Case Law[2025] ZAWCHC 268South Africa
Meyer v Meyer and Others (1819/2020) [2025] ZAWCHC 268 (23 June 2025)
Headnotes
as follows in Minister of Safety and Security v Slabbert:[8]
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Meyer v Meyer and Others (1819/2020) [2025] ZAWCHC 268 (23 June 2025)
Meyer v Meyer and Others (1819/2020) [2025] ZAWCHC 268 (23 June 2025)
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IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN CAPE
DIVISION, CAPE TOWN)
Case
number: 1819/2020
In the matter between:
ANNA
JOHANNA MEYER
Plaintiff
and
NICOLAS
LESLIE MEYER
First defendant
NICOLAS
LESLIE MEYER N.O.
Second defendant
THE
REGISTRAR OF DEEDS
Third defendant
THE
MASTER OF THE HIGH COURT
Fourth defendant
THE COMPANIES AND
INTELLECTUAL
PROPERTY
COMMISSION
Fifth defendant
JUDGMENT
DELIVERED ON 23 JUNE 2025
VAN
ZYL AJ
:
Introduction
1.
The
psalmist David had occasion to muse on the value of goodwill between
brothers: “…
how
good and how pleasant it is for brethren to dwell together in unity!
It is like the precious ointment upon the head, that ran
down upon
the beard, … to the skirts of his garment
;
...”
[1]
Sadly,
the present case has nothing good or pleasant about it. It
entails a bitter dispute between a mother and one of her
sons, and
there is discord amongst the sons.
2.
The
plaintiff, Mrs Meyer, and her then husband, Mr Johan Meyer,
[2]
had five sons, namely Nico, Johan Jnr, Anton, Marius, and Henk.
[3]
This action involves a dispute between Mrs Meyer and her
eldest son, Nico. She claims the following:
2.1.
By
way of claim A, a declaration that two agreements for the sale of
certain immovable properties are void. She therefore
claims the
setting aside of the agreements and the transfers that followed, and
the setting aside of the dissolution and winding-up
of a company
named Rotsvas Ondernemings (Pty) Ltd (“Rotsvas”).
[4]
2.2.
In the alternative, by way of claim B, Mrs
Meyer seeks a statement and debatement of account on the basis that
Nico stood in a fiduciary
relationship towards her, and is obliged to
render an account. She seeks payment of what is due upon debatement,
and/or restitution
of the two immovable properties that she claims
Nico appropriated.
3.
The
properties in question are the dwelling house situated at 2[...]
F[...] Street, Paarl (Remainder of Erf 9[...], Paarl), and
the
residential block of flats situated at 3[...] M[...] Street, Paarl
(Erf 1[...], Paarl). It is common cause that these
properties
were previously owned by Mrs Meyer and Rotsvas respectively. It
is also common cause that the house was transferred
to and registered
in the name of Nico’s family trust, the Courtrai Trust,
[5]
on 23 October 2015. The block of flats was transferred to and
registered in the name of Nico's business trust, the Rhemco Trust,
[6]
on 16 November 2015.
4.
These transfers occurred pursuant to an
agreement of sale entered into between Mrs Meyer and the Courtrai
Trust on 31 August 2015,
in terms of which Mrs Meyer sold the
Courtrai property to the Courtrai Trust for the sum of R1.8 million,
and an agreement of sale
concluded between Rotsvas and the Rhemco
Trust on 31 August 2015, in terms of which Rotsvas sold the block of
flats to the Rhemco
Trust for the sum of R3 million.
5.
As indicated, Mrs Meyer’s main claim
in respect of these properties (claim A) is for a declaration that
the
"agreement underpinning the
sale and transfer"
of each
property be declared void, and for the re-transfer of the properties
to herself and to Rotsvas. Her cause of action for
this relief is
essentially based on the alleged fraudulent misrepresentations by
Nico and the late Mr Jacques Francois de Villiers
(“De
Villiers”) to the effect that the conclusion of the agreements
were in Mrs Meyer’s best interest.
Mrs Meyer purported to
cancel the agreements of sale by means of the particulars of claim as
a consequence of these fraudulent
misrepresentations.
6.
Nico denies having made these
misrepresentations. He further avers that he and his wife,
Sheila, assisted Mrs Meyer in the
management of the flats and in
other business affairs because they loved her, but did so under her
control and supervision, and
with her authority. At the trial
Nico testified that there was an agreement between him and Mrs Meyer
to the effect that
he (being in control of the two trusts) would pay
the purchase prices in respect of the properties in instalments (in
particular
in relation to the dwelling house) so as to provide Mrs
Meyer with a monthly income.
7.
The
latter defence (that it was agreed between him and his mother that
payment would be in instalments rather than on registration
of
transfer) was raised for the first time in an affidavit in an
interlocutory application instituted prior to the hearing of the
action at Mrs Meyer’s behest. The defence was however
dealt with in detail in the course of oral evidence at the trial.
Counsel for Mrs Meyer complained that it had not been pleaded but
argued that, in any event, it holds no water as it violates the
parol
evidence rule.
[7]
8.
I
am mindful, in relation this unpleaded defence, that the Supreme
Court of Appeal (“SCA”) held as follows in
Minister
of Safety and Security v Slabbert:
[8]
“
A
party has a duty to allege in the pleadings the material facts upon
which it relies. It is impermissible for a plaintiff to plead
a
particular case and seek to establish a different case at the trial.
It is equally not permissible for the trial court to have
recourse to
issues falling outside the pleadings when deciding a case.”
9.
The
SCA
qualified
[9]
this statement by pointing out that:
“
[12]
There are, however, circumstances in which a party may be allowed to
rely on an issue which was not covered by the pleadings.
This occurs
where the issue in question has been canvassed fully by both sides at
the trial. In South British Insurance Co
Ltd v Unicorn Shipping
Lines (Pty) Ltd, this court said:
‘
However,
the absence of such an averment in the pleadings would not
necessarily be fatal if the point was fully canvassed in evidence.
This means fully canvassed by both sides in the sense that the Court
was expected to pronounce upon it as an issue'.”
10.
In the present case, the defence was squarely put
forward in the interlocutory application, and dealt with at that
juncture as well
as in evidence at the trial. It was fully
argued. As such, it became an issue between the parties upon
which they expect
this Court to pronounce.
11.
The hearing of the evidence was emotionally
fraught. Mrs Meyer is 86 years old, and the emotional toll of the
case, her failing
memory, and her despair in the midst of the
situation was clear when she testified. She testified at
length, and was not
a good witness. Her counsel nevertheless
argued that key parts of the factual narrative brooked no real
dispute, and that
those facts demonstrate that Mrs Meyer is entitled
to the relief she seeks, whether in relation to claim A or claim B.
12.
I proceed to discuss these claims in the
context of the evidence, as well as in the light of a special plea of
prescription raised
by Nico.
The plaintiff’s
case as it appears from the evidence furnished on behalf of Mrs Meyer
13.
There were various discrepancies throughout
the evidence between what had been stated in the interlocutory
application and the oral
evidence eventually led, both in relation to
Mrs Meyer’s and Nico’s evidence. The oral evidence
itself, especially
Mrs Meyer’s, teetered between various
different versions. Her
locus standi
in
respect of the claim for the retransfer of the block of flats to
Rotsvas (eventually known as AJM Ondernemings) was not clarified.
