Case Law[2024] ZAWCHC 351South Africa
De Kock v Olivier (21144/2022) [2024] ZAWCHC 351 (6 November 2024)
High Court of South Africa (Western Cape Division)
6 November 2024
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## De Kock v Olivier (21144/2022) [2024] ZAWCHC 351 (6 November 2024)
De Kock v Olivier (21144/2022) [2024] ZAWCHC 351 (6 November 2024)
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IN
THE HIGH COURT OF SOUTH AFRICA
WESTERN
CAPE DIVISION, CAPE TOWN
Case
Number: 21144/2022
In
the matter between:
WILLEM
CHRISTOFFEL DE KOCK
Plaintiff/Applicant
and
MARCO
JOACHEMO OLIVIER
Defendant/Respondent
JUDGMENT
JANISCH AJ:
Introduction
1.
The Applicant and the Respondent are respectively the plaintiff
and
the defendant in an action in which the Applicant (a builder) claims
payment of amounts pertaining to a building contract with
the
Respondent.
2.
The Applicant gave notice under Uniform Rule 28(1) of his intention
to amend his particulars of claim in various respects. The Respondent
having objected to the amendments, the Applicant applies
in terms of
Rule 28(4) for leave to amend.
3.
This was not the first notice of amendment. The Applicant had
filed a
previous notice to which the Respondent had objected. The Applicant
had not proceeded to apply for leave, and the period
to do so had
lapsed. Thereafter the notice to which the present application
relates was filed.
4.
I am required to determine the following:
4.1.
Whether and/or to what extent the Applicant is entitled to amend his
particulars of claim
pursuant to the operative Rule 28(1) notice, and
the costs implications thereof; and
4.2.
The costs implications of the original Rule 28(1) notice which was
not persisted with.
The
History of the Dispute
5.
It is common cause that in April 2021, the Applicant entered
into an
agreement with the Respondent in relation to the carrying out of what
I might neutrally describe as building works on a
property in
Jongensfontein, Western Cape. The nature and ambit of the agreed
building work is central to the current amendment
dispute.
6.
It is also common cause that the Applicant conducted building
works
in the period between April 2021 and early December 2021, when
disputes arose and the agreement was cancelled.
7.
In June 2022, summons was issued out of this court in the name
of “
CJ
Konstruksie
” as plaintiff. This was pleaded to be the
trading name of a close corporation called “
Bold ‘n
New Investments 47 CC.
” The Respondent was cited as
defendant.
8.
The particulars of claim alleged the conclusion of an oral building
contract between the CC and the Respondent in terms of which the CC
“
agreed to construct a house for Defendant at Erf 1[…]
Jongensfontein
”. The oral agreement was pleaded to be
“
based on
” a two-page quote which was annexed.
This was on the letterhead of CJ Konstruksie and entitled “
kwotasie
vir bou van nuwe woonhuis te Strandstraat, erf nommer 1[…],
Jongensfontein, Stilbaai.
” It listed various included
materials, various excluded items, and a total quoted sum of
R3,387,911.38.
9.
The CC averred that certain additional work was agreed upon
later;
that the CC commenced the building work; and that the Respondent
repudiated the contract by instructing the CC to cease
building. The
CC claimed damages for the repudiation in the sum of R576,022.00, as
well as R15,932.01 in respect of building materials
delivered to the
site and not paid for. The damages claim was supported by a report
from a quantity surveyor, Mr N Monk, which
purported to identify the
value of work completed but not paid for.
10.
The Respondent excepted to the CC’s particulars of claim. In
overview,
he took the point that the building contract was subject to
the terms of the Housing Consumers Protection Measures Act 95 of 1998
(“
the Act
”), that the plaintiff was therefore
obliged to allege that it was a registered home builder as defined by
the Act, and that
having failed to do so, the particulars of claim
disclosed no cause of action. There was a second ground of exception
that the
alleged oral agreement did not comply with section 13 or
section 14 of the Act and therefore that no cause of action was
disclosed.
