Case Law[2024] ZAWCHC 439South Africa
Walser Wine Projects (Pty) Ltd v Wine Machinery Group (Pty) Ltd (18693/2020) [2024] ZAWCHC 439 (6 December 2024)
High Court of South Africa (Western Cape Division)
5 December 2024
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Walser Wine Projects (Pty) Ltd v Wine Machinery Group (Pty) Ltd (18693/2020) [2024] ZAWCHC 439 (6 December 2024)
Walser Wine Projects (Pty) Ltd v Wine Machinery Group (Pty) Ltd (18693/2020) [2024] ZAWCHC 439 (6 December 2024)
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IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
No: 18693/2020
In
the matter between:
WALSER
WINE PROJECTS (PTY)
LTD
Plaintiff
and
WINE
MACHINERY GROUP (PTY)
LTD
Defendant
Heard:
13 to 16, 20 to 22, 27 and 28 May 2024
6, 12, 13 and 19 to 22
August 2024
3 to 6 September 2024
5, 26 and 29 November
2024
Judgment:
5 December 2024
JUDGMENT
Handed
down by email to the parties
on
5 December 2024, that date being the date of the Judgment
KANTOR,
AJ:
1.
The plaintiff conducts the business of a
winemaker. Its sole director and general manager is Pieter Walser
(“Walser”)
who has been making wine for over 20 years.
2.
In 2019, the plaintiff purchased from the
defendant a Zambelli six head filler which is equipment used to
bottle wine (“the
Filler”). The plaintiff avers that
subsequent to it using the Filler, certain of the wines bottled using
it (“the Wines”)
were spoiled. The plaintiff contends
that:
2.1.
This was caused by the Filler being corroded as a
result of which iron was released into the wine.
2.2.
The plaintiff pleaded in paragraph 29.2 of the Particulars of Claim
as follows: “
The iron particles acted as an oxidation
catalyst which, in turn, altered the qualities, characteristics and
chemical composition
of the wines.
”
2.3.
“
As a result of the aforegoing, the plaintiff suffered
damages in the amount of R31,814,035.99 which amount comprises
the following:
30.1
R3,923,232.78 being the difference between the fair and
reasonable value of the wine withdrawn from the market, in the amount
of
R4,175,341.28, and the saving of costs which the plaintiff
would have but did not incur in the process of selling the wines in
the amount of R252,108.50 …
30.2
R27,769,603.21 being the loss of profit the plaintiff will
suffer in respect of the wine harvests in 2021 to 2030 …
30.3
R121,200.00 being the actual costs incurred by the plaintiff
in having to rent bins and storage space it would not have incurred
but for the defendant’s breaches pleaded above and the actual
costs to have certain of the wines destroyed.
”
3.
In the pleadings, the plaintiff relies on contract
and delict. In argument the plaintiff recorded that it “…
does not persist with the delictual
basis for its claim
.”
4.
The defendant pleaded in
paragraph 7.3 of
its Plea
that “…
it
was an implied term of the contract of sale that the item sold would
be free of latent defects and fit for its objectively intended
purpose.
”
5.
With regard to the words “
fit for its objectively intended
purpose
” as pleaded by the defendant in paragraph 7.3 of
its plea, the plaintiff requested the defendant to provide the
following
further particulars:
“
(I)s
it the defendant’s case that the objectively intended purpose
was simply to fill bottles with the wine regardless of
whether the
filler affected the characteristics of the wine or is it the
defendant’s case that the objectively intended purpose
was to
fill bottles with wine without affecting the characteristics of the
wine?”
6.
The defendant responded as follows:
“
The
defendant’s case is that it was a tacit term that the item
would be free of latent defects and fit for the intended purpose
of
filling bottles with wine so that, if used correctly it would not by
itself spoil the wine. The defendant denies that it was
a tacit or
implied term that the intended purpose of the filler included the
bottling of wine without affecting the characteristics
of the wine
regardless of the manner in which it was used.”
7.
The defendant denies any breach on its part and also that any breach
which may
be proved would be the cause of the loss claimed by the
plaintiff.
8.
During oral argument, Mr Coetzee, who appeared with Mr Potgieter for
the plaintiff,
formally recorded the following:
8.1.
The claim for damages is limited to the amount of R3 923
232.78 pleaded in paragraph
30.1 of the Particulars of Claim for the
particular wines it claims were spoilt and for the costs in the
amount of R121 200.00
pleaded in paragraph 30.3 of the
Particulars of Claim, quoted above.
8.2.
The plaintiff abandoned the claim for (future) loss of profit in the
amount of R27 769 603.21
pleaded in paragraph 30.2 of
the Particulars of Claim, quoted above.
8.3.
The effect of this is that paragraph 30.2 of the Particulars of Claim
was to be deleted
and the amount in prayer a) thereof amended to
R4 044 432.78.
8.4.
The plaintiff only relied on a claim for damages flowing naturally
from the breach of the
contract, and not for any special damages as
was pleaded in paragraph 31 of the Particulars of Claim.
8.5.
The effect of this is that paragraph 31 of the Particulars of Claim
was amended by the
deletion of the content thereof from “
,
alternatively
”.
8.6.
Amended pages of the Particulars of Claim were delivered in the above
respects, formally
effecting the amendments.
9.
The question of the quantification damages was
separated out and the matter proceeded on the questions of breach and
causation.
10.
This spawned a trial of over twenty days,
involving seven witnesses, of whom five were experts.
A:
Application for certain evidence to be by virtual link
11.
At the commencement of the trial the defendant
applied for leave to lead the evidence of Dr John Danilewicz
(“Danilewicz”)
by an audio-visual virtual link. This was
opposed and a formal application was brought by the defendant.
12.
I granted the application. The reasons follow.
They borrow extensively from the comprehensive and very useful
written argument prepared
by the defendant’s junior counsel, Mr
Smuts, who also argued the application (he was led by Mr Duminy in
the trial).
13.
The basis of opposition
may be summarised
as follows:
13.1.
The evidence with regard to Danilewicz’s personal
circumstances, which forms the basis for the application,
was hearsay
and therefore inadmissible (“the hearsay argument”).
13.2.
Danilewicz’s proposed evidence will be inadmissible, because
the defendant pleaded that it had no
knowledge of how the defective
filler caused the plaintiff’s wine to become spoilt and any
opinion which Danilewicz advances
on this point will contradict this
plea (“the pleadings argument”).
13.3.
Danilewicz is not a material or an essential witness and his proposed
evidence is not stated by the defendant
to be material to its case.
