Case Law[2025] ZAWCHC 404South Africa
Glen Faure International Consultancy CC v Marinus (Appeal) (A32/2025) [2025] ZAWCHC 404 (3 September 2025)
High Court of South Africa (Western Cape Division)
3 September 2025
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Glen Faure International Consultancy CC v Marinus (Appeal) (A32/2025) [2025] ZAWCHC 404 (3 September 2025)
Glen Faure International Consultancy CC v Marinus (Appeal) (A32/2025) [2025] ZAWCHC 404 (3 September 2025)
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IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN CAPE DIVISION, CAPE TOWN)
### JUDGMENT
JUDGMENT
Reportable
Case no: A32/2025
In the matter between:
GLEN
FAURE INTERNATIONAL CONSULTANCY CC
Appellant
and
MARLON
MARINUS
Respondent
Coram:
Saldanha J et Francis J
Heard
:
4
June 2025
Delivered
:
3 September 2025
ORDER
1.
The appeal is dismissed.
2.
The appellant is directed to pay respondent’s costs on an
attorney-client
scale with counsel’s costs to be taxed on scale
B.
JUDGMENT
Francis, J:
Introduction
[1]
This is an appeal against a judgement handed down by the Learned
Magistrate in the
Magistrates court for the district of the City of
Cape Town, sub-division Goodwood (‘the Goodwood Magistrates
Court’)
on 12 November 2024
in
which an application lodged by Appellant for the rescission of a
default judgment brought in terms of Rule 49(1) of the Rules
of the
Magistrates’ Court, was dismissed. The Rule reads as follows:
“
(1) A
party to proceedings in which a default judgment has been given, or
any person affected by such judgment,
may
within 20 days
after obtaining
knowledge
of the judgment serve and file an application to court, on notice to
all parties to the proceedings, for a
rescission
or variation of the judgment and the court may, upon
good
cause
shown, or if it is
satisfied that there is good reason to do so, rescind or vary the
default judgment on such terms as it deems
fit: Provided that the 20
days' period shall not be applicable to a request for rescission or
variation of judgment brought in
terms of sub-rule (5) or (5A).”
(Emphasis added.)
[2]
The term ‘good cause’ in the context of a rescission
judgement is generally
accepted to mean that the applicant must
provide a reasonable explanation for its default, must show that that
the application
is made bona fide and not with the intention of
merely delaying the matter, and that there is a bona fide defense to
the claim
which prima facie has some prospect of success in the sense
that
if established at the trial, it would
entitle the applicant to the relief requested
(see,
Grant
v Plumbers (Pty) Ltd
1949
(2) SA 470
(O) at 476-7
,
and
Colyn v Tiger Foods
and Industries Ltd t/a Meadow Feed Mills (Cape)
2003
(6) SA 1
(SCA)
).
[3]
Good cause includes but is not limited to
the existence of a substantial defence (
Silber
v Ozen Wholesalers (Pty) Ltd
1954(2)
SA 345 (A)
at 352G). It is
therefore necessary to determine whether there is a satisfactory
explanation of the delay, and whether the
appellant raised a bona
fide and reasonable defence.
[4]
The application for rescission was brought timeously within the
20-day period prescribed
in Rule 49(3). It was successfully opposed
by the respondent (referred to
interchangeably as ‘Marinus’ or ‘respondent’)
who also opposes this appeal.
Background facts
[5]
The appellant, represented by its sole member, Glenville Lester Faure
(‘Faure’),
and Marinus entered into a written agreement
on 22 July 2020. Although not a model of clarity, it is not disputed
that the gist
of the agreement was to the effect that Marinus would,
on signature of the agreement, invest an amount of R150 000 and
would
receive a return on his investment of between 20% to 30% to be
repaid on/or before a three-month period. Furthermore, as an investor
and associate, Marinus would be involved in all transactions which
the appellant’s group of companies was involved in at
the date
of signature of the agreement, including the importation and
exportation of Yamaha Motors and the export of wines.
[6]
Marinus paid over the sum of R150 000 to the appellant, but he
did not receive
payment of his initial capital contribution or the
return (interest) thereon within the agreed period of three months.
Instead,
he received a total payment of R6000; R5000 on 28 January
2021 and R1000 on 30 December 2021.