11.
The plaintiff (the CC) withdrew the action and tendered costs.
12.
A new summons was then issued in the matter now before me. The main
differences
are as follows:
12.1.
Although the cause of action is based on precisely the same building
project as addressed in the original
summons, the plaintiff is the
Applicant in his personal capacity, trading under the name of “
CJ
Konstruksie
”.
12.2.
There is an averment that the Applicant was, at all relevant times, a
registered home builder as envisaged
in the Act.
12.3.
The same written quote is pleaded as the basis for the agreement,
which is now described as being partly
oral and party in writing (the
quote being the written portion).
12.4.
The claims for work completed and not paid for (R576,000.00) and
material delivered to site (R15,932.01)
are repeated, but the
quantity surveyor report is not mentioned or annexed.
12.5.
There is also a new claim for damages arising from alleged loss of
profit on the building work as a whole
(had the contract not been
cancelled) in the amount of R134,121.80.
13.
The Respondent filed an exception to the particulars of claim.
Contending that
the written quote refers to the building of a
“
woonhuis,
” he averred first that the agreement as
alleged does not comply with the formalities required in section 13
of the Act and
is invalid or unenforceable. A second ground of
exception was that there is no averment that the Applicant complied
with the enrolment
requirement of section 14(1) of the Act before
commencing construction, with the result that he is not entitled to
any consideration
by virtue of section 13(7)(
b
) of the Act.
14.
In response to the notice of exception, the Applicant filed his first
Rule 28(1)
notice. Various amendments were proposed, all of which
aimed to distance the building project from the Act. These included:
14.1.
averments that the provisions of the Act do not apply to the contract
or the construction work, because
a dwelling unit was already in
existence when the contract was concluded and that “
alterations
and renovations
” did not constitute the construction of the
dwelling unit as contemplated in the definition of “
home
”
in section 1 of the Act;
14.2.
the deletion of references to the contract being for “
the
construction of a dwelling
” and the insertion of references
to “
alterations and renovations to an already existing
dwelling
; and
14.3.
the inclusion of averments that the claims for materials and damages
were not for “
consideration
” for purposes of the
Act, and that the claim for building work done was not for
construction of a home, since there was a
dwelling already in
existence.
15.
The Respondent filed an objection to the proposed amendments. He
raised 10 grounds
of objection in all. I shall not tabulate them all
here. Central themes were that the proposed amendment of the nature
of the contract
was inconsistent with the written quote, and there
was no claim of rectification; that the proposed amendment was
mala
fide
and
in fraudem legis
; that he still failed to plead
compliance with the enrolment requirements of section 14(1); and that
the amounts claimed constituted
“
consideration
”
which could not be claimed under the Act.
16.
The Applicant did not bring an application for leave to amend as
envisaged in
Rule 28(4). Instead, after the 10-day period in Rule
28(4) expired, he filed a fresh Rule 28 notice.
17.
The amendments which are proposed under this notice, and which are
now the subject
of the application before me, were largely the same
as what was contained in the prior notice. The main differences were
as follows:
17.1.
It was now proposed to plead for the rectification of the alleged
written portion of the agreement to reflect
“
veranderinge en
restorasie
” instead of “
bou van nuwe woonhuis
”;
17.2. A
specific averment was proposed to be added that because the
provisions of the Act do not apply to the
contract, it was not
necessary to enrol the project under sections 14(1) and 14(2) of the
Act;
17.3.
It was proposed to plead two new substantive paragraphs in the
alternative and on the assumption that the
Court were to find that
sections 13 and 14 of the Act need to be complied with. The first is
that the Respondent is estopped from
relying on non-compliance by
virtue of a representation that he did not require such compliance,
on which the Applicant relied
in not enrolling the project. The
second is that the Respondent waived his right to rely on section
13(7), despite having knowledge
of his rights in this regard.
18.
Predictably, the Respondent filed a notice of objection to the new
Rule 28 notice.
