Case Law[2025] ZAWCHC 326South Africa
Overberg Vee Boerdery CC and Others v Overberg Agri Bedrywe (Pty) Ltd (22984/23) [2025] ZAWCHC 326 (1 August 2025)
Headnotes
Summary: rescission of judgment – uniform rule 31, alternatively common law – good cause – reasonable explanation – application is bona fide –bona fide defence – opinion evidence vis-à-vis expert evidence.
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: Western Cape High Court, Cape Town
South Africa: Western Cape High Court, Cape Town
You are here:
SAFLII
>>
Databases
>>
South Africa: Western Cape High Court, Cape Town
>>
2025
>>
[2025] ZAWCHC 326
|
Noteup
|
LawCite
sino index
## Overberg Vee Boerdery CC and Others v Overberg Agri Bedrywe (Pty) Ltd (22984/23) [2025] ZAWCHC 326 (1 August 2025)
Overberg Vee Boerdery CC and Others v Overberg Agri Bedrywe (Pty) Ltd (22984/23) [2025] ZAWCHC 326 (1 August 2025)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAWCHC/Data/2025_326.html
sino date 1 August 2025
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
### JUDGMENT
JUDGMENT
Reportable/Not
Reportable
Case no: 22984/23
In the matter between:
OVERBERG VEE BOERDERY
CC
FIRST APPLICANT
SERVAAS DANIËL
SMAL
SECOND APPLICANT
ABRAHAM DANIEL
ROUX
THIRD APPLICANT
ROUX LEWENDE HAWE
CC
FOURTH APPLICANT
and
OVERBERG AGRI BEDRYWE
(PTY) LTD RESPONDENT
Neutral
citation:
Overberg Vee Boedery CC
and 3 others v Overberg Agri Bedrywe (Pty) Ltd (Case no 22984/23)
[2025] ZAWCHC (01 August 2025)
Coram:
NJOKWENI AJ
Heard:
8 MAY 2025
Delivered
:
01 AUGUST 2025
Summary:
rescission of judgment –
uniform rule 31, alternatively common law – good cause –
reasonable explanation –
application is bona fide –bona
fide defence – opinion evidence vis-à-vis expert
evidence.
# JUDGMENT
JUDGMENT
Njokweni AJ
INTRODUCTION
[1]
This
is an opposed application for rescission of judgment granted against
the Applicants on 15 April 2024 under the above-mentioned
case
number. The application is brought by the Applicants in terms of
uniform rule 31
[1]
,
alternatively common law.
[2]
This action was commenced by way of
combined summons (“summons”) and on 18 December 2024, the
summons was served by
the sheriff upon the Applicants separately. The
summons required the sheriff to
inter
alia
inform the Applicants that:
(a)
Respondent has instituted an action against
them as set out in the particulars of claim attached to the summons.
(b)
if they intend to defend the action, they
must within ten (10) days of service upon them of the summons deliver
a notice of intention
to defend by service of a copy thereof on the
registrar of this Court.
(c)
after delivery of their notice of intention
to defend, they must deliver their plea (a statement of defence).
(d)
failure to deliver a notice of intention to
defend within the ten (10) days stipulated thereon, judgment in
default may be entered
against them.
[3]
Summons having been duly served as
aforesaid, the Applicants failed to deliver notice of intention to
defend within the ten (10)
days from the date of service of the
summons upon them.
[4]
In the result, on 15 April 2024 the
Respondent successfully applied for default judgment against the
Applicants for payment of R455 110.86
together with interest and
costs.
[5]
It is this default judgment that the
Applicants seek to be rescinded in this application.
THE RELEVANT FACTS
[6]
The first Applicant owns a lucerne farm in
Leeu-Gamka, Western Cape province (“the farm”). The
Respondent is the supplier
of irrigation systems. The Second, Third,
and Fourth Applicants are sureties and co-principal debtors for First
Applicant’s
liabilities and debts to Respondent. As sureties
and co-principal debtors, the Second to Fourth Applicants are jointly
and severally
to the Respondent.
[7]
In December 2019, the Second Applicant
approached the Respondent for the design and installation of an
irrigation system for an
8-hectare new lucerne field on the farm. On
4 May 2020, Mr Lombard, the Respondent’s then manager,
conducted soil and water
quality tests on the farm and provided the
First Applicant with a final design and quotation for the design,
supply and installation
of the irrigation system.
[8]
In July 2020, the First Applicant and the
Respondent concluded a written credit agreement in terms whereof the
Respondent
inter alia
agreed to design, supply and install the necessary irrigation system.
In terms of the credit agreement the Respondent designed,
supplied
and installed the irrigation system for new lucerne field at the farm
at a total cost of R455 110.86.
[9]
In February 2021, the Second Applicant
complained about the irrigation system’s performance and
refused to repay the amount
of R455 110.86 to the Respondent. In
the result, in March 2021 the Respondent appointed an independent
expert, Netafim, to
investigate the First Applicant’s
complaints. Netafim found no faults in the irrigation system.