In
the leading of evidence and in argument, her counsel placed emphasis
on particular events over the years leading up to the sale
of the
properties to bolster her allegations of fraud. A picture of
the situation giving rise to these proceedings nevertheless
presented
itself upon consideration of the evidence in totality. It seems
to me that in the present case a bird’s eye
view is the better
approach, because it is easy to find fault with particular and
essentially innocuous past events when looking
at them through
glasses focused on finding fraud.
14.
The broader background to this matter is
common cause. Mr Meyer Snr was initially the sole shareholder
in Rotsvas, holding
101 shares. In 1977 Rotsvas completed the
construction of the flats.
15.
It appears from the founding affidavit in
the interlocutory application to which I have referred earlier, that
Mr Meyer Snr transferred
50 of his shares to his sons at some point,
with each son receiving 10 shares. On 28 August 1986, Mr and Mr
Meyer were divorced.
In terms of the divorce settlement Mr Meyer’s
51 shares in Rotsvas were transferred to Mrs Meyer. Their sons
retained
their shares. It was also agreed that Rotsvas would not sell
the flats to third parties (“
buitestaanders
”)
prior to Henk, their youngest son, turning 22 years of age.
According to Mrs Meyer, the intention was that the shareholding
in
Rotsvas would eventually be bequeathed to their sons in equal shares.
16.
Some years later Mrs Meyer purchased her
sons' shares for R20 000.00 per share. She testified that she did
this to assist them financially.
Counsel argues that this made sense
because they were to inherit the flats in any event. Mrs Meyer was
thenceforth the sole shareholder
in Rotsvas.
17.
On 27 September 1999 Mrs Meyer caused the
Annette Meyer Family Trust to be registered
.
She and her five sons were the trustees
of the family trust, as well as the beneficiaries. The initial
letters of authority
were issued in September 1999. Johan Jnr
resigned as a trustee and beneficiary of the family trust in June
2003 due to a disagreement
within the family, primarily between him
and Nico. Shortly thereafter, also in June 2003, Nico, Anton, and
Henk resigned as trustees,
but for administrative rather than
emotional reasons. Marius remained on as a trustee.
18.
There was much argument from Mrs Meyer’s
side about Nico’s alleged attempts over the years to get rid of
Marius as a
trustee – the argument was that Nico had planned
taking control of Mrs Meyer’s affairs long before concluding
the property
transactions, because dealing with Mrs Meyer instead of
with Marius would be easier for Nico. Mrs Meyer’s
concession
in relation to when the possibility of the sale of the
properties first arose (I refer to her evidence below), however, took
the
sting out of this argument.
19.
There was some dispute during the evidence
about who the owner of the Rotsvas shares was at the times relevant
to this action.
Counsel for Mrs Meyer suggested to Nico in
cross-examination that the shares had been held by the Annette Meyer
Family Trust, on
the basis of the Trust’s financial statements
for the year ended 28 February 2010, which reflected that the Trust
held shares
in Rotsvas. Mrs Meyer herself however testified that she
was under the impression that she had been the owner of the shares in
Rotsvas.
20.
Nico was emphatic that the shares in
Rotsvas had always been held by Mrs Meyer, and never by the Annette
Meyer Family Trust. The
financial statements of the Trust to which
counsel referred was, so he testified, merely a draft (a
"mock
up”)
which had been prepared in
order to consider
"hoe die state
sal lyk as Rotsvas Ondernemings binne in die Annette Meyer Familie
Trust is" [“how the statements
would look if Rotsvas
Ondernemings was in the Annette Meyer Family Trust”].
Nico had searched for documents, at Mrs
Meyer’s request, to confirm that she was (and had always been)
the shareholder of
Rotsvas. He could not find any document that
proved the contrary.
21.
In February 2011 Marius emigrated to
Canada, and on 6 May 2011 Mr Meyer passed away. It was about
this time that Nico took
over the management of the flats. He also
started assisting Mrs Meyer in other aspects, fulfilling the role
that Marius used to
play. This was the start of what Mrs Meyer
described as Nico’s taking control of her financial and
business affairs
– to her detriment and to his benefit.
22.
In April 2013 Nico drafted a letter in Mrs
Meyer's name on behalf of Rotsvas. In the letter he asked the
company’s auditors,
Jackson Neethling Chartered Accountants
(“Jackson Neethling”) to hand him their file on Rotsvas.
Anton testified that
he remembers fetching the file from Jackson
Neethling and giving it to Nico. Counsel for Mrs Meyer argues
that, while this
letter is on the face of it innocuous, it must be
seen in the bigger context of what Mrs Meyer regards as Nico’s
efforts
to control her business affairs by, amongst other actions,
making himself the custodian of any relevant documentation.
Again,
given Mrs Meyer’s evidence ultimately in respect of how
the sale of the properties came about, the Rotsvas argument does not
take Mrs Meyer’s case much further.
23.
I have already mentioned that the two
properties were sold and transferred to Nico’s trusts over the
period August 2015 to
November 2015. According to Nico (and
subsequently conceded by Mrs Meyer), Nico and his wife Sheila
informed Mrs Meyer that
they were considering emigrating to New
Zealand around the beginning of 2015. As will become clear from
a discussion of the
evidence, Mrs Meyer initially testified that
their plans were revealed to her only after the conclusion of the
property transactions,
because Nico wanted to be sure that he had
control of the properties prior to leaving the country.
24.
I
point out at this juncture that it was a recurring theme in Mrs
Meyer’s evidence that, over the years, she had signed documents
placed before her by Nico without applying her mind to the contents
of the document in question. Mrs Meyer's testimony was not
a picture
of clarity, but she was very adamant about this. Whether her
evidence in this respect is to be accepted will be
considered later.
I gained the impression while Mrs Meyer testified that she was rather
too adamant about the abdication
of her responsibilities when it came
to the signing of documents.
[10]
25.
Be
that as it may, in her examination-in-chief Mrs Meyer testified in
relation to the dwelling house and the block of flats that
she had
never intended to sell them to Nico. She did not know that what she
had signed on 31 August 2015 were in fact agreements
of sale.
When her counsel asked her whether she remembered how and where the
transactions were concluded, she replied:
"Ek
kan niks daarvan onthou nie" [“I cannot remember anything
about it”].
[11]
26.
Mrs Meyer’s inability to recall –
or her complete absence of knowledge of - the salient details
surrounding her conclusion
of the agreements became a second refrain
throughout her evidence.
27.
Mrs Meyer was asked during her
examination-in-chief whether she was able to recall the transactions
and, if so, to explain how it
came about that she had signed the
agreements of sale. Her reply was that she had no knowledge
thereof, and that she had
not been interested at the time (whether in
the nature of the transactions or in the documents that had been
presented to her for
signature), because Nico was in complete control
of her and of everything that she had owned. Whatever Nico
requested her
to do, she did: "… as
Nico
sou vir my gesê het gaan spring in die see in dan sou ek seker
dit ook gedoen het" [“… should Nico
have told me to
go jump in the sea I probably would have done it”].
28.