This time, there were 11 grounds of objection. I will
refer to them where necessary below. Central to them was however an
averment,
in relation to the revised description of the agreed work,
that “
no admissible evidence exists which could possibly
prove the allegations which the [Applicant] seeks to introduce
regarding the
nature of the agreement, or the work performed
.”
19.
This time, the Applicant persisted with his amendments by bringing an
application
in terms of Rule 28(4), thereby seeking leave to amend
his particulars of claim in respect of all of the proposed
amendments.
Legal
principles: Amendment of Pleadings
20.
The general principle in relation to amendments to pleadings was
stated as follows
in
Affordable Medicines Trust v Minister of
Health
[2005] ZACC 3
;
2006 (3) SA 247
(CC) in paragraph [9]:
“
The principles
governing the granting or refusal of an amendment have been set out
in a number of cases. There is a useful collection
of these cases and
the governing principles in Commercial Union Assurance Co Ltd v
Waymark NO. [
1995
(2) SA 73 (Tk)
at 76D -
76I]. The practical rule that emerges from these cases is that
amendments will always be allowed unless the amendment is
mala fide
(made in bad faith) or unless the amendment will cause an injustice
to the other side which cannot be cured by an appropriate
order for
costs, or 'unless the parties cannot be put back for the purposes of
justice in the same position as they were when the
pleading which it
is sought to amend was filed'. … The question in each case,
therefore, is, what do the interests of justice
demand?
”
21.
With reference to the above authority, it has been stated that the
court’s
power to allow material amendments is limited only by
considerations of prejudice or injustice to the opponent (
Media
24 (Pty) Ltd v Nhleko
[2023] ZASCA 77
in paragraph [16].
22.
In the passage from
Commercial Union v Waymark
endorsed
in
Affordable Medicines Trust
(
supra
), the
following further guidance is provided in relation to when an
amendment will be permitted:
“
In Rosenberg v
Bitcom
1935 WLD 115
at 117 Greenberg J, as he then was, stated:
‘
Although it has
been stated that the granting of the amendment is an indulgence to
the party asking for it, it seems to me that
at any rate the modern
tendency of the Courts lies in favour of an amendment whenever such
an amendment
facilitates the proper ventilation of the dispute
between the parties
.'
(My emphasis.) In
Zarug v Parvathie NO
1962
(3) SA 872
(D)
at 876C
Henochsberg J held:
'An amendment cannot
however be had for the mere asking. Some explanation must be offered
as to why the amendment is required and
if the application for
amendment is not timeously made, some reasonably satisfactory account
must be given for the delay.'
Caney J stated in
Trans-Drakensberg Bank Ltd (under Judicial Management) v Combined
Engineering (Pty) Ltd and Another
1967
(3) SA 632 (D)
at 641A:
'Having already made
his case in his pleading, if he wishes to change or add to this, he
must explain the reason and show prima
facie that he has something
deserving of consideration, a triable issue; he cannot be allowed to
harass his opponent by an amendment
which has no foundation. He
cannot place on the record an issue for which he has no supporting
evidence, where evidence is required,
or, save perhaps in exceptional
circumstances, introduce an amendment which would make the pleading
excipiable.' ”
23.
Further support for these requirements is found in the full bench
judgment of
this Court in
Vinpro NPC v President of the
Republic of South Africa
[2021] ZAWCHC 261
in paragraph [25]:
“
On this score,
it is trite law: that a court is vested with a discretion as to
whether to grant or refuse an amendment:
that an amendment
cannot be granted for the mere asking thereof: that some
explanation must be offered therefor: that this
explanation must be
in the founding affidavit filed in support of the amendment
application: that if the amendment is not
sought timeously,
some reason must be given for the delay: that that party
seeking the amendment must show prima facie that
the amendment has
something deserving of consideration: that the party seeking
the amendment must not be mala fide:
that the amendment must
not be the cause an injustice to the other side which cannot be
compensated by costs: that the amendment
should not be refused
simply to punish the applicant for neglect and that mere loss of time
is no reason, in itself, for refusing
the application.”