[10]
In July 2021 the Second Applicant
complained of a 30% loss of production on the newly irrigated lucerne
field allegedly due to poor
design and installation of the irrigation
system by the Respondent. The Respondent conducted a further
inspection of the irrigation
system in March 2022 which found the
system functioned but was poorly managed by the First Applicant. The
First Applicant refused
to pay the balance due to Respondent,
claiming damages of approximately R500 000 for the alleged 30%
production loss.
[11]
On 6 October 2023, the Respondent sent a
letter of demand to the First Applicant for payment of the
outstanding amount of R455 110.86
which was due and payable. On
14 November 2023, the Applicant’s attorneys, Mr Marais
(“Marais”) replied to the
letter of demand on behalf of
the First Applicant and informed the Respondent’s attorney that
a counterclaim will be instituted
for damages suffered by the First
Applicant for 30% production loss.
[12]
Following the above, and during the latter
part of November 2023, alternatively early December 2023, it was then
agreed between
the legal representatives of the Applicants and the
Respondent that it would be best to engage in round table discussions
in an
attempt to resolve the dispute.
[13]
According to Marais, the Respondent’s
attorney later in December 2023 informed him that prescription may be
an issue for the
Respondent, and as a result, the Respondent would
proceed to issue summons for the sole purpose of interrupting
prescription pending
finalization of the proposed round table
discussions to be held in 2024. Indeed, on 14 December 2023 the
Respondent issued summons
against the Applicants for the amount owing
to the Respondent in terms of the credit agreement being R455 110.86.
[14]
The summons was duly served on the
Applicants but none of them defended the action. In the result, the
Respondent applied for default
judgment against the Applicants and on
15 April 2024 default judgment was granted against the Applicants
(jointly and severally
one paying the other to be absolved) for the
payment of R455 110.86 together with interest and costs.
[15]
On 5 July 2024 the Applicants launched this
rescission application, which is opposed by the Respondent
inter
alia
on the basis that the Applicants
were in wilful default of appearance to defend, and that the
Applicants do not have a
bona fide
defence to the Respondent’s claim.
ISSUES IN DISPUTE
[16]
The issues in dispute in this application
are whether the Applicants’:
(a)
default of delivery of notice of intention
to defend was wilful.
(b)
rescission application is
bona
fide
and not filed with intent to delay
the Respondent’s claim.
(c)
have
a
bona fide
defence to the
Respondent’s claim.
(d)
have
shown good cause to rescind the
default judgment.
APPLICABLE
LAW
[17]
Once made, an order of Court can be rescinded by
the Court in which the order was made, in terms of:
(a)
Section 23A of the Superior Courts Act 10 of 2013;
(b)
Rule 31;
(c)
Rule 42; and
(d)
Common
law.
[2]
[18]
The present application is brought in terms
of Rule 31 and/or common law. Rule 31(2)(b) reads as follows:
‘
Applicant
may within 20 days after acquiring knowledge of such judgment apply
to court upon notice to the Respondent to set aside
such judgment and
the court may, upon good cause shown, set aside the default judgment
on such terms as it deems fit.’
[19]
The
grounds for rescission in terms of common law are succinctly stated
in
Colyn
v Tiger Food Industries Ltd t/a Meadow Feed Mills (Cape)
[3]
per
Jones AJA (with Olivier JA and Cameron JA concurring), where the
Court held:
‘
[11]
I turn now to the relief under the common law. In order to succeed an
Applicant for rescission of a judgment taken against
him by default
must show good cause (
De
Wet and others v Western Bank Ltd
[4]
).
The authorities emphasize that it is unwise to give a precise meaning
to the term good cause. As Smalberger J put it in
HDS
Construction (Pty) Ltd v Wait
:
“
When
dealing with words such as “good cause” and “sufficient
cause” in other Rules and enactments the Appellate
Division has
refrained from attempting an exhaustive definition of their meaning
in order not to abridge or fetter in any way the
wide discretion
implied by these words... The Court’s discretion must be
exercised after a proper consideration of all the
relevant
circumstances.”
...With that as an
underlying approach the courts generally expect an Applicant to show
good cause (a) by giving a reasonable explanation
of his default; (b)
by showing that his application is made bona fide; and (c) by showing
that he has a bona fide defence to the
Respondent’s claim which
prima facie has some prospects of success (
Grant v Plumbers (Pty)
Ltd, HDS Construction (Pty) Ltd v Wait
supra,
Chetty v Law
Society, Transvaal).’