In
the interlocutory application Mrs Meyer alleged that on 31 August
2015 she was presented with agreements of sale in respect of
the
house and the block of flats at the offices of Abrahams & Kiewitz
Attorneys. It is common cause that there were various
drafts of
the agreements prior to signature of the final ones. She signed the
agreements, but did not know what she was signing
(and was not
interested in knowing because she trusted Nico). Her version
during her evidence-in-chief and in the interlocutory
application was
that she only established the correct facts (being that she had been
induced by Nico’s fraudulent conduct
to sell the properties to
him) in November 2019 after receiving a telephone call from the
Swellendam Municipality in relation to
the transfer of another
property which is no longer relevant to these proceedings.
[12]
29.
There is, at the outset, a contradiction
between this version and the averments pleaded in Mrs Meyer’s
particulars of claim.
Her cause of action in the pleadings is
based on fraud, and the crux of her case as pleaded is that Nico and
De Villiers had represented
to her
"that
the transactions
were in the best interest of the Plaintiff”.
The
pleaded version is therefore that Mrs Meyer knew that she had
concluded sale agreements in respect of the properties, selling
them
to Nico’s trusts. She concluded these transactions because she
believed, based on the misrepresentations of Nico and
De Villiers,
that the transactions would be in her best interest. Her oral
version of total ignorance in relation to the
nature of transactions
is therefore at loggerheads with her pleaded case.
30.
In cross-examination Mrs Meyer initially
confirmed the version that she had been unaware thereof that she had
signed agreements
of sale in respect of the properties. She
stated further that it was only after Nico had procured her
signatures on the agreement
and the documents necessary to effect
registration of transfer, that she was informed of Nico’s and
Sheila’s decision
to emigrate to New Zealand. She
testified that Nico, having fraudulently procured her signatures on
the sale and transfer
documentation, then knew that he had secured
his position
("Hy weet hy is nou
safe” [
“
He
knows he is sale now”]
). He
had accomplished his goal of divesting Mrs Meyer of her assets, at
less than market value, so that he and his family
could emigrate to
New Zealand. This version therefore entailed that Nico and
Sheila disclosed to Mrs Meyer that they intended
to emigrate to New
Zealand only after Nico had stripped Mrs Meyer of her assets:
"Hy
het my nou absoluut gestroop van alles wat ek het" [“He
now absolutely stripped me of everything I have”]
.
31.
This evidence glaringly contradicted Mrs
Meyer’s evidence the interlocutory application, namely that
Nico had put pressure
on her and manipulated her to sell the block of
flats to him after he had received a business opportunity from Mr
Robbie Ross in
New Zealand, which caused him to consider emigrating
to New Zealand. In other words, Mrs Meyer had known about
Nico’s
plans to relocate to New Zealand prior to selling the
properties to him.
32.
When this contradiction was put to Mrs
Meyer in cross-examination, she changed her evidence, reverting to a
semblance of the version
in the interlocutory application. She told
the Court that Nico used the New Zealand opportunity to pressurise
her into selling
the block of flats to him, by threatening to accept
the offer from Mr Ross and to emigrate to New Zealand in the event
that Mrs
Meyer should refuse to do so. On this new version Mrs
Meyer, in her own mind, questioned Nico's financial ability to buy
the house and the block of flats from her: "...
in
die eerste plek in het ek beginne dink nou maar hy het nie geld nie,
hy lewe uit my bankrekening uit, waar gaan die geld vandaan
af kom
wat hy vir my wil betaal
...
vir
my huis en vir die blok woonstelle
.
.."
[“… in the first instance I started thinking but he does
not have money, he lives out of my bank account,
where is the money
going to come from that he wants to pay to me … for my house
and for the block of flats..”]
.
33.
Mrs Meyer testified that upon being told by
Nico that he had received an offer from Mr Ross, she telephoned Mr
Ross to confirm this
information. Mr Ross was taken aback by her
call, and denied to her that he had made any offer to Nico. Mrs
Meyer testified
that, having established that the New Zealand job
offer was an empty threat, she did not discuss the matter any
further, and carried
on with her life. This evidence yet again
contradicted her version in the interlocutory application, where she
had stated:
"I do not know whether
the offer of work in New Zealand was real".
34.
Mrs Meyer eventually conceded in
cross-examination that she was upset by Nico and Sheila's plans to
emigrate to New Zealand, and
that it was she who persuaded them to
stay in South Africa on the basis that she would sell the house as
well as the block of flats
to Nico. Nico testified that Mrs
Meyer had told him that it was not necessary for him to emigrate to
New Zealand (“…
dis nie my
familie nie …” [“… it’s not my family
…”]
), and she needed him
here in Paarl.
35.
I return to Mrs Meyer’s evidence to
the effect that she did not know that she had signed agreements of
sale in respect of
the properties. As indicated, she initially
testified that she had accompanied Nico to the offices of Abrahams &
Kiewitz Attorneys to sign documents, and implied that she did not
know what these documents were, or what the purpose of the visit
was.
She explained her ignorance on the basis that Nico had a very strong
influence
("'n geweldige invloed”)
on her, and she simply did whatever he
told her to do.
36.
I agree with the submission made by Nico’s
counsel that this evidence was manifestly untruthful. Mrs Meyer was
clearly an
intelligent person with years of business experience.
She was in control of her personal and business affairs for many
years.
On her version, her relationship with Nico was, at the time of
the sales, very good. It is highly improbable that the reason for
the
visit to Abrahams & Kiewitz, and the nature of the documents that
she was about to sign, would not have been discussed
between her and
Nico prior to the visit. It is likewise highly improbable that
the attorney, Mr Kiewitz, would not have explained
the nature of the
documents to Mrs Meyer prior to signature thereof.
37.
That her professed ignorance cannot be true
is illustrated by the fact that, on 25 May 2016, Mrs Meyer deposed to
an affidavit entitled
"Confirmatory
Affidavit",
in which she explained
that she had instructed attorneys Abrahams & Kiewitz
"to
deal with the two property transactions at issue".
Her
counsel drew her attention to her statement in the affidavit that
"Deeds of sale and transfers were
then effected"
in respect of both
properties, and that the purchase prices were R1.8 million and R3
million respectively. To this she replied:
"Ja,
ek sien dit. Ek weet niks van hierdie goed nie" [“Yes, I
see it. I do not know anything about these things”].
38.
Mrs Meyer initially persisted in
cross-examination with her version that she did not know why she had
to sign the confirmatory affidavit.
She later changed her
evidence in relation to the reason why she did not know what she was
signing, again blaming Nico and the
absolute trust that she had in
him to do whatever he asked her to do. This version is not
supported by the surrounding evidence
in relation to the confirmatory
affidavit. Irrespective of the untenability and improbability of Mrs
Meyer’s version, she
had made notes and corrected spelling
errors on the first draft of the confirmatory affidavit. She
conceded that the person
who gave her the final version to sign at
the offices of Abrahams & Kiewitz told her that it was an
affidavit. She therefore
knew that it was an affidavit, and what its
purpose was. She also conceded that she had had ample time to
read, consider
and sign the affidavit. This is confirmed by the
evidence of Mr Kiewitz. That she knew what the situation was in
which
she found herself is further confirmed by the evidence of her
sons Marius and Anton, to which I shall briefly refer below.
The untenability of her evidence in this regard was apparent from the
following passage of her evidence:
"Ja, u het die
eerste een gelees. Trouens u het veranderinge aangebring. U het
spelfoute reggemaak op die weergawe?
Ja, maar ek het dit
nie intens gelees om te weet waaroor dit regtig gaan nie ...