24.
One of the circumstances where the other party would necessarily be
prejudiced
is where an amendment would render a pleading excipiable.
Such an amendment ought not to be allowed, save in exceptional cases,
where the balance of convenience or some other reason might render
another course desirable. See e.g.
Cross v Ferreira
1950 (3) SA 443
(C) at 450 E-G.
The
Main Application
25.
As stated, the Respondent raised 11 grounds of objection to the
various amendments.
Some of them overlap and one of them is not
persisted with.
26.
It however seems to me that the central issue in this application is
that which
flows from the fourth to sixth grounds of objection. For
reasons which will become apparent, it is convenient first to address
these objections and the proposed amendments to which they pertain.
The Fourth to Sixth
Grounds of Objection: The Nature of the Contract
27.
The fourth ground of objection is to the proposed amendment to the
description
of the contract from “
the construction of a
dwelling
” to “
alterations and renovations to an
already existing dwelling
.” The fifth ground objects to the
associated rectification of the written quote to reflect a similar
description of the project.
The sixth ground objects to the proposed
averment that the “
alterations and renovations
”
did not constitute the construction of a dwelling unit for purposes
of the Act.
28.
Both the fourth and fifth objections make the express averment that
“
no admissible evidence exists which could possibly prove
the allegations which the plaintiff seeks to introduce regarding the
nature
of the agreement, or the work performed
”. In other
words, it is expressly stated that the Applicant cannot put up
evidence that would support the contention that
what was agreed upon
and what occurred, was not the construction of a new dwelling but the
alteration or renovation of an existing
dwelling.
29.
Accordingly, the Respondent objects to an attempt to change the
already pleaded
cause of action by pleading facts (and legal
conclusions based on those facts) which would, on the face of it,
place the building
project outside the ambit of the Act.
30.
The Act, which is consumer protection legislation, regulates “
home
builders
” by requiring them to be registered with the
National Home Builders Registration Council (“
the Council
”).
The “
business of a home builder
” is defined to
mean,
inter alia,
“
to construct or to undertake to
construct a home or to cause a home to be constructed for any
person
”. A “
home
”, in turn, is defined
to the extent relevant as “
any dwelling unit constructed or
to be constructed by a homebuilder … for residential purposes
or partially for residential
purposes …
”
31.
A person who undertakes the construction of a home is not entitled to
any consideration
in respect thereof unless they are a registered
home builder (section 10(1)(b)). Moreover, in terms of section
13(7)(
b
), a home builder may not receive “
any other
consideration
” unless the requirements of sections 14(1) or
14(2) have been complied with. These pertain to the enrolment of the
project
with the Council.
32.
It follows from this that where one is dealing with claim for
consideration
arising from an agreement for the “
construction
”
of a “
home
” as defined, unless one can demonstrate
both registration as a home builder and the enrolment of the project,
such a claim
cannot succeed (
cf
.
Hubbard v Cool Ideas
1186 CC
2013 (5) SA 112
(SCA) in paragraph [14]).
33.
As stated, the Applicant seeks to plead facts which differentiate the
subject
of the agreement from the “
construction
”
of a “
home
.” The thesis is that the mere
alteration or renovation of an existing dwelling falls outside that
ambit.
34.
Counsel for the parties could not refer me to any authority
addressing the limits
of the Act with reference to entirely new
buildings, on the one hand, and renovations of existing buildings on
the other. I am
prepared to accept for present purposes, but without
deciding the point, that not every item of work done by a builder or
artisan
or tradesperson in relation to a dwelling unit will necessary
constitute the construction of a home for purposes of the Act.