[20]
This
position has also been confirmed by the Constitutional Court in
Zuma
v Secretary of the Judicial Commission of Inquiry into Allegations of
State Capture, Corruption and Fraud in the Public Sector
Including
Organs of State and Others
[5]
,
where
the majority of the Apex Court, penned by Khampepe J, held that:
‘
[71]
As an alternative to rule 42, Mr Zuma pleads rescission on the basis
of the common law, in terms of which an Applicant is required
to
prove that there is ‘sufficient’ or ‘good cause’
to warrant rescission. ‘Good cause’ depends
on whether
the common law requirements for rescission are met, which
requirements were espoused by the erstwhile Appellate Division
in
Chetty, and affirmed in numerous subsequent cases, including by this
Court, in Fick. In that matter, this Court expressed the
common law
requirements thus:
“
the
requirements for rescission of a default judgment are twofold. First,
the Applicant must furnish a reasonable and satisfactory
explanation
for its default. Second, it must show that on the merits it has a
bona fide defence which prima facie carries some
prospects of
success. Proof of these requirements is taken as showing that there
is sufficient cause for an order to be rescinded.
A failure to meet
one of them may result in refusal of the request to rescind
.”
’
[21]
Thus, the requirements for an application
for rescission can be summarised, that:
(a)
The Applicant must give a reasonable
explanation for his/her default;
(b)
The application must be
bona
fide
and not made with the intention of
merely delaying the Respondent’s claim;
(c)
The Applicant must show a
bona
fide
defence to the
claim.
[22]
Accordingly, to succeed in an application
in terms of Rule 31 or common law the Applicants must explain their
default and set out
a bona fide defence to the Respondent’s
claim.
[23]
The
onus of setting out reasons for his/her non-appearance is upon the
Applicant who must: ‘furnish an explanation for his
default
sufficiently full to enable the Court to understand how it really
came about and to assess his conduct and motives.’
[6]
[24]
In
respect of the alleged defence raised by the Applicants, the onus
rests upon them to demonstrate that they have a
bona
fide
defence to the claim which carries some prospect of success.
[7]
APPLICATION OF LAW TO
THE FACTS
Analysis
of the Applicant’s reasons for default of appearance to defend
[25]
The Applicants contend that none of the
Applicants were in wilful default of delivery of a notice of
intention to defend the main
action.
Ad service on First
and Second Applicants
[26]
The First and Second Applicants admit that
on 18 December 2023, the Sheriff served the summons upon a Ms. Swart,
a major female
employee of the First Applicant, at the First
Applicant’s place of business. It is contended that Ms. Swart,
mistakenly filed
away the summons served on her and had forgotten
about it, as she believed it was another letter of demand from the
Respondent.
[27]
It was contended that this was so because,
previously the sheriff has served letters of demand from the
Respondent at the First
Applicant’s place of business and these
letters were apparently received by Ms Swart who would forward them
to the Second
Applicant.
[28]
Ms Swart should have perused the “document”
served on her by the sheriff in December 2023. She is used to
receiving
documents served by the sheriff (i.e. previous letters of
demand) relating to the Respondent’s dispute with the
Applicants
and which on her version forwarded to the Second Defendant
immediately on receipt. Had she done so, she would have clearly
realised
that the “document” served on her was a summons
issued by the Respondent against the Applicants and would have surely
alerted the Second Applicant accordingly.
[29]
In worst case scenario, on return from
annual leave in January 2024 Ms Swart should have given the Second
Applicant the “document”
served on her by the sheriff in
December 2023. She did not do so because she forgot. Had she done so,
the Second Applicant would
have realised that the “document”
was a summons not a letter of demand. There was no claim in the
Applicants’
papers that either Ms Swart or the Second Applicant
are illiterate and could not understand the content of the “document”
so served as to appreciate its purport. This has nothing to do with
having never been served with summons before, it is simple
neglect of
the summons.
[30]
I pause to mention that the Second
Respondent is the sole member of both the First and Fourth
Applicants, and thus their controlling
mind. After receipt of the
previous letters of demand, the Second Applicant forwarded same to
Marais. In the result, it is contended
that the Second Applicant was
also under the impression that the summons (which he refers to as the
‘document’) that
was served on Ms Swart was a letter of
demand and did not realize it was a summons that required action.
[31]
The Second Applicant contends that he only
became aware at a much later stage that the document that was served
by the sheriff on
18 December 2023 was in fact a summons when the
sheriff attended at the First Applicant’s place of business on
7 June 2024
in order to execute a warrant of attachment, apparently
issued pursuant to the default judgment granted in favour of the
Respondent.
[32]
According to the Second Applicant, he
immediately contacted Marais and informed him that the sheriff wanted
to attach goods in satisfaction
of a judgment having been granted in
favour of the Respondent, and that Marais was equally shocked by this
as he advised that a
summons had to be served first before judgment
could be obtained. Strangely, the Second Applicant confirms that
prior to the service
of summons on Ms Swart, the Sheriff contacted
him telephonically in December 2023 but that he was informed during
that conversation
that the sheriff had to serve ‘a document’
(not a summons) in respect of the Respondent. He was not informed
about
the nature of the document to be served.