Moreover, the defendant did not show that Danilewicz will give
evidence not already dealt with by its
winemaker expert, Mr Van
Rensburg (“Van Rensburg”), or that it will not be able to
put up a defence without Danilewicz’s
evidence (“the
materiality argument”).
13.4.
Although it may be inconvenient for Danilewicz to testify in person,
it is not impossible. On the
other hand, Danilewicz will not
always be visible to the Court if the plaintiff’s counsel makes
use of a separate screen
to show documents, videos and photographs
and furthermore makes use of a pointer to point to specific cells in
spreadsheets, or
points on photographs. The Court and the plaintiff’s
legal representatives will therefore be inconvenienced by not being
able to see Dr Danilewicz during the entire time of his testimony
(“the convenience argument”).
13.5.
Because the defendant filed the Rule 36(9) notices in respect of Dr
Danilewicz with the knowledge that he
would not be amenable to
testify in person, the defendant is the author of its own misfortune
(“the own misfortune argument”).
14.
These arguments will be dealt with below,
after a brief overview of the legal position, which is governed by
section 37C
of the
Superior Courts Act
10 of 2013
and Uniform
Rule 38(9).
15.
The general requirements may be summarised
as follows:
15.1.
Section 37C
provides that:
15.1.1.
It must appear to the court that making
such an order would prevent unreasonable delay, save costs, be
convenient, or prevent the
likelihood that any person might be
prejudiced or harmed if he or she testifies or is present at such
proceedings and otherwise
be in the interests of justice.
15.1.2.
Facilities for testifying in this way must
be readily available or obtainable at the court.
15.1.3.
The audio-visual facilities that are used
by the witness or the court must enable the persons in the courtroom
to see, hear and
interact with the witness giving evidence and the
witness to see, hear and interact with the persons in the courtroom.
15.2.
The provisions of
Rule 38
require notice of
the application, that it “appears convenient or in the
interests of justice” to the court to grant
the order, and that
a draft order be attached to the application setting out the terms of
the order sought, including particulars
of:
15.2.1.
the witness who is to testify;
15.2.2.
the address from where he or she will
testify; and
15.2.3.
the address to where the evidence will be
transmitted.
16.
Even
prior to the Covid-19 era, in 2017, the court in
Uramin
(incorporated in British Columbia) t/a Areva Resource Southern Africa
v Perie
2017
1 SA 236
GJ
authorised
the use of a video link to procure the evidence of witnesses who were
in Dubai and Paris for business and would not attend
court in
Gauteng. This was done in terms of
Rule 39(20)
,
[1]
and in deciding to do so, the court employed the same standard as set
in
Rule 38(9)
, namely that of convenience and necessity for the
purposes of justice. The court remarked that “
I
have heard a number of such applications and heard evidence in this
manner in a number of trials. My experience is that
the
approach of both South African courts and courts in other
jurisdictions must continuously try to be relevant to and keep pace
with rapidly changing demands placed upon judicial practice.
”
[2]
The court found the use of the video link to have been appropriate
and satisfactory in the circumstances.
[3]
17.
The advent of the Covid-19 pandemic in
March 2020 introduced a paradigm shift in the use of audio-visual
links at Court hearings,
which became the standard for hearings for
the duration of the pandemic. It subsequently precipitated a change
in the norm for
its use, and introduced the legal community to the
convenience and cost-savings offered by virtual hearings. These
changes must
have played a role in the introduction of
section 37C
and
Rule 38(9)
, in 2021.
18.
Since
the pandemic and these statutory changes, there have been significant
technological advances in holding meetings and events
virtually.
Virtual trials and arbitrations have become commonplace and
internationally recognised as being efficacious.
[4]
Current international jurisprudence supports a flexible approach
which embraces the benefits of modern technology in having
hearings
being conducted virtually. Two cases which espouse this
approach are
Capic
v Ford Motor Company Australia Ltd
[5]
and
Joint
Liquidators of One Blackfriars Ltd (In Liquidation)
.
[6]
19.
Each of the arguments of the defendant
mentioned above will now be considered in turn.
(1)
The hearsay argument
20.
This argument was also advanced in
Uramin
in which the court held as follows at
239G-J
:
“
[16]
Neither Dragone nor Barbaglia were, at the time of this trial, still
in the employ of the defendant or the Areva Group and
neither were
based in South Africa. Neither are amenable to disruption of their
working and personal lives and neither is subject
to the control of
or the wishes of the defendant. Defendant's attorney made an
affidavit explaining that they were 'no longer under
the supervision
and control of the Areva Group'.
[17]
Interestingly, neither Dragone nor Barbaglia made affidavits in
support of this application or setting out why they were not
available to be in the court in Johannesburg. This was the subject of
some discussion at the hearing of the application. I took
the view
that the deponent to the affidavit is a senior attorney who had
stated on affidavit that she had consulted with both Dragone
and
Barbaglia. There was and is no reason to doubt her bona fides in any
manner. In any event, the contents of her affidavit were
confirmed by
both witnesses when we heard their evidence.”
21.
This applies in the present matter.
Danilewicz explained his circumstances in an email to Mr Potgieter
(“Potgieter”),
the attorney acting for the defendant, who
is a senior attorney and officer of the Court. Potgieter reported
under oath what was
conveyed to him by Danilewicz. There is no
reason to doubt his bona fides. The answering affidavit did not
disclose any reason
which the plaintiff has to dispute this.
22.
The evidence as to Danilewicz’s
circumstances as to not travelling to South Africa was therefore to
be admitted.
23.
Those circumstances are: Danilewicz
is 86 years old. He finally retired about 3 years ago. He has had two
hip replacements
and a knee replacement, all of which impair his
mobility. His wife suffers from retinal detachments which had caused
blindness
in her one eye and she is being treated for the condition
in her other eye. She is totally dependent on Danilewicz for her
activities
of daily living. He is her full-time carer. They reside in
the United Kingdom. In these circumstances, Danilewicz was willing to
testify, but only by audio-visual link.
(2)
The pleadings argument
24.
This argument was probably based on the
following
obiter dictum
in
Standard Bank Factors Ltd v
Furncor Agencies (Pty) Ltd and Others
1985
3 SA 410
(C)
at 417H–418C
:
“
I
may interpolate here that I can see good reasons for drawing this
distinction. Although Bullen, Leake and Jacobs
Precedents of
Pleadings
12
th
ed at 80 suggest that "there
is no difference in effect between denying and not admitting an
allegation" and that "the
distinction is simply a matter of
emphasis, a denial being more emphatic than a non-admission", I
doubt that this is so. To
my mind, there is a clear notional
distinction between these two stances. A plaintiff faced with a
positive denial must anticipate
and prepare for the leading by
defendant of rebutting evidence which contradicts the allegations he
has made.