Examples
given in argument as to what would probably fall outside the
Act involved the
ad hoc
replacement of windows or painting
works. On the other hand, clearly where a person constructs an
entirely new home from the foundations
up, that would fall squarely
within the ambit of the construction of a home. Between these
extremes may be a range of factual circumstances
which could fall on
one or the other side of the dividing line. The extent of any
pre-existing structure, and the nature of the
work to be done in
relation to it (e.g. structural as opposed to cosmetic) will be
instructive and each case will turn on its own
facts. Given the
consumer protection flavour of the Act, however, I would venture to
suggest that a court will not be quick to
accept that a project
involving significant building work, including laying foundations and
installing structural elements, may
be freed from the strictures of
the Act merely because elements of an existing dwelling are retained.
35.
It is however not necessary for me to say anything more about this.
Assuming
that the point is in principle arguable, the key question is
whether the Applicant should in the present case be given leave to
plead the facts on the basis of which he would make that argument.
36.
The first point to make in this regard is that the proposed amendment
is material.
The nature of the contract that is proposed to be
pleaded (changing from the express construction of a new dwelling to
mere “
alterations and renovations
” of an existing
dwelling) is fundamentally different from what is currently on the
pleadings.
37.
Apart from the fact that the written quote itself (drawn up by the
Applicant)
refers to “
bou van nuwe woonhuis
”, I am
entitled to have regard to the quantity surveyor’s report
annexed to the original particulars of claim, which
referred in the
cover page to a “
new dwelling
”. And of course the
current particulars of claim refer unashamedly to the agreement being
for the construction of a dwelling
– which reflects the
language of the Act – with no reference to an existing
dwelling.
38.
It is also significant that in the objection, the Respondent averred
that there
was no evidence that could justify the contention that
what was agreed involved a renovation of an existing dwelling.
39.
Against these factors, it was in my view incumbent upon the
Applicant, in his
application, to provide some proper basis for being
permitted to make this substantial change in approach. To borrow from
the above
authorities, he had to offer an “
explanation …
as to why the amendment is required”
(
Zarug v
Parthavie
(
supra
)); having already made his case in
his pleading, if he wished to change or add to this, he had to
“
explain the reason and show prima facie that he has
something deserving of consideration, a triable issue; he cannot be
allowed
to harass his opponent by an amendment which has no
foundation. He cannot place on the record an issue for which he has
no supporting
evidence, where evidence is required”
(
Trans-Drakensberg Bank Limited
(
supra
)
);
and he had to provide his explanation “
in the founding
affidavit filed in support of the amendment application
(
Vinpro
NPC v President of the Republic of South Africa
(
supra
)).
40.
Tested against these standards, the Applicant’s case put up in
his founding
papers in support of the core amendments is woefully
inadequate. The high-water mark of factual averments explaining what
gave
rise to the change, and on what it is proposed to be based, is a
paragraph which reads as follows:
“
The question
whether the alterations and renovations constituted the construction
of a dwelling or not is a question of fact and
not one capable of
resolution on the basis of notices, as the Respondent wishes the
court to do.”
“
The same
argument applies to the allegation that the NHBRC does not require
alterations and renovations of this nature to be registered.
”
41.
In his founding papers, the Applicant has therefore failed to explain
on what
factual basis he now contends that the work contracted for
amounted only to “
renovations and alterations
” to
an “
existing dwelling.
” One would have thought
that, particularly in the face of an averment that there is no
evidence to support this proposed
pleading, he would put up some
facts to demonstrate that he has a triable case in this regard, or
merely that he has “
something worthy of consideration
”.
For example, he could have described the site of which he took
possession, explained what the existing dwelling looked
like, and
given some sense of how it was altered and renovated. Nothing of the
type was done. He has also not explained why he
originally pleaded a
different positive case of construction of a dwelling. His statement
in a replying affidavit that “
there was, in fact, an
existing dwelling on Erf 1[…], Jongensfontein, at the time
when I contracted with the Respondent
,” apart from coming
too late, is also too bland to give any comfort that one is really
dealing with a renovation, since the
Court is left in the dark as to
what part (if any) that existing dwelling played in the construction
that followed.
42.