[33]
He also states that he had no idea what a
summons was and what it entails as he has never before been sued nor
had he ever sued
anyone and thus has never dealt with nor seen a
summons. He was under the impression that the dispute was being
handled by the
legal representatives and was awaiting feedback on
round table discussions.
[34]
The Second Applicant was on the same date
of service of summons upon Ms Swart informed by the Third Applicant
that he was served
with a “letter” by the sheriff but did
not recognize it as a summons. The Second Applicant advised the
Third
Applicant not to be concerned, believing it was another letter
of demand related to the ongoing dispute with the Respondent.
[35]
First, it is apposite to state that it
cannot be disputed that the summons in the main action was correctly
served upon the Applicants.
It is not and cannot be contended
that there was any procedural irregularity which flowed from service
and the subsequent granting
of the default judgment.
[36]
The Second Applicant in his own version was
informed by the sheriff in December 2023 that he wanted to serve a
“document”
on him. He (the Second Applicant) informed
sheriff to serve that “document” upon Ms Swart at their
offices. On his
return to office in January 2024, the Second
Applicant should have enquired from Ms Swart about the “document”
served
by the sheriff in December 2023 so that he could satisfy
himself that indeed that “document” was just another
letter
of demand which he would, as a norm, have forwarded Marais for
legal advice.
[37]
The Second Applicant simply did not do so,
because he thought this was another letter of demand. Strangely, he
did not ignore previous
letters of demand from the Respondent, he
forwarded them to Mr Marais for legal advice. The Second Applicant
should not have assumed
that the documents served by the Sheriff were
simply letters and should have made enquiries from Mr Roux and Ms
Swart or even his
attorney, Mr Marais (as he did when the sheriff
served the warrant of execution).
[38]
It was argued for the Applicants that
Marais was not informed about the summons and was unaware that steps
needed to be taken to
defend the action. He only learned about the
default judgment in June 2024 when contacted by the Second Applicant.
Notably, in
the Applicants own version, Marais was notified by the
Respondent’s attorney that summons was going to be issued to
interrupt
prescription. Marais would have been alive to the date of
prescription of the Respondent’s claim against the Applicants
hence
he agreed. That being the case, surely after that date of
prescription it would be reasonable to expect Marais to have enquired
(at least from the Applicants) whether summons had been served.
Accordingly, Marais should clearly have informed his clients that
service of a summons was imminent and should be on the lookout for
same. The failure of the Applicants attorney to inform the Applicants
to do so is not conduct which could or should be attributed to the
Respondent but should have caused the Applicants to be more
diligent
about served documents.
[39]
The notification of Marais by the
Respondent’s attorney of their intention to issue summons to
interrupt prescription, without
more, is no reasonable explanation or
excuse not to defend the summons. If there was a written undertaking
from the Respondent’s
attorneys that summons was going to be
issued to interrupt prescription and that no further steps would be
taken in the litigation
until a reasonable notice is given to the
Applicants’ attorney to do so, then in that event, there would
clearly be reasonable
excuse why the action was not defended.
[40]
In
casu
,
no such written undertaking was given by the Respondent’s
attorneys. That deals with the issue of an alleged agreement
that
summons was issued only to interrupt prescription.
Ad
service on the Third Applicant
[41]
The summons was served on the Third
Applicant (Second Applicant’s father in-law) on 18 December
2023 at his place of residence.
The Third Applicant contacted the
Second Applicant after receipt thereof and informed him that a
‘letter’ was served
on him by the Sheriff, and that it
was in respect of a debt that is allegedly due to the Respondent. The
Third Applicant did not
mention to the Second Applicant that it was a
summons, and significantly, the Third Applicant was unsure as to why
the ‘letter’
was served on him as he was retired and not
indebted to the Respondent.
[42]
As Marais was attending to the dispute, as
stated above, the Second Applicant was under the impression that the
‘letter’
was again referring to a letter of demand and as
such advised the Third Applicant not to be concerned therewith.
[43]
It was also submitted, both Marais and the
Second Applicant (and by implication the First Applicant and the
Fourth Applicants) were
unaware at the time that a summons had
earlier been served which required steps to be taken in defending the
action as instituted
on the basis as set out above.
[44]
In light of the above, it was contended
that the Third Applicant was also unaware that it was indeed a
summons that was served on
him as surety, and as he was informed by
the Second Applicant that Marais was already attending to the
dispute, he was clearly
unaware that he was required to take further
steps in defending same.
[45]
Based on the above, it was submitted that
the Applicants have provided a satisfactory explanation for their
default in that the
explanation provided:
(a)
Constitutes a reasonable explanation with
sufficient details and/or particularity in order for the Honourable
Court to understand
how the default came about;
(b)
Clearly evidences that none of the
Applicants acted wilfully, as wilful connotes deliberateness in the
sense of knowledge of the
action or consequences and a conscious and
freely taken decision to refrain from giving notice of intention to
defend.
