Case Law[2024] ZAWCHC 386South Africa
Pretorius v Leonard and Others (11279/2024) [2024] ZAWCHC 386 (25 November 2024)
Headnotes
the Plaintiff was required to allege that the precise extent or manner of calculation of the Plaintiff’s damages was within the contemplation of the parties when they entered into their agreement. The exact quantification of a Plaintiff’s
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Pretorius v Leonard and Others (11279/2024) [2024] ZAWCHC 386 (25 November 2024)
Pretorius v Leonard and Others (11279/2024) [2024] ZAWCHC 386 (25 November 2024)
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sino date 25 November 2024
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
CASE
NUMBER: 11279/2024
In
the matter between
JOHN
CORNELIUS PRETORIUS
PLAINTIFF
and
LORENZO
LEONARD
FIRST DEFENDANT
LORENZO
BUILDERS (PTY) LTD
SECOND DEFENDANT
SPL
CONSTRUCTION (PTY) LTD
THIRD DEFENDANT
JUDGMENT
Date
of hearing: 22 November 2024
Date
of judgment: 25 November 2024
BHOOPCHAND
AJ:
1.
The Defendants raised an exception to the Plaintiff’s
particulars. The plaintiff formulated two claims based on the breach
of a building contract, the first for damages arising from
repairing
the defective work and the second from loss of rental income caused
by the delay in obtaining occupation of the medium-sized
home. The
Defendant raised two exceptions. The First Defendant complained that
the particulars disclosed no cause of action regarding
the claim for
loss of rental income. The Second and Third Defendants excepted to
the particulars as they contained no specific
allegation against
them. The Defendants sought orders to dismiss the claims. They
challenge the legal validity of the claims and
not their formulation.
The Defendant must, therefore, show that upon every interpretation,
the pleading in question can reasonably
bear, no cause of action is
disclosed.
2.
The Plaintiff’s particulars cite the parties and
deal with the
jurisdiction of this court to hear the matter. The Plaintiff then
alleges that the First Defendant concluded a partially
written and
partially verbal building agreement in his personal capacity and as
the authorised representative of the Second and
Third Defendants. The
Plaintiff referred to the contract and the building plan that
constituted the agreement. The contract
attached to the
particulars was entered into and concluded by the Plaintiff and the
First Defendant. The particulars at all
material instances
refer to the Defendants collectively.
3.
Plaintiff recited the contract's material terms, which
included the
undertaking that the residential dwelling shall be completed within
four and a half months. He then alleged
that the completion
time was specified to enable him to lease the property. This was not
in the written contract, except that the
Plaintiff alleged the
contract was partly verbal. The Plaintiff recorded the contract price
and the consequences of a breach of
the contract. The Plaintiff
documented that the parties contemplated the Plaintiff suffering
damages if there were structural defects
to the dwelling as well as
the loss of rental income if the dwelling was not completed
timeously. The Plaintiff alleged that the
Defendants’ work was
flawed and listed twenty-three defects. Plaintiff alleged that had
the Defendants performed properly
and professionally, Plaintiff would
not have suffered the damages set out in its two claims.
4.
The first claim was premised upon the costs of repairing
the defects
to the dwelling. The Plaintiff estimated the cost at R685 170.
The second claim was based upon the Plaintiff's
inability to lease
the dwelling from 1 April 2024, when the Plaintiff expected to take
occupation. The Plaintiff formulates this
part of the claim as: “the
reasonable damages the Plaintiff suffered is R1900 per day from 1
April 2024 to such date the
residential dwelling is completed, and
the Plaintiff is provided with occupation of the property”.
5.
The First Defendant excepted to claim for loss of rental
income
because it lacked specific averments, did not deal with causation and
foreseeability, and had insufficient detail. The Second
and Third
Defendants excepted to the claim for its lack of specific
allegations, for misjoinder, no factual or legal basis, and
the
absence of a cause of action.
THE
FIRST CLAIM
6.
The First Defendant contended that the particulars failed
to allege
that the R1900 per day claimed as loss of rental was within the
parties' contemplation at the time of contracting. The
cornerstone of
a valid claim for consequential damages is foreseeability. In
Dharumpal Transport (Pty) Ltd v Dharumpal,
1956 (1) SA 700
(A)
,
the Court emphasised the importance of foreseeability in claims for
consequential damages.
7.