Ek het dit vlugtig
gelees en die spelfoute uitgekry, maar om die waarheid te sê
dit was seker my eie agterlosigheid dat ek
nou beland het waar ek is,
omdat ek lees nie graag nie. Dit is vir my 'n pyn, en Nico ook, sy
vrou moet alles vir hom voorlees.
Hy lees niks en ongelukkig het hy
dit (by) my geërf."
[“
Yes, you read
the first one. In fact, you made changes. You corrected
spelling errors on the version?”
“
Yes,
but I did not read it intensely to know what it was really about
… I read it quickly and took out the spelling
errors, but to
tell the truth it was perhaps my own negligence that I am where I am,
because I do not like to read. It is
a pain to me, and Nico
also, his wife has to read everything to him. Hy does not read
anything and unfortunately he inherited
it from me.”
]
39.
Mrs Meyer eventually had to concede that
she was unable to dispute Nico’s version, namely that she did
know what the nature
of the documents was that she would have had to
sign (and did sign) at the offices of Abrahams & Kiewitz, and
that she did
so willingly. One of the aspects, for example, in the
agreement of sale for the house that Mrs Meyer emphasized in
attempting to
show that the transactions were to her detriment, was
that the agreement contained a clause affording her a lifelong
habitatio
.
This was never registered against the title deed of the property.
Mrs Meyer conceded in cross-examination that the
issue of a lifelong
habitatio
in
her favour over the house had been discussed with her. Mr Kiewitz
(whose evidence will be referred to further below) testified
that the
habitatio
was abandoned in the course of discussion prior to eh signature of
the agreement, because it would be too expensive to register
it. The
reference to the
habitatio
remained in the final version of the agreement as the result of a
drafting mistake. It was in any event quite apparent from
Mrs
Meyer’s evidence overall that, at the time, she knew that she
had sold the properties to Nico.
40.
It is clear, further, that Mrs Meyer had
remorse about the transactions because she had come to the insight
that her actions in
concluding them were not fair to her other four
sons. In fact, the evidence shows that her other sons were
extremely dissatisfied
with her decision to sell the properties to
Nico, and that it caused a serious rift
("'n
verskriklike verwydering”)
between
her and her other sons. Mrs Meyer effectively conceded that she
was to blame for this state of affairs, because it
had been her
decision to sell the properties to Nico to persuade him not to
emigrate to New Zealand.
41.
At the end of her cross-examination, Mrs
Meyer admitted that she blamed herself for having made a huge mistake
in selling the properties
to Nico:
"Ek
het die grootste fout van my lewe gemaak om te gedoen het wat ek
gedoen het” [“I made the biggest mistake of
my life in
doing what I did”].
She
conceded that her decision caused a serious rift between herself, on
the one hand, and her other four sons, on the other.
42.
When asked exactly when her other sons
became unhappy about the transactions, she testified that this
occurred between the period
of March 2015 and April 2016. They
remained angry at her over the ensuing years, and the internal family
relationships were
strained. Eventually, when she was
hospitalised four years later in 2019, seriously ill, her other sons
were prepared to
reconcile with her, but only on condition that the
transactions be reversed.
43.
Mrs Meyer’s son Anton conceded in
cross-examination that, during December 2019, his mother was
regretting her decision to
sell the properties to Nico: “
My
ma het bedenkinge gekry of sy die regte ding gedoen het” [“My
mother had second thoughts as to whether she had done
the right
thing”]
.
44.
Anton testified that after Mrs Meyer had
been discharged from hospital in December 2019, she requested a
meeting with Anton and
Henk.
They
met at a restaurant, the
"Laborie
Wynhuis".
During this
meeting Mrs Meyer disclosed all the facts leading up to the
transactions:
"Ons het daar om 'n
tafel gaan sit en Ma het begin uitpak'' [“We sat around a table
and Mom starting unpacking”].
45.
At some stage during this conversation, Mrs
Meyer apologised to Anton and Henk for what she had done. When this
occurred, Anton
decided that all was forgiven, and that he would
assist Mrs Meyer in putting right what she had done wrong: "
Ma
het gevra sy't ons hulp nodig om alles wat sy gedoen het te probeer
regstel
”
[Mom
asked she needed our help to rectify everything she had done”].
When pressed for details as to why (or
in respect of what) Mrs Meyer had apologised, Anton replied:
"Die
dokumente wat sy geteken het, die blok woonstelle wat sy verkoop het.
Dit het grotendeels daaroor gegaan" [“The
documents she
had signed, the block of flats that she had sold. It was mainly
about this”].
46.
Anton’s evidence in this respect
aligns with Mrs Meyer’s evidence in cross-examination, namely
that the sale of the
properties was the biggest mistake in her life,
and that her other sons criticized her for having concluded the
transactions, thus
favouring Nico. The position is further
confirmed by the evidence that on 11 April 2016 Marius wrote an
e-mail to Mr van
Wyk, in which he requested:
"Kan
jy die proses begin om hierdie transaksie uit te daag en om te keer,
sodat registrasie van die eiendom terug kom by
sy
regmatige eienaar"? [“Can you
start the process of challenging and reversing this transaction, so
that registration of
the property can revert to its rightful
owner?”].
47.
This passage from Marius’s email was
put to Mrs Meyer as follows: "...
die
brief bevestig dat die verkoop van die eiendomme iets is wat
plaasgevind het by ooreenkoms tussen u en Nico en dit het u ander
seuns ongelukkig gemaak".
48.
Mrs Meyer responded: “Yes.”
49.
This, it seems to me, was in truth the
origin of this action. Mrs Meyer regretted her decision to sell
the properties to Nico,
cutting out her other sons. She was
under pressure from them to make things right as far as they were
concerned. Her
evidence to the effect that she did not know
what she was signing, as she was under Nico’s influence, was a
way in which
to overcome her guilt by attempting to reverse the
transactions and everything that followed therefrom. This
evidence, however,
simply does not ring true.
The case that
appeared from the evidence furnished on Nico’s behalf
50.
Nico’s evidence was considerably more
consistent than that of Mrs Meyer. He testified that he had
assisted his mother
over the years (especially since Marius had
emigrated) because he loved her, and wanted to help her. The
picture he painted
of her was nevertheless that of a strong-minded
woman who was adept at running her own affairs.
51.
He testified that when he informed Mrs
Meyer of his intention to emigrate to New Zealand, she became very
emotional and upset, because
she did not want him and Sheila to
emigrate, effectively leaving her on her own in South Africa.
Marius had by that time
already emigrated. Nico wanted to
emigrate because he had received what seemed to be a very favourable
work opportunity from
Mr Robbie Ross, and he was struggling in South
Africa. Were he to remain in South Africa, he would have to
restructure his
own affairs.
52.
This issue was discussed between them over
a period of approximately four months. Mrs Meyer eventually
persuaded Nico not
to take up the business opportunity, on the basis
that she would sell the house and the block of flats to him.
The plan to
sell the properties to him therefore originated with Mrs
Meyer herself. The house would be renovated to provide
accommodation
for Mrs Meyer as well as for Nico and his family.
There was accordingly an agreement between Nico and Mrs Meyer about
the
sale of the properties to him (or to the trusts controlled by
him). Nico’s evidence in this respect was not challenged
in cross-examination. Sheila corroborated Nico's evidence with
regard to the agreement between Mrs Meyer, on the one hand,
and Nico
and Sheila, on the other, that Nico would not accept the business
offer from Mr Ross in New Zealand, and that there would
be a
restructuring of their affairs on the basis that Mrs Meyer would sell
the properties to Nico.
