Case Law[2025] ZAWCHC 452South Africa
A.T.E v D.T (1287/2022) [2025] ZAWCHC 452 (26 September 2025)
Headnotes
to have been concluded was whether it was more probable than not that such a tacit agreement has been reached.
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## A.T.E v D.T (1287/2022) [2025] ZAWCHC 452 (26 September 2025)
A.T.E v D.T (1287/2022) [2025] ZAWCHC 452 (26 September 2025)
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sino date 26 September 2025
FLYNOTES:
FAMILY – Universal partnership –
Dissolution
–
Requirements
for existence – Contributions by both parties – Joint
benefit and a profit motive – Both parties
pursued a common
goal of improving their lives together – Relationship bore
all hallmarks of a marital partnership
– Joint financial
management – Shared responsibilities and long-term
commitment – 50% share not justified
– Plaintiff’s
financial contributions significantly lower than defendant’s
– 20% share to plaintiff
and 80% to defendant –
Partnership dissolved.
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN CAPE
DIVISION, CAPE TOWN)
CASE
NO:
1287/2022
In the matter between:
A[...]
T[...]
E[...]
Plaintiff
and
D[...]
T[...]
Defendant
Coram: Joubert AJ
Oral evidence: 29 May
2025 and 2 June 2025
Oral argument: 8
August 2025
Further written
submissions delivered 8 September 2025
Judgment delivered
electronically: 26 September 2025
JUDGMENT
JOUBERT AJ:
INTRODUCTION
1.
The parties lived together as romantic partners in
the defendant’s house from about February 2011 until 23 April
2022 when
the plaintiff moved out of the house.
2.
In his summons, the plaintiff claims the
following:
2.1
An order declaring that a partnership existed
between the parties in equal shares in respect of the assets of the
universal partnership.
2.2
An order dissolving the partnership as from 23
April 2022.
2.3
An order appointing a liquidator, alternatively a
receiver with authority to:
2.3.1
realise the assets of the partnership;
2.3.2
pay the liabilities of the partnership;
2.3.3
prepare a final account and reconciliation of the
partnership assets and liabilities as above;
2.3.4
make payments to the plaintiff of 50% of the
profits derived from the aforesaid process as set out in the
aforesaid account and
reconciliation.
2.4
Payment in the amount of R230 000.
2.5
Interest
ex tempore
morae
on the aforesaid sum from date of
summons to date of final payment.
2.6
Costs of suit.
2.7
Further and/or alternative relief.
3.
The matter was set down for hearing in the Fourth
Division of this Court on Thursday 29 May 2025. The parties however
agreed beforehand
that the merits and quantum be separated and that
the merits be dealt with first, which agreement was recorded in a
Joint Practice
Note. In effect, this includes the relief set out in
paragraphs 2.1 to 2.3 above. More will be said about the plaintiff’s
claim for “equal shares in respect of the assets” and
“50% of the profits” later herein.
4.
After
the evidence of the parties was heard on 29 May 2025 and 2 June
2025,
[1]
the matter was
postponed by agreement between the parties in order for a transcript
of the evidence to be obtained, heads of argument
to be filed, and
argument to be heard.
5.
After having heard argument on 8 August 2025, I
directed the parties to submit written notes on the following:
5.1
In the event that the Court declares that a
universal partnership existed between the parties:
5.1.1
Does the Court have the power to determine the
respective shares in such universal partnership, or is the Court
bound to decide
whether or not the plaintiff has a 50% share in such
partnership as claimed in the plaintiff’s Particulars of Claim,
and
nothing else ?
5.1.2
If the Court does have the power to declare a
share percentage other than 50% each, what should the share
percentages be and on
what grounds / considerations should such
determination be made ?
5.1.3
Is the Court requested, and does it have the
power, to declare which assets form part of such universal
partnership, and if so,
should the value of the defendant’s
house situated at [...] C[...] Close, Milnerton be included therein ?