[46]
In
this regard the Applicant’s counsel referred me to
Harris
v Absa Bank Ltd t/a Volkskas
[8]
,
where it was held that before an applicant in a rescission of
judgment application can be said to be in ‘
wilful
default’
he or she must bear knowledge of the action brought against him or
her and of the steps required to avoid the default. Such an
applicant
must deliberately, being free to do so, fail or omit to take the
steps which would avoid the default and must appreciate
the legal
consequences of his or her actions.
[47]
It was argued for the Applicants that none
of the Applicants acted grossly negligent in failing to take steps to
defend the action
as instituted against them.
[48]
It was further argued for the Applicants
that the explanation given by the Applicants does not evince
reprehensible or grossly negligent
conduct on the part of the
Applicants’ legal representative as it is clear that Marais was
also not aware that a summons
was served on the Applicants prior to
being informed thereof during June 2024.
[49]
In conclusion, it was submitted for the
Applicants that none of the arguments presented by the Respondent in
disputing the explanation
provided for the Applicants’ default,
as set out in its Answering Affidavit, establish gross negligent
conduct on the part
of the Applicants or Marais, nor does it at all
show wilful default on the part of the Applicants.
[50]
The
respondents argued that the explanation for the Applicants’
default in defending the matter involves the failure of a
number of
persons to appreciate that a summons was served on them. In
addition, the Second Defendant, despite knowing that
documents were
served upon the receptionist of the First Applicant failed to make
any attempts to ascertain what was served when
he returned from
holiday. Furthermore, the Third Applicant, who was personally
served with a summons, apparently did not
appreciate the nature of
the document which was served on him and did not bring it to anyone’s
attention. What makes
matters worse is that the Applicants’
attorney was aware of the fact, because he was told as much by the
Respondent’s
attorney, that a summons would be served to
interrupt prescription. The explanation which has been advanced by
the Applicants stretches
the bounds of what is believable. In
Rose
and Another v Alpha Secretaries Ltd
[9]
the
Appellate Division stated:
‘
It
seems to be undesirable to attempt to frame a comprehensive test as
to the effect of an attorney’s negligence on his client’s
prospects of obtaining relief under sub-rule (2) or to pay down that
a certain degree of negligence will debar the client, and
another
degree will not. It is preferable to say that the court will
consider all the circumstances of the particular case
in deciding
whether the Applicant has shown something which justifies the court
holding in the exercise of its wide discretion
that sufficient cause
for granting relief has been shown.’
[51]
In
Athmaram
v Singh
[10]
the
court considered whether the failure of an attorney to perform
certain acts constitutes an acceptable explanation for a delay.
The
court considered this and held that blame in that matter lay
primarily with the attorney but that in any event the defence
to the
claim in question tipped the balance in favour of the Applicant.
[11]
[52]
The Third Applicant upon whom summons was
served personally, and who informed the Second Applicant of service
of a “document”
by the sheriff ought to have read the
document and in doing so, he would have realised that the document is
a summons. He ignored
it because he was under a mistaken belief that
since he was no longer a member of the First Applicant, he was not
liable to the
Respondent.
[53]
The basis for assuming that the summons
that was served on all the Applicants seems to lie on failure by the
sheriff when serving
the summons to explain to the Applicants the
nature and exigence of the “document” served. However,
the sheriff was
not joined in this application so as to answer such
serious allegations. In the result, this court must and does accept
the content
of the sheriff’s return of service of summons that
when summons was served on each of the Applicants, he explained the
nature
and exigence of the summons or “document” so
served.
[54]
In the result, I find that the Applicants’
explanation for failure to defend the summons is not satisfactory and
is unreasonable.
[55]
However, even though I have found the
explanation for default to be unreasonable and unsatisfactory, this
is not the end of the
enquiry to decide whether to grant rescission
or not. Accordingly, I proceed to determine whether the Applicants
have a
bona fide
defence to the Respondent’s claim.
Bona
fide
defence and counter claim
[56]
The Applicants argued that they have a
defence to the Respondent’s claim
inter
alia
for the following reasons:
(a)
The suretyship agreements concluded by the
Second and Third Applicants were signed in 2008 and allegedly could
not be used to find
a claim based on a written agreement concluded by
the First Applicant (represented by Mr Smal) in July 2020. The
argument
is advanced that the suretyship agreements concluded in 2008
by the Second to Fourth Applicants were in respect of a particular
project.
(b)
Mr Lombard was negligent in respect of
advice given to the First Applicant in respect of an irrigation
system for lucerne which
was planted on the farm.
(c)
The First Applicant suffered 30%
production loss in respect of that advice as the maximum space
between the drippers was 1.2m when
it should have been 0.8m.
[57]
In the result, the Applicants contend that
the First Applicant has a damages claim against the Respondent and
that the sureties
would be entitled to rely upon that claim as a
defence.
[58]
The Respondent’s position
apropos
Applicants alleged
bona fide
defence and counter claim is, in summary, as follows:
(a)
The
First Applicant’s alleged damages claim is precluded by the
terms of the credit facility and in particular clause 13.1.3
[12]
thereof.