53.
It is common cause that during April 2015,
and on Nico’s instruction, valuer Franci Malan prepared a sworn
value for the block
of flats which was considerably higher than what
it was eventually sold for. Nico explained, however, that Mrs
Meyer was
of the view that the purchase price suggested by the
valuation was too high. They eventually agreed on a price just
below
the municipal value at the time in respect of each of the
properties.
54.
Nico testified that he had accompanied Mrs
Meyer at least on three occasions to the offices of Abrahams &
Kiewitz, in order
to provide instructions to Mr Kiewitz with regard
to the drafting of the relevant documentation for the transactions,
and for signature
of the agreements. He stated that Mrs Meyer
knew exactly what the purpose of these visits were, and what the
documents were
that she had signed. This evidence was also not
challenged in cross-examination.
55.
Mr Kiewitz testified that he had attended
an initial consultation with De Villiers, Nico, and Mrs Meyer to
discuss the transactions
and to obtain formal instructions from Mrs
Meyer in respect thereof. A further consultation was held in
order to prepare
and sign the agreements of sale. This was a
drawn-out process
("Dit was eintlik
'n marathon sessie")
that lasted
three to four hours. The second consultation was attended by
the same people, and was an
"interactive
"
conversation between Mr Kiewitz
on the one hand, and De Villiers, Nico, and Mrs Meyer on the other.
Mrs Meyer actively participated
in the conversation.
56.
I pause to point out that Mrs Meyer
testified that she had accompanied her son, Marius
,
to consult with attorney Anvil van Wyk
on 31 March 2016, because Marius was concerned about Mrs Meyer’s
conduct in selling
the properties to Nico. During this consultation,
Mr van Wyk pointed out various discrepancies in respect of both
transactions.
Mr van Wyk subsequently prepared a memorandum in
which he advised that the transactions should be investigated.
To
this end, Mr van Wyk sent a letter of demand to Abrahams &
Kiewitz on 18 April 2016, seeking information regarding the
transactions.
57.
Mr Kiewitz testified that the confirmatory
affidavit was the product of a joint effort between Mr Kiewtiz and
attorney Aubrey Magerman
after receipt of the letter of demand.
They obtained the instructions to draft the affidavit from Mrs
Meyer. Mr Kiewitz
and Mr Magerman prepared a draft affidavit,
which was sent via email to Mrs Meyer. A final draft was
prepared after receipt
of her input, and she signed it. Mr
Magerman testified that the purpose of the draft confirmatory
affidavit was to capture
Mrs Meyer’s instructions ("
om
die klient
se
instruksies
vas te vang op 'n stuk papier")
to
reply to the letter received from Mr van Wyk. A consultation was held
for this purpose, which was attended by De Villiers, Mr
Kiewitz, Mrs
Meyer, and Nico.
58.
Mr Magerman was also involved in the
settlement of the draft confirmatory affidavit. He was emphatic
that Mrs Meyer knew what
had been recorded therein. He recalled
that during his interactions with Mrs Meyer she expressed her sadness
about the fact
that the relationship between herself and her other
sons, as well as the relationship among them, had broken down.
59.
Again, the evidence of Mr Kiewitz and Mr
Magerman, namely that Mrs Meyer knew that what the nature and content
was of the agreements
of sale and the confirmatory affidavit, was not
challenged during cross-examination.
60.
Mrs Meyer’s counsel attempted to
discredit Mr Kiewitz's testimony because he had failed to implement
the terms of the agreements
of sale which stipulated that the
purchase price would in each case be paid on registration of
transfer; and he only obtained valuations
in respect of the
properties after the conclusion of the agreements. This
criticism does not detract from the evidence in
relation to Mrs
Meyer’s involvement in and knowledge of the transactions and
the subsequent confirmatory affidavit. Mr Kiewitz's
conduct in this
regard might have been relevant in the context of a claim for breach
of contract by Nico, but it does not damage
his evidence in respect
of the central issue for determination as put up in the particulars
of claim, which was whether Mrs Meyer
had been misled into signing
the agreements.
61.
It was in any event clear from the evidence
that Abrahams & Kiewitz obtained the further valuations in
relation to the properties
for transfer duty purposes and not, as Mrs
Meyer argued, as “sweetheart valuations” obtained after
the fact to cover
Nico in the implementation of his fraudulent
scheme.
62.
On the totality of the evidence, Mrs
Meyer’s version that she was induced by Nico’s fraudulent
conduct to sign the agreement
of sale and the confirmatory affidavit,
is highly improbable. She concluded the agreements and signed the
affidavit knowingly and
voluntarily to give effect to the agreement
with Nico regarding the restructuring of their affairs. She did
this to persuade
Nico and Sheila not to emigrate to New Zealand.
63.
Much emphasis was placed on Mrs Meyer
behalf on the fact that Nico had not paid the purchase price of the
house to Mrs Meyer on
registration of transfer, but paid it off in
monthly payments of R20 000.00, which increased annually with R1
000.00. The
issue was relied upon to support Mrs Meyer’s
case that Nico had swindled the sale of the house into his trust’s
name,
and that it was not a
bona fide
transaction.
64.
Nico, however, referred to the reason for
the sale of the house, namely to assist him and his family given that
they would not pursue
the beckoning New Zealand offer, and further to
ensure that Mrs Meyer would have a dependable monthly income from
which to live.
He testified that these payments were calculated
by De Villiers on the basis of Mrs Meyer’s life expectancy and
an interest
rate of 6%, with the total amount payable over a period
of 10 years. He said that the payment of the purchase price in
instalments
was discussed and agreed to between him and Mrs Meyer.
65.
Nico explained that Mrs Meyer did not want
him to cause a mortgage bond to be registered over the property.
She preferred
that Nico should rather owe the balance of the purchase
price to her, instead of to a bank: “
As
ek oorsponklik daardie huis op ‘n verband geneem het en die
geld oorbetaal het dan sou sy daai geld tot haar beskikking
gehad
het. Sy het verkies dat ek nie ‘n lening by die bank
aangaan nie. Dat ek daai geld van die huis vir haar
maandeliks
betaal. Sy het dit in haar gedagtes gebruik as om van te lewe
…” [“If I originally took that
house on a mortgage
bond and paid over the money them she would have had that money at
her disposal. She preferred that I
did not take out a loan at
the bank. That I pay that money to her monthly. She used
it in her thoughts to live off
…”]
66.
I have mentioned earlier that Mrs Meyer’s
counsel argued that the instalment agreement to which Nico referred
conflicted with
the express provisions of the agreement of sale.
He tried to elicit a concession from Nico that the latter had known
that
he would not be able to pay the purchase price against
registration of transfer, and that this constituted a
misrepresentation.
Nico denied that this was the case.
67.
It
is trite that strong evidence is required to prove fraud.
[13]
A consideration of the evidence indicates that, whatever Nico’s
intention was (there was no reason to reject Nico’s
evidence in
this respect), it could not have been a fraud on Mrs Meyer. She
knew that she had sold the house to Nico’s
trust, and from
their discussions about the possibility of registering a bond over
the property, she knew that Nico himself did
not have the funds to
pay the purchase price in full on registration of transfer. She
received the monthly instalments, which
were paid from the Rhemco
Trust, and never complained about the fact that the Courtrai Trust
(the purchaser of the house) had not
complied with its payment
obligations under the agreement of sale.