THE RELEVANT LEGAL
PRINCIPLES
6.
For the test and factors to be considered in
determining whether a universal partnership existed between two
parties, one need not
look further than the
judgments
of
the Supreme Court of Appeal in
Ponelat v
Schrepfer
2012 (1) SA 206
(SCA)
(“
Ponelat”)
and
Butters v Mncora
2012
(4) SA 1
(SCA) (“
Butters”).
7.
In
Ponelat
it was
inter
alia
explained
that:
[2]
7.1
The
essentials of a partnership in general as formulated by the French
jurist RJ Pothier
[3]
namely that
(1) each of the partners must bring something into the partnership,
whether it be money, labour or skill (2) that the
business should be
carried on for the joint benefit of the parties and (3) that the
object should be to make a profit, apply equally
to a universal
partnership.
7.2
A
universal partnership in which the parties agree to put in common all
their property, both present and future, known as a
universum
bonorum
,
has been described as “effectively a community of property”.
[4]
7.3
The approach as to whether a tacit agreement can
be held to have been concluded was whether it was more probable than
not that such
a tacit agreement has been reached.
7.4
The Court must also “
be
careful to ensure that there is an animus contrahendi
”
and that the conduct from which a contract is
sought to be inferred is not simply that which reflects what is
ordinarily to be expected
of a spouse in a given situation.
7.5
The universal partnership exists if the necessary
requirements for existence are met, regardless of whether the parties
are married,
engaged or cohabiting.
8.
It is
worth noting that, in the passage from
Pezzuto
referred
to in footnote 2 above, it was
inter
alia
stated
that partnership could be tacit or implied from the facts, “…
provided
they admit of no other conclusion than that the parties intended to
create a partnership…
”
.
However, the Supreme Court of Appeal in
Ponelat
confirmed
the less onerous “probability test” referred to in
paragraph 7.3 above, following its own
judgment
in
the case of
Mühlmann
v Mühlmann
1984
(3) SA 102
(A). In
Mühlmann
,
the Court expressly rejected the “no other reasonable
interpretation”-test.
[5]
9.
In
Butters
,
the Court
inter alia
held
as follows:
9.1
The general rule of our law is that cohabitation
does not give rise to special legal consequences and the supportive
and protective
measures established by family law are generally not
available to those who remain unmarried, despite their cohabitation
even for
a long period;
9.2
To
establish a universal partnership the plaintiff had to establish that
she and the defendant were not only living together as
husband and
wife, but that they were partners, which required proof of the three
essential elements as formulated by Pothier;
[6]
9.3
In
Roman-Dutch law a distinction was drawn between a
societas
universorum bonorum
by
which the partes agree to put in common all their property, present
and future, and a
societas
universorum quae ex quaestu veniunt
where
they agree that all they may acquire during the existence of the
partnership shall be partnership property.
[7]
9.4
Crucially,
for purposes of this case, the contention that the partnership must
consist of some commercial undertaking was rejected
after a careful
analysis of the Roman and Roman-Dutch law of partnership.
[8]
9.5
Contra
the
statement in
Ponelat
referred
to in paragraph 7.2 above, the Court held that “…
A
universal partnership is not the same as a marriage in community of
property
”
.
[9]
I return to this question later in this
judgment
.
9.6
In
summary, the Court formulated the following principles:
[10]
9.6.1
Universal partnerships of all property which
extend beyond commercial undertakings were part of Roman-Dutch law
and still form part
of our law;
9.6.2
A universal partnership of all property does not
require an express agreement. Like any other contract, it can also
come into existence
by tacit agreement, that is, by an agreement
derived from the conduct of the parties.
9.6.3
The requirements for a universal partnership of
all property, including universal partnerships between cohabitees,
are the same
as those formulated by Pothier for partnerships in
general.
9.6.4
Where
the conduct of the parties is capable of more than one inference, the
test for when a tacit universal partnership can be held
to be exist
is whether it is more probable than not that a tacit agreement had
been reached.