[7]
On 31 January 2022, a letter of demand was delivered to Faure via
electronic e-mail
at g[...] (‘the e-mail address’), in
terms of which payment in the sum of R189 000 was demanded. The
aforesaid
amount constituted the outstanding capital investment and
the promised return thereon. On that same day, Faure responded to the
letter of demand via an e-mail from the e-mail address which stated
that he was in Angola and that Marinus could contact appellant’s
attorney who had been mandated to deal with this matter.
[8]
Appellant failed to make payment in terms of the letter of demand and
summons was
subsequently issued in the Goodwood Magistrates Court
during July 2022. After several unsuccessful attempts to effect
service,
Marinus applied for an order to serve the summons and
particulars of claim on the appellant in Angola at the email address.
An
order, as sought, for edictal citation and substituted service was
subsequently granted, and the summons and particulars of claim
was
served on appellant at the e-mail address on 8 August 2023.
[9]
No notice of intention to defend was filed and Marinus applied for
default judgement
which was granted on 6 December 2023.
[10] On
13 February 2024, the default judgement was served on appellant at
the e-mail address. On
receiving this e-mail, Faure consulted
appellant’s current attorney of record on 16 February 2024, and
a rescission application
was filed soon thereafter.
[11] In
its application for rescission, appellant filed an affidavit by Faure
in which he stated there
was no delay in making the application for
rescission once he was alerted of the default judgment. Appellant had
a good reason
for not entering an appearance to defend and had a bona
fide defense to respondent’s claim. Faure had not seen the
summons
and particulars of claim on the day it was served by email.
Respondent had no legitimate claim against the appellant because
contrary
to their agreement, Marinus was not actively involved in the
business of appellant as he was obliged to, and his investment was
not guaranteed but was subject to everything going ‘to plan’.
There was ‘a Force Majeure’ as the company
which
appellant had done business with in China could not deliver due to
the Covid-19 global pandemic and appellant lost its deposit.
[12]
Marinus filed an answering affidavit in which he joined issue with
all the submissions advanced
in appellant’s founding affidavit.
He disputed that appellant was not in willful default in failing to
enter an appearance
or that it had a valid bona fide defense that
raised a triable issue. He denied that repayment to him of his
investment capital
(and the return thereon) was contingent on the
success of appellant’s business operations in China and/or on
Marinus’s
involvement in the business operations of the
appellant and its group of companies. Marinus described in some
detail his contribution
as an investor. For example, he spent months
assisting appellant to re-design its supply chain in order to acquire
high quality
products at lower cost, and he enhanced appellant’s
business operations relating to the purchase and re-labelling of
wines.
He was not remunerated for his involvement in appellant’s
business operations. Nor was he reimbursed for any disbursements
made
on its behalf. According to Marinus, his involvement in the business
operations of appellant was not for the purpose of growing
his
investment but merely to assist appellant in the latter’s
business transactions. Furthermore, Marinus disputed appellant’s
version relating to the company in China. Marinus stated that he was
informed by Faure that a sale was entered into with a Japanese
company and the goods were delivered to Durban but due to an error
had to be transported by land. As a consequence, the profit
from the
sale was lost and appellant was in the process of instituting
an action against the vessel responsible for the error.
[13]
Appellant raised a further defense in the heads of argument filed on
its behalf in the rescission
application. It argued that the
judgement granted was void
ab origine
(from the beginning)
because the Magistrate had granted it based on a copy of the
agreement. This was contrary to Rule 12 (6) of
the Magistrates Court
Rules (‘the Rules’) which required an original agreement
to be filed with the request for default
judgment or, failing this,
and an affidavit stating why the original could not be produced.
[14] The
application for rescission of default judgment was dismissed. The
Magistrate found, in essence,
that appellant had failed to provide a
satisfactory explanation for not entering an appearance to defend,
and that it had failed
to establish a
bona fide
defense to
respondent’s claim. Appellant’s argument that the default
judgment was void from the beginning was also dismissed.
[15] In
its notice of appeal, appellant raised 7 grounds on which it alleges
that the Magistrate had
erred in not granting the rescission
application. The notice states as follows:
“
1.
That the (Magistrate) erred in her interpretation of rule 12(6) of
the Magistrates
Court rules as not peremptory according to her
judgment.
2.
That the (Magistrate) erred in her judgment’s ruling that a
non-compliance
with rule 12 (6) of the Magistrates’ Court rule
is voidable instead of void.
3.
That the (Magistrate) erred in her understanding and interpretation
of investment
principles.
4.
That the (Magistrate) erred in her understanding about argument of
void ab origine
used for the first time in the Heads of Argument by
the Appellant.
5.