68.
Counsel’s objection to Nico’s
evidence on the basis of the parol evidence rule does not take
matters any further.
Mrs Meyer claims in delict on the basis
that the transactions had been induced by Nico’s (and De
Villiers’s) fraudulent
misrepresentations to the effect that
the sales were in her best interests. She is claiming in
delict, and Nico does not
rely on the oral agreement to pay in
instalments to overcome a contractual claim based on the written
agreement. I do not
have to decide the issue of whether the
oral agreement can stand alongside the written one.
69.
When all is said and done, the evidence –
both in relation to what was said and Mrs Meyer’s demeanour in
the witness
box – shows that she knew what she was doing in
selling the properties to Nico. On her own version there were
discussions
between them about Nico’s plan to emigrate.
He and Mrs Meyer, at her suggestion, came up with an alternative plan
which
would allow him to remain in South Africa. That was the
reason for the sale of the properties. These proceedings arose
thereafter, from Mrs Meyer’s remorse about sidestepping her
other sons. I got the impression that she was conflicted,
feeling pressurized to bring these proceedings to remain in her sons’
good books after the reconciliation in December 2019.
70.
Whatever the motive was for the institution
of the proceedings, I do not think that Mrs Meyer has discharged the
burden of proving
fraudulent misrepresentation on Nico's side on a
balance of probabilities.
Have Mrs Meyer’s
claims for the retransfer of the properties prescribed?
71.
I have considered the merits of Mrs Meyer’s
claim for retransfer of the properties, and have found them wanting.
Nico
did, however, also raise a special plea of prescription, which
needs determination.
72.
Nico pleaded that the claims to
cancellation of the respective agreements, retransfer of the
properties, or restitution constitute
debts as contemplated in
sections 10
to
12
of the
Prescription Act 68 of 1969
. The
prescription period in respect of these debts is three years in terms
of
section 11
of the
Prescription Act.
73.
Mrs
Meyer’s claims in relation to the house therefore fell due
[14]
during October 2015 (registration of transfer took place on 23
October 2015), and her claims in respect of the flats fell due during
November 2015, registration of transfer having taken place on 16
November 2015. This action was instituted in December 2020.
It follows, so Nico argues, that all of these claims have long since
prescribed.
74.
I have indicated earlier in this judgment
that Mrs Meyer’s evidence to the effect that she did not know
what the documents
were that she had to sign, and that she only
obtained knowledge of the defendant’ fraudulent
misrepresentations during November
2019, does not ring true.
Mrs Meyer in fact conceded in cross-examination that she knew that
she had signed agreements of
sale in relation to each of the
properties. Even if her allegations in this regard were true,
however, I agree with Nico
that her claims have prescribed, for the
reasons that follow.
75.
The
term "debt" is usually employed to describe the correlative
of a right or claim to do some performance, in other words,
as the
duty side of an obligation which implies a debtor-creditor
relationship arising from contract, delict, enrichment, or other
restitutionary duty. It is preferable in the context of prescription
to speak of a "right of action"
("vorderingsreg")
as
correlative to a "debt"
("skuld”
),
instead
of a "cause of action"
.
[15]
The
meaning that has been given to the word "debt" since the
1968
Prescription Act came
in force has been in accordance with the
definition in the
New
Shorter Oxford English Dictionary,
[16]
namely
"1.
Something owed or due: something (as money, goods or service) which
one person is under an obligation to pay or render
to another. 2.
A
liability or obligation to pay or render something;
the condition of being so obligated".
The
correlative of a debt in this sense is a right of action vested in
the creditor in which the payment of money, or the delivery
of goods,
or the rendering of services is claimed.
76.
A
creditor does not have to have sufficient knowledge of all the
relevant facts in order finally to prove his claim for prescription
to run: “
Artikel
12(3) vereis immers nie dat 'n skuldeiser oor voldoende kennis
moet beskik om sy vordering finaal te bewys alvorens
verjaring teen
hom begin loop nie. … Al wat vereis word, is dat die
skuldeiser kennis moet dra van die wesenlike feite waaruit
sy eis
ontstaan” [“
Section 12(3)
does after all not require that
a creditor should have sufficient knowledge finally to prove his case
before prescription starts
running against him … All that is
required is that the creditor has knowledge of the material facts
from which his claim
arises”]
.
[17]
77.
The
position was summarised as follows in
City
of Cape Town v Cell C Limited and others
[18]
“
[53] It has
been held that a debt is due when the entire set of facts which the
creditor must prove in order to succeed with his
or her claim against
the debtor is in place or, in other words,
when everything
has happened which would entitle the creditor to institute action and
to pursue his or her claim. This does
not include the legal
conclusions which a litigant seeks to draw from the facts
.
[54]
Prescription
would start running against a party when there is either knowledge or
awareness of the facts from which the debt arises
as well as the
identity of the debtor. A party would be deemed to have
knowledge of these facts if he/she could have acquired
it by
exercising reasonable care.
[55]
Whether or not it could be
said that a party failed to exercise reasonable care would depend on
a number of factors and consideration
of all the circumstances
relevant to the claimant’s conduct
.
[56]
The
inquiry into whether a claimant may be deemed to have acquired the
requisite knowledge and whether he/she exercised reasonable
care is
an objective, and not a subjective inquiry
.
Therefore, the claimant’s conduct is tested by weighing it
against the steps which a reasonable person in his or her
position
would have taken to acquire knowledge the requisite minimum facts to
enable him/her to institute his/her claim timeously.”
78.
Mrs
Meyer’s claims for the transfer of the house and the flats are
based on her pleaded cancellation of the agreements of
sale in her
particulars of claim dated December 2020. The cancellation, in
turn, rests of the alleged fraudulent misrepresentation
of De
Villiers and Nico. In general, a delictual debt becomes due
when the delict has been committed.
[19]
Are Mrs Meyer’s claims for the retransfer of the properties in
this context a debt as contemplated in the
Prescription Act, which
would have prescribed after the effluxion of three years since the
debt had become due?
79.
The
case of
Leketi
v Tladi N.O. and others,
[20]
to which Nico’s counsel referred, is instructive in this
regard. The appellant claimed the recovery of immovable
property
from his grandfather's deceased estate, which the appellant
claimed had belonged to his father. The appellant alleged that his
grandfather had fraudulently caused the property to be transferred
and registered in his own name by representing to the Registrar
of
Deeds that he was the only male heir of the appellant's father, and
thus entitled to the property upon intestate devolution
according to
custom. The first respondent was the executor of the deceased estate,
and the second and third respondents were the
beneficiaries of the
estate. The fraud by the appellant's grandfather took place in June
1969. The appellant's summons was only
served on the respondents in
2004. The appellant attained majority on 7 April 1981, and the
running of prescription had been delayed
until 7 April 1981 in terms
of
section 13
of the
Prescription Act. The
first respondent contended
that, as the summons was served more than three years after 7 April
1981, the appellant's claim had
prescribed.
80.
The
SCA held
[21]
that for the
purpose of considering the special plea of prescription raised by the
respondents, in the context of the provisions
of the
Prescription
Act, the
appellant was a creditor
.