A plaintiff faced with a non-admission need not
anticipate and prepare to meet contradictory evidence to be adduced
by the defendant.
Indeed, there is authority for the
proposition that he need not even anticipate a limited challenge by
way of cross-examination
of his witnesses.
See
Ntshokomo
v Peddie Stores
1942 EDL 289
at 298. While that may
conceivably be going too far (and again I refrain from deciding the
point), I think, with respect,
that the decision is
undoubtedly correct in so far as it confirms that a denial (and, I
would say,
a fortiori
a plea of
non-admission) because of a lack of knowledge, will not entitle the
pleader to contradict the plaintiff's averments
by leading evidence
to the contrary at the trial
.” (my emphasis)
25.
This view was criticised, in my view
correctly, in
N Goodwin Design (Pty)
Ltd v Moscak
1992 (1) SA 154
(C)
in which
it was held as
follows at
162B–163I
:
“
(T)he
statement in Bullen, Leake and Jacobs Pleadings 12th ed at 80, is in
my view valid that
'there
is no difference in effect between denying and not admitting an
allegation. The distinction is simply a matter of emphasis,
a denial
being more emphatic than a non-admission.'
A
defendant is
entitled to cross-examine plaintiff's witnesses as
vigorously as he wishes and may lead rebutting evidence if he regards
it necessary.
Should that consist of expert testimony - which is
likely - the Rules on that topic would ensure that plaintiff will not
be caught
by surprise
.” (my emphasis)
26.
This
is also the view expressed in
Erasmus
Superior Court Practice
:
[7]
“
A
defendant is often in the position where he has no knowledge of
certain facts pleaded by the plaintiff and is unable either to
admit
them or deny them. Subrule (2) allows a defendant in his plea to
state which of the material facts alleged in the summons
are not
admitted and to what extent. In practice the defendant is not
required to state why, in such circumstances, he has no knowledge,
but it has been held that the non-admission must be accompanied by an
explanation, such as no knowledge.
There
is no difference in effect between denying and not admitting: the
distinction is one of emphasis, a denial being more emphatic
than a
non-admission.”
27.
I am therefore of the view that the
proposed evidence of Danilewicz would be admissible at the trial and
not precluded by the pleadings.
(3)
The materiality argument
28.
The defendant argued that this is not in
line with the requirements for applications like the present, as it
addresses none of the
requirements set by
section 37C
of the Act, nor
of
Rule 38(9).
0cm; background: transparent; line-height: 150%">
29.
I tend to agree.
30.
The effect of the argument is to require
the Court to assess, before having heard any evidence and based on
argument, the importance
of a particular witness to a party’s
case. I do not think that such a criterion is, or should be, part of
the correct approach
as to whether a witness should be called.
31.
If I am wrong in this, Danilewicz appeared
to me to be an important witness who would be able to materially
assist the Court. A
perusal of this judgment confirms that this
turned out to be the case in the clearest of terms. Indeed, other
experts (especially
Mr Loftie Ellis (“Ellis”)), called by
the plaintiff as an expert) even referred to Danilewicz as a leading
expert in
the field and relied on his research and papers. Factors
which were relied on in argument by the defendant included:
31.1.
Danilewicz is the author and researcher to
whom most reference is made by the wine experts in this matter.
31.2.
His curriculum vitae reveals that he holds
a PhD in chemistry, has lectured on wine oxidation at the
Universities of Burgundy, Bordeaux
and California and is either the
author or the co-author of many scientific articles in this field. He
was, at least on paper,
much better qualified to testify about wine
oxidation and its causes, including iron as a catalyst, than the
other wine experts,
Ellis and Van Rensburg. This turned out to be
correct when oral evidence was heard.
31.3.
Danilewicz is a highly qualified,
experienced and distinguished chemist. He studied chemistry at
Imperial College, University of
London, and obtained his Ph.D in
chemistry at the University of London. The first part of his career
was as a scientist in chemistry.
He later specialised in the
chemistry of wines in which he has been involved for decades. He is
an internationally renowned scholar
and wine expert who published
some of the most important and influential papers on the chemistry
and mechanism of oxidation in
wine. His work was referred to by
Ellis, and in some of the academic papers placed before the court.
His expertise is not in issue.
31.4.
In answer to the arguments made by Ellis
about iron in his report, Danilewicz pointed out in his reports that
while iron as a catalyst
may be responsible for increasing the
rate
of oxidation, the
extent
of oxidation in bottled wine is determined by the amount of oxygen
available, and is independent of the concentration of the iron.
Put
another way, once the oxygen is depleted, oxidation stops, no matter
the quantity of iron in the wine. This became a core feature
in the
trial and it features prominently in this judgment. This insight,
which appears to have resulted from his pioneering work
on the role
of copper and iron in oxidation, is not contained in Van Rensburg’s
report or Ellis’s report.
32.
I considered that Danilewicz’s
evidence might be of material importance in the matter and might
significantly assist the Court
in the trial. This turned out to be
correct.
(4)
The convenience argument
33.
In
Uramin
,
the court found at paragraph 30 that “
it
is sufficient reason that Dragone and Barbaglia are living and
working elsewhere, do not desire to travel to South Africa, and
have
no obligation to either party by which they can be enticed so to do
to find that this court should consider receiving evidence
by video
link
”.
34.
Potgieter stated in his affidavit that it
would be quite possible for Danilewicz to see any and all material
presented to him on
his computer screen and still interact visually
and audibly with the court and the legal representatives. During the
trial, while
at times Danilewicz did not have a physical document
ready at hand while testifying, in each such case this was quickly
remedied
by the document being placed in the large screen in court (I
estimate the screen to have been about 1 metre by 1.2 metres, albeit
that this is a very rough estimate). Save for this aspect, which I
regard as immaterial, what Potgieter stated in his affidavit
proved
to be correct on the whole.
(5)
The own misfortune argument
35.
Litigants are not obliged to limit
themselves to experts who are able to travel to South Africa to
testify. Leading experts in a
particular field may be foreign (as
appeared to eventuate in this matter). An inability to travel or a
disinclination to travel,
suitably reasoned, ought not
per
se
to prevent a witness from being
called when the technology which would allow him/her to testify is
readily available
36.