Moreover, in the founding papers, no factual basis is provided for
the pleaded
rectification. A rectification involves proving a mutual
error by both parties to a written agreement (
Weinerlein v Goch
Buildings Ltd
1925 AD 282
at 294). To establish some basis
for this new claim, it is therefore necessary to provide a factual
basis for a finding that both
the Applicant and the Respondent were
subject to the same error and that both intended the quote to read as
is now averred. The
application does not deal with this aspect at
all.
43.
This is not to say that to be entitled to amend, the Applicant had to
prove
his case in the application. But to establish that the
amendment was in good faith and raised an issue worthy of
consideration,
he had to do more than he did. He seems to have
laboured under the misapprehension that an amendment is there for the
asking. As
the abovementioned authorities show, that is not the case.
44.
It is true that the Respondent also did not put up facts in his
answering affidavit
that refuted the proposed new formulation of the
contract and project. However, given the absence of any real case to
meet in the
founding papers, I cannot criticise him for this.
45.
In the circumstances, the Applicant has not in my view overcome the
burden of
demonstrating that he has a triable case, as a matter of
fact, in the terms proposed. That is not to say that he would never
be
able to do so. I have no basis to conclude that the necessary
facts to establish such a pleading are not present. But on what
was placed before me, I cannot draw such a conclusion.
46.
It was suggested in oral argument by counsel for the Applicant that
refusing
an amendment of this type is pointless because the Applicant
could withdraw the action and start again, without having to meet the
requirements for amending his pleadings. That is of course his right,
as long as prescription does not preclude such a claim. He
could
also, if time permitted, launch a fresh and better-motivated
application. But the mere fact that the Applicant may otherwise
be
able to produce a set of pleadings based on a type of contract that
does not fall within the scope of the Act cannot warrant
allowing an
amendment for which the requirements have not been met.
47.
It follows that I am not prepared to grant the Applicant leave to
make the amendments
in paragraphs 2, 3, 4, 5 and 6 of the Rule 28(1)
notice. The same applies to the proposed new paragraph 23 forming
part of paragraph
7 of the Rule 28(1) notice.
Impact of the findings
on the other proposed amendments
48.
As I understand the Applicant’s approach, as debated in oral
argument,
the core amendments dealt with above are crucial for the
ongoing pursuit of his claims. Essentially, counsel conceded that the
claim had to be located outside the Act since if the Act does apply,
it cannot be demonstrated that the building project was enrolled,
and
that would mean that any claim for “
consideration
”
would not be competent.
49.
The practical result of the conclusion I have reached on the fourth
to sixth
grounds of appeal is therefore probably that if the
Applicant is minded to continue with his claim, he will either bring
a fresh
application for all the amendments, or start from scratch
with a new summons.
50.
Be that as it may, the remaining proposed amendments are before me. I
therefore
propose to address them briefly, on the assumption that the
Applicant would still wish to pursue them without the core amendments
being made, i.e. on the basis of a contract for the construction of a
new dwelling – which presupposes that the Act applies.
Paragraph 1 of the
Rule 28(1) notice
51.
The first amendment involves replacing the averment that the
Applicant was registered
as a home builder with one that avers that
the Act does not apply to the contract, but in any event that he was
so registered for
the whole period of the contract, alternatively
until September 2021 whereafter the Council made his further
registration “
impossible
” despite his efforts to
obtain a registration certificate.
52.
On the face of it, in the absence of the core amendments, the
averment that
the Act does not apply to the pleaded contract for the
construction of a dwelling is unsustainable. I would therefore not be
inclined
to grant leave to make that averment.
53.
On the assumption that the Act is applicable, I see no reason why the
Applicant
should not be permitted to plead the alternatives regarding
the period of his registration. The Respondent’s sole objection
to this is that this amounts to a pleading of mutually inconsistent
versions which prejudice the Respondent in pleading thereto.
54.