(b)
In any event, the First Applicant’s
damages claim has prescribed. A letter of demand was received by Mr
Smal on behalf of
the First Applicant on 29 July 2021 which
demonstrates that he had knowledge of the facts giving rise to the
alleged claim on that
date, at the very latest. Thus, the First
Applicant’s claim in respect of damages would have prescribed
on 29 July
2024.
(c)
If such a claim is not contractually
excluded and had not already prescribed, the allegations of
negligence and deficient design
are not based on any facts. The
annexures to the founding affidavit demonstrate that the drippers in
respect of the irrigation
system was specified as being 0.6m apart
and not 1.2m apart as alleged by the Applicants.
(d)
There is after all these years of an
intended claim by the First Applicant, still no admissible expert
evidence of any nature to
sustain the allegations of negligence or
improper design which have been made.
(e)
The First Applicant’s alleged damages
claim remains not quantified and illiquid. It is merely a
speculative estimate
by Mr Smal which lacks any factual
foundation.
[59]
The
Court may set aside a default judgment on such terms as it deems, if
it is satisfied that good cause therefore has been shown.
One of the
requirements for good cause is that the defendant must show that he
has a bona fide defence to the plaintiff’s
claim. Bona fide
defence in this context means a prima facie defence setting out
averments which if established at the trial would
entitle the
defendant to the relief asked for.
[13]
[60]
In
Grant
v Plumbers (Pty) Ltd
[14]
it
was held:
‘
for
the proposition that in making out his case for rescission an
applicant must show that his application is bona fide and not
made
with the intention of merely delaying the plaintiff’s claim’.
In
respect of the need for an applicant to show that he has a good
defence on the merits, Brink J referred (at 475) to the following
words of Curlews J in Joosub v Natal Bank
[15]
-
“
I
do not think the Court should scrutinise too closely whether the
defence is well-founded, as long as prima facie there appears
to the
Court sufficient reason for allowing the defendant to lay before the
Court the facts he thinks necessary to meet the plaintiff’s
claim.”
At 476
to 477 Brink J stated further in respect of the requirement of
showing that he has a bona fide defence that “(i)t is
sufficient if he makes out a prima facie defence in the sense of
setting out averments which, if established at the trial, would
entitle him to the relief asked for. He need not deal fully with the
merits of the case and produce evidence that the probabilities
are
actually in his favour.’
[16]
(Brink
J’s judgment was referred to with approval by Jones AJA in
Colyn
v Tiger food Industries Limited t/a Meadow Feed Mills (CAPE)
.
[17]
[61]
First, in the present application under
consideration, the First Applicant’s claim is based on the
allegation that the drippers
in the irrigation system should have
been spaced 800mm apart instead of 1.2m, leading to insufficient
irrigation. However, this
claim is contradicted by the evidence
provided in annexures to the founding affidavit. Multiple documents,
including emails and
letters from Mr. Lombard, specify that the
drippers were spaced 600mm apart, which is less than the alleged
800mm.
[62]
The Applicants have not provided expert evidence
to support their claim, and the Respondent has demonstrated that
there is no factual
basis for the allegations. The Applicants have
failed to address this contradiction in their reply and have not
established a prima
facie case. Consequently, there is no admissible
evidence to prove any defect in the irrigation system’s design,
undermining
the Applicants’ defence against the Respondent's
claim.
[63]
The Independent expert appointed by the Respondent
found that the irrigation was functioning properly but was poorly
managed by
the First Applicant.
[64]
Second, the sureties fall into two groups, being
those who signed suretyship agreements in 2008 (being Mr Smal and Mr
Roux) and
the Fourth Applicant in respect of which Mr Smal signed a
suretyship in 2020. An argument was advanced that the sureties
who signed in 2008 should not be held liable in respect of the
suretyship agreements on the basis that they were signed years prior
to the agreement upon which the Respondent’s claim is based.
That argument can be disposed of simply by reference to the
terms of
the suretyship agreements which provide that the surety would be
liable in respect of any debt which existed, or which
may in the
future exist.
[65]
There is also no indication in the suretyship
agreements that they relate to any particular project and the
argument that they would
be limited to a single transaction or cause
would of course contradict their express terms. That argument can
safely be rejected
as the suretyship agreements are clearly all
unlimited.
[66]
Section 6 of the General Law Amendment Act 50 of
1956, provides that the “suretyship agreement will only be
valid if the terms
thereof have been embodied in a written document
signed by the surety”. It is trite that a suretyship agreement
must set
out the identity of the creditor, the surety, the principal
debtor and that the nature and amount of the principal debt must be
capable of ascertainment by reference to the provisions of the
suretyship.
