Case Law[2025] ZAWCHC 549South Africa
Uptown Trading 803 (Pty) Ltd t/a Waterloo Plumbing v Chris Stumke Quantity Surveying (Pty) Ltd and Another (22182/2024) [2025] ZAWCHC 549 (27 November 2025)
High Court of South Africa (Western Cape Division)
27 November 2025
Judgment
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## Uptown Trading 803 (Pty) Ltd t/a Waterloo Plumbing v Chris Stumke Quantity Surveying (Pty) Ltd and Another (22182/2024) [2025] ZAWCHC 549 (27 November 2025)
Uptown Trading 803 (Pty) Ltd t/a Waterloo Plumbing v Chris Stumke Quantity Surveying (Pty) Ltd and Another (22182/2024) [2025] ZAWCHC 549 (27 November 2025)
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sino date 27 November 2025
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
### JUDGMENT
JUDGMENT
Reportable
Case no: 22182/2024
In the matter between:
UPTOWN TRADING 803
(PTY) LTD
t/a
WATERLOO PLUMBING
PLAINTIFF
and
CHRIS STUMKE QUANTITY
SURVEYING
(PTY)
LTD
FIRST DEFENDANT
TYRIS CONSTRUCTION
(PTY) LTD
SECOND DEFENDANT
Coram:
Morrissey AJ
Heard
:
20 August 2025
Delivered
:
27 November 2025
ORDER
The first defendant’s
exceptions are dismissed with costs, such costs to include the costs
of counsel on scale C.
# JUDGMENT
JUDGMENT
MORRISSEY
AJ:
[1]
This matter concerns seven exceptions the
first defendant (“
the QS
”)
has raised in respect of the plaintiff’s particulars of claim.
[2]
Those particulars of claim allege that the
plaintiff concluded a sub-contract with the second defendant (“
the
Contractor
”) to undertake
plumbing work at a construction project for a certain fee. The
sub-contract contained a term that made
the Contractor’s
obligation to pay the plaintiff conditional upon it receiving payment
from its employer (“
the Employer
”)
under the principal building contract. The plaintiff described
that as a “
pay when paid
clause
”.
I adopt that description in this judgment.
[3]
The particulars of claim go on to allege
that at the time of concluding the sub-contract the defendants were
aware that the Employer
had not made any payments to the Contractor
for several months; that there were significant financial
difficulties and risks associated
with the construction project; and
that it was highly likely that the plaintiff would not be paid.
I will refer to those
facts collectively as “
the
financial issues
”. The
plaintiff says that, to the knowledge of the defendants, it was
not and could not have been aware of the
financial issues and that it
concluded the sub-contract in ignorance of them. It says the
pay when paid clause was inserted
with the intention of “
shielding
”
the defendants from the likely non-payment by the Employer.
[4]
While the QS is not a party to the
sub-contract, it is alleged that it was prepared on its instructions
“…
acting on behalf of both
[the Employer] and [the Contractor]
”.
The plaintiff alleges that the Contractor and the QS, being the main
contractor and the quantity surveyor for the
construction project
respectively, were obliged to disclose to the plaintiff the “s
pecial
knowledge
” they had concerning
the financial issues prior to the sub-contract being concluded.
The plaintiff says that the defendants’
non-compliance with
their disclosure obligations caused it to suffer damages
representing the value of the work it did under
the sub-contract and
for which it has not been paid, a sum of approximately R1.4 million.
[5]
There
was consensus between the parties regarding the approach to be
adopted at the exception stage. They accepted that I
am
required to approach the matter on the basis that the allegations in
the particulars of claim will be established at the trial
and that I
must construe them benevolently, in the sense that they must be
excipiable on every reasonable interpretation that can
be attributed
to them before an exception will be upheld.
[1]
[6]
Insofar
as the QS excepted on the basis that the particulars were vague and
embarrassing (all exceptions were advanced on the basis
that the
particulars of claim failed to disclose a cause of action or were
vague and embarrassing), the vagary must be such that
the QS was
seriously prejudiced, in the sense that it was left guessing as to
the case it had to meet.
[2]
The first six
exceptions
[7]
I consider that the first six exceptions
can be disposed of in relatively short order.