That the (Magistrate) erred by failing to understand that a fatality
defective
procedural error renders it unnecessary for the Appellant
to show good cause.
6.
That the (Magistrate) erred in her interpretation that the Appellant
instructed
the Honourable Court to disregard the Agreement.
7.
That the (Magistrate) erred in her judgment that the Appellant has
presented
an argument that has no existence of triable issues.
”
Discussion
[16]
From the notice of appeal, it is apparent that some of the grounds of
appeal are repetitive or
vaguely formulated. Four of the 7 grounds of
appeal relate to the belated argument before the Magistrate that the
judgment was
void from the beginning for the alleged lack of
compliance with Rule 12 (6) of the Rules. The remaining 3 grounds
challenge the
Magistrates finding that appellant did not raise any
triable issue allegedly because of her mistaken interpretation of the
agreement.
[17] In
the notice of appeal (and its heads of argument), appellant also
seeks to impugn the reasons
underpinning the Magistrate’s
judgment. It is trite that an appeal lies against the judgment or
order of the court below
and not against the reasons for judgment; an
appeal court is not bound by those reasons. The principal function of
an appellate
court is to determine independently on the record and
applicable law, whether the order itself is sustainable. The
authorities
make it clear that where the order is correct, it will
not be set aside because the reasons advanced by the court below were
unsound
(see, for example,
Administrator, Transvaal and Others
v Theletsane and Others
[1990] ZASCA 156
;
1991 (2) SA 192
(A)
I –
197 B). If the order can be supported on other grounds apparent from
the record, the appeal will be dismissed (cf.
S v Kubeka
1982
(1) SA 534
(W
)).
[18] An
appellant is generally bound by the grounds set out in its notice of
appeal as these grounds
define the issues for determination by the
appeal court. A notice of appeal is not a mere formality but delimits
the scope of the
appeal (see,
Van Rensburg v Van Rencburg
1963
(1) SA 505
(A)
). In its notice of appeal, appellant does not
challenge the Magistrate’s finding that it failed to provide a
satisfactory
explanation for not entering an appearance to defend and
was in fact in willful default. Thus, the appellant’s
submissions
in this appeal challenging the Magistrate’s
findings in this regard do not fall within the scope of this appeal.
[19]
Accordingly, the issues that have to be decided by this Court in
terms of the notice of appeal
are, firstly, whether the Magistrate
erred in her understanding and application of Rule 12 (6) of the
Rules and, secondly, whether
she erred in her conclusion that the
defense raised by appellant against the merits of respondent’s
claim was not bona fide
in the sense that it did not raise any
triable issue. I now consider each issue in turn.
non-compliance with Rule 12 (6) of
the Rules
[20]
Appellant seeks recission of the default judgment on the basis that
it was granted contrary to
Rule 12 (6) of the Rules. According to
appellant, respondent did not file the original agreement or the
requisite affidavit when
making application for default judgment. In
the circumstances, so it was argued, the application for default
judgment was procedurally
irregular which rendered the default
judgment void from the beginning.
[21] It
is indeed so that Rule 12 (6) places specific duties on a plaintiff
to submit necessary documentation
and evidence in support of an
application for default judgment and it is incumbent on the person
granting judgment to ensure compliance
with this Rule before granting
default judgment. In my view, the failure to comply renders the
judgment defective. However, although
a judgment granted in these
circumstances will have been granted erroneously, it is not
automatically void or a nullity.
The instances when a judgment is
void are circumscribed. As Grossskopf JA noted in
Tödt v
Ipser
1993 (3) SA 577
(AD)
at 587 A-D, according to
the common law authorities, judgments are void in only three types of
cases – where there is no proper
service, where there is no
proper mandate, or where the court lacks jurisdiction. None of these
circumstances are applicable in
the matter before this Court.
[22] The
principal difficulty which appellant faces with advancing this
defense is that it was not
pleaded. Appellant made no allegation in
its founding or replying affidavit that the request for default
judgment did not comply
with Rule 12 (6). It only raised this issue
for the first time in the heads of argument filed on its behalf in
the rescission application.
This is impermissible. As a general rule,
a case must be decided on issues that arise from the pleadings, not
from new arguments
raised later in the heads of argument. The
pleadings define the issues between the parties and what each side
must meet in
evidence. Heads of argument are not pleadings; they are
written submissions to assist the Court. While heads of argument may
expand
on legal arguments or interpretations that flow from the
pleadings and evidence, they cannot introduce a new case (see,
Minister of Safety and Security v Slabbert
2010 (2)
SA 552
(SCA)
).