The First Defendant alleged that the particulars did not
provide a
sufficient causal link between the alleged breach and the loss of
rental. The Plaintiff did not specifically allege that
the Defendants
were informed that delays would result in a loss of R1900 per day.
The Court in
Telematrix (Pty) Ltd v Advertising Standards
Authority SA 2006(1) SA 461 (SCA)
cautioned against an overly
technical approach to pleadings. Still, it emphasised the need for
sufficient detail to establish a
valid cause of action. The
particulars fell short of this standard.
8.
The First Defendant asserted that the particulars lacked
the
necessary detail to support a claim for consequential damages such as
lost rental income. The claim does not specify how the
daily rate was
determined, nor does it provide any basis for asserting this rate was
foreseeable by the Defendants at the time
of contracting.
9.
Plaintiff rebutted the allegation and cited the paragraphs
of the
particulars alleging that the parties contemplated that Defendant’s
failure to deliver the dwelling timeously would
result in a loss of
rental income. It was alleged that the Plaintiff could not lease the
dwelling for profit at a market-related
rental amount. Therefore, the
reasonable foreseeability of the damages suffered by the Plaintiff
and that it was within the contemplation
of the parties was clearly
pleaded.
10.
Plaintiff refuted that it was required to plead that the parties
agreed
or were aware that the quantum of his damages would amount to
R1900 per day. The plaintiff contended that damages are generally
assessed at the date of the breach and not when a contract is
concluded. The plaintiff cited the case of
Mostert NO v Old Mutual
Life Insurance Co (SA) Ltd
2001 (4) SA 159
(SCA)
at paragraph 78
in support of its contention. The plaintiff asserted that no rule in
law requires parties to agree or foresee at
the time a contract is
concluded the exact extent of the damages a party may suffer if the
other party breaches the contract.
North & Son (Pty) Ltd v
Albertyn 1962 (2) 212 (A)
, the case upon which the precedent for
contractual claims is based in Amler’s Precedents of Pleadings,
concerned the loss
of a farmer’s summer crop as the mechanic
repairing the tractor, failed to return it timeously. The extent of
the damages
could only be determined at a later stage and proved at
the trial. When pleading, neither the trial Court nor the
appeal
Court held that the Plaintiff was required to allege that the
precise extent or manner of calculation of the Plaintiff’s
damages was within the contemplation of the parties when they entered
into their agreement. The exact quantification of a Plaintiff’s
claim is a matter of evidence as it constitutes
facta probantia
rather than
facta probanda
.
11.
Plaintiff argued that causation was alleged as he pleaded that he
could
not lease the dwelling because the Defendants failed to
complete it on time. The plaintiff contended that the particulars
contained
the necessary allegations to sustain the first claim, and
the exception was without merit.
THE
SECOND CLAIM
12.
The Second and Third Defendants contended that the particulars did
not
contain any specific allegations of fact or law against them and
lacked averments that they were involved in the negotiation,
execution,
or performance of the building contract concluded between
Plaintiff and First Defendant.
13.
As Plaintiff did not allege that the Second and Third Defendants were
parties to the contract, there was no legal basis for joining them in
the action. First Defendant’s alleged involvement with
the
Second and Third Defendants was insufficient to establish their
liability for his contracts. They cited the case of
Callender-Easby
v Grahamstown Municipality
1981 (2) SA 810
(E )
to emphasise the
need for specific allegations to justify the inclusion of parties to
litigation. The particulars failed to meet
this standard.
14.
The Second and Third Defendants assert that as the particulars did
not
attribute any conduct or omissions to them, it failed to
establish any factual or legal grounds upon which they could be held
liable.
15.
The Second and Third Defendants contended that in the absence of any
specific
allegations or evidence of their involvement, the
particulars did not disclose a cause of action against them. Hence,
the Plaintiff
did not establish any basis upon which the relief
sought could be granted against them.
16.
The Plaintiff contested the allegations of the Second and Third
Defendants.
Plaintiff alleged that the contract was partially written
and partially verbal, and the Second and Third Defendants were
represented
by the First Defendant. Plaintiff contended that it was
the legal basis for joining the Second and Third Respondents to the
action.
Plaintiff had pleaded the Second and Third Defendants breach
and their liability in all material aspects of the particulars.
17.