Any
obligation on the estate to restore the property to its rightful
owner was a debt as described in
section 11(d)
[22]
of the
Prescription Act. The
appellant replicated that he could
not have instituted action earlier because until 6 August 2003 he had
no knowledge of
"the
identity of the defendants and the facts from which the debt
arose".
[23]
81.
The
SCA held
[24]
that the real
question for decision in the appeal was whether, on a consideration
of the available evidence in totality, it could
be said that the
appellant could not have acquired knowledge of the fraud on the part
of his grandfather in June 1969
"by
exercising reasonable care",
as
required in the proviso to
section 12(3)
of the
Prescription Act.
The
SCA concluded that the appellant's failure to institute action
timeously was not due to his lack of or inability to obtain
knowledge,
but rather to his dilatoriness.
[25]
The appeal was dismissed.
82.
Another
instructive decision from the SCA is
Ethekwini
Municipality v Mounthaven (Pty) Ltd.
[26]
The issue was whether a claim by the appellant for the
retransfer of a vacant immovable property from the respondent
constituted
a debt as contemplated in the
Prescription Act. The
appellant had sold the property to the respondent in 1985 (transfer
took place in 1986) subject to the condition that, should the
respondent have failed to erect buildings on the property to the
value of not less than R100 000.00 after the expiry of three years
from the date of the sale, ownership of the property would revert to
the appellant, who would be entitled to demand re-transfer
thereof
against payment of the purchase price.
83.
The
respondent failed to develop the property within the stipulated
period, and the appellant thus launched an application invoking
the
reversionary clause and claiming retransfer of the property. This was
done only in 2014. The respondent took the point that
the claim
constituted a debt as contemplated in the
Prescription Act, and
that
it had prescribed. The SCA upheld this contention on the basis that
the reversionary clause constituted a personal right and
not a
limited real right in respect of the property. The appellant's right
to claim retransfer required the respondent to do something
in favour
of the appellant. It therefore constituted a debt which prescribed
after the effluxion of the three-year period.
[27]
84.
In
considering an application for leave to appeal, the Constitutional
Court
[28]
confirmed that a
claim to transfer immovable property in the name of another is a
claim to perform an obligation to deliver goods
in the form of
immovable property. It is a
"debt"
in
the dictionary sense accepted in
Makate
v Vodacom.
Leave to appeal was refused
inter
alia
on this basis.
85.
These principles apply to Mrs Meyer’s
claims.
86.
As indicated earlier, Mrs Meyer’s
version is that she accompanied her son, Marius
,
to consult with attorney Anvil van Wyk,
on 31 March 2016. During this consultation, and as confirmed in his
memorandum which was
referred to in the course of the evidence led at
the trial, Mr van Wyk pointed out various discrepancies in respect of
both transactions.
He also expressed the view at the time that Mrs
Meyer had not known what she was doing when she signed the agreements
of sale.
During her evidence in chief, Mrs Meyer testified that
she was shocked when Mr van Wyk said that the transactions amounted
to fraud:
"Al wat ek onthou want
dit het vir my geruk en dit is dat Anvil gesê het dis 'n
bedrogsaak" [
“
All
I remember because it shook me and that is that Anvil said it was a
case of fraud”]
.
87.
In Mr van Wyk's memorandum, which was dated
1 April 2016, he advised Marius and Mrs Meyer that:
"My
advies is dat alvorens daar tot enige ooreenkomste geraak word,
die
twee transaksies behoorlik ondersoek word
ten einde vas te stel op welke grondslag dit gebeur het dat, onder
andere, eiendomme tussen verbonde persone teen minder as markwaarde
hande verwissel het, sodat die belasting en ander implikasies
vasgestel kan word" [
“
My
advice prior to coming to any agreements is that the two transactions
must be properly investigated to ascertain how it happened
that,
amongst others, properties between related persons were alienated at
less than market value, to establish the tax and other
implications”
]
.
88.
Mrs Meyer testified that she had not
received a copy of this memorandum at the time. She had,
nevertheless, been present at
the consultation with Mr van Wyk, and
clearly had understood what Mr van Wyk was saying, given her reaction
of shock.
89.
Marius, notably, conceded during
cross-examination that he had been aware of Mrs Meyer’s
intention to sell the properties
to Nico before the transactions were
concluded and implemented. Marius was not happy with the situation.
His relationship
with Mrs Meyer subsequently deteriorated, because
she refused to follow his advice not to sell the properties to Nico.
Marius
would no doubt have expressed the reasons for his
dissatisfaction of the state of affairs to Mrs Meyer at the time.
Marius
further testified that a letter of demand subsequently sent by
Mr van Wyk to Abrahams Kiewitz Attorneys on 18 April 2016 had been
sent on his instructions. He explained that the letter was sent
because
"Ek wou die proses aan die
gang kry om die transaksies om te keer, om dit nietig te verklaar, om
my ma te beskerm want sy het
al haar bates verloor" [
“
I
wanted to start the process of stopping the transactions, to declare
them void, to protect my mother because she had lost all
her
assets”].
90.
Mrs Meyer’s son Anton testified that,
after the consultation with Mr van Wyk, Marius requested him to
consult an advocate
at the Cape Bar on his behalf. Anton complied
with this request, and took his brother Henk with him to consult.
The advocate
advised them that Mrs Meyer would have to institute
court proceedings to reverse the transactions. Anton decided
not to follow
this advice, because he felt that Mrs Meyer would not
have survived the ordeal of a court case. Anton nevertheless
knew at
that stage that grounds existed upon which both transactions
could be set aside. Marius and Anton however both subsequently
decided to
"walk away"
from
the matter. The internal family relations were unhealthy.
91.
On Anton’s and Marius’s
evidence, all that Mrs Meyer needed to do was to enquire from any of
her sons Marius, Henk or
Anton what the outcome was of Mr Van Wyk's
advice to Marius, as set out in the memorandum. She could also have
asked Mr van Wyk
about the matter, given what he had told her during
her consultation with him. Given how heavily the burden of the
situation
rested on her shoulders according to her evidence, it is
inexplicable that she did not do this in the “
exercise
of reasonable care
” as
contemplated in
section 12(3)
of the
Prescription Act.
92.
>
In the interlocutory application, Mrs Meyer
alleged that when she received the schedule of intended payments for
the house from
Nico it led her
"to
the suspicion that Nico defrauded, not only
me,
but the fiscus".
Nico
testified that although he could not recall exactly when this
schedule was drawn up by him and handed to Mrs Meyer, it must
have
occurred before the instalment payments in respect of the sale of the
house commenced in March 2016. On this version, Mrs
Meyer already had
serious suspicions at least in respect of the sale of the house when
she accompanied Marius to the consultation
with Mr van Wyk on 31
March 2016.
93.
I
agree with the submission by Nico’s counsel that on a
consideration of the totality of the evidence, Mrs Meyer knew or
ought reasonably to have known by April 2016 that she was entitled to
challenge the validity of the transactions. If she had exercised
reasonable care, she would in any event during that time have
acquired the minimum facts
[29]
necessary to institute a claim for the re-transfer of the properties,
more than three years before the institution of the action
in
December 2020.
94.
Mrs Meyer’s claims for the retransfer
of the properties have accordingly prescribed.
Mrs Meyer’s
claim for the setting aside of the winding-up and dissolution of AJM
Ondernemings (previously “Rotsvas”)
95.