[23]
Ordinarily, a litigant may raise a new point in heads of argument if
it was not made in the pleadings
if it is a pure question of law that
does not require new evidence or unless the other party consented
(expressly or tacitly) to
the issue being argued. If the issue was
fully ventilated in evidence, and both parties led evidence on the
point (even though
it was not pleaded), a court may treat it as if it
were pleaded. This is so because the courts are generally expected to
apply
the law correctly to the facts before them (see,
CUSA v
Tau Ying Metal Industries
[2008] ZACC 15
;
2009 (2) SA 204
(CC)
).
[24] In
this matter, however, the basis on which appellant contends that the
judgment is a nullity
does not flow from the record. As counsel for
the respondent correctly pointed out, it is unclear on the evidence
before this Court
whether or not the original agreement was, as a
matter of fact, filed with the request for default judgment.
Appellant was obliged
to set out fully in its founding affidavit the
facts on which it relied on to support its defense that the judgment
was granted
in error (see,
Ramodike v Mokeetsi Trading Store
1955 (2) SA 169
(T))
, and respondent ought to have
been given the opportunity to answer this allegation and deal with
the alleged non-compliance with
Rule 12 (6).
[25] In
my view, appellant’s belated defense that the default judgment
was procedurally defective
is without merit. It was not the pleaded
case of the appellant in the rescission application, and this defense
is not borne out
from the record before this Court.
bona fide defense
[26]
From its founding affidavit, appellant’s argument that it has a
bona fide defense is based
essentially on the submission that it was
excused from paying respondent because Marinus breached the agreement
by not being actively
involved in its business to justify repayment
of his investment (and the return thereon) and, in addition, the
COVID 19 pandemic
constituted a
force majeure
as the company
in China could not deliver the goods that the applicant had ordered
and the deposit was lost. According to appellant,
respondent’s
investment was not guaranteed but a promise that Marinus would be
repaid if everything went according to plan.
[27]
Apart from a bare denial, appellant failed in its replying affidavit
to respond adequately or
at all to respondent’s factual
submissions relating to Marinus involvement in the business
operations of appellant’s
group of companies or his denial that
appellant was excused from paying because the business in China had
not gone according to
plan in light of the Covid-19 pandemic.
[28] On
the evidence before this Court, I am not persuaded that appellant has
disclosed a bona fide
defense that if established at trial would
entitle it to the relief asked for. Nor am I satisfied that
appellant’s bare denial
of respondent’s factual averments
give rise to a genuine dispute of fact entitling appellant to proceed
to trial.
[29] The
agreement was entered into between the parties in July 2020 during
the COVID 19 pandemic.
For appellant to succeed in the defense of
force majeure,
the happening or event relied as the excuse for
non-performance must have been unforeseeable with reasonable
foresight and unavoidable
with reasonable care (see,
South
African Forestry Company Ltd v York Timbers Ltd
2005 (3)
SA 323
(SCA)
)
.
Reasonable foreseeability of the event that
causes impossibility of performance may have the result of ruling out
vis major
or indicating that the party tacitly accepted the
risk of impossibility resulting from such event (see,
Nuclear
Fuels Corporation of SA (Pty) Ltd v Orda
AG
1996 (4) SA
1190
(A)
). As counsel for respondent so cogently argued,
appellant’s defense of
force majeure
must fail given
that the event of COVID 19 was already taking place at the time of
the conclusion of the agreement and yet appellant
nonetheless
promised to repay the investment within three months.
[30] The
onus of proving impossibility of performance rests on appellant.
However, in its pleadings
there are no allegations as to the
foreseeability and unavoidability of performance, in what manner
performance was rendered impossible,
to what extent performance was
rendered impossible and for how long, what the financial position of
appellant was after the pandemic,
or any other factor relevant to
this alleged defense. At best for appellant, the Covid-19 pandemic
may have made it uneconomical
or no longer commercially viable for
appellant to carry out or perform its financial obligation in terms
of the agreement, but
this does not mean that performance has become
impossible or constitutes a basis to be excused from performance
(see,
Unibank, Savings and Loans Ltd (formerly Community Bank)
v ABSA Bank Ltd
2000 (4) SA 191
(W)
;
Freestone
Property Investment (Pty) Ltd v Remake Consultants CC and Another
(2020/29927)
). In any event, the COVID 19 pandemic had
long passed when respondent issued the letter of demand, and one
wonders on what basis
appellant could reasonable argue that
performance was not then possible. Certainly, there is no averment by
appellant that it is
no longer trading or is unable to repay
respondent.