[67]
In
Sapirstein
and Others v Anglo African Shipping Co (SA) Ltd
[18]
,
the debt in the suretyship was defined in a similar manner, to wit:
“all sums of money which the debtor may have in the
past owed
or may presently or in the future owe”. In identifying the debt
referred to in the suretyship, the court held as
follows:
‘
And,
if such a contract of suretyship is recorded in writing, it follows
that extrinsic evidence must necessarily be admissible
to prove that
the principal obligation has come into existence, and to establish
the amount of the obligation if, as in this case,
the guarantee is an
unlimited continuing guarantee for payment of all sums of money which
the principal debtor may in future owe
to the creditors.’
[68]
The provisions of section 6 of Act 50 of
1956 do not invalidate a contract of suretyship of this sort
provided, of course, such
contract is embodied in a written document,
and it is signed by or on behalf of the surety. What section 6
requires is that the
“terms” of the contract of
suretyship must be embodied in the written document.
[69]
This meant that the identity of the
creditor, of the surety and of the principal debtor, and the nature
and amount of the principal
debt, must be capable of ascertainment by
reference to the provisions of the written document, supplemented, if
necessary, by extrinsic
evidence of identification other than
evidence by the parties (i.e. the creditor and the surety) as to
their negotiations and consensus.
[70]
In the present application, a certificate
of balance indicating the amount owing by the First Applicant in
terms of the written
credit agreement was attached to the summons.
Thus, the nature and amount of the debt was thus identified, and the
suretyship complies
with section 6 of the General Law Amendment Act.
[71]
Accordingly, the provisions of section 6 of
Act 50 of 1956 do not invalidate a contract of suretyship of this
sort. In the result,
the suretyship agreement is valid and binding
against the Second, Third and Fourth Applicant.
[72]
The second issue related to the suretyship
agreement is the alleged counter claim that the Applicants have
against the Respondent
and the amount of which it is alleged exceeds
the Respondent’s claim. Thus, it was argued for the Applicants
that it will
have an effect of extinguishing the Respondent’s
claim against the Applicants.
[73]
Another attack on the Applicant’s
alleged counterclaim is that any such claim for damages has
prescribed. On 29 July 2021
the Second Applicant sent the Respondent
a letter of demand in which he stated inter alia that the drippers
were too far from each
other and alleged that there was a 30% loss of
production and set out damages allegedly suffered by the First
Applicant.
[74]
It
is trite that the Prescription Act provides that the time period in
respect of a claim for a debt
[19]
,
which would include the damages claim of the First Applicant, is
three years and would commence upon the party in question having
knowledge of the facts upon which a claim is based or will start to
run on the date on which a party could reasonably have become
aware
of those facts.
[75]
At the very least, on that date,
prescription would begin to run in respect of the claim. Thus, that
claim would have prescribed
on 29 July 2024 being three years after
the First Applicant had knowledge of the facts giving rise to its
alleged claim.
[76]
Notwithstanding the aforesaid, as at the
date of granting of the default judgment against Applicants and on
the date of hearing
of this application, the First Applicant had not
instituted an action against the Respondents for the alleged damages.
[77]
Accordingly, it appears to me but without
deciding that any counterclaim the First Applicant might have had
against the Respondent
has prescribed due to effluxion of time. Even
if I am wrong on the prescription issue the absence of a
prima
facie
case against the Respondents
arising from the facts pleaded as a basis for the alleged
counterclaim remains an insurmountable hurdle
for the Applicants.
[78]
However, central to the defence which has
been raised is that the design of the irrigation system in question
was defective and
thus not fit for purpose. That is of course a
conclusion of an expert nature. In this regard, the Respondents have
expert opinion
that the irrigation system and its installation is not
defective and functioned properly, but the problem was caused by poor
management
thereof by the First Applicant. This expert evidence has
not been countered by any contrary expert opinion of the Applicants.
[79]
It
is trite that for expert opinion to be admissible the person adducing
the evidence must be a qualified expert who has experience
or skill
and qualifications which render him/her an expert.
[20]
In
Visagie
v Gerryts en ‘n Ander
[21]
the Court held that in order for a court to determine the correctness
of an opinion expressed by an expert, it was necessary that
the
reasoning which led to it, as well as the assumptions on which it was
based, had to be disclosed to the court.
[80]
That the Applicants failed to produce any
expert evidence in respect of the alleged defective irrigation system
supplied by the
Respondents deals a blow to the Applicants attempt to
persuade this court that they have established a prima facie case
against
the Respondent.
[81]
In view of the aforegoing, the alleged
facts upon which the Applicants’ counterclaim or claim presents
no triable issue. In
the result, I am satisfied that the Applicants
have failed to demonstrate to this Court that they have a bona fide
claim against
the Respondent.
[82]
Accordingly, I find that this rescission
application is not
bona fide
and was filed for purpose of delaying finalisation of the
Respondent’s claim. In the circumstance, I find that the
Applicants
have failed to show that good cause exists to justify
granting the rescission of the default judgment.
[83]
Accordingly, the application for rescission
falls to be dismissed.