[11]
10.
Based on the aforementioned principles, it was
held in
Butters
that
a tacit universal partnership had been established by the plaintiff
in that case in circumstances where her contribution was
that “
she
spent all her time, effort and energy in promoting the interests of
both parties in their communal enterprise by maintaining
the common
home and raising their children
”
and
“
her earnings were far less than
the defendant’s and her financial contribution was therefore
quite modest when compared to
his
”
.
11.
As an aside, I consider the phrase “communal
enterprise” in the passage quoted above to be helpful and
appropriate to
employ in considering whether a partnership came into
existence, rather than the word “partnership” which
presupposes
the answer to the enquiry.
12.
It
hardly bears mentioning that in our law same-sex partners, such as
the parties in this case, are constitutionally entitled to
the same
legal recognition as heterosexual partners
[12]
and no distinction is to be made between heterosexual relationships
and same-sex relationships in the application of the legal
principles
relating to universal partnerships.
13.
Whether the plaintiff in this case succeeded in
establishing a tacit universal partnership on the evidence before the
Court must
now be considered in the light of the aforementioned legal
principles.
THE RELEVANT EVIDENCE
14.
Although they had met earlier, the plaintiff and
defendant started dating when the plaintiff was 25 and the defendant
41 years old.
The plaintiff was struggling financially and was on the
brink of being evicted from his flat in Sea Point, Cape Town. After
three
months of dating, the defendant invited the plaintiff to move
in with him, in the defendant’s house at [...] C[...] Close,
Milnerton (“
the house
”
or “
the
property
”
).
15.
The plaintiff, by his own admission, did not earn
a particularly substantial income. He had worked in the travel
industry with Flight
Centre but later got involved in real estate,
managing rentals with Cape 24 Properties. At the time that he moved
in the with the
defendant he was earning R6000 to R7000 per month
whereas his rental alone was R6000 a month. By the time he moved out
of the house
in 2022 he was earning around R20 000 – R25
000 per month.
16.
The defendant was, and still is, employed as
Airport Service Manager for Emirates Airline. The only oral evidence
of the defendant’s
income was provided by the plaintiff who
testified that the defendant earned at least R50 000 per month
more than him, which
evidence was not placed in dispute by the
defendant in any manner. However, in the defendant’s counsel’s
further written
submissions it was stated that his average net salary
over the period from 2016 to 2022 was R44 175 per month, with
reference
to a document in the agreed trial bundle which contains the
defendant’s salary details over the relevant years.
17.
Although the aforementioned document was not
identified and dealt with in the defendant’s evidence, since it
renders his position
in relation to the comparative contributions of
the parties less favourable to him than the plaintiff’s
evidence referred
to above, I will accept his counsel’s
submission in that regard.
18.
No evidence was given of the plaintiff’s
average monthly income. On his own evidence, it fluctuated
substantially. I return
to this issue, and the comparative
contributions of the parties to the household finances, below.
19.
Approximately four months after the plaintiff
moved in with the defendant, the defendant’s parents also moved
into the house.
They had been living there before but were away
visiting in Johannesburg at the time that the plaintiff moved in.
Approximately
a year later, the defendant’s sister and her
disabled son also moved into the house. Later, during around 2020,
the plaintiff’s
other sister and her grandson also moved into
the house, replacing the first sibling and her son.
20.
During 2018, while on holiday in Phuket, the
Plaintiff asked the Defendant to marry him to which the Defendant
agreed. The Defendant
testified that although he is generally not in
favour of gay marriages, the proposal was unexpected and he was
caught up in the
moment and mood of the happy time that they were
having. No date for a wedding was set and they simply remained
engaged until the
relationship ended.
21.
The main, or at least final, cause for the
breakdown in the relationship between the parties was admitted
infidelity on the part
of the plaintiff. However, neither of the
parties contended that the reasons for the termination of their
relationship has relevance
to the issues at hand and I accordingly
say no more about that.