[31] A
rescission application is ordinarily aimed at setting aside a
judgment granted by default in
order to afford the applicant an
opportunity to defend the matter. It is, therefore, not a proceeding
for final relief but an interlocutory
step. Because the relief sought
in a rescission application is generally interlocutory in nature, a
court is merely concerned with
whether or not the applicant has shown
a prima facie defense, not whether the defense is established on
probabilities (see
Gangat v Akoon
[2021] ZAGPJHC 431
(21 December 2021)
). Thus, for ordinary rescission of default
judgment applications, the applicant needs only satisfy the good
cause test and establish
a prima facie defense.
[32]
Counsel for appellant argued that this matter should be referred to
trial because of a dispute
of fact relating to the interpretation of
the agreement. However, any dispute of the fact that arises must be
genuine. In this
matter, appellant has not disputed the contents of
the agreement or the validity thereof, be it the copy or the
original. It did
not raise any factual issue relating to the
interpretation of the agreement in the founding affidavit or reply.
Apart from a bare
denial, respondent has offered nothing to
controvert respondent’s version that Marinus was involved in,
and contributed to,
appellant’s business operations. Appellant
has not disputed that the amount claimed is owing to respondent but
has offered
an excuse why it ought not to be paid. On the facts
before this Court, these defenses lack both factual and legal
substance. In
my view, there is no genuine factual dispute and, as
such, it cannot be legitimately argued that the appellant has
proffered a
bona fide defense; a sincere, good faith belief that it
does not owe the debt.
[33] In
the heads of argument, appellant refers to a
novus actus
interveniens
. However, no averments to support a defense of
novus
actus interveniens
are pleaded by the appellant in the rescission
application and this defense is not applicable nor relevant in this
appeal. This
legal principle is, of course, a separate and distinct
from
force majeure
and usually has application in delict and
in criminal liability.
[34] In
summary, having regard to the record, the grounds of appeal, and the
applicable law, the appeal
must, in my view, fail. There was no
challenge by appellant to the Magistrates order that there was no
good explanation for the
delay, the defense that the judgment was
granted contrary to rule 12 (6) is not evident from the record and
was not pleaded by
appellant and, finally, appellant has not raised
any legitimate triable issue that necessitates that necessitates
being referred
to trial.
Costs
[35] In
so far as the issue of costs is concerned, respondent has urged this
Court to grant an order
of costs on a punitive scale given the
conduct of appellant in these proceedings. The granting of a
punitive cost order is
unusual and is generally ordered not merely
because the party loses but because their conduct justifies censure.
Typical grounds
would include bringing a claim or defense without any
real prospect of success, misconduct in the proceedings and
unreasonable
or stubborn opposition by a party.
[36] In
this matter, I am inclined to agree that a punitive cost order is
justified. The manner in
which appellant conducted this litigation
right from the outset appears to me to have been designed to delay
the inevitable and
to frustrate the respondent from being paid. This
is perhaps most starkly illustrated by the fact that appellant did
not challenge
the Magistrate’s finding that it was in willful
default. One also got the distinct impression that the heads of
argument
attempted to supplement an unarguable case by introducing
new causes of the action that were not pleaded. Indeed, the
defense
of
novus actus interveniens
appeared for the first
time in the heads of argument filed on behalf of appellant in this
appeal. Although referred to in the heads
of argument, this defense
was not pertinently argued; not surprising, since this legal
principle has no application to this case.
[37]
Given the nature of this matter and the various legal issues that
were raised (some unnecessarily)
by appellant, I am of the view that
counsel’s costs on scale B are justifiable.
ORDER
In the circumstances, I would propose
the following order:
1.
The appeal is dismissed.
2.
The appellant is directed to pay respondent’s costs on an
attorney-client
scale with counsel’s costs to be taxed on scale
B.
FRANCIS,
J
Judge
of the High Court, Cape Town
I
agree, and it is so ordered
SALDANHA,
J
Judge
of the High Court, Cape Town
APPEARANCES
Counsel
for the Appellant:
Adv Sivuyile Mbobo
sivu
@capebar.co.za
Instructed
by:
Kili Inc Attorneys
Mr Lennox Kili
Counsel
for the Respondent:
Adv Sune Bosch
sbosch@capebar.co.za
Instructed
by:
Steyn Attorneys
Mr Ruben Steyn
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