In the premise, I ordered that the evidence
of Danilewicz would be heard by audio-visual link. As to costs, the
plaintiff’s
opposition was not entirely unreasonable. I am
therefore of the view that the parties will pay their own costs in
respect of the
application in this respect.
B:
The material issues
37.
The plaintiff summarised its argument as follows
in its heads of argument:
“
We
submit that, on the evidence presented by the plaintiff, and that of
the defendant in respect of certain crucial aspects of the
plaintiff’s case, the plaintiff has proven the following:
2.1
The wine filler sold by the defendant to the plaintiff was not
properly pickled and passivated;
2.2
The lack of pickling and passivation constituted a manufacturing
defect or flaw;
2.3
The defect impaired the utility of the filler;
2.4
As a result of the lack of pickling and passivation, iron ions (in
the form identified as Fe3+) leached
into the plaintiff’s
wines;
2.5
The leached Fe3+ altered the chemical composition of the wine in
that, as it entered the redox cycle,
it oxidised polyphenols to
create quinones which, in turn, bound free SO2;
2.6
The alteration of the chemical composition of the wines caused
detrimental organoleptic changes in the
wines;
2.7
The chemical reactions and resulting organoleptic changes (which
occurred independently of oxygen) damaged
or spoiled the plaintiff’s
wines; and
2.8
Even if the wines became spoilt as a result of another or
contributing cause, the lack of pickling and
passivation would, in
such a case, still have been
a
cause (not necessarily
the
cause) of the wine becoming spoilt.”
38.
It is common cause that the plaintiff purchased from the defendant a
6-head Zambelli Tivoli filler
and pump set (defined above as “the
Filler”). It is also common cause that, at the time of the
sale, the defendant
was a merchant in the wine industry who had, for
some 30 years, been offering wine industry-related products for sale,
including
bottling equipment.
39.
The defendant pleaded that: “
It is admitted that it
was an implied term of the contract of sale that the item sold would
be free of latent defects and fit for
its objectively intended
purpose.”
40.
The plaintiff contends that this admission is in line with the case
law confirming the principle
that “
a merchant who sells
goods … in relation to which he publicly professes to have
attributes of skill and expert knowledge
is liable to the purchaser
for consequential damages caused to the latter by reason of any
latent defect in the goods.”
(
Holmdene Brickworks
(Pty) Ltd v Roberts Construction Co Ltd
1977 (3) SA 670
(A)
at 682H to 683A;
Ciba-Geigy (Pty) Ltd v Lushof Farms
(Pty) Ltd and Another
2002 (2) SA 447
(SCA)
at par
[48]).
41.
This prompted much argument from the parties. This legal aspect is
dealt with at the end of this
judgment.
42.
The plaintiff pleaded that the defendant breached the terms of the
contract, firstly, by failing
to deliver to it a Zambelli Tivoli
filler and pump set and, secondly, by delivering a filler that had a
number of defects. The
defendant denied that it failed to deliver a
Zambelli Tivoli filler and pump set, by implication pleading that
what was delivered
was the genuine product (“the Zambelli
dispute”). With regard to the defects, the defendant pleaded
that it “
has no knowledge
” and made no admission
in that regard (“the defects dispute”).
43.
In my view, the Zambelli dispute need not be decided in order to
determine whether there was a
breach of contract which caused
damages. That determination, in my view, depends on the defects
dispute. Put another way, if the
Filler was not a Zambelli Tivoli
filler and pump set, I do not think that this means that the damages
were caused by that fact,
a question which rather depends on whether
there existed defects in the Filler which caused the wine to spoil.
Had there been a
claim for the return of the purchase price because a
genuine Zambelli filler had not been supplied, then the Zambelli
dispute would
be relevant. There is, however, no such claim. I
therefore do not consider it necessary to determine the Zambelli
dispute.
44.
Be that as it may, I find the following argument presented on behalf
of the defendant in this
respect compelling:
44.1.
Walser's evidence was that he received an instruction manual
for a Zambelli Tivoli filler with the machine that he bought, but
that
he threw it away.
44.2.
The high-water mark of Walser's evidence that the Filler was
not in fact a Zambelli Tivoli filler, was that it did not have a
nameplate
similar to the one shown in the instruction manual as
"Attached to the Machine".
44.3.
Dr Janet Cotton (“Cotton”), called as a
metallurgical expert by the plaintiff, referred to the absence of a
nameplate
and a serial number on the Filler.
44.4.
The absence of a nameplate does not prove that the Filler is
not a Zambelli Tivoli filler.
44.5.
During cross-examination Press provided a plausible
explanation for why there may not have been a nameplate on the
Filler, as follows:
“
MR
PRESS
: They were identified to me as being Zambelli products.
Some of them had labels on them. I understand that their fillers
don't
have the labels stuck onto them as a preference and the label
is supplied to the, in the manual with, the user manual with the
books so that the user can decide whether he wants to or they want to
apply the label or not.”
44.6.
In my view, the plaintiff did not prove that the Filler was
not a genuine Zambelli Tivoli filler.
44.7.
Be that as it may, whichever way this finding went, I am of
the view that it has no material impact on the result of this matter.
45.
With regard to the defects dispute, and specifically the words “
fit
for its objectively intended purpose
” as pleaded by the
defendant in paragraph 7.3 of its plea, as mentioned above, the
plaintiff requested the defendant to provide
the following further
particulars:
“
(I)s
it the defendant’s case that the objectively intended purpose
was simply to fill bottles with the wine regardless of
whether the
filler affected the characteristics of the wine or is it the
defendant’s case that the objectively intended purpose
was to
fill bottles with wine without affecting the characteristics of the
wine?”
46.
As also mentioned above, the defendant responded as follows:
“
The
defendant’s case is that it was a tacit term that the item
would be free of latent defects and fit for the intended purpose
of
filling bottles with wine so that, if used correctly it would not by
itself spoil the wine. The defendant denies that it was
a tacit or
implied term that the intended purpose of the filler included the
bottling of wine without affecting the characteristics
of the wine
regardless of the manner in which it was used.”
47.
The plaintiff accepted in written and oral argument that it bears the
onus in respect of the Zambelli
dispute and the defects dispute.
48.
I consider that the real and material question in this matter is
whether the plaintiff succeeded
in proving, as pleaded by it, that
defects in the Filler caused “
iron particles
” to
be introduced into the Wines which “…
acted as an
oxidation catalyst which, in turn, altered the qualities,
characteristics and chemical composition of the wines.
”
Absent this being established, in my view the plaintiff’s case
fails.
49.