The Defendants contended that pleadings must be clear, specific, and
legally
sound to proceed to trial. Defendant’s Counsel raised
the analogy of the Court being like a skilled architect reviewing
blueprints;
it has the opportunity to identify and rectify
fundamental flaws in the case structure before construction begins.
The case illustrates
the critical importance of proper pleading. The
deficiency in the particulars strikes at the heart of the claims'
viability. The
Defendants cited the case of
Trustees for the
time being of the Children’s Resource Centre Trust and Others v
Pioneer Food (Pty) Ltd and Others (Legal
Resources Centre as Amicus
Curiae)
[2013] 1 AllSA 648
(SCA)
to emphasise that the law
demands not only that a Plaintiff should have a cause of action but
that he should make it appear clearly
in his pleadings. By upholding
the exceptions raised, the Court can reinforce the importance of
clear, precise, and legally sound
pleadings in the interests of
justice and for guidance to future litigants to ensure that
well-constructed claims proceed to trial.
18.
In its written argument, the Defendants abandoned their prayer for
the
claims to be dismissed. They contended that the exceptions should
be upheld and the Plaintiff should be granted leave to amend the
particulars within thirty days, failing which the claim would lapse.
The Plaintiff sought to place evidence on affidavit where
he would
reveal correspondence addressed to the Defendants to withdraw the
exceptions failing which he would seek punitive costs
against them.
The Court declined the invitation to prolong what is, in essence, an
ill-founded exception.
EVALUATION
19.
when adjudicating an exception based on the particulars disclosing no
cause of action, a Court will accept the allegations pleaded by the
Plaintiff as true to assess whether they disclose a cause of
action.
An excipient who alleges that the particulars disclose no cause of
action must establish that upon any construction of
the particulars,
no cause of action is disclosed. An excipient must make out a
compelling case before the exception can succeed.
The unreported case
of
Merb (Pty) Ltd v Matthews 2020/15069
provides a useful
summary of some of the general principles applicable to exceptions.
The Plaintiff argued that from even a cursory
reading of the
particulars, the Defendants' exceptions are ill-founded and should be
dismissed with costs.
20.
The Defendants sought to dispose of the Plaintiff’s entire case
by seeking their dismissal. The Defendants failed to appreciate that
if they were successful, the Plaintiff’s summons would
remain
intact (
Group Five Building Ltd v Government of the Republic of
South Africa (Minister of Public Works and Land Affairs) 1993(2) SA
593
(A) at 603 C-D
). The proper prayer would be to uphold the
exception and for the unsuccessful party to apply for leave to amend
its pleading. Defendants
seemed to realise this in their heads of
argument but reverted once again in oral argument to seeking the
dismissal of Plaintiff’s
second claim.
21.
The Plaintiff’s particulars are inelegantly drafted and fail in
many respects to present a clear and distinct recital of the
allegations necessary to support the two claims. Examples include the
failure to establish the link between the Second and Third Defendants
and the First Defendants in their citations. The headings
are
misleading. The “Background” deals with the essential
allegations relating to the contract. The “Performance”
deals with the factors causing the breach of the contract. The second
claim leaves the R1900 per day floating without reflecting
the total
claim under this head of damages, even if it is an estimate. However,
none of these omissions detract from the test on
exceptions raised
for a failure to disclose a cause of action. Not only are the
Plaintiff’s claims evident on a cursory
reading of the
particulars, but the latter contains all the material allegations
necessary to sustain both claims. This is evident
from the survey of
the particulars and aspects of the Plaintiff’s argument
reproduced in this judgment.
22.
The exceptions raised by the Defendants have no merit and stand to be
dismissed. An exception is not directed at producing and pleading to
the perfect particulars but determining whether the imperfect
one
supports a cause of action and permits the opponent to know the case
it must meet. Nor are the Defendants’ exceptions
based on
particulars that are vague and embarrassing or a failure to comply
with Rule 18(10) of the Uniform Rules of Court. In
the premises, the
order that follows is appropriate.
ORDER
1.
The Defendants' exceptions to Plaintiff’s claims are dismissed
with costs.
Ajay
Bhoopchand
Acting
Judge of the High Court
Western
Cape Division
Cape
Town
Judgment
was handed down and delivered to the parties by e-mail on 25 November
2024
Plaintiff’s
Counsel: D R de
Wet
Instructed
by Barnard Inc, Pretoria
Defendants
Counsel: P Tredoux
Instructed
by Kruger & Blignaut, Bredasdorp
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