This claim was not pursued with any vigour.
96.
Mrs Meyer pleaded in the particulars of
claim that she, as shareholder and director of AJM Ondernemings (the
new name for Rotsvas)
,
seeks
the setting aside of its winding-up and subsequent dissolution. No
grounds for this relief are disclosed in the particulars
of claim,
and Mrs Meyer did not make out a case for it in her evidence.
97.
The highwater mark of her evidence in
respect of this claim is that Nico had told her at some stage ("
op
'n stadium”)
that the banking
account of Rotsvas had to be closed. When she asked why this should
be done, Nico replied that the company was
insolvent. Whilst it
is improbable that Mrs Meyer would have been satisfied with this curt
explanation at the time (her relationship
with Nico was still very
close), the fact remains that she had signed the special resolution
to place Rotsvas (or AJM) under
voluntary liquidation in terms
of sections 349 and 351 of the Companies Act, 1973. There is no
evidence upon which this resolution
could or should be set aside.
The claim for the
rendering of an account
98.
Mrs Meyer claims, in the alternative, that
Nico should render an account to her, particularly in relation to the
sale of the properties.
In the particulars of claim she alleges
that Nico and/or De Villiers,
"by
virtue of the relationships and/or the agreement",
are
obliged to render a full account of the “
transactions
”.
99.
The
present matter is however not one in which the rendering of an
account can be claimed. The object of a claim for an account
and debatement thereof is to enable the plaintiff to establish
whether the defendant is indebted to the plaintiff. In order
to
succeed with a claim for the rendering of an account, a plaintiff
must allege and prove a fiduciary relationship between the
parties
which obliges the person in a fiduciary position to provide an
account, or a contractual obligation to render an account,
or a
statutory duty to render an account.
[30]
100.
On the evidence neither a contractual
obligation nor a statutory duty to render an account in respect of
the transactions has been
shown. Nico testified that he had
assisted his mother because he loved her, not because of any
fiduciary duty resting on
him. Mrs Meyer’s counsel
conducted his cross-examination of Nico and Sheila primarily on the
basis of a duty to disclose
information in respect of the
transactions recorded on the bank statements of Rotsvas, but no claim
for the rendering of an account
in respect of those transactions (in
particular various payments between Rotsvas and Nico’s family
members) is set out in
the particulars of claim.
101.
It appeared from the evidence that Nico in
any event did not manage or conduct transactions on the banking
account of Rotsvas. This
was done by Sheila, on Mrs Meyer’s
instructions. There was some to-ing and fro-ing about whether
Mrs Meyer had in fact
given instructions – Sheila said she (Mrs
Meyer) did, and Mrs Meyer’s counsel suggested that this was
untrue because
those instructions, insofar as they had been in
writing, had not been discovered. Be that as it may, no case is
pleaded against
Sheila (who is not a party to the action) for the
rendering of an account, and no case was made out to the effect that
Sheila was
effectively Nico’s alter ego.
102.
The alternative claim therefore falls to be
dismissed.
Conclusion
103.
I accordingly find, for the reasons set out
above, that Mrs Meyer has not discharged the burden resting upon her
to prove her claims.
Her claims for the retransfer of the
properties have, in any event, prescribed.
Costs
104.
There is no reason why costs should not
follow the event. The parties were represented by senior
counsel who appeared without
juniors. In the exercise of my
discretion under Rule 67A, I regard the issues raised in the matter
as sufficiently complex
to warrant counsel’s fees taxed on
Scale C in relation to fees incurred from 12 April 2024 onwards.
Order
105.
In the circumstances, the plaintiff’s
claims are dismissed, with costs, including counsel’s fees
taxed on Scale C.
P. S. VAN ZYL
Acting Judge of the
High Court
Appearances:
For
the plaintiff:
Mr P. A. Myburgh SC, instructed by Dunsters
Attorneys Inc.
For
the first and second defendants:
Mr P. Vivier SC, instructed by Fourie Basson
Veldtman Attorneys
[1]
Psalm
133 from the Bible (King James version).
[2]
Mr
and Mrs Meyer divorced in 1986, and Mr Meyer has since passed away.
[3]
I
shall, for the sake of convenience, refer to the sons by their first
names.
[4]
Registration
number 1969/010570/07. The company’s name was later changed to
AJM Ondernemings (Pty) Ltd.
[5]
IT001947/2015.
[6]
IT001945/2015.
[7]
With
reference to
KPMG
Chartered Accountants v Securefin Ltd
2009
(4) SA 399
(SCA) para 39. See also
University
of Johannesburg v Auckland Park Theological Seminary and another
2021 (6) SA 1
(CC) paras 88-92.
[8]
[2010]
2 All SA 474
(SCA) para 11.
[9]
Minister
of Safety and Security v Slabbert supra
para 12.
[10]
“
The
lady doth protest too much, methinks
”
(Shakespeare
Hamlet
Act III, Scene II).
[11]
The
translation of the Afrikaans into English is mine throughout this
judgment.
[12]
The
so-called Malgas property.
[13]
See
Nedperm
Bank Ltd v Verbri Projects CC
1993 (3) SA 214
(W) at 220B.
[14]
Prescription
Act, section
12:
“
(1)
Subject to the provisions of subsections (2), (3), and (4),
prescription shall commence
to run as soon as the debt is due.
(2)
If the debtor wilfully prevents
the creditor from coming to know of the existence of
the debt,
prescription shall not commence to run until the creditor becomes
aware of the existence of the debt.
(3)
A debt shall not be deemed to
be due until the creditor has knowledge of the identity
of the
debtor and of the facts from which the debt arises: Provided that a
creditor shall be deemed to have such knowledge if
he could have
acquired it by exercising reasonable care.”
[15]
Sentrachem
v Prinsloo
1997 (2) SA 1
(A) at 15C-H.
[16]
Makate
v Vodacom
2016
(4) SA 121
(CC) paras 187-188. Emphasis supplied.
[17]
Absa
Bank Bpk v Janse van Rensburg
2002
(3) SA 701
(SCA) para 14. My translation.
[18]
[2025] ZAWCHC 246
(10 June 2025) paras 53-56. Emphasis supplied.
[19]
See
Nedcor
Bank Bpk v Reqering van die Republiek van SuidAfrika
[2000] ZASCA 154
;
2001 (1) SA 987
(SCA) para 4.
[20]
[2010]
3 All SA 497 (SCA).
[21]
Leketi
v Tladi supra
para 8.
[22]
Prescription
Act, section
11(d): “
11.
The
periods of prescription of debts shall be the following: …
(d) save where an Act of Parliament provides otherwise,
three years
in respect of any other debt.
”
[23]
With
reference to the proviso in
section 12(3)
of the
Prescription Act.
[24
]
Leketi
v Tladi NO supra
para 10.
[25]
At
para 18.
[26]
2018
(1) SA 384 (SCA).
[27]
Ethekwini
Municipality v Mounthaven supra
paras 15-16.
[28]
Ethekwini
Municipality v Mounthaven (Pty) Ltd
2019
(4) SA 394
(CC) para 8.
[29]
See
Fluxmans
Inc. v Levenson
2017 (2) SA 520
(SCA) para 42.
[30]
Brown
and others v Yebba CC t/a Remax Tricolor
2009 (1) SA 519
(D);
Absa
Bank v Janse van Rensburg
supra
paras
14-16.
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