The plaintiff argued that given the principles laid down in
Robinson
v Randfontein Estates Gold Mining Co Ltd
1925 AD 173
at 177 and
Shill v Milner
1937 AD 101
at 105,
the Court is not called upon to decide other causes of damage to the
wines since none have been pleaded by the defendant.
50.
In my view, whether or not this is the case, it is not strictly
necessary to decide on other causes
of damage to the wines. In this
regard:
50.1.
To succeed, the plaintiff must prove the introduction of iron
particles from the
Filler which “…
acted as an
oxidation catalyst …
” and caused damage to the
Wines.
50.2.
The practical reality is that in considering whether the plaintiff
succeeded in
proving that the Filler caused damage to the wines, the
factual matrix will inevitably involve (or stray into) a
consideration
of what caused the damage. I also refer to the
authority in regard to pleadings dealt with above (in the section
dealing with the
application to lead evidence virtually) which
undermines the plaintiff’s approach. Be that as it may, the
consideration of
the matter below results in the debate as to the
effect of the pleadings not having to be resolved.
51.
The plaintiff recorded in argument that it accepts that it has the
onus to prove that the Filler
was the cause of the alteration of the
chemical composition of the wine and the detrimental organoleptic
(meaning, roughly, sensory)
changes and that it spoilt the Wines, but
submitted that that onus does not include the onus to prove the
absence of other possible
causes. Relying on
Thoroughbred
Breeders’ Association v Price Waterhouse
2001 (4) SA
511
(SCA)
at paragraph 66 (and its interpretation of the
pleadings), the plaintiff argued that “
(i) the plaintiff
need only prove that the filler was
a
cause of the chemical composition of the wines being altered and they
become spoilt (as opposed to
the
cause)
and, (ii) should the plaintiff succeed in discharging that onus, this
Court should find in its favour on the causation dispute.
”
In
Thoroughbred Breeders’ Association
it was held
as follows at paragraph 66:
“
The
defence of a preponderance of fault on the part of the plaintiff, on
which the Court
a quo
appears to rely, is incongruent within
the field of contract. Where a plaintiff can prove that the breach of
the defendant was
a
cause of the loss (as opposed to
the
cause thereof) he should succeed even if there was
another contributing cause for the loss, be it an innocent one, the
actions
of a third party (compare
Nedcor Bank Ltd t/a Nedbank v
Lloyd-Gray Lithographers (Pty) Ltd
2000 (4) SA 915
(SCA) at paras
[10] to [12]) or, logically, the carelessness of the plaintiff
himself in failing to take reasonable precautions
to avoid it.
A
defendant who commits a breach of contract does so independently of
any of the extraneous factors
mentioned above. All the
requirements for his liability will have been fulfilled. In the
absence of a contrary term in the agreement
itself or of legislative
intervention excluding or reducing his claim,
he should therefore
be held fully liable, regardless of whether the plaintiff's
culpa
was the dominant or pre-eminent cause of the loss
.”
52.
At its core essence, in my view, this matter turns on whether
iron or rust or corrosion on the Filler, as a result of the
manufacturing
process, caused the Wines to spoil. And this, in turn,
means what I have said above, namely that the real and material
question
in this matter is whether the plaintiff succeeded in proving
that defects in the Filler caused iron particles to be introduced
into the Wines which “…
acted as an oxidation
catalyst which, in turn, altered the qualities, characteristics and
chemical composition of the wines.
” Absent this being
established, in my view, the plaintiff’s case fails.
53.
There is also a debate between the parties as to whether any
of the damages can, in law, (1) be claimed at all, (2) whether
consequential
damages can be claimed and (3) whether the damages
claimed flow naturally from the breach. This will be dealt with at
the end of
this judgment.
C:
Walser’s evidence: the same sulphur dioxide regime followed for
20 years
54.
Much evidence and time was spent on this issue. I do not consider it
necessary to consider it
in depth.
55.
Sulphur Dioxide (“SO
2
”) is used to prevent
wine from becoming oxidised. This is considered in some detail below.
When it was put to Walser that
he is not able to prove that SO
2
was added (for example, because he does not have the records of what
was added), Walser answered as follows:
“
MR
WALSER
: Yes, but we’ve been doing it the same
before this happened, during this happened and after this happened.
We
have not changed our practices in sulphur regime.”
56.
The court was requested by the plaintiff to find, “
on a
balance of probability, that, in respect of the twenty wines in
question, the Plaintiff followed the same SO2 regime as before
and
added as much SO2 as was necessary to achieve a level of 40 parts per
million before bottling the twenty wines in question.
”
57.
I do not agree that such a finding is to be made, but nor do I find
that it cannot be made. At
first glance this may seem peculiar. The
reasons for this conclusion are set out below.
58.
In my view, in any event, a finding on the above question is
not dispositive or highly material to this matter which,
as
mentioned above,
I believe,
a
t its
core essence, turns on whether the plaintiff succeeded in proving
that defects in the Filler caused iron particles to be introduced
into the Wines which “…
acted as an oxidation
catalyst which, in turn, altered the qualities, characteristics and
chemical composition of the wines.
” Absent this being
established, in my view, the plaintiff’s case fails.
D:
Factors argued in favour of the
plaintiff’s case as to what caused the Wines to oxidise
59.
Mr Coetzee submitted that various factors,
including those which follow, show that the damage to the Wines was
caused by defects
in the Filler and excluded what he called “the
Oxygen Theory” of Danilewicz which was effectively that either
insufficient
SO
2
was added or
that there was too much oxygen for the SO
2
which
was added.
60.
Danilewicz’s evidence and
explanations will be considered in the next section.
61.
Various of the factors relied on by Mr
Coetzee in argument follow.
62.
First, the plaintiff had had no problems
with its wines prior to those experienced in the instant matter and
it had had no problems
with its wines after those experienced in the
instant matter. In this regard:
62.1.
While of relevance, this nonetheless
remains circumstantial and does not prove the cause.
62.2.
Taken in isolation, it ignores the
differences in bottling practices which were applied for the Wines
(dealt with below).
63.
Second, the plaintiff had followed its
usual SO
2
regime of adding SO
2
prior to bottling described in the above section.
While of relevance, this nonetheless remains circumstantial and does
not prove
the cause.
64.
Third,
the plaintiff had conducted a test by bottling 200 bottles of its
Aasvoël
wine with Amata, an independent bottler who bottles wines for
winemakers, referred to further below, without certain protections
(such as a vacuum corker). A Vinlab
[8]
test was done revealing that the oxygen level was not substantially
increased in this exercise:
64.1.
While of relevance, this nonetheless
remains circumstantial and does not prove the cause.