[8]
The first exception was that only a portion
of the sub-contract was attached to the particulars of claim. I
do not consider
that was a basis to except to a delictual claim based
on a pre-contractual non-disclosure, as opposed to a claim based on
the contract
it is alleged to have induced.
[9]
In my view it was adequate for the
plaintiff to allege that the contract contained the pay when paid
clause and to attach the relevant
portion of the agreement where it
appeared. I mention that the plaintiff did in fact attach the
entire agreement, and the
objection by the QS was that it did not
attach a copy of another document that it incorporated by reference.
[10]
The second exception is that there is no
allegation in the particulars of claim that the Contractor has not
been paid by the plaintiff.
The reference to the plaintiff is
obviously intended to be a reference to the Employer. The point
the QS advances is that
if the Employer has paid the Contractor, then
the existence of the pay when paid clause has no causal connection to
the plaintiff’s
loss, and it must simply sue the Contractor to
perform under the sub-contract.
[11]
It is so that there is no express
allegation that the Contractor has resisted paying the plaintiff on
reliance on the pay when paid
clause, as opposed to some other
reason. The plaintiff does however allege that the Employer is
in such serious financial
straits that there is no prospect of it
being paid by the Contractor. Reading the particulars of claim
as a whole, I think
it is sufficiently clear for purposes of
considering the exceptions that the plaintiff is contending that: (i)
it would not have
agreed to the pay when paid clause had the
financial issues been disclosed to it; and (ii) the Contractor has
not been paid by
the Employer, and is relying on the pay when paid
clause not to pay the plaintiff.
[12]
The third exception is a denial of the QS’s
involvement in the drafting of the sub-contract, in particular, the
pay when paid
clause. The point advanced is that there was thus
no causal connection between any non-disclosure by the QS and the
existence
of the pay when paid clause.
[13]
I also do not consider that that exception
can be sustained. In my view, the particulars of claim are
sufficiently widely
worded to advance a case that the non-disclosure
of material information by the QS resulted in the plaintiff agreeing
to the pay
when paid clause, something it would not have done had the
relevant disclosure been made. It thus matters not whether the
QS was involved in the drafting or negotiation of the sub-contract,
or the pay when paid clause. The material allegation
is the
non-disclosure of the financial issues.
[14]
In any event, the plaintiff expressly avers
that the defendants inserted the pay when paid clause into the
sub-contract. I
must accept that assertion for the purposes of
determining the exception. If the QS wishes to challenge it, it
may do so
in its plea and then by leading evidence to that effect at
the trial.
[15]
The fourth exception is that the
sub-contract contains a no-representations clause. The point
advanced is that the plaintiff
is precluded by that clause from
setting up a case based on negligent misrepresentations.
[16]
The
difficulty I have with that exception is twofold. First, the QS
was not a party to the sub-contract, and I thus consider
it is
precluded from relying on its terms to resist the claim pursued
against it. Secondly, the plaintiff advances claims
in both
fraud and negligence. Even if the claim in negligence could be
excepted to, in my view doing so would not serve to
substantially
curtail the proceedings, that being the principal practical purpose
of exception proceedings.
[3]
[17]
The fifth exception is that the plaintiff
has not pleaded that it complied with certain obligations that were a
precondition to
it receiving any payment under the sub-contract.
Those requirements included matters such as furnishing tax clearance
certificates,
confirmation of banking details and the like. In
a sense this exception is similar to the second exception, in that it
contends
that the plaintiff has not ruled out reasons for its
non-payment other than the pay when paid clause.
[18]
While the particulars of claim could have
been more clearly drafted to make it plain that the only reason the
plaintiff had not
been paid was because the Contractor was able to
rely on the pay when paid clause, I think that is sufficiently clear
from the
pleading as a whole to resist a challenge at the exception
stage.
[19]
The sixth exception is like the fourth in
that it relies on a clause in the sub-contract, namely, an
arbitration clause.
[20]
In my view that exception is misplaced for
the same reason as the fourth exception: While the Contractor
might be able to
rely on it as a party to the sub-contract, the QS is
not. I would also add that because resistance to a claim based
on an
arbitration clause involves an allegation of material
additional to that appearing in the particulars of claim, such an
objection
should properly be raised by way of a special plea, not an
exception.
[21]
For these reasons the first six exceptions
must be dismissed.