There is no prejudice in having to plead to such alternative
averments, if necessary
with denials that will compel the Applicant
to prove his registration status in evidence. I note further that the
two versions
are not entirely inconsistent with one another, at least
in relation to the period up to September 2021.
Paragraph 7 of the
Rule 28(1) notice
55.
The seventh ground of objection addresses the proposed inclusion of
paragraphs 21
to 23.
56.
I have already concluded that leave should not be granted to include
paragraph
23, that being premised on the averment of a renovation
rather than the construction of a dwelling.
57.
As regards paragraphs 21 and 22, however, the Applicant may well
persist with
these contentions which are, effectively, that even if
the Act applies to the contract, the amounts there claimed do not
constitute
“
consideration
” as envisaged in the
Act.
58.
As regards the merits of such claims, without making any finding in
this regard,
I can see that there may be an argument for why a claim
for payment for goods merely delivered to site is not consideration
for
building work. And while I have significant doubt as to whether a
damages claim based on projected loss of profit can fall outside
the
notion of “
consideration
,” because a profit share
would be drawn from contract payments made, I have not been provided
with detailed argument on the
point and do not wish to pre-judge it
in this context.
59.
I would therefore be inclined to grant leave to include paragraphs 21
and 22.
Paragraph 8 of the
Rule 28(1) notice: estoppel and waiver
60.
The Applicant seeks leave to introduce a new paragraph 24 in which he
would
plead, pre-emptively, an estoppel which proceeds from the
premise that the Act is held to apply to the building contract. The
contention
is in essence that the Respondent represented that he did
not require compliance with the Act in the form of enrolment of the
project,
so as to avoid having to pay the registration fee, and that
the Applicant relied on this to his detriment by not enrolling the
project.
61.
In support of pleading in particulars of claim what would usually be
found in
a replication (on the basis that estoppel typically operates
as a shield rather than a sword), the Applicant relied upon the
approach
of Wallis AJ in
Makate v Vodacom Limited
2016
(4) SA 121
(CC), in which, albeit in a minority judgment, he held
that there could be no criticism of pre-emptively pleading that
estoppel
applies where one knows that a defence of, in that case,
lack of authority would be pleaded (see paragraphs [121] and [122]).
62.
That might well be so as a point of pleading. However, on the present
facts,
I have considerable doubt as to whether the averments which
are sought to be pleaded would competently establish an estoppel.
This
is so because it has consistently been held that one cannot,
through an estoppel, render lawful conduct that is otherwise unlawful
under a statute in the public interest.
63.
The principle was expressed as follows in
City of Tshwane
Metropolitan Municipality v RPM Bricks (Pty) Limited
2008 (3)
SA 1
(SCA) in paragraph [16]:
“
It is settled law
that a state of affairs prohibited by law in the public interest
cannot be perpetuated by reliance upon the doctrine
of estoppel
(
Trust
Bank van Afrika Bpk v Eksteen
1964
(3) SA 402
(A)
at 411H - 412B), for to do so would be to compel the defendant to do
something that the statute does not allow it to do. In effect
therefore it would be compelled to commit an illegality (
Hoisain
v Town Clerk, Wynberg
1916
AD 236
).”
64.
Section 13(7)(b) of the Act prohibits a home builder from receiving
consideration
where the requirements of section 14(1) have not been
met. As stated, this is consumer protection legislation and it
clearly operates
in the public interest. It appears to me that there
are strong arguments to the effect that an estoppel cannot permit the
Applicant
to receive payment of an amount to which he is not entitled
by operation of statute.
65.
It is however unnecessary for me to make a final decision in this
regard, because,
similarly to the case with the core amendments, the
Applicant has not sought to make out any case in his founding papers
regarding
the factual averments proposed to be pleaded under
estoppel. I am therefore unable to conclude that he has a triable
factual case
to raise in this regard. As with the other refused
amendments, this does not mean that he will be unable to plead or
sustain such
a defence in due course, but on the papers before me, I
am not satisfied that he has met the standard required for obtaining
leave
to amend.