64.2.
Mr Duminy pointed out and argued inter alia
as follows:
64.2.1.
One does not know what the SO
2
was in the wine.
64.2.2.
It is a 2020 wine. One does not know how it
compares to the Wines.
64.2.3.
One of the sets of Vinlab test results in
this regard record, in respect of the wine from one of the tanks
(tank 01) from which
it was drawn, the pre-bottling SO
2
figures as 41mg/l Free SO
2
(“FSO
2
”
)
and 97mg/l Total SO
2
(“TSO
2
”
)
which is sufficient and 26mg/l FSO2 and 84mg/l TSO2 which would be on
the low side.
64.2.4.
Another set of Vinlab results records
36mg/l FSO2 and 92mg/l TSO2.
64.2.5.
The set of Vinlab results for oxygen data
figures on which the plaintiff relies, however, and in contrast, does
not record any FSO
2
and TSO
2
data for the wine (
Aasvoël
).
64.2.6.
Further, there is no indication whether the
SO
2
was tested and evaluated or
what the SO
2
levels were and
when. What is recorded is therefore inadequate.
64.2.7.
The results therefore do not assist insofar
as the SO
2
regime is concerned.
64.3.
It also goes without saying that in a test
of this nature the best effort would have been made to minimise
oxygen intake which may
well skew the results from what was done with
the actual bottling of the Wines. I do not mean this from a sinister
perspective,
but from the simple fact that what was been conducted
was a test.
64.4.
There were no problems with four of the
Wines which are part of the plaintiff’s claim, despite having
gone through the Filler.
There is no explanation for this.
65.
Fourth, Amata (now iBottle) bottles
approximately 50% of wines without vacuum. Mr Duminy pointed out that
this includes screw caps
and in fact only 10% were corked without
vacuum. He also noted that not all of the changed bottling practices
employed by the plaintiff
(dealt with below) with the Wines were used
by iBottle.
66.
Fifth, 8650 bottles of Moment of Silence
were bottled by 15 November 2024 using the Filler with no problems:
66.1.
Mr Duminy pointed out that this was a white
wine and that there was adequate pre-bottling SO
2
(the FSO
2
was
37mg/l).
66.2.
He contrasted this with the
Im
Winterhof
wine which had a pre-bottling
FSO2 of 4mg/l. This means that an enormous amount of oxygen was
consumed. To get to the plaintiff’s
required 40mg/l FSO
2
for this wine one would have needed to add 54mg/l
TSO
2
in total (based on the
ratio of FSO
2
to TSO
2
of 1 to 1.5). This means that there had to have
been 10mg/l of oxygen to oxidise that wine which is huge (it is
beyond the maximum
oxygen level for wine of 9mg/l). Mr Coetzee
countered that this was not so because this wine was an example of
‘stuck fermentation’
in which yeast can affect the SO
2
levels. That, however, does not address the
initial low pre-bottling SO
2
level.
67.
Sixth, Ellis identified a sensorial characteristic of ‘burnt
aldehyde’ in February 2020 more than a month before he observed
rust in the Filler for the first time on 17 March 2020. Ellis
recorded in an email at the time that there was a “
bruin
tint wat duidelik op oksidasie wys” (my translation:
brown tint that clearly indicates oxygen).
He testified:
“
Can
I just come back to 1.6 and tell you that, mister – M’Lord,
if wine shows oxidation you pick up the aldehy(d)e …..
In
this case we had the burnt sensation
with the aldehy(d)e and this
is why it’s so important for me to indicate to you that
this
is not directly oxidation
, at an early stage
I’ve picked
up a burnt oxidation character
.” [the plaintiff’s
underlining]
67.1.
Ellis does not say that this wine was not
oxidised.
67.2.
On the contrary, his approach seems to be
that the wine was oxidised, albeit that ‘burnt’ is not a
direct indication
of oxidation.
67.3.
The ‘aldehyde’ descriptor is
typical of oxidation.
67.4.
Mr Duminy pointed out and argued that Ellis
himself had said that there was no science behind what he testified.
In other words,
he cannot say that it is caused by the uptake of FE3+
which is what happens when iron oxide/rust is dissolved into wine
(this aspect
is explained and considered in lengthy detail below).
67.5.
Probably most importantly, this description
of burnt aldeyhyde character by Ellis only applied to one wine
(
Oorbegin
).
It does not apply to any other wine. It therefore does not apply
across the board.
67.6.
Mr Coetzee argued in reply, with reference
to test results, that the chemical analysis is something different to
the sensorial analysis.
While this may be so, it cannot change
whether iron/rust uptake oxidises wine or increases the amount or
extent of the oxidation
of wine. It does not: it only acts as a
catalyst and increases the rate of oxidation, not the amount or
extent thereof. That
topic is dealt with in depth in the next
section.
67.7.
I consider that Mr Coetzee’s
statement mentioned early in the next section, as well as the
evidence quoted thereat, disposes
of the ‘burnt aldehyde’
factor referred to above.
68.
Seventh, the plaintiff had followed the
same bottling practices as Amata:
68.1.
This is not correct.
68.2.
It is dealt with more conveniently under
section G(3) below which applies equally here.
69.
Most importantly, the science behind the
oxidation of wines was explained by Danilewicz in detail which, in my
view, excludes the
conclusion drawn from the above circumstantial
evidence. This is dealt with in detail in the next section.
70.
Mr Coetzee argued that the above factors
meant that Danilewicz’s explanations must be wrong.
71.
The question is what the science is on the
oxidation of wines to determine whether what Mr Coetzee argued has
been shown to be possible.
72.
I am therefore of the view that Mr
Coetzee’s argument is far from conclusive, subject to much
circumspection and fails to
convince. As I will attempt to
demonstrate below, in my view it does not pass muster in the light of
the science presented by Danilewicz
in evidence.
E:
The oxidation of wine and the role
of iron and oxygen: only oxygen oxidises wine, while iron
and rust (taken up as Fe3+)
only act as catalysts, with it, and the
quantity thereof, having no effect on the extent of the oxidation but
only on the rate
thereof
73.
Danilewicz, whose credentials are mentioned
above, explained the role of iron and iron oxide (rust) in wine.
Corroded iron or rust
does not have some special property affecting
wine beyond the role of a catalyst, and that, if it did, this
would
be a new concept in chemistry which would be studied intensely. The
plaintiff’s counsel made it clear that he was not
going to
suggest this
:
“
MR
COETSEE:
When you say it has got a lot of iron in it, then I am
supposing you are referring to the measured Fe level, but then you
say the
ordinary Fe3
+
, what do you mean by the ordinary
Fe3
+
?