The seventh exception
[22]
The seventh exception was raised
subsequently to the first six. It advances the objection
that the particulars of claim
do not establish a cause of action
against the QS because the non-disclosure that the plaintiff says
caused its loss was not wrongful.
Stated differently, the QS
says that it was under no legal obligation to disclose the financial
issues to the plaintiff and that
it is thus not liable to the
plaintiff for any loss it may have suffered resulting from that
non-disclosure. I turn now to
a consideration of that issue.
[23]
The
plaintiff seeks delictual damages for pure economic loss caused by an
omission (in this case, a failure to speak). Causing
another
pure economic loss (that is loss other than harm to a plaintiff’s
person or patrimony) is not
prima
facie
wrongful.
[4]
Nor is harm caused by an omission.
[5]
In order for the plaintiff to succeed with its claim it will need to
establish facts supporting the conclusion of wrongfulness
it alleges.
[24]
At
its highest level, wrongfulness will be present when the legal
convictions of the community conclude that it is reasonable for
certain acts or omissions to be visited with a legally enforceable
award of damages.
[6]
[25]
What the legal convictions of the community
require in a given case is often contentious. As stated,
positive conduct that
causes damage to the patrimony of another is
prima facie
wrongful. All that means is that, on the face of it, the legal
convictions of the community consider that such conduct is
wrongful
and that the harm-causing party should compensate the harmed party.
[26]
Such a
prima
facie
conclusion on wrongfulness is
capable of being rebutted. For example, the defendant may have acted
with the consent of the owner
of the damaged property, or in
circumstances that necessitated the damage. Permitting those
reasons to excuse the harm-causing
party from compensating the
injured party is because the legal convictions of the community
consider that no remedy should lie
in those circumstances.
[27]
Questions
of wrongfulness are thus an expression of legal policy. Given
the scope, complexity and richness of human interaction,
questions of
wrongfulness may be fraught with difficulty. What is important
is that wrongfulness is not the same as morality;
and that its
determination must be founded on identifiable factors that accord
with constitutional norms, as opposed to an arbitrary
or purely
emotive response to the facts of a given case.
[7]
[28]
Whether there is a duty to speak in a
pre-contractual setting is a situation that often involves difficult
questions of wrongfulness.
In my view, much of that difficulty
arises because of the competing policy considerations relevant to the
wrongfulness enquiry
that tend to arise in such cases.
[29]
On the one hand there is the fact that
parties to a contractual negotiation are often in a form of a
contest. In such a case,
each party is trying to secure the
best possible outcome for themselves, even if doing so is at the
expense of the other.
Neither party expects any assistance from
the other, and will typically receive even positive representations
from the other side
with a healthy dose of cynicism. Whatever
one may think of negotiating in that way from a moral perspective, it
is an accepted
commercial reality. In my view it is a factor
militating against a duty to speak. Indeed, it is a factor that
may justify
parties intentionally withholding material information
from each other.
[30]
On
the other hand, not every negotiation is a zero-sum game. It
may be that there is some pre-existing relationship between
the
parties or other circumstances present that creates a reasonable or
legally justifiable belief that they are co-operating to
conclude a
fair deal. In such a case one party might be required to
disclose facts to the other, even if they are adverse
to its
negotiating position.
[8]
[31]
Determining into which of the above two
scenarios a particular case falls may be a difficult exercise.
Even hostile negotiations
can be conducted in a civil manner, and
that civility may create an impression that the parties contemplated
a fair deal situation
as opposed to a zero-sum game. Or it may
emerge that the negotiation falls somewhere between those
extremes, which
may have an impact on what the parties could
justifiably expect from each other by way of disclosure. It
might also emerge
that the parties were not on the same page, with
one considering they were negotiating selflessly and the other
considering they
were negotiating selfishly, which would in turn
require a determination on which position was more acceptable in the
circumstances
and based on the evidence available.
[32]
What is important for present purposes is
that issues such as the nature of the negotiation and the
relationship(s) between parties
have a bearing on whether a
pre-contractual non-disclosure is wrongful.
[33]
The
fact that one party is aware of material facts that the counterparty
cannot access may also be a relevant factor in the wrongfulness
enquiry.
[9]
This policy
consideration may to some extent be a reflection of those underlying
the common law principles regarding latent
defects in contracts of
sale.