22.
During the currency of the relationship between
the parties, the financial affairs of the household were managed as
follows:
22.1
The
defendant had two accounts, being an Absa account number 7[...] (“
the
Absa account
”
)
and an FNB Premium/Platinum
[13]
account number 6
[...]
(“
the
FNB Premium account
”
).
The defendant had an FNB account number 6
[...].
The Absa account was in effect a joint account from which all the
household expenses were paid, including the bond. The plaintiff
paid
most of his salary into the Absa account and the defendant was in
complete control of it and took care of the household finances.
The
plaintiff testified that he did not really know anything about the
household finances and that he “
felt
safe and secure like that
”
.
22.2
The defendant’s FNB Premium account was made
available to the plaintiff for use as a credit card. He was provided
with a physical
bank card bearing his name and also had signing
powers in respect of that account. The reason for this was that it
provided more
benefits than his own bank account such as lower
interest rates, airport lounge access, etc. When the FNB account did
not have
sufficient funds, the plaintiff would request more funds
from the defendant who would then always make sure that there was
enough
money in it for the plaintiff’s use.
22.3
Over the period from May 2012 to April 2022, the
total funds transferred from the FNB account into the Absa account
amounted to
R1 009.330, which represents the total of the
plaintiff’s contribution to the joint account over that period.
This amounts
to approximately R7600 per month on average over the 11
year period. To what extent that would have covered the plaintiff’s
share of the household expense was not dealt with in evidence.
22.4
The defendant’s parents were reliant on
SASSA grants which they also contributed to the household finances.
The amount of
their contributions was not dealt with in the evidence.
23.
The defendant urged upon the Court that, viewed
holistically, the plaintiff ultimately caused a substantial
diminution of his (the
defendant’s) estate. The following facts
are relevant in this regard:
23.1
The defendant purchased the (2-bedroomed) house in
2008 and had an extra flatlet added for his parents. In 2011, at the
time that
the plaintiff moved in with him, his financial position was
stable in that he had his own house, own car and two or three credit
loans. The bond on the house was R1.25 million.
23.2
By contrast, according to the defendant, when the
relationship ended in 2022, he was struggling financially. In this
regard he referred
to an Experian Credit Report dated 29 June 2023 in
which various credit account balances are recorded, which were
summarized in
a schedule handed in and marked Exhibit C, which shows
a total balance in the amount of R718 539.
23.3
The defendant has settled the aforementioned debts
by increasing the mortgage bond on the house from R1.25 million to
approximately
R1.9 million. The bond has now been reduced to
approximately R1.8 million.
24.
When the plaintiff moved in with the defendant he
brought with him the furniture and appliances that he had in his
flat, but the
parties subsequently agreed on the items that he could
take with him. During their relationship, the plaintiff was given the
use
of an Audi A4 convertible motor vehicle which was acquired by the
sale of the plaintiff’s father’s Corolla motor vehicle
and an Opel Astra motor vehicle. The Audi A4 was purchased for
R100 000 but later sold for R35 000, whereafter the
plaintiff
was given the use of a Renault Sandero motor vehicle, which
had actually been obtained for the defendant’s sister’s
disabled son through the latter’s trust.
25.
Lastly, as regards financial affairs, it should be
mentioned that the parties concluded a lease agreement in terms of
which the
plaintiff would notionally pay rental to the defendant. It
was however clearly not intended to be implemented or enforced but
rather
to submit to the bank as proof of additional income to the
defendant for purposes of obtaining an increase in the mortgage bond.
26.
Further relevant aspects of the evidence will be
appear from the discussion of the merits of the plaintiff’s
claim below.
DID A UNIVERSAL
PARTNERSHIP COME INTO EXISTENCE?
27.
The enquiry must commence with a consideration of
the three essential requirements for a partnership as formulated by
Pothier followed
by a consideration as to whether, on a conspectus of
all of the relevant evidence, it is more probable than not that a
tacit agreement,
entailing the requisite
animus
contrahendi
, had been reached.