MR
DANILEWICZ:
I think I meant to the Fe3
+
, that is
normally present in wine. It is not an imaginary Fe that has
special catalytic properties. Because all the time
you have got this
proposal that rust produces this, what they call, corroded iron and
somehow corroded iron implies to have a special
property. So when I
say ordinary Fe3
+
, I mean the one that is present in wine,
the one that I know, not the one that I have never heard of.
MR
COETSEE
: You can accept that I will be asking you about
Fe2
+
and Fe 3
+
the way you know it. I will not
be referring you, or suggesting, or hinting at some mysterious other
form of iron. It will be either
Fe2
+
, or Fe3
+
.
That you can take as a given Dr Danilewicz.”
“
DR
DANILEWICZ:
… The idea that the point was made
that during the bottling procedure, there was no rust visible Mr
Ellis suggested
that you don't have to see the rust. It could be
there, not visible. And it could dissolve or go into the wine, and
you wouldn't
be able to measure it. That is totally not possible. So
I don't know what exactly you’re drifting [
sic -
should
be "driving"] at, but that's what I understand the
situation is, as far as metals and rust are concerned. The thing
is
that if there was another species, some very, very potent catalyst,
you've got to remember there'd have to be two because they
enter the
Redox cycle. And as far as I know, there is no other. And I don't
know, if there were, it would be an extremely interesting
phenomenon
which I think people would be looking at intensely. Because if it
happens in iron, it could happen in all the other
metals, in cobalt,
nickel, manganese. You know, that would be new concept in chemistry.
MR
COETSEE
: You can accept, Dr Danilewicz, I'm not going to suggest
to you that there's a new concept in chemistry." (emphasis
added)
74.
As mentioned, I consider that Mr Coetzee’s
statement in the above paragraph, as well as the evidence quoted
above, disposes
of the ‘burnt aldehyde’ factor referred
to in the above section.
75.
That an increased iron concentration will affect the rate of
oxidation of the wine but not the amount of oxidation, as testified
by Danilewicz, was accepted by the plaintiff’s counsel during
his cross-examination:
"
DR
DANILEWICZ
: So, I agree that if you add iron in either
form, in this first phase of oxidation,
you will increase the rate
of oxidation, but you will not increase the amount of oxidation
.
Do you see what I mean? At the end of the phase, at the end of
this rapid phase, the iron won't increase the amount
of oxidation.
It
won't increase the amount of SO
2
that is
used
.
(emphasis added)
[.
. . ]
MR
COETSEE
: You can accept that there's no dispute about what
you've just discussed."
76.
Danilewicz explained that an increase in the iron content of
wine, including if accompanied by copper, accelerates the rate of
oxidation
but does not increase the amount of oxidation. That depends
on the availability of oxygen. In wine, oxidation cannot occur in the
absence of oxygen.
77.
He repeatedly pointed out, without contradiction, that the
redox cycle responsible for the oxidation of wine (explained in
detail
below) was dependent on oxygen. Absent oxygen, oxidation of
wine cannot occur and SO
2
would not be consumed in the
presence of Fe
3+
(explained in detail below).
78.
Oxidation of wine requires the presence of oxygen. The more
oxygen present, the greater prospect and the extent of the oxidation.
79.
Conversely, Danilewicz explained that in the absence of
(sufficient) oxygen (or once it is depleted), no amount of iron in
the wine
will cause oxidation:
“
And
when I said to you that there were other oxidants, well, there are,
but they don't happen to be in wine. The oxidant in wine
is oxygen. I
don't think there's any presence of any significant sources of
oxidation in wine, oxygen is the oxidant in wine. In
other systems,
it might be something else, potassium chromate, potassium manganate.
There are lots of oxidants that could be, but
not in wine, it's
oxygen. And the iron that you're adding through this, in this
process, will do nothing at all unless there's
oxygen. Unless the
cycle works, the iron can't cycle.”
80.
This means that in the absence of oxygen, there is no
functioning redox cycle.
81.
Danilewicz was not challenged on any of the
above aspects.
82.
The question is whether iron or iron oxide
(rust) from the Filler was a material cause of the oxidation.
83.
This brings into focus the plaintiff’s
summary of its case, quoted verbatim above, portion of which warrants
repetition at
this point:
2.1
As a result of the lack of pickling and passivation, iron ions (in
the form identified as Fe3+) leached into the plaintiff’s
wines;
2.2
The leached Fe3+ altered the chemical composition of the wine in
that, as it entered the redox cycle, it oxidised polyphenols
to
create quinones which, in turn, bound free SO2;
2.3
The alteration of the chemical composition of the wines caused
detrimental organoleptic changes in the wines;
2.4
The chemical reactions and resulting organoleptic changes (which
occurred independently of oxygen) damaged or spoiled
the plaintiff’s
wines; and
2.5
Even if the wines became spoilt as a result of another or
contributing cause, the lack of pickling and passivation would,
in
such a case, still have been
a
cause (not necessarily
the
cause) of the wine becoming spoilt.
84.
In essence, it appears to me that the
plaintiff argues that what is described in 2.2 above resulted in the
damage to and spoiling
of the wines in question.
85.
I disagree, for the reasons set out below.
86.
As mentioned, Danilewicz explained that
various materials can cause oxidation in different substances (i.e.
can be oxidants), but
that wine only oxidizes if oxygen is present
(i.e. the only oxidant in the case of wine is oxygen). Put another
way, without oxygen
being present in the wine or the air in the wine
bottle headspace (the area between the cork and the wine), the wine
cannot oxidise.
He was not contradicted on this. It is noted that
this is subject to there not being a problem resulting in the ‘Oxygen
Transmission
Rate’ (“OTR”) through or past the cork
being excessive, but that is a much slower process (usually over a
year)
which does not apply to the instant matter in which the Wines
were alleged to have been spoilt within a few months.
87.
In chemistry terms, oxidation in wine
occurs in what is known as a redox reaction or cycle. Further in this
regard:
87.1.
The following figure prepared by Danilewicz
illustrates the redox reaction (it is from page 285 of the
defendant’s expert
bundle, hence the number on the top right
which has nothing to do with the science).
87.2.
Iron acts as a catalyst in the reaction (as
does, for example, copper).
87.3.
It is included in the above figure because
of the part alleged by the plaintiff for it to have played in this
matter.
87.4.
Iron, however, does not result in oxidation
on its own. It is a catalyst.
87.5.