[34]
Very generally speaking, and without more,
a seller must disclose latent defects and may not conceal patent ones
with a view to
concluding a sale. Part of the rationale
underlying those principles may be that a seller is expected to have
a far more
detailed knowledge of the
merx
and its defects than a potential purchaser, and is thus precluded
from exploiting the latter’s justifiable ignorance of those
defects.
[35]
That
consideration must be contrasted with the general principle that a
purchaser is not required to disclose latent attributes
they are
aware of in the object of the sale, even if they know the seller is
ignorant of them.
[10]
That may be permitted because a windfall for a buyer due to latent
attributes is different from a loss caused by latent defects.
[11]
Or it may be that economic loss caused by a seller’s ignorance
of latent attributes does not justify a remedy at law
because, as
owner, they are assumed to know the
merx
better than anyone else.
[36]
There
are a number of reported cases that consider the question of a duty
to speak in pre-contractual negotiations. Two that
I have found
to be particularly helpful in this case and that were referred to by
both parties during argument are
Absa
Bank Limited v Fouche
[12]
and
McCann
v Goodall Group Operations (Pty) Ltd
.
[13]
I can do no better than to repeat the relevant
dicta
here.
[37]
Per
Absa
(citations omitted):
[14]
“
The
policy considerations appertaining to the unlawfulness of a failure
to speak in a contractual context - a non-disclosure - have
been
synthesised into a general test for liability. The test takes account
of the fact that it is not the norm that one contracting
party
need tell the other all he knows about anything that may
be material. That accords with the general rule that
where conduct
takes the form of an omission, such conduct is prima
facie lawful. A party is expected to speak when the
information
he has to impart falls within his exclusive knowledge (so that in a
practical business sense the other party has him
as his only source)
and the information, moreover, is such that the right to have it
communicated to him 'would be mutually
recognised by honest men in
the circumstances'
”
[38]
Per
McCann:
[15]
From the aforegoing
exposition of the law the following principles emerge:
(a)
A negligent misrepresentation may give rise to delictual
liability and to a claim
for damages, provided the
prerequisites for such liability are complied with.
(b)
A negligent misrepresentation may be constituted by an omission,
provided the defendant breaches
a legal duty, established by policy
considerations, to act positively in order to prevent the plaintiff's
suffering loss.
(c)
A negligent misrepresentation by way of an omission may occur in the
form of a non-disclosure
where there is a legal duty on the defendant
to disclose some or other material fact to the plaintiff and he fails
to do so.
(d)
Silence or inaction as such cannot constitute a misrepresentation of
any kind unless there is
a duty to speak or act as aforesaid.
Examples of a duty of
this nature include the following:
(i)
A duty to disclose a material fact arises when the fact in question
falls within the
exclusive knowledge of the defendant and the
plaintiff relies on the frank disclosure thereof in accordance with
the legal convictions
of the community.
(ii)
Such duty likewise arises if the defendant has knowledge of certain
unusual characteristics relating
to or circumstances surrounding the
transaction in question and policy considerations require that the
plaintiff be apprised thereof.
(iii)
Similarly there is a duty to make a full disclosure if a previous
statement or representation
of the defendant constitutes an
incomplete or vague disclosure which requires to be supplemented or
elucidated.
These
examples cannot be regarded as a numerus clausus of the
occurrence of a duty to disclose, as may possibly be inferred
from
the authorities mentioned above. There may be any number
of similar factual situations which could give rise to
such duty.
”
[39]
As helpful as they are in identifying
factors that may point to a failure to speak being wrongful, those
dicta
make
it clear that those factors alone are not conclusive of the enquiry.
[40]
In
Absa
the Supreme Court of Appeal stressed that in addition to one party
having exclusive knowledge of material facts, a duty to speak
would
also need to be “…
mutually
recognised by honest men in the circumstances
”.
In my respectful view, this is a reference to the wrongfulness
enquiry.
[41]
Similarly, in
McCann
the Court identified “
exclusive
knowledge
” and “
knowledge
of unusual circumstances and characteristics
”
as factors that might suggest wrongfulness, but also indicated that
wrongfulness would only be present if “
the
legal convictions of the community
”
or “
policy considerations
”
demanded disclosure of the knowledge in question.