[84]
As to costs, the Respondents are
successful, and I find no reason why costs should not follow the
results.
Accordingly, I make the
following order.
1.
The application for rescission of judgment
granted against the Applicants on 15 April 2024 is hereby dismissed.
2.
The Applicants must pay the Respondents
costs on the High Court Scale as between party and party including
costs of counsel on scale
C as taxed or agreed.
NJOKWENI AJ
ACTING JUDGE OF THE
HIGH COURT
Appearances
For the Applicants:
Advocate MW Muller
Instructed by:
Schur Marais Du Plessis Attorneys
For the Respondent:
Advocate D Van
Reenen
Instructed by:
Vanderspuy Cape Town
[1]
In
this judgment,
reference
to rule or rules means the uniform rules of Court, unless specified
otherwise.
[2]
Van
Loggerenberg et al, Erasmus: Superior Court Practice, vol 2, D1-561;
(
Bakoven
Ltd v G J Howes (Pty) Ltd
1992 (2) SA 466
(E) at 468H).
[3]
Colyn
v Tiger Food Industries Ltd t/a Meadow Feedmills (Cape)
2003 (6) SA 1
(SCA) at 11.
[4]
Reference
omitted.
[5]
Zuma
v Secretary of the Judicial Commission of Inquiry into Allegations
of State Capture, Corruption and Fraud in the Public Sector
Including Organs of State and Others
[2021] ZACC 28
, at para 71, see also
Chetty
v Law Society, Transvaal
1985 (2) SA 756 (A).
[6]
Silber
v Ozen Wholesalers (Pty) Ltd
1954(2) SA 345 (A) at 353A and
Cavalinias
v Claude Neon Lights SA Ltd
1965 (2) SA 649
(T) at 651C – D.
[7]
PE
Bosman Transport Works Committee and Others v Piet Bosman Transport
(Pty) Ltd
1980
(4) SA 794
(A);
Smith
NO v Brummer NO and Another; Smith NO v Brummer
1954
(3) SA 352
(O) at 357-8.
[8]
Harris
v Absa Bank Ltd t/a Volkskas
2006 (4) SA 527 (T).
[9]
Rose
and Another v Alpha Secretaries Ltd
1947 (4) SA 511
(AD) at page 519.
[10]
Athmaram
v Singh
1989 (3) SA 953 (D).
[11]
At
957 E – I referring to
Chetty
v Law Society, Transvaal
1985 (2) SA 756 (A).
[13]
See
Silber
v Ozen Wholesales (Proprietary) Limited
1954 (2) SA 345
(A) at 352 G to H;
De
Vos v Cooper and Ferreira
1999 (4) SA 1290
(SCA) at 1304 H;
Sanderson
Technitool (Proprietary) Limited v Intermenua (Proprietary) Limited
1980 (4) SA 573 (W).
[14]
Grant
v Plumbers (Pty) Ltd
1949 (2) SA 470
(O
).
[15]
Joosub
v Natal Bank
(1908 T. S. 375).
[16]
Brown
v Chapman (1938 T.P.D.320 at p.325.
[17]
Colyn
v Tiger food Industries Limited t/a Meadow Feed Mills[17] (CAPE)
2003 (6) SA 1 (SCA).
[18]
Sapirstein
and Others v Anglo African Shipping Co (SA) Ltd
1978 (4) SA 1
(A).
at p10-12
[19]
Section
11(d)
Prescription Act 68 of 1969
.
[20]
Holtzhauzen
v Roodt
1997 (4) SA 766 (WLD).
[21]
Visagie
v Gerryts en ‘n Ander
2000 (3) SA 670
(C) at 681A – C/D.
sino noindex
make_database footer start
Similar Cases
Bergrivier Boerdery Pty (Ltd) v Pieterson and Others (200/2021) [2024] ZAWCHC 161 (3 June 2024)
[2024] ZAWCHC 161High Court of South Africa (Western Cape Division)99% similar
Boerdery v Matsepe N.O and Another (A79/21) [2022] ZAWCHC 49 (19 April 2022)
[2022] ZAWCHC 49High Court of South Africa (Western Cape Division)99% similar
ALG Boerdery (Pty) Ltd and Another v Van Heerden and Others (2699/2023) [2023] ZAWCHC 145 (14 June 2023)
[2023] ZAWCHC 145High Court of South Africa (Western Cape Division)98% similar
Breede Valley Onhafhanklik v Speaker of Breede Valley Municipality and Others (2613/23) [2024] ZAWCHC 341; [2025] 1 All SA 148 (WCC) (1 November 2024)
[2024] ZAWCHC 341High Court of South Africa (Western Cape Division)98% similar
Bezuidenhout NO and Others v Enable Capital Enterprise (Pty) Ltd (4735/2024) [2025] ZAWCHC 433 (18 September 2025)
[2025] ZAWCHC 433High Court of South Africa (Western Cape Division)98% similar