Each of the partners
must bring something into the partnership, whether it be money,
labour or skill
28.
The plaintiff’s case in respect of his
contributions to the communal enterprise may be summarized as
follows:
28.1
He essentially paid over his entire income, or the
bulk of it, for the defendant to utilise as he saw fit.
28.2
He was very involved in planning and executing
improvements to the house. Given his background in property, he
had good ideas
in this regard, which the defendant candidly admitted.
28.3
Albeit not to the extent of the plaintiff in
Butters
(he
did not sacrifice his career and there were no children that required
raising and looking after), he contributed to “
looking
after the household
”
, assisting
with errands, occasionally providing transport to the defendant’s
parents (although they could also drive themselves,
etc). Since he
did not have a full-time job, he was the one that could attend to
household issues or emergencies that inevitably
arise. In the
plaintiff’s words, he “
gave
his life to the defendant and the partnership and brought joy to the
household
”
.
28.4
He also on occasion played a significant role in
hosting staff functions for the defendant.
29.
The defendant did not dispute the plaintiff’s
case in that regard. If anything, he candidly
acknowledged
the contributions to the relationship that the plaintiff relies upon
as appears, for example, from the following evidence
given by him in
his evidence in chief:
“
MR
BOTHA
:
What skills do you think you brought to the relationship, if any?
MR
T[...]
: I think his ideas ...
[intervenes]
MR
BOTHA
: In respect of the renovations?
MR
T[...]
: Ja.
MR
BOTHA
: Ok ... [intervenes]
MR
T[...]
: He mentioned yesterday like I
do not know if I misunderstood him, but he said he brought joy, like
I said five years, it was absolute
beautiful but the past six years
was an absolute disaster.
”
30.
Under cross-examination, the defendant also
acknowledged that the defendant’s
salary was paid into his (the defendant’s) account for the
benefit of everybody in
the household.
31.
The overall impression to be gained from the
aforegoing is that the plaintiff’s role in the relationship was
akin to that
of a spouse in a marital relationship who earns less
than the other spouse but contributes what he or she is able to by
way of
finances in addition to intangible and non-pecuniary
contributions such as affection, support and companionship.
32.
In my view the plaintiff’s contributions to
the relationship and “communal enterprise” qualified as
contributions
envisaged in the first requirement for a partnership,
in the context of a universal partnership.
The partnership must
be carried on for the joint benefit of the parties
33.
The plaintiff denied the defendant’s case,
as pleaded, that their relationship was no more than a “romantic
entanglement”.
In doing so, he
inter
alia
testified as follows:
“
I
would say that 13 years of constant work together at a common goal of
success, of being there for his family, being there for
one another,
pushing, working hard, motivating one another, being through hard
times, getting through them.
”
34.
As regards what he meant by “common goal”,
he testified that
“
For
success, whether it be if we eventually have to sell our house one
day and get equity within the property we made together,
because we
renovated. If it were to be one day we decide that the family is no
longer a burden and we retire to Spain. I do not
know, we just wanted
to better our lives together and work together to make it happen and
we were good at it.”
35.
That evidence was not directly contested or
refuted. The defendant was asked during his evidence in chief
whether, if he had been
asked at the beginning of the relationship to
join forces with the defendant and enter into a commercial
partnership with him,
romantic relationship aside, he would have
agreed to such an endeavour. His response was that he would not
because his priority
was his family. However, as I have pointed out,
the defendant’s approach that a commercial partnership had to
be established
was incorrect.
36.
During cross-examination, the defendant agreed
that their relationship had all the characteristics of a marriage
such as living
under one roof, sharing a bed, combining their
salaries, etc and conceded that he was happy and comfortable to
receive the benefits
which are associated with a marriage.
37.
I am of the view that the evidence also
establishes the second requirement, namely that the communal
enterprise was carried on for
the joint benefit of the parties.
