Case Law[2025] ZAWCHC 399South Africa
Esperance Vineyards Farming (Pty) Ltd and Others v Liebenlogistics (Pty) Ltd (17144/24) [2025] ZAWCHC 399 (3 September 2025)
High Court of South Africa (Western Cape Division)
3 September 2025
Headnotes
- ‘ an insurer under a contract of indemnity insurance who has satisfied the claim of the insured is entitled to be placed in the insured's
Judgment
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# South Africa: Western Cape High Court, Cape Town
South Africa: Western Cape High Court, Cape Town
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## Esperance Vineyards Farming (Pty) Ltd and Others v Liebenlogistics (Pty) Ltd (17144/24) [2025] ZAWCHC 399 (3 September 2025)
Esperance Vineyards Farming (Pty) Ltd and Others v Liebenlogistics (Pty) Ltd (17144/24) [2025] ZAWCHC 399 (3 September 2025)
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sino date 3 September 2025
IN THE HIGH COURT OF
SOUTH AFRICA
(WESTERN CAPE
DIVISION, CAPE TOWN)
Case
No: 17144/24
In the matter between
ESPERANCE
VINEYARDS FARMING (PTY) LTD
1
ST
APPLICANT
PAUL
JACQUES NAUDE
2
ND
APPLICANT
PAUL
JACOBUS NAUDE
3
RD
APPLICANT
PAUL
JACQUES NAUDE NO
4
TH
APPLICANT
ARNOLDUS
JACOBUS STOFBERG NO
5
TH
APPLICANT
PAUL
JACOBUS NAUDE NO
6
TH
APPLICANT
AND
LIEBENLOGISTICS
(PTY) LTD
RESPONDENT
Date of Hearing :
27 June 2025
Date of Delivering :
03 September 2025
JUDGMENT
THULARE J
ORDER
(a)
The respondent is compelled to comply with
the applicants’ notice in terms of rule 35 which was served on
the respondent on
20 December 2024 within 10 days of this order.
(b)
Should the respondent fail to comply with
para (a) above the applicants are entitled to approach the court to
have the respondent’s
claim dismissed with costs.
(c)
The respondent to pay the costs
[1] This is an
application in terms of Rule 35(7) of the Uniform Rules of Court to
compel the respondent, which is the plaintiff
in the main action, to
discover, and if it failed, to allow the applicants to approach the
court to have the respondents action
dismissed. The notice was served
on the respondent on 20 December 2024 and gave the respondent 20 days
within which to discover.
The respondent did not deliver its
discovery affidavit. Letters on four different dates were sent to the
respondent between January
and April, and they did not result in the
discovery. A Rule 30A notice was also served on 11 April 2025 and
still there was no
discovery. This application was launched in May
2025 and set down for 24 June 2025.
[2] On 20 June 2025 the
respondent filed what it considered its discovery affidavit. The
deponent thereto, Leon De Villiers (de
Villiers) was a Director of
STP Insurance Brokers underwritten by Lloyds of London (STP), the
respondent’s insurer in the
matter. In the affidavit De
Villiers indicated that the rights of the respondent were subrogated
to its insurers, and that he had
in his possession or under his
control the documents relating to the action, which were divided into
the First and Second Parts
of a Schedule. The respondent did not
object to the First Part but objected to producing the documents in
the second part of the
Schedule.
[3] The applicants
rejected the respondent’s discovery affidavit in that the
affidavit did not constitute proper discovery
as the deponent to the
affidavit was not a party to the proceedings and that the doctrine of
subrogation was apposite as insurance
law assumed. The respondent did
not file any notice to oppose and answering papers. However, at the
hearing of the application,
it was represented by Counsel who argued
the matter.
RULE 35(7)
[4] Rule 35(7) reads:
“
35.
Discovery, inspection and production of documents
(7) If any party fails to
give discovery as aforesaid or, having been served with a notice
under subrule (6), omits to give notice
of a time for inspection as
aforesaid or fails to give inspection as required by that subrule,
the party desiring discovery or
inspection may apply to a court,
which may order compliance with this rule and, failing such
compliance, may dismiss the claim
or strike out the defence.”
Rule 1 defines “party”
as ‘“party” or any reference to a plaintiff or
other litigant in terms, includes
such party’s attorney with or
without an advocate, as the context may require.’ A litigant is
someone directly involved
in a lawsuit or legal proceedings. That
someone is involved in the sense that they are making a formal legal
complaint about someone
or a complaint is made about them. It is
someone whose involvement is central to the resolution of a legal
matter. The Rules define
specific roles and responsibilities of each
party or litigant, to navigate the legal process. The distinct roles,
in the nature
of the matter before me, an application, causes the
assumption of the role as an applicant who initiates by filing a
document that
outlines the claim and the relief sought, to formally
commence the legal process; or a respondent upon whom legal
documents
are delivered, setting out the complaint, compelling a
response and prompting them to defend.
[5] STP is not cited as a
party in the pleadings. It did not become a party to the legal
dispute in these proceedings when it indemnified
the respondent for
the loss it allegedly suffered. Rule 35 required a discovery
affidavit to be deposed to by a party to the proceedings.
That party
is the respondent. STP Insurance Brokers, not being a party to the
application cannot through its director discover
on behalf of the
respondent [
Le Bonheur Wine Estate (Pty) Ltd v Stellenbosch
Vineyards (Pty) Ltd and Others
(17111/2021)
[2025] ZAWCHC 260
(20
June 2025) at para 35 to 68]. In the circumstances, the respondent
has not delivered its discovery affidavit.
[6] I am not persuaded
that
Rand Mutual Assurance Co Ltd v Road Accident Fund
[2008] ZASCA 114
;
2008
(6) SA 511
(SCA) is authority for the proposition that STP, as the
respondents indemnity insurer in the matter, is a party to the
proceedings.
At para 17 it was said:
“
[17] Nevertheless
this court, with reference to
Ackerman v Loubser
and
Teper
,
held that -
‘
an
insurer under a contract of indemnity insurance who has satisfied the
claim of the insured is entitled to be placed in the insured's
position in respect of all rights and remedies against other parties
which are vested in the insured in relation to the subject
matter of
the insurance. This is by virtue of the doctrine of subrogation which
is part of our common law.’
What this court had in
mind in
Commercial Union
were the three rules of
the
lex mercatoria
(and not only of the English law
of insurance): that the wrongdoer is not entitled to benefit from the
fact that the person
wronged was insured; that the insured may not be
enriched at the expense of the insurer by receiving both
the insurance
indemnity and damages from the wrongdoer; and that the
insurer replaces the insured, ie the insured is subrogated by the
insurer,
which entitles the insurer to claim the loss from the
wrongdoer.”
An
inductive reading of
Rand Mutual
makes it plain that STP had
an election whether to sue in its own name, or in the name of the
respondent. The judgment did not hold
that once the requirements for
subrogation were met, the insurer automatically became a party to
proceedings where it was never
cited as a party. STP elected to sue
in the name of the respondent. It must be bound to its election, as
to who is the party before
the court in the proceedings. It cannot be
allowed to elect to be anonymous when its suits it, and lead from the
front when it
so elects, in the same proceedings, without first
attending to its choice of who is the party to litigate in the
matter. STP must
respect procedural rules of the court once it has
made it election. As the law of subrogation in insurance law stands
STP was free
to sue in its own name or in the name of the respondent.
It is not free to change names of the litigant who is suing the
applicants
at its pleasure during the same proceedings and then claim
to rely on subrogation in insurance law. For these reasons the order
is made.
DM THULARE
JUDGE OF THE HIGH
COURT
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