[42]
I make these observations not as a
criticism but because they confirm my view that the existence of a
duty to speak in a pre-contractual
setting may often turn on a fine
analysis of the evidence of the particular case, including the nature
of the negotiations, the
nature of the contract being negotiated, the
information available (and unavailable) to the parties, and the
relationships between
them (and possibly others).
[43]
Turning to the case at hand, it is clear
that the drafter of the particulars of claim was aware that the
non-disclosure relied on
was not
prima
facie
wrongful, and that it was
necessary to plead facts indicative of policy reasons that would
support a finding of wrongfulness.
[44]
To illustrate this I set out what is
pleaded in paragraphs 9 and 10 of the particulars of claim:
“
9.
The Plaintiff avers that:
9.1.
The Defendants knew, or ought reasonably to have known, that the
Plaintiff had no independent means
of ascertaining the financial
status of the Project of the payment issues with… [the
Employer].
9.2.
The information regarding the Project’s financial difficulties
and the non-payment by …
[the Employer] was exclusively within
the knowledge of the Defendants and/or … [the Employer].
9.3.
The plaintiff, as a subcontractor, had no direct contractual
relationship with … [the Employer]
and therefore no access to
information about its financial status or payment history.
9.4.
The Defendant’s knew, or ought reasonably to have known, that
the Plaintiff would rely on the
implied representation that the
Project was financially sound and that payments would be made in the
ordinary course of business.
9.5.
The Defendants, by virtue of their positions as Quantity Surveyors
and Main Contractor respectively,
had special knowledge of the
Project’s financial status and payment issues.
9.6.
The Defendants knew, or ought reasonably to have known, that the
information regarding the payment
issues was material to the
Plaintiff’s decision to enter into the Agreement and to
commence work on the Project.
10.
In light of the above, the Defendants were under a legal and ethical
duty
to disclose to the plaintiff:
10.1. The
fact that …[the Employer] had not made any payments to the
Second Defendant since February 2023;
10.2. The
significant financial difficulties and risks associated with the
Project;
10.3.
The high likelihood that the Plaintiff would not receive timely
payment, if at all, for work performed on the
Project.
[45]
It is manifest from the quoted text that
heavy reliance is placed on the alleged exclusive knowledge the
defendants had of facts
material to the plaintiff’s decision to
agree to the pay when paid clause, and the plaintiff’s
inability to access
that information. That is a factor tending
towards wrongfulness, as identified in
Fouche
and
McCann
(I consider the reference to the “
ethical
duty
” in paragraph 10 to be
mistaken, on the basis that any such duty is at best indirectly
relevant to the wrongfulness enquiry).
[46]
A benevolent reading of the cited passages
also reveals that another factor is relied upon. In paragraph
9.4 it is alleged
that there was an implied representation that the
construction project was financially sound, and in paragraphs 9.3 and
9.5 reliance
is placed on the roles the parties occupied in respect
of the construction project (subcontractor, main contractor and
quantity
surveyor).
[47]
It is not entirely clear to me what the
“
implied representation
”
in paragraph 9.4 refers to, but I consider that on a reasonable
interpretaiotn of the particulars of claim it is a reference
to
sub-contract offered to the plaintiff.
[48]
What the plaintiff is thus saying, albeit
in a roundabout way, is that the relationship between the parties as
potential sub-contractor,
main contractor and quantity surveyor was
such that if the defendants knew that the construction project was
not financially sound,
they were obliged to notify the plaintiff of
that fact, and that their the failure to do so amounted to a tacit
representation
as to its financial soundness.
[49]
Mr De Wet
,
who appeared for the QS, resisted the existence of such a duty of
disclosure and implied representation. He submitted that
there
was no relationship between the QS and the plaintiff and that the QS
assumed no responsibility for the plaintiff’s
affairs. He
also pointed out that the QS was an agent of the Employer, and in
that fiduciary position it would not be inclined
to disclose
information to the plaintiff about the Employer’s financial
means.
[50]
In my view, those submissions have merit in
the consideration of the wrongfulness enquiry. Fundamentally,
the plaintiff’s
case is that the QS was legally obliged to
furnish it with information that would assist it in its negotiation
of the sub-contract
with the Contractor, in particular, regarding its
decision to agree to the pay when paid clause.