The object of the
partnership must be to make a profit
38.
Again, “profit” in this sense does not
necessarily refer to commercial profit, and in my view the “common
goal
of success” relied upon by the plaintiff in the passage
from his evidence quoted in paragraphs 33 and 34 above satisfies this
requirement.
39.
Moreover, the defendant conceded that the
plaintiff’s home improvement knowledge and skills were valuable
and did not contest
the plaintiff’s evidence that the
improvements that were made, which were largely initiated and driven
by the plaintiff,
did not constitute an overcapitalization of the
property, given the desirable area in which it is located.
40.
Evidence was not given of the current market value
of the property but I am prepared to assume that it would at the very
least have
kept up with normal increases in property values in the
greater Cape Town area. As quoted in paragraph 34 above, the
plaintiff
did suggest that the equity in the property would be
increased by the renovations, which was not contested by the
defendant. To
be clear, I make no estimation of what such increase
might have been.
Did
the
applicant
show the requisite
animus
contrahendi
?
41.
In the
context of tacit agreement, the conclusion that the parties intended
to contract with each other “…
has
to be reached by inference as to their intentions properly drawn from
the proved facts
”
.
[14]
42.
As has been mentioned above, earlier conflicting
formulations for the test for establishing this, have been settled in
favour of
the “more probable than not”-formulation.
43.
In my view, the evidence that I refer to above
does give rise to an inference that the parties intended their
relationship to be
much more than just a “romantic
entanglement”, as the defendant would have it. Not only did he
concede that the relationship
had all the characteristics of a
marital relationship, but the duration thereof alone in my view
placed it beyond a mere
romantic relationship, even if the mere fact
of cohabitation as romantic partners does not in and of itself place
their relationship
on a much deeper level than that.
44.
To my
mind, the fact that the parties were engaged for four years and right
up until the relationship terminated, places the issue
beyond doubt.
To become engaged is to intend to get married, with all the mutual
support and common goal of achieving success that
normally
characterizes a marital relationship. Even though the parties were
not yet actually married, they for all intent and purposes
already
lived together like a married couple, for eleven years.
[15]
45.
Taking all of the above into account, I find that
a universal partnership did come into existence between the parties
from the date
that the plaintiff moved into the defendant’s
house during February 2011 until he moved out on 23 April 2022. It
follows
that an order dissolving the partnership as from the latter
date must be granted.
The consequences of
the dissolution of the universal partnership
46.
The question as to what further relief ought to be
granted must be answered with reference to the submissions made by
the parties
in response to the questions posed to them as set out in
paragraph 5 above.
47.
The parties are
ad
idem
that the Court is called upon to
declare such percentage share of the universal partnership as it
considers to be appropriate and
in accordance with each party’s
contribution.
48.
The
plaintiff’s counsel, in his supplementary note, pointed out
that in
Butters
,
the Supreme Court of Appeal did not interfere with the share
percentage awarded by the trial court.
[16]
In the court
a
quo
,
Chetty J
inter
alia
pointed
out that the apportionment “…
though
arbitrary, is one with an equitable outcome
”
and
referred with approval to a
judgment
of the Botswana Court of Appeal in
Mogorisi
v Mogorisi
,
[17]
in which it was
inter
alia
held
that “
We
have to find a way of fairly weighing and allowing for contributions
of all the interested parties
”
.
[18]
It was reiterated that the contributions to which a financial value
could not be assigned had to be taken into account, as well
as the
contribution of the respondent “
to
the growth of the estate and the universal partnership…
”
and that the Court also
had to give “
full
weight to the fact that the appellant was already the owner of some
property before 1966
”
.
The court
a
quo
in
Butters
apportioned a share of
30% of the universal partnership to the net asset value of the
defendant as at the date of the dissolution
of the partnership.
49.