66.
The Applicant also seeks leave to introduce a new paragraph 25 in
which he would
plead, again pre-emptively, that the Respondent waived
his right to rely on section 13(7) of the Act. The waiver is pleaded
to
have been expressed through conduct on the basis that despite
having knowledge of sections 13 and 14 of the Act, the Respondent
did
not insist on compliance, did not prevent the commencement of
construction, and accepted and took possession of the construction
work.
67.
I harbour similar doubts about the legal viability of reliance on a
waiver in
these circumstances as I do about the proposed estoppel. It
has been held that waiver cannot properly operate to renounce a right
contrary to law, or to effect something expressly forbidden by
statute (see
Ritch and Bhyat v Union Government (Minister of
Justice)
1912 AD 719
at 734-735). The effect of the waiver as
pleaded would be to permit the Applicant to receive consideration in
respect of the carrying
out of unenrolled construction work where the
Act specifically forbids this.
68.
Once again, however, I need not decide this point finally, given the
paucity
of the factual case put up in the founding affidavit as to
why the waiver argument raises something worthy of consideration.
Once
again I do not say that the Applicant may not be able
successfully to plead and rely on this point, but not on the papers
before
me.
Costs of the Main
Application
69.
In the ordinary course, an applicant for an amendment seeks an
indulgence and
will be required to pay the costs, including those of
reasonable opposition (see
Grindrod (Pty) Ltd v Delport
1997 (1) SA 342
(W) at 347C-E).
70.
In the present case, although I would grant leave to make some of the
proposed
amendments, the application has largely been unsuccessful.
I see no reason why the ordinary approach as to costs should not
follow.
71.
It was suggested by the Respondent that the costs should be paid on a
punitive
scale. I am not prepared to make such an order. While I have
held that the Applicant has not done enough to establish his
entitlement
to all the amendments prayed for, I cannot in my
discretion conclude that his behaviour has been such as to warrant a
costs order
on a higher scale.
72.
Since the present proceedings commenced before the introduction of
the scale
of tariffs in Uniform Rule 69(7) read with Rule 67A(3), it
is not necessary to fix a scale for counsel’s fees. If I had
had
to do that, however, I would have had no reason to award such
costs on anything more than scale A, since this is not a matter of
particular complexity.
Costs
of the Aborted Rule 28(1) Notice
73.
Finally, as stated, I am requested to make an order as to the costs
of the original
Rule 28(1) notice which was not persisted with, and
which was allowed to lapse.
74.
Given the fact that the Respondent’s objection succeeded (since
no application
flowed from it), I am of the view that the Respondent
should likewise, on ordinary principles, have its costs in relation
to its
notice of objection.
75.
Here, too, I see no reason to award costs on a punitive or enhanced
scale. There
was no request to include the costs of counsel.
Order
76.
In the premises, I make the following order:
76.1.
The Applicant is granted leave to make the amendments prayed for in
the following paragraphs of its Rule
28(1) notice:
76.1.1.
Paragraph 1 (save for the words “
Although the provisions of
the Housing Consumers Protection Measures Act, No 95 of 1998
(hereinafter ‘the Act’) do not
apply to the contract
pleaded below
”); and
76.1.2.
Paragraph 7 (proposed new paragraphs 21 and 22).
76.2.
Save as aforesaid, the application is dismissed with costs on a scale
as between party and party, including
the costs of counsel.
76.3.
The Applicant is also ordered to pay the Respondent’s costs of
drawing the notice of objection dated
4 May 2023 on a scale as
between party and party.
M
W JANISCH
Acting
Judge of the High Court
Western
Cape Division
APPEARANCES:
For
the Applicant:
D
J Coetsee
(Instructed
by Malan Lourens
Viljoen
Inc)
For
the Second and Third Respondents:
F
A Ferreira
(Instructed
by Christi Olivier Attorney)
Date
of hearing:
29
October 2024
Date
of judgment:
6
November 2024 (electronically)
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