[51]
Absent some form of relationship obliging
the QS to advise the plaintiff, it may well be that its alleged
non-disclosure was not
wrongful. That would be all the more so
if, as the plaintiff avers, the sub-contract was prepared on the QS’s
instructions
on behalf of the Contractor and Employer.
[52]
As the plaintiff has expressly pleaded, the
pay when paid clause was to the Contractor’s benefit. If
the QS was acting
on the Contractor’s behalf, it would be
unusual for it to be required to make disclosures to the plaintiff
that would prejudice
the Contractor’s negotiating position.
A finding that there was an obligation on the QS to disclose the
financial issues
in those circumstances could place the QS in a
conflict of interest situation. In my view, such an unusual
consequence militates
against a finding of wrongfulness unless it
could also be shown that the Contractor was obliged to make the
relevant disclosure
and that the QS could be expected to have been
aware of that obligation.
[53]
Another
consideration supporting an absence of wrongfulness is that even if
the plaintiff did not know about the Contractor’s
financial
situation, it knew that was something it was ignorant of. Being
in that position the plaintiff could have protected
itself from the
“
known
unknown
”
by either seeking the removal of the pay when paid clause, the
inclusion of some other stipulation to protect itself, or
by
declining to contract.
[16]
I should mention that there is nothing in the particulars of claim to
suggest that the plaintiff was unaware of the pay when
paid clause
when concluding the sub-contract, or that it had no real option but
to conclude it.
[54]
On the other hand, and as I understood
Mr
Tredoux
to argue on behalf of the
plaintiff, both the relationship between the QS and the plaintiff and
the role the QS played in the negotiation
served to encumber it with
the duty of disclosure alleged.
Mr
Tredoux
also emphasised the plaintiff’s
allegation that the defendants were in possession of material
information that they knew the
plaintiff did not have and could not
access.
[55]
Although neither of the parties referred me
to any cases on the issue, it seems to me that as a matter of
principle that the relationships
between parties to a construction
project may be relevant to questions of wrongfulness regarding
delictual claims advanced between
them, be it in respect of
pre-contractual non-disclosures or other omissions.
[56]
For example, it may well be that on facts
of a given case the parties involved in a construction project
justifiably considered
each other to be teammates working towards a
common goal and who would look out for each other when working on the
project.
The existence and scope of the support that could be
expected would depend on the unique facts of the case: In one
project
it might be that team members worked entirely independently
and it was accepted that each of them was solely responsible for the
tasks allocated to them. On another project (or part of it) it
might be the case that there was a more collaborative approach,
and
an expectation that mistakes spotted by one team member would be
communicated to the person responsible for them. To
succeed
with a claim would of course require all the other elements of a
delictual claim to be established.
[57]
In pursuing the seventh exception the QS
asks me to resolve the issue of the wrongfulness of its conduct at
this stage of the proceedings.
The argument was essentially
presented on the basis that the factors against a finding of
wrongfulness outweigh those relied on
by the plaintiff in favour of
it.
[58]
While
it is so that in some cases wrongfulness can be determined in
anticipation of a trial,
[17]
I
do not consider this to be such a case. As will be apparent
from the preceding discussion, my difficulty with the seventh
exception is that I do not consider that the factors relevant to the
wrongfulness enquiry can be weighed without the benefit of
any
evidence led at the trial.
[59]
While the starting position is that the
non-disclosure was not wrongful, the plaintiff may be able to put up
evidence establishing
that the circumstances of the negotiation or
the relationship between the QS were such that it could justifiably
expect disclosure
is says was not made.
[60]
I consider that this view is endorsed by
the inconclusive way the statements of law in
Absa
and
McCann
are made: Those Courts had to beg the question of wrongfulness
in the way I have explained above because, when it comes to
pre-contractual non-disclosures, the outcome of a wrongfulness
enquiry will typically depend on the
facta
probantia
of the case in question.
[61]
For those reasons the only material
consideration at this stage is whether the plaintiff has pleaded
factors that might establish
a finding of wrongfulness on the part of
the QS. I consider that it has done so by relying on the
following two factors:
a.
The exclusive knowledge of the QS and the
lack thereof on the part of the plaintiff (as contemplated in
Absa
and
McCann
).
b.
The relationships between the parties,
including those between the QS and the plaintiff and the QS and the
employer.