Taking a broad view, it can be said that the
parties in effect contributed financially to the household what they
earned. It is
not possible to determine what the plaintiff’s
average income over the period of eleven years amounted to. However,
at best
for him, I shall assume the average of his income to be
between the lowest figure of R6000 per month referred to as his
income
at the beginning of the relationship and R25 000 as the
maximum at the end of the relationship, which amounts to
approximately
R15 000. Compared to the average of the
defendant’s income in the amount of approximately R45 000 000,
that
calculates to a ratio of roughly 25/75 of their joint
contributions.
50.
In this equitable outcome enquiry I also take into
consideration that the defendant financed the overseas holiday trips
that the
parties enjoyed and also in effect made available to the
plaintiff the vehicles that he used for his own purposes, including
his
own job and career.
51.
The non-pecuniary contributions of the plaintiff
cannot be compared with the circumstances that prevailed in
Butters
in that no children that had to be
raised and looked after were involved.
52.
In my view, apportioning a 20% share of the
universal partnership to the plaintiff would be equitable in the
circumstances of this
case.
53.
As regards the question as to whether the Court
has the power to declare which assets form part of the universal
partnership and,
if so, whether the value of the defendant’s
house should be included therein, the parties were not
ad
idem
.
54.
The plaintiff submitted that his Particulars of
Claim are formulated widely enough to include the house as one of the
assets which
he expressly alleges forms part of the universal
partnership. The plaintiff however adopts what his counsel refers to
as an “accrual-style
approach” and requests that it be
declared that the value added to the house during the partnership
forms part of the partnership
assets, alternatively that the Court
should direct that the receiver / liquidator account for the increase
in equity in the property
as part of the dissolution.
55.
The defendant submitted that the Court is not
requested in the pleadings and Joint Practice Note to declare which
assets form part
of the partnership but that it does have the
inherent jurisdiction to do so as part of determining what is to be
liquidated and
distributed.
56.
The defendant however submitted that the value of
the house should not form part of the universal partnership, based
mainly on (a)
the fact that it was purchased by him prior to the
formation of the universal partnership, (b) a submission that it
cannot be included
unless a clear intention to contribute it to the
partnership is proven, (c) that the plaintiff did not contribute
financially to
the improvements of the house whatsoever, and (d) that
the references in the plaintiff’s evidence to the house as “our
house” is legally insufficient to sustain an argument that
thereby the value of the house formed part of the universal
partnership.
Lastly, the defendant submits that to include the house
in the partnership assets would result in unjustified enrichment of
the
plaintiff.
57.
In
Khan v Shaik
2020 (6) 375 (SCA), the Supreme Court of Appeal
confirmed that a universal partnership establishes personal
contractual rights as
opposed to real rights and that a partner in a
universal partnership accordingly does not have a direct claim to an
asset owned
by the other party, which distinguishes it from a
marriage in community of property. Accordingly, it must be determined
what the
parties intended in this regard: either a
societas
universorum bonorum, or a societas universorum ex quaestu veniunt
.
58.
The plaintiff’s approach, namely that any
accrual in the value of the property over the period of the universal
partnership
falls to be included in the dissolution of the
partnership, is in accordance with the
universum
quae ex quaestu veniunt
construction,
which is the less favourable to him, and which I accordingly accept
as the basis on which the property must be dealt
with. I believe that
it would be prudent to state this in the order that I make.
59.
Although the parties did not raise any issues
relating to the manner of appointing a liquidator or the precise
terms of such appointment,
I am concerned that the absence of such
terms might give rise to a dispute and even further litigation. I
accordingly include in
the order that I grant, additional provisions
relating to the practicalities of the liquidator’s appointment
in line with
the order that was granted by the court
a
quo
in
Butters
,
which was confirmed by the Supreme Court of Appeal.
60.
It stands to reason that, if the defendant’s
share can be paid to him by the plaintiff without the need to realise
assets,
that would be far more equitable and preferable. Having had
insight into the financial affairs of the defendant, I am concerned
that he may not be able to pay whatever amount the liquidator finds
to be payable to the plaintiff immediately and I accordingly
also
include provision for a reasonable period within which payment can be
made as an alternative to liquidating any assets. I
do so in the
exercise of the Court’s equitable jurisdiction.
61.
Lastly, as regards costs, the plaintiff was
substantially successful and I grant the costs order requested by
him.
62.
I accordingly make the following order:
1.
It is declared that a universal partnership
existed between the parties of all assets and liabilities acquired by
them during the
period from February 2011 to 23 April 2022 in which
the plaintiff obtained a 20% and the defendant a 80% share.
2.
The universal partnership is dissolved as from 23
April 2022.
3.
The increase in value of the defendant’s
house situated at [...] C[...] Close, Milnerton, over the period of
the universal
partnership, if any, falls within the assets of the
universal partnership.
4.
The partners are to appoint a liquidator and
receiver with authority to prepare a final account and, if necessary,
realise the universal
partnership assets and pay to the plaintiff 20%
of the net proceeds thereof, the remainder to be paid to the
defendant together
with interest thereon at the legal rate calculated
from date of summons to date of payment.
5.
The receiver and liquidator shall have the power
to provide for a method and reasonable time period for the payment by
the defendant
to the plaintiff of any amount that is found to be so
payable as an alternative to liquidating the relevant assets in terms
of
paragraph 4 above.
6.
In the event that the parties are unable to reach
consensus on the appointment of a liquidator and receiver, the
parties are authorized
to approach the court for directions in
relation to such dispute.
7.
The parties are also authorised to approach the
court for directions should there be a dispute as to the period
within which payment
is to be made in the event of the liquidator
exercising the power set out in paragraph 5 above.
8.
Costs follow the result and the defendant is
ordered to pay the plaintiff’s costs on the scale as between
party and party,
counsel’s fees to be taxed on Scale B.
D C JOUBERT AJ
Plaintiff’s
counsel: Adv L Gabriel
Defendant’s
Counsel: Adv M Botha
[1]
The
defendant applied for absolution from the instance at the end of the
plaintiff’s case, which was dismissed.
[2]
At
paras 19 – 20, quoting with approval a passage from the
judgment of the trial court, in turn quoting from
Pezzuto
v Dreyer
1992
(3) SA 379 (A).
[3]
Traité
du Contrat de Societé
(Treatise
on the Contract of Partnership).
[4]
In
Sepheri
v Scanlan
2008
(1) SA 322
(C) at 338C
[5]
At
124C
[6]
At
para 11
[7]
See
also
Heaton
et Kruger: South African Family Law
,
LexisNexis 5
th
Ed.,
p 305;
Sepheri
v Scanlan
(
supra
)
at 338 A-C;
Booysen
v Stander
2018
(6) SA 528
(WCC) at para [67]
[8]
At
paras 12 – 15
[9]
At
para 30
[10]
At
para 18
[11]
See
also
Christie’s
The Law of Contract in South Africa,
Vol
1, 8
th
Ed,
pp 110 – 111
[12]
A collection of relevant
case law in this regard is conveniently cited in
Booysen
v Stander
(
supra
)
at para [45]
[13]
“
Premium”
and “platinum” were used interchangeably in evidence.
[14]
Christie’s
The law of Contract
(
supra
)
at p 110
[15]
In
Allner
v Werner
[2020]
JOL 46691
(ECG), a cohabitation arrangement between romantic
partners was held to have progressed to a “
completely
different level
”
i.e.
a universal partnership, when they “
resumed
cohabitation in all earnesty (sic) and for all intent and purposes
were living together as a family unit
”
(at
para 11).
[16]
Mncora
v Butters
2010
ZAECPEHC (72) 7 December 2010
[17]
7 (CAPP04105)
[2005]
BWCA 18
(30 January 2008)
[18]
See
also
Heaton
et Kruger: South African Family Law
(
supra
)
at p 307
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