In the case of wine, oxygen is the only
oxidant which causes oxidation.
87.6.
Once the oxygen is depleted, there can be
no oxidation.
87.7.
The redox reaction works with iron (and
rust) as follows:
87.7.1.
Iron in the form of Fe
2
+
releases an electron and becomes iron in the form of Fe
3
+
(Fe is the symbol for iron).
87.7.2.
On the right-hand side of the figure, the
released electron reacts with oxygen, creating hydrogen peroxide,
which would create an
unpleasant malodorous oxidation product.
87.7.3.
This is where the SO
2
,
which features so prominently in this matter, comes in. SO
2
prevents the creation of the unpleasant malodorous
oxidation effect by binding with the hydrogen peroxide, thereby
eliminating its
effect. This is represented by the X at the bottom of
the right-hand side of the figure.
87.7.4.
The Fe
3
+
receives an electron from the polyphenol on the left-hand side of the
figure, resulting in the polyphenol being converted into
a quinone.
Quinones in wine would result in yellow/brown pigment in the colour
of the wine.
87.7.5.
SO
2
steps
in here again. SO
2
prevents the
creation of this oxidation effect by binding with the quinone,
thereby eliminating its effect. This is represented
by the X at the
top of the left-hand side of the figure.
87.7.6.
The left-hand side of the reaction has a
consequence for the right-hand side which is the production of Fe
2
+
which reduces the amount of oxygen (the consumption of oxygen),
producing hydrogen peroxide which is bound by the SO
2
,
thus preventing oxidation of the wine. Once the oxygen is depleted,
oxidation cannot happen.
87.7.7.
In this cycle, for every molecule of oxygen
consumed, four molecules of SO
2
are
required.
87.7.8.
The cycle spins and continues until (this
takes approximately eight to twelve weeks):
87.7.8.1.
the oxygen is depleted, in which event the
wine will not become oxidised; or
87.7.8.2.
the SO
2
is
depleted (or, more correctly, reduced to below 10mg/l) and oxygen
remains, in which event the wine will become oxidised.
87.8.
SO
2
is
added to wine to prevent oxidation by means of the above process.
87.9.
If there is sufficient SO
2
to bind the quinones and hydrogen peroxide until
the oxygen is depleted the wine will not oxidise. If not, the wine
will oxidise.
87.10.
Once the SO
2
reduces
to a level of less than 10mg/l, the negative effects associated with
the oxidation of wine will start to be released.
87.11.
Accordingly, the wine will oxidise if the
SO
2
is insufficient for the
level of oxygen, or from the opposite perspective, if the oxygen is
too great for the SO
2
.
88.
Key to understanding this matter is an
appreciation of the aspect mentioned above that the redox cycle
continues until:
88.1.
the oxygen is depleted, in which event the
wine will not become oxidised; or
88.2.
the SO
2
is
depleted (or reduced to below 10mg/l), in which event the wine will
start to become oxidised.
89.
Winemakers will add SO
2
to the level which they consider appropriately
sufficient (normally including a buffer) to deal with the expected
level of oxygen.
There are legal limits as to what can be added.
Walser aimed to have 40mg/l. Danilewicz and Ellis both considered
this sufficient,
provided that the oxygen in the wine was not too
elevated.
90.
Wine has an oxygen level of between 1 and
9mg/l of oxygen. This depends on (1) the dissolved oxygen in the
wine, which usually happens
while the wine is fermenting in tanks,
and (2) the amount of oxygen in the headspace of the bottle after
bottling (this is an effect
of bottling). This oxygen is the subject
of the redox reaction/cycle explained above which lasts approximately
eight to twelve
weeks, depending on the level of oxygen. This is a
relatively short period. Oxygen is also introduced by a third
mechanism through
or past the cork. The rate at which this occurs is
the Oxygen Transmission Rate (OTR) mentioned above which is much
slower and
usually takes more than a year. This time frame excludes
this aspect as a playing a material role in this matter.
91.
What the actual oxygen and
SO
2
levels of the wines at bottling were in
fact, and the debate as to certain calculations by Danilewicz, are,
in my view, irrelevant
to the determination of this matter, as will
emerge from what is set out below.
92.
Danilewicz explained that iron and rust are
dissolved in wine and taken up in the form of Fe3+. The question in
this matter is whether
this Fe3+ uptake (in the form of iron or rust)
from the Filler caused the oxidation of the wines. I am of the view
that this played
no role, for the reasons set out below, and
therefore the plaintiff’s claim must fail. This conclusion and
result applies
even if there was iron uptake (including in the form
of rust) from the Filler. The evidence of Danilewicz and the
explanation of
the redox cycle are key to understanding this, hence
them having been set out in much detail above.
93.
Danilewicz and Ellis explained that:
93.1.
Iron is always present in wine, in varying
degrees. The acceptable worldwide average is 5.5mg/l, although
concentrations are generally
lower when modern stainless steel
equipment is used. The legal limit is 10mg/l.
93.2.
Iron dissolves in wine because wine is
acidic. The same applies to iron oxide (rust).
93.3.
Neither iron nor iron oxide (rust) oxidises
wine.
93.4.
They both act as a catalyst in the
oxidation of wine in the redox reaction described above.
94.
The post-bottling test results in respect
of the Wines were between 1.21mg/l and 5.05mg/l of iron, with only 5
out of the 20 wines
in question being above 3mg/l. The average was
2.9 mg/l, well below the worldwide average and acceptable limit (and
very much below
the legal limit). Bearing in mind that the minimum
iron level of wine is 1mg/l, this means that on average at most
1.9mg/l of iron/rust
could have been added to the Wines.
95.
As mentioned above, the redox cycle
continues until:
95.1.
the oxygen is depleted, in which event the
wine will not become oxidised; or
95.2.
the SO
2
is
depleted (or reduced to 10mg/l), in which event the wine will become
oxidised;
and
this process can take approximately eight to twelve weeks.
96.
It is important to reiterate that
Danilewicz explained that (he was not challenged on this):
96.1.
The effect of adding iron or iron oxide
(rust) to wine is to speed up the rate of oxidation.
96.2.
It has no effect on the amount or extent of
oxidation which occurs.
97.
Mr Coetzee, I suspect having realised that
the plaintiff’s case as to iron/rust uptake from the Filler
would not increase
the amount or extent of oxidation, attempted to
add a rider to the analysis in cross-examination. He focused on the
idea of the
depletion of SO
2
in
the wine by the initial uptake of extra Fe3+ from the dissolving or
iron/rust on the Filler resulting in the oxidation. His idