Case Law[2024] ZAWCHC 328South Africa
M.S v Registrar of Deeds Cape Town and Others (14069/2024) [2024] ZAWCHC 328 (16 October 2024)
High Court of South Africa (Western Cape Division)
16 October 2024
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## M.S v Registrar of Deeds Cape Town and Others (14069/2024) [2024] ZAWCHC 328 (16 October 2024)
M.S v Registrar of Deeds Cape Town and Others (14069/2024) [2024] ZAWCHC 328 (16 October 2024)
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sino date 16 October 2024
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IN
THE HIGH COURT OF SOUTH AFRICA
WESTERN
CAPE DIVISION, CAPE TOWN
Case
Number: 14069/2024
In
the matter between:
M[…]
S[…]
Applicant
and
REGISTRAR
OF DEEDS, CAPE TOWN
First Respondent
VELILE
TINTO CAPE
INC.
Second Respondent
M[…]S[…]
S[…]
Third Respondent
MOGAMED
ZEYN KISTEN
Fourth Respondent
JUDGMENT
JANISCH AJ:
1.
This is the extended return day of a rule
nisi
issued by
Francis J on an urgent basis on 19 June 2024.
2.
The rule
nisi
calls on the respondents to show cause why the
following orders should not be made final:
2.1.
“
Pending the finalization of the
relief sought in Part B, the first and second respondents are
interdicted and prohibited from giving
effect to the registration of
transfer of ownership of
ERF
1[…], SILVER TOWN, ATHLONE, CAPE TOWN
,
more commonly known as
3[…]
D[…] CRESCENT, SILVER TOWN, ATHLONE, CAPE TOWN, WESTERN
CAPE PROVINCE
(“the
property”), to the fourth respondent.
2.2.
Any of the respondents, or such other
person having an interest in the matter, who opposes Part A of the
application shall pay the
costs hereof, jointly and severally, the
one paying, the other to be absolved.”
3.
The substantive relief sought in Part B of the application is, in
overview, the
following:
3.1.
Cancelling the sale of the property to the Fourth Respondent; and
3.2.
Transferring the Third Respondent’s half share in the property
to the Applicant at a specified price, subject to bond approval being
granted to the Applicant, failing which the property is to
be
marketed and sold at market value, with the proceeds being divided
between the Applicant and the Third Respondent in a specified
manner.
4.
Together with the rule
nisi
, Francis J granted an
interim interdict preventing the registration of transfer of the
property pending the return day which was
set for 29 July 2024. He
also fixed a timetable for the filing of further papers in the event
that there was to be opposition on
the return day, as well as
directions for the further conduct of Part B once the interim relief
application had been finalised.
5.
The matter became opposed by the Third and Fourth Respondents.
Answering papers were filed. The Applicant was late in filing her
replying affidavits. When she did so, the Third and Fourth
Respondents, who I understand were preparing to oppose the interim
relief on the return day, wanted an opportunity to file further
papers to deal with matter in the reply. In any event, since the
matter was only on the unopposed roll, it was made clear that the
duty Judge would not be able to hear it. This led to an order
taken
by agreement before Ralarala AJ on 29 July 2024, extending the return
day and postponing the interdict proceedings to the
semi-urgent roll.
Directions were made for the filing of a further affidavit by the
Third and Fourth Respondents and for the delivery
of heads of
argument. The interdict remained in force and costs stood over.
Background
6.
The
Applicant
and the Third Respondent are
joint owners in undivided shares of Erf 1[…] Silver Town,
Athlone, Cape Town (“
the property
”). The property
formed part of their joint estate pursuant to their marriage in
community of property.
7.
The parties divorced on 1 February 2023. They entered into a consent
paper which
was made an order of court. This provided for the fate of
the property as follows:
“
6.
Immovable Property
It
is agreed that Plaintiff shall take sole ownership of the property
situated at 3
[…]
D
[…]
Crescent, Silvertown. The Plaintiff shall
effect payment to the Defendant in respect of his fifty percent (50%)
equity in the property.
It is therefore specifically agreed that:
6.1
Each party shall obtain a valuation
of the said property from a reputable estate agent in order to
determine the market value of
the property.
6.2
Plaintiff shall raise either
mortgage loan or personal loan in order to effect payment to the
Defendant. In respect hereof Plaintiff
shall raise the aforementioned
within 30 days of the granting of the divorce order.
6.3
In the event that Plaintiff is
unable to comply with the time period as per clause 6.2 above, the
property shall be placed on the
open market and sold to the highest
offer obtained.
6.4
Both Plaintiff and Defendant shall
be each liable for fifty percent (50%) of the outstanding municipal
account.
6.5
Plaintiff shall be liable for both
the transfer cost as well as any bond registration costs in respect
of the registration of the
property solely into her name.
6.6
The parties shall do all things
necessary to ensure that transfer is effected into names of the
respective party. In the event that
either party does not comply
the sheriff of the court is accordingly authorized to sign on behalf
of such party.”
8.
The parties commenced the process. Having received estate agent
valuations, they
agreed on a market value (for purposes of clause
6.1) of R950,000. The Applicant was therefore entitled to acquire the
Third Respondent’s
half share for R475,000, provided she
obtained finance to enable her to pay the price.
9.
The Applicant however failed to raise the necessary finance within
the 30-day
period. Even though the Third Respondent was prepared to
receive a lower amount of R450,000, finance was still not
forthcoming.
10.
Accordingly, the fall-back provisions of paragraph 6.3 of the consent
order (i.e. the sale of
the property on the open market) came into
effect.
11.
The Third Respondent gave a sole mandate to an estate agent, Ms
McBride, but the Applicant did
not herself mandate Ms McBride in
relation to her 50% share of the property. Precisely what was done to
market the property is
the subject of some dispute which I address
below.
12.
On 21 March 2023, the Fourth Respondent, who is a cousin of the Third
Respondent, signed an offer
to purchase the property for R530,000.
The Third Respondent countersigned it. It was then presented to the
Applicant by the Fourth
Respondent for her signature. She refused.
The Fourth Respondent later increased his offer to R650,000. Again,
the Applicant refused
to sign, on the basis that the amount was too
low. There were also various proposals from the Third Respondent to
split the R650,000
price more favourably to the Applicant, but she
remained unpersuaded.
13.
In December 2023, the sheriff of the Regional Court (which Court had
granted the decree of divorce)
arrived with a document requesting the
Applicant’s signature, and stating that if she did not sign,
the sheriff would do
so on her behalf. It is apparent that this was
the agreement of sale for R650,000 that had been signed by the Third
and Fourth
Respondents. The Applicant refused to sign it so, stating
that the offer was too low and not in keeping with the divorce order.
14.
At some time before 8 February 2924, the sheriff proceeded to sign
the agreement of sale on the
Applicant’s behalf, apparently
relying on the powers set out in clause 6.6 of the consent order.
15.
The sale then proceeded to the stage of transfer to the Fourth
Respondent. On 20 February 2024
the Applicant was asked to sign the
transfer documents, failing which the sheriff would do so. She
declined to sign the documents.
Once again, it appears that the
sheriff signed the transfer documents on her behalf. The exact date
on which this occurred is not
clear.
16.
In June 2024, the Applicant learned that the transaction documents
had been lodged for registration
and that transfer of the property
was imminent. She secured legal representation and proceeded to
launch the urgent proceedings
which gave rise to the original rule
nisi
and interim interdict on 19 June 2024, which was extended
on 29 July 2024.
17.
The First and Second Respondents (namely the Registrar of Deeds and
the conveyancing attorneys)
have not opposed the relief sought.
The
issues
18.
Francis J considered the matter to be urgent and issued the rule
nisi
and interim interdict on that basis. I am not required to
revisit the issue of urgency.
19.
Condonation is sought for the respective parties’ failure to
meet certain deadlines for
the filing of papers and heads of
argument:
19.1.
The Applicant failed to file her replying affidavit on 19 July 2024,
as ordered by Francis J. It is dated
26 July 2024, hence
approximately a week out of time;
19.2.
The Applicant failed to file her heads of argument on 23 September
2024, as required by the order of Ralarala
AJ. The heads are dated 27
September 2024 and bear a Court stamp of 30 September 2024; and
19.3.
As a result of the Applicant’s delay in filing her heads, the
Third and Fourth Respondents filed their
heads on 3 October 2024,
three days outside the deadline.
20.
In oral argument, neither party pressed me to refuse condonation of
the other party’s (or
parties’) default, which was
relatively minor. I do not see that these delays caused any material
prejudice to either party
in the determination or conduct of the
litigation. It is in the interests of justice that the Court has
regard to the replying
affidavit (to which the Third Respondent has
in any event had an opportunity to respond) as well as to both
parties’ heads
of argument. Counsel for the Third and Fourth
Respondents did however ask me to make an order as to the wasted
costs of the hearing
on 29 July 2024, which was delayed in part
because of the late filing of the reply. I deal with this below.
21.
In the circumstances, I grant condonation for the stated instances of
non-compliance.
22.
The substantive question before me is whether a proper case has been
made out to extend the interim
interdict restricting transfer of the
property to the Fourth Respondent, pending the final determination of
the relief sought by
the Applicant in Part B.
23.
I am also required to address two issues of costs: those of this
application for interim relief,
and those occasioned by the
postponement on 29 July 2024.
The
interim interdict
24.
The interdict sought is of an interim nature, preserving the
status
quo
in respect of ownership of the jointly-owned property until
this Court decides whether,
inter alia
, the sale agreement is
to be cancelled.
25.
The requirements for granting interim relief are well-traversed. The
following four aspects are
typically required to be present:
25.1.
A
prima facie
right, even though open to some doubt;
25.2.
A well-grounded apprehension of irreparable harm if
the interim
relief is not granted and the final relief is eventually granted;
25.3.
That the balance of convenience favours the granting
of the interim
relief; and
25.4.
The absence of any other satisfactory remedy.
(
Economic Freedom
Fighters v Gordhan
2020 (6) SA 325
(CC) in paras [21] and
[22];
Eskom Holdings SOC Limited v Vaal River Development
Association (Pty) Limited
2023 (4) SA 325
(CC) in para
[253].)
26.
These
factors must be applied “
in
a way that promotes the objects, spirit and purport of the
Constitution
”
(
National
Treasury and Others v Opposition to Urban Tolling Alliance
2012
(6) SA 223
(CC)
in para [12].)
27.
It will commonly occur that there are disputes of fact on the papers
in relation to an application
for an interim interdict. In such a
case, the court will take the facts set out by the applicant together
with any facts put up
by the respondent that the applicant cannot
dispute, and then consider whether, having regard to the inherent
probabilities, the
applicant should (not could) obtain final relief
on those facts. Against this is then considered the respondent’s
contradicting
facts. If these cast serious doubt upon the prospects
of obtaining final relief, then the applicant may fail in relation to
interim
relief. But if not, the tendency will be to protect the
rights in the interim, pending the final determination of the main
relief.
(
Webster v Mitchell
1948 (1) SA 1186
(W) at
1189, read with
Gool v Minister of Justice
1955 (2) SA
682
(C) at 68D-E.)
28.
A
prima facie
right is not necessarily easily established. As
stated in
Economic Freedom Fighters
(
supra
) in
paragraph [44] in the context of administrative review:
“
In
addition, before a court may grant an interim interdict, it must be
satisfied that the applicant for an interdict has good prospects
of
success in the main review. The claim for review must be based on
strong grounds which are likely to succeed.”
29.
I turn to deal with the relevant factors in the light of the above
authorities.
Prima facie
right
30.
The Applicant must establish that she has a
prima facie
right
to the main relief which she seeks, thus warranting the interim
protection of the
status quo
. If she cannot establish such a
right, there would be no purpose in granting interim protection.
31.
The nub of the Applicant’s complaint is that she cannot be
subjected to having the property
sold and transferred to the Fourth
Respondent under the sale agreement which she did not sign, and at a
price (R650,000) which
she does not believe reflects its market
value. Her primary relief, to be sought under Part B, is for the sale
agreement to be
cancelled. If that occurs, there will necessarily
have to be another attempt to give effect to the consent order in the
divorce.
32.
I must therefore consider whether the Applicant has established, in
the first instance, a
prima facie
right to have the sale
agreement cancelled or set aside.
33.
It is common cause that the parties attempted to give effect to
clauses 6.1 and 6.2 of the consent
order, in that they agreed a
market value purchase price for the Third Respondent’s share,
and the Applicant then tried to
obtain finance for the price so
determined (R475,000). It is also common cause that the 30-day period
expired without finance being
raised.
34.
In argument it was suggested that in the main proceedings the
Applicant should still be able to
enforce a right to purchase the
Third Respondent’s 50% share of the property because the Third
Respondent’s conduct
prior to the divorce was the cause of her
inability to obtain bond finance. That however is not a case that is
squarely made on
the papers before me, and I do not deal with it
further. I proceed from the premise that, on the face of it, the
Applicant’s
right to purchase the 50% share for R475,000 lapsed
once the 30-day period in the consent order passed without finance
being obtained.
35.
That being so, the fall-back position arose, namely that the property
had to be placed on the
open market and sold under the highest offer,
with the proceeds being split between the Applicant and the Third
Respondent.
36.
Although the Third and Fourth Respondents had agreed that the whole
property should be sold for
R650 000, the Applicant did not
agree because she found the price too low. Nevertheless, the sheriff
purported to sign the
offer on her behalf, ostensibly clearing the
way for transfer to occur at that price.
37.
The primary relief which will be sought in Part B is to have the sale
of the property cancelled.
That will in my view come down to whether
the sheriff was properly empowered to sign the sale agreement on the
Applicant’s
behalf in fulfilment of the divorce order, thus
binding her to sell at the price offered by the Fourth Respondent.
38.
As a preliminary issue, I consider whether under the consent order
the sheriff had the power to
sign the sale agreement in any
circumstances. This is because clause 6.6 authorises the sheriff to
take steps to “
ensure that
transfer
is
effected into the names of the respective parties
”.
Transfer of a property is a different juristic act from the
conclusion of an underlying agreement of sale.
39.
Without deciding the point, it appears to me that on a sensible and
businesslike interpretation
of the order (which, like any legal
document, must be interpreted in accordance with the principles
summarised in
Natal Joint Municipal Pension Fund v Endumeni
Municipality
2012 (4) SA 593
(SCA) in para [18]), the powers
of the sheriff must if possible be interpreted in a manner that gives
effect to the purpose of
the document. So as to ensure that a
legitimate sale of the property in keeping with the ambit and purpose
of the order can
be given effect to, it would not be far-fetched to
conclude that the sheriff’s powers under the order extend in
principle
to signing the sale agreement on behalf of a recalcitrant
party. I proceed on that premise.
40.
At the same time, there must be a limit beyond which the sheriff
cannot validly bind a party to
an agreement against his or her will.
41.
It is well-established in our law of agency that if a person acts
without another’s express,
implied or residual authority, he
“
cannot place under any obligation the person in whose name
he does any business of whatever nature
” (Kerr
The Law
of Agency
(4
th
Edition) p. 80, quoting from Pothier on
Mandate. See also
Du Preez v Laird
1927 AD 21
at 28;
Clifford Harris (Rhodesia) v Todd
NO
1955 (3) SA 302
(SR) at 303F-G).
42.
Although the sheriff is not a true agent in the above sense, the
principle must be the same: a
party cannot be held bound by the
sheriff’s signature of an agreement where doing so exceeds the
proper limit of the sheriff’s
authority under the order by
which the power is conferred.
43.
The extent of the sheriff’s authority to bind the Applicant
therefore depends on the proper
interpretation of the consent order.
44.
The purpose of clause 6.3 of the consent order is clearly to
safeguard both parties in the event
that the Applicant is unable to
purchase the Third Respondent’s half share (which is the
preferred option). It clearly aims
to ensure that the property is
then sold for the best possible price which will be shared between
them.
45.
To this end, the consent order specifies in express language that the
property “
shall be placed on the open market
” and
sold “
to the highest offer obtained
”.
46.
To my mind, it is necessarily implicit in this formulation that the
property should, as a bare
minimum, be subjected to a process which
is suited to attracting the best available price. This would be in
keeping with clause
6.1 which bases the Applicant’s right to
purchase the Third Respondent’s share on the “
market
value
”. At the same time, clause 6.3 differs from clause
6.1 as the latter does not guarantee a sale at the same price as the
parties
may have agreed was the market price.
47.
In determining what is meant by placing the property “
on the
open market
”, it is helpful to have regard to the standard
definition of “
market value
” as adopted by the
International Valuation Standards Council:
“
The estimated
amount for which an asset or liability should exchange on the
valuation date between a willing buyer and a willing
seller in an
arm’s length transaction,
after proper marketing
and where the parties had each acted knowledgeably, prudently, and
without compulsion.”
48.
The phrase
“
after
proper marketing
”
is explained as follows in paragraph 30.2(g) of the
International
Valuation Standards
(2022):
[1]
“
After proper
marketing” means that the asset has been exposed to the market
in the most appropriate manner to effect its disposal
at the best
price reasonably obtainable in accordance with the Market Value
definition. The method of sale is deemed to be that
most appropriate
to obtain the best price in the market to which the seller has
access. The length of exposure time is not a fixed
period but will
vary according to the type of asset and market conditions.
The
only criterion is that there must have been sufficient time to allow
the asset to be brought to the attention of an adequate
number of
market participants
. The exposure period occurs prior to
the valuation date.”
49.
I cite these sources not as legal authority but to illustrate what
should be obvious, namely that
an open market process is one that
exposes the item to a sufficiently wide range of market participants
who may be interested in
acquiring it, and that therefore, through
the natural process of competition, realises the most favourable
offer. What will suffice
for this purpose will depend on the facts of
each case. What is important is not so much the level of any offer
received (although
that may be indicative of the quality of the
marketing process) but the content of the marketing process itself.
50.
To the extent that the Applicant can therefore demonstrate that the
offer placed before the sheriff
is not the product of an open market
process as envisaged in the consent order, then – on the face
of it – clause 6.3
has not been complied with. It would then
follow that the sheriff lacked authority under the consent order to
bind the Applicant
to that agreement.
51.
Applying the approach towards disputes of fact in
Webster
and
Gool
, the first question is whether the Applicant
has put up facts to conclude
prima facie
that the Fourth
Respondent’s offer of R650,000 was not the product of a proper
or adequate marketing process for the property.
If she has, then
assuming that those facts are substantiated at a hearing under Part B
in due course, the Applicant should succeed
in having this particular
sale agreement cancelled or treated as not binding on her.
52.
My understanding of the facts is as follows.
53.
The Applicant lives in the property. She says that she was not aware
of any public marketing process
having occurred by the time she was
first contacted by the conveyancers and presented with the R530,000
offer. She had never signed
any marketing mandates to an estate
agent. It is true that the Third Respondent’s attorney, in an
email of 2 March 2023,
indicated that if the arrangement suggested in
that letter (whereby she bought him out for R475,000) did not go
ahead, he would
appoint his own agent “
as sole mandate to
sell the property.
” However, she contends that she was not
aware of any such marketing process actually having occurred.
54.
The Applicant also avers that in light of the purchase prices
reflected in the original and amended
offers to purchase (by which
she means R530,000 and R650,000 respectively), and the relationship
between the Third and Fourth Respondents
(as cousins), she “
can
only infer that the property was never properly advertised and
marketed, that the transaction is not one at arm’s length,
and
that the transaction was created, amongst other reasons, to
indirectly have the children and me ejected therefrom and deny
me any
proper benefit from the transaction
”.
55.
In my view, the Applicant has put up sufficient facts to show,
prima
facie
at least, that what one would think of as an open market
sale process was not undertaken. The mere fact that no-one was
brought
to view the property, and that the only person who made an
offer is a close family member of the Third Respondent, bolsters this
prima facie
conclusion.
56.
The question then arises whether the Third and Fourth Respondents
have put up facts that cast
serious doubt on the Applicant’s
prospects of establishing her case in this regard at a hearing in due
course.
57.
I do not think that the Third and Fourth Respondents have done so.
Key to this is how the Third
Respondent answered the Applicant’s
averment that she can only infer that there was no open market
process (as quoted above).
The Third Respondent denied this baldly,
calling it “
speculation,
” and put the Applicant to
the proof thereof. In the context of the dispute, this was not
helpful; indeed, it is damaging
to the Respondents. Whatever was done
to market the property was plainly done by the Third Respondent
pursuant to the sole mandate
that he gave the estate agent, Ms
McBride. He should therefore be in a position to tell the Court what
steps were taken to market
the property. He however chose not to do
so, lending support to the inference that no real marketing effort
was made.
58.
It is true that the Third and Fourth Respondents put up an affidavit
of the estate agent. She
says that she received a sole mandate from
the Third Respondent, that she “
proceeded to market the
property and receive multiple offers
” but that due to
difficulties in obtaining photographs and the inability to access the
property, the marketing process was
hindered. She also “
observed
”,
“
on driving past the property … that it was not in
good condition
”.
59.
In my view, this is not the conduct of an agent that is actively
trying to attract the best offer
on the open market. Whether or not
it is true that the Applicant hindered the process or refused access
to the property (which
is also disputed), it cannot be said that what
was done met the objective requirements of the consent order. She
herself seems
only to have viewed the property by way of a single
drive-by.
60.
Moreover, as regards the alleged “
multiple offers
”
that she allegedly received, not one of these was attached to Ms
McBride’s affidavit. The Third Respondent did attach
to his
affidavit a number of standard-form non-binding expressions of
interest. None of these amounted to offers. Moreover, the
Applicant
pointed out in her reply that all the signatories to these
expressions of intent were in some way closely related to
the Third
Respondent. Apart from a blanket denial in the second answering
affidavit, the Third Respondent did not do anything to
cast doubt on
this averment. Far from proving that there was a proper, rigorous and
open marketing process, the impression is of
the Respondents creating
a paper record from connected parties to bolster the credibility of
the price offered by the Fourth Respondent.
I certainly do not think
I can place any reliance on Ms McBride’s bald allegation of
having marketed the property.
61.
It is also not without significance that the R650,000 offer that was
on the table was considerably
lower than what the parties had at the
outset agreed upon as the market value, namely R950,000. That was
based on estate agent
valuations. Indeed, the Third Respondent
himself put up, with his second answering affidavit, a recent sworn
appraisal of the property
which fixed the value, having regard to
certain work that needed to be done to it, at R950,000. It is also
apparent that the appraiser
had had access to the property to provide
the valuation, since there were internal photographs and descriptions
of the property,
which demonstrated that the Applicant was prepared
to co-operate in this process. The R650,000 offer price was almost at
the bottom
of the reasonable range of values for the area identified
by the appraiser.
62.
While it is clear that clause 6.3 of the order cannot guarantee that
the parties must receive
a particular price, all indications are that
if a proper marketing process were to be followed for this property,
an offer significantly
higher than R650,000 should be obtained. The
impression I am left with is that the current sale price is not
reflective of a proper
open market process, as envisaged by the
order.
63.
The Third and Fourth Respondents contend that the Applicant could
herself have put the property
on the market. She however responded
that she had tried to engage another agent, but that the Third
Respondent had made it clear
(in an email that was attached to her
replying affidavit) that “
[the Applicant] is running around
to other agents when I have told her that [Ms McBride] will be the
agent that will be dealing
with the selling of the property…
”.
In the circumstances, I do not think that the fact that the
Applicant did not herself undertake a parallel marketing
process can
be held against her. But even if it could, objectively this does not
assist in demonstrating that the offer was the
product of an open
market process.
64.
In conclusion, in my view the Third and Fourth Respondents’
contention that a proper marketing
process was adopted, from which
the Fourth Respondent’s offer was the highest offer, is not
supported by facts that cast
significant doubt on the
prima facie
conclusion that the offer was not the product of “
placing
the property on the open market
” as clause 6.3 requires.
65.
Thus on a
prima facie
basis I think that the Applicant should
on those facts be able to show, when the main relief is determined,
that the Fourth Respondent’s
offer does not meet the standard
agreed to and included in the consent order as being an offer to
which the parties would be bound,
and accordingly fell outside the
realm of the sheriff’s authority to bind her. If that is so, a
prima facie
right has been established to have the sale
agreement cancelled or set aside.
Apprehension of
irreparable harm
66.
The Applicant’s concern is that in the absence of an interim
interdict, transfer of the
property will shortly be effected to the
Fourth Respondent. Counsel for the Respondents accepted this.
67.
Once the property is transferred, there will be two effects:
67.1.
The first effect is that, in the event that the sale is later set
aside under Part B (which
dispute will remain even if the interdict
is refused), the Applicant will have to undertake a further costly
process of seeking
to reverse the consequent transfer, thus having
the property returned to the parties’ joint ownership. It is
quite possible,
given the Applicant’s apparent financial
position, that she may not be able to afford such steps. But even if
she can, this
assumes that the property is still capable of being
transferred back. It may conceivably be that by that time the Fourth
Respondent
has on-sold it to a
bona fide
third party,
rendering even that relief impossible.
67.2.
The second effect is that the Fourth Respondent will no doubt seek to
take occupation
of the property, leaving the Applicant and her
children having to find alternative accommodation. Even though they
will also have
to vacate the property following a legitimate and
binding open market sale, the consent order is premised on the
parties getting
the best possible financial result if the Applicant
cannot acquire the whole property. That in turn will ensure that the
Applicant
obtains the best possible alternative accommodation. It is
possible that success in Part B will result in more money becoming
available
to the Applicant, but in the meantime she and her children
will have suffered harm as a result of having to vacate to less
appropriate
accommodation.
68.
I therefore think that if transfer is allowed to occur, the Applicant
will suffer harm that cannot
necessarily be repaired by the granting
of the main relief.
Balance of
convenience
69.
The balance of convenience clearly favours the grant of the interim
interdict. The Third and Fourth
Respondents have not put up any facts
to demonstrate how they will be prejudiced if the transfer is merely
delayed while the parties
conclude their dispute about the binding
nature of the sale agreement.
70.
On the other hand, the inconvenience to the Applicant and her
children from losing her right to
remain in the property and having
to pursue further claims in due course to have the property
re-transferred to her for a new marketing
process to commence is
apparent. In my view, it clearly outweighs any inconvenience to the
Respondents.
No adequate
alternative remedy
71.
A temporary interdict is in my view an apt remedy to preserve the
status quo
until the main dispute is resolved.
72.
The Third and Fourth Respondents state that there are sufficient
legal remedies available to recover
alleged damages in the event of
any proven financial harm. Although there may be scope for a damages
claim in the longer term,
I do not see that as an adequate
alternative remedy to an interim interdict that will preserve the
status quo,
without undue disruption to the living
arrangements of the Applicant and her children, until there is
finality as to the parties’
respective rights and obligations.
Conclusion on interim
relief
73.
For the above reasons, and weighing all the factors up, I believe
that the Applicant has established
all the requirements for the grant
of interim relief, and is entitled to an order extending the
interdict until the final determination
of the main relief in Part B.
Costs
74.
Two issues arise in relation to costs:
74.1.
The costs pertaining to the original return day, when the rule
nisi
was extended following a delay in the filing of the replying
affidavit; and
74.2.
The costs of the present application.
75.
As stated above, the postponement of the matter on the first return
day was at least in part the
result of the Applicant’s failure
to file her replying affidavit timeously. The Third and Fourth
Respondents had intended
to argue the matter on the original return
day, but this could not be done after the late filing of the reply.
Moreover, even though
the matter had become opposed, it was still set
down in the unopposed court, with the parties facing the risk that
the duty Judge
would not be in a position to decide it. The
Applicant as
domina litis
ought to have addressed that issue,
perhaps by proposing a further timetable and postponement well before
the return day was upon
the parties. It seems to me that she was
therefore the party primarily responsible for the fact that the
matter had to be postponed,
and for any wasted costs as a result.
76.
In the premises, it would be appropriate for the Applicant to pay any
wasted costs incurred by
the Third and Fourth Respondents pursuant to
the postponement.
77.
As regards the costs of the interim interdict which I have confirmed,
the Applicant has been successful
in having the order confirmed. The
usual rule is that costs should follow the result. It is salutary for
a Court to deal with costs
issues when they arise and not (without
good reason) to have them stand over for another Judge to address at
a later stage.
78.
The latter course may however be preferable where there are prospects
that in the fullness of
time, when the main application (here Part B)
is determined, facts may come to light which could warrant a
different costs order
being made at this interim stage.
79.
I do not consider it likely that material further facts will arise
which would alter the appropriateness
of a costs order against the
Third and Fourth Respondents for their unsuccessful resistance to the
grant of the interim interdict.
Counsel for the Third and Fourth
Respondents could not suggest any such probability. The Applicant had
to approach the Court for
interim relief, while the Third and Fourth
Respondents could easily have made an undertaking to suspend the
transfer process pending
the determination of Part B. Their failure
to do so resulted in the present proceedings having to be argued and
decided.
80.
In the circumstances, I believe that I should grasp the nettle and
make an order for costs at
this stage.
81.
In the premises, the Third and Fourth Respondents, having
unsuccessfully opposed the grant of
interim relief, should bear the
Applicant’s costs, including the costs of counsel, jointly and
severally, the one paying
the other to be absolved.
82.
As regards the scale of costs, I see no reason to depart from the
ordinary party and party scale.
Both counsel agreed that, this not
being a matter of particular complexity, the fees of counsel should
also be taxed on Scale A
as envisaged in Rule 67A.
Part
B
83.
The original order of Francis J provides for the next steps in
relation to the determination of
Part B. It grants leave to the
applicant to apply for the relief in Part B on the same papers, duly
supplemented if necessary.
The timetable for the filing of such
papers must be determined and agreed between the parties within five
days of the order made
on the return day, failing which the exchange
of papers will be in accordance with the Uniform Rules and any
Practice Directions.
84.
It is therefore unnecessary for me, in handing down my order, to
regulate the further conduct
of the matter for purposes of Part B.
ORDER
85.
In the premises, I make the following order:
85.1.
Pending the finalization of the relief sought in
Part B, the First and Second respondents are interdicted and
prohibited from giving
effect to the registration of transfer of
ownership of
ERF 1
[…]
,
SILVER TOWN, ATHLONE, CAPE TOWN
, more
commonly known as
3
[…]
,
D
[…]
, CRESCENT, SILVER
TOWN, ATHLONE, CAPE TOWN, WESTERN CAPE PROVINCE
(“the
property”), to the Fourth Respondent.
85.2.
The Third and Fourth Respondents shall pay the
costs of the application for interim relief, jointly and severally,
the one paying,
the other to be absolved, on a scale as between party
and party, including the costs of counsel to be taxed on Scale A.
85.3.
The Applicant shall pay the wasted costs of the Third
and Fourth
Respondents pertaining to the postponement of the original return day
on 29 July 2024
, on a scale as between party and
party, including the costs of counsel (if applicable) to be taxed on
Scale A
.
M
W JANISCH
Acting
Judge of the High Court
Western
Cape Division
APPEARANCES:
For
the Applicant:
Adv P Smit
Instructed
by:
Roelf
Jumat Attorneys Inc
For
the Second and Third Respondents:
Adv A Koester
Instructed
by:
Raymond
McCreath Inc
Date
of hearing:
14 October
2024
Date
of judgment:
16 October 2024 (electronically)
[1]
https://viewpoint.pwc.com/dt/gx/en/ivsc/international_valuat/assets/IVS-effective-31-Jan-2022.pdf
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