[62]
Whether those considerations will
ultimately prevail in establishing wrongfulness will depend on the
evidence led at the trial,
as considered with any other evidence
supporting factors against a finding of wrongfulness. That
cannot be decided at this
stage, and for that reason I consider that
the seventh exception must thus also be dismissed.
[63]
As regards the question of costs,
Mr
De Wet
submitted that if I were minded
to dismiss the exceptions it would be appropriate for costs of the
exception proceedings to stand
over for later determination. I
asked
Mr De Wet
to prepare supplementary submissions on that question, which he duly
did. In those submissions he referred to a line of cases
that
warn a defendant to except to a defective claim advanced by a
plaintiff, at the risk being mulcted in the costs of a trial
if it
does not.
[64]
Despite those submissions, and while I
appreciate that the QS may yet establish its wrongfulness challenge,
I do not think that
the costs of these proceedings should be deferred
to the trial court.
[65]
I say so because I have found that the
first six exceptions were bad and that the seventh was premature, in
the sense that I consider
the question of wrongfulness should
properly be determined at the trial. Permitting the costs of
the exception to stand over
in the face of those findings would be to
encourage the taking what might be referred to as
bona
fide
but debateable exceptions.
While litigants are entitled to raise such exceptions, where the
debate is decided against them
they should ordinarily be required to
cover the costs of the investigation. That is different from
the position where a defendant
does not except in a case where it is
clearly appropriate to do so, the situation contemplated in the line
of cases
Mr De Wet
referred me to in his supplementary submissions.
[66]
Lest there be any uncertainty on the
question, my impression was that the exceptions raised by the QS were
advanced in good faith.
The costs order I have decided to make
should not be seen to suggest anything to the contrary.
[67]
The legal issues raised in the proceedings
were relatively complex, something reflected in the fact that both
parties retained experienced
counsel. I thus consider that
counsel’s fees should be determined on scale C.
[68]
In the circumstances there will be an Order
dismissing the first defendant’s exceptions with costs, such
costs to include
the costs of counsel on scale C. As the second
defendant did not participate in these proceedings (it has filed a
plea),
my order as to costs pertains only to the plaintiff’s
costs.
MORRISSEY
AJ
Acting
Judge of the High Court
APPEARANCES
Counsel for the
Excipient:
Adv H N De Wet
Instructed
by:
Ward Brink Attorneys.
Counsel for
Plaintiff:
Adv P Tredoux
Instructed
by:
Neville R Cohen & Associates.
[1]
Livings
Hands (Pty) Ltd and Another v Ditz and Others
2013
(3) SA 368
(GSJ) at [15].
[2]
Trope v
South African Reserve Bank and Another
1992
(3) SA 208
(T) at 211B-E.
[3]
Telematrix
(Pty) Ltd t/a Matrix Vehicle Tracking v Advertising Standards
Authority SA
2006
(1) SA 461
(SCA) at [3].
[4]
Cape
Empowerment Trust v Fisher Hoffman Sithole
2013 (5) SA 183
(SCA) at [21].
[5]
Minister
of Law and Order v Kadir
[1994] ZASCA 138
;
1995
(1) SA 303
(AD) at 317C-F.
[6]
ZA
v Smith
2015
(3) SA 574
(SCA) at [15]-[16].
[7]
Trustees,
Two Oceans Aquarium Trust v Kantey & Templer (Pty) Ltd
2006
(3) SA 138
(SCA) at [12].
[8]
Hulett
and Others v Hulett
[1992] ZASCA 111
;
1992
(4) SA 291
(AD) at 311D-E;
[9]
Absa
Bank Ltd v Fouche
2003
(1) SA 176
(SCA) at [5].
[10]
Meskin
v Anglo-American Corporation of SA Ltd
1968
(4) SA 793
(W) at 796D-E;
Speight
v Glass & Another
1961 (1) SA 778
(D&CLD) at 781H-782E;
Josephi
v Parks
1906 EDC 138
at 141.
[11]
As
suggested in
Christie’s
Law of Contract in South Africa
(8
th
ed) at 339.
[12]
Supra.
[13]
1995
(2) SA 718 (C).
[14]
Supra
at
[5].
[15]
Supra
at
726A-G.
[16]
Compare
Cape
Empowerment Trust, supra
at [28].
[17]
Telematrix,
supra
at
[15]-[16].
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