
When the SCA granted leave to appeal to this
Court, it set aside the costs order of the court
a
quo
in dismissing the application for
leave to appeal. It also reserved the consideration of those costs,
plus the costs of the application
for leave to appeal in the SCA, as
costs in this appeal.
[68]
The effect of this judgment is that the City’s
objections have been without merit from the start. As a result,
the costs
order granted against the appellant in the court
a
quo
should be reversed, specifically
from the delivery of the City’s Notice of Objection on 9
February 2022. Similarly, the costs
order granted by the court
a
quo
in the leave to appeal should be
reversed. Finally, the appellant should not be placed out of
pocket and should also be able
to recoup its costs in the SCA appeal.
D.
ORDER
[69]
For all these reasons, I would make the following
order:
1.
The appeal is upheld;
2.
The order and judgment of the court
a quo
is set aside and
replaced with the following:
2.1
The appellant is granted leave to amend its Conditional Special Plea
as follows:
2.1.1
By deleting the phrase “
failing which such a dispute would
first be referred to either mediation or adjudication, and then to
arbitration
” in paragraph 2 thereof and by replacing it
with “
failing which such a dispute would be referred to
mediation
”.
2.1.2
By deleting the phrase “
nor was the dispute ever referred to
or determined by mediation, adjudication or arbitration
” in
paragraph 3 thereof and replacing it with “
nor was the
dispute ever referred to mediation
”.
2.1.3
By deleting the Prayer and by replacing it with “
Wherefore
the first defendant prays that
the action be stayed
pending the referral to and finalisation of the mediation of any
dispute relating to the plaintiff’s
claims
”.
2.2
The applicant is granted leave to amend its Plea as follows:
2.2.1
By deleting paragraph 15 and replacing it with:
“
15.
Other than to deny that the Services Contract was extended, the first
defendant admits the allegations in these
paragraphs.
”
2.2.2
By deleting paragraph 23 and replacing it with:
“
23.
The first to fifth defendants, and not the JV, rendered services to
the plaintiff in respect of the Works.
”
2.2.3
By deleting the phrase “
Alwyn Laubscher of
” where
it appears in paragraph 24.
2.2.4
By deleting the words “
was negligent or
” where it
appears in paragraph 44.
2.2.5
By inserting the phrase “
and that it is liable for any delay
or losses suffered by the plaintiff, if any
” between “
the
plaintiff
” and “
the first defendant
”
where it appears in the second line of paragraph 44;
2.2.6
By deleting paragraph 48 and replacing it with:
“
48.
The completion of the Works was delayed by numerous factors such as,
inter alia
, the requisite building plans were not approved on
time as the applications for rezoning, subdivision and consolidation
of the
properties on which the Works had to be performed was not
timeously attended to, recorded or registered by the plaintiff.
”
3.
The respondent must pay the costs of and related to the appellant’s
application for leave
to amend from the date of delivery of its
Notice of Objection onwards, including the costs of counsel on Scale
B;
4.
The appellant must pay the wasted costs occasioned by the amendment
of its Plea, including the
costs of counsel on Scale B, for the
period prior to the delivery of the respondents Notice of Objection;
5.
The respondent must pay the costs of the appellant’s
application for leave to appeal in the
court
a quo
, including
the costs of counsel on Scale B;
6.
The respondent must pay the costs of the appellant’s
application for leave to appeal in the
Supreme Court of Appeal,
including the costs of counsel on Scale B;
7.
The respondent must pay the costs of this appeal, including the cost
of counsel on Scale B.
N.
MANGCU-LOCKWOOD
Judge
of the High Court
I
agree. It is so ordered.
T.
NDITA
Judge
of the High Court
I
agree.
per
permission
K.
SAVAGE
Judge
of the High Court
APPEARANCES
For
the appellant
:
Adv D.
Van Der Merwe
Instructed
by
: Adams
Attorneys
S. Adams
For
the respondent
:
Adv R.
Williams
Instructed
by
: Mosdell
Pama & Cox
P. Pama
## [1]Caxton
Ltd. and Others v Reeva Forman (Pty) Ltd. and Another(393/88) [1990] ZASCA 47; 1990 (3) SA 547 (AD); [1990] 2 All SA 300
(A) (17 May 1990) at 565G.
[1]
Caxton
Ltd. and Others v Reeva Forman (Pty) Ltd. and Another
(393/88) [1990] ZASCA 47; 1990 (3) SA 547 (AD); [1990] 2 All SA 300
(A) (17 May 1990) at 565G.
[2]
Moolman
v Estate Moolman & another
1927
CPD 27
at
29.
Affordable
Medicines Trust and Others v Minister of Health and Another
[2005] ZACC 3
;
2006
(3) SA 247
(CC)
[2005] ZACC 3
; ;
2005
(6) BCLR 529
(CC)
para 9.
## [3]Media
24 (Pty) Ltd v Nhleko and Another(109/22) [2023] ZASCA 77 (29 May 2023) para 16.
[3]
Media
24 (Pty) Ltd v Nhleko and Another
(109/22) [2023] ZASCA 77 (29 May 2023) para 16.
[4]
Media
24 (Pty) Ltd v Nhleko and Another para
[16].
[5]
Uniform Rule 22(2) provides: “
The
defendant shall in [his or her] plea
either
admit or deny or confess and avoid all material facts alleged in the
combined summons or declaration or state which of
the said facts are
not admitted and to what extent, and shall clearly and concisely
state all material facts upon which [(s)he]
relies”
.
In
Wilson
v South Africa Railways and Harbors
1981 (3) SA 1016
(C) it was held that, in terms of Uniform Rule
22(2) a defendant has a right to plead non-admission where it has no
knowledge
of certain facts.
[6]
See
Van Loggerenberg,
Erasmus
Superior Court Practice
,
Second Edition, D1-264, and cases referred to at footnotes 1 and 2.
[8]
OK
Motors v Van Niekerk
1961
(3) SA 149
(T).
[9]
Stroud
v Steel
Engineering
Co Ltd and Another
1996 (4) SA 1139
(WLD) said at 1142C-F.
[10]
Transec
(Pty) Ltd v Premier of the Province of the Eastern Cape
(416/96)
[1998] ZAECHC 4
(16 February 1998) paras 11-14.
## [11]Ascendis
Animal Health (Pty) Limited v Merck Sharpe Dohme Corporation and
Others(CCT 212/18) [2019] ZACC 41; 2020 (1) SA 327 (CC) ; 2020 (1) BCLR 1
(CC); 2019 BIP 34 (CC) (24 October 2019) para 89, referring
toMoolman
v Estate Moolman1927
CPD 27at
29.
[11]
Ascendis
Animal Health (Pty) Limited v Merck Sharpe Dohme Corporation and
Others
(CCT 212/18) [2019] ZACC 41; 2020 (1) SA 327 (CC) ; 2020 (1) BCLR 1
(CC); 2019 BIP 34 (CC) (24 October 2019) para 89, referring
to
Moolman
v Estate Moolman
1927
CPD 27
at
29.
[12]
Moolman
v Estate Moolman
1927
CPD 27
at
29.
## [13]Media
24 (Pty) Ltd v Nhleko and Another(109/22) [2023] ZASCA 77 (29 May 2023) para [16].
[13]
Media
24 (Pty) Ltd v Nhleko and Another
(109/22) [2023] ZASCA 77 (29 May 2023) para [16].
[14]
At
para [34].
## [15]SeeMedia
24 (Pty) Ltd v Nhleko and Another(109/22) [2023] ZASCA 77 (29 May 2023) para 16.Moolman
v Estate Moolman1927
CPD 27at
29.Affordable
Medicines Trust and Others v Minister of Health and Another[2005]
ZACC 3;2006
(3) SA 247(CC);2005
(6) BCLR 529(CC)
para 9.
[15]
See
Media
24 (Pty) Ltd v Nhleko and Another
(109/22) [2023] ZASCA 77 (29 May 2023) para 16.
Moolman
v Estate Moolman
1927
CPD 27
at
29.
Affordable
Medicines Trust and Others v Minister of Health and Another
[2005]
ZACC 3
;
2006
(3) SA 247
(CC);
2005
(6) BCLR 529
(CC)
para 9.
[16]
Uniform
Rule 25(2). See Erasmus at D1 Rule 25-1 and D1 Rule 29-4.
## [17]Saayman
v Road Accident Fund(329/09) [2010] ZASCA 123; 2011 (1) SA 106 (SCA); [2011] 1 All SA
581 (SCA) (30 September 2010) para [28].
[17]
Saayman
v Road Accident Fund
(329/09) [2010] ZASCA 123; 2011 (1) SA 106 (SCA); [2011] 1 All SA
581 (SCA) (30 September 2010) para [28].
[18]
Robinson
v Randfontein Estates Gold Mining Co. Ltd
.
1925
AD 173
at
198.
[19]
First
to fifth defendants are referred to.
[20]
Zarug
v Parvathie NO
1962
(3) SA 872 (D) 876 B-C.
[21]
Blaauwberg
Meat Wholesalers CC v Anglo Dutch Meats (Exports) Ltd
[2003]
ZASCA 144
;
2004
(3) SA 160
(SCA)
at para 12.
[22]
Sondorp
and Another v Ekurhuleni Metropolitan Municipality
[2013]
ZALAC 13
;
(2013) 34 ILJ 3131 (LAC) at para 66.
[23]
Whittaker
v Roos and Another; Morant v Roos and Another
1911
TPD 1092
at
1102 - 1103.
## [24]Ascendis
Animal Health (Pty) Limited v Merck Sharpe Dohme Corporation and
Others(CCT 212/18) [2019] ZACC 41; 2020 (1) SA 327 (CC) ; 2020 (1) BCLR 1
(CC); 2019 BIP 34 (CC) (24 October 2019) paras 89 –
90,
relying onMoolman
v Estate Moolman1927
CPD 27at
29.
[24]
Ascendis
Animal Health (Pty) Limited v Merck Sharpe Dohme Corporation and
Others
(CCT 212/18) [2019] ZACC 41; 2020 (1) SA 327 (CC) ; 2020 (1) BCLR 1
(CC); 2019 BIP 34 (CC) (24 October 2019) paras 89 –
90,
relying on
Moolman
v Estate Moolman
1927
CPD 27
at
29.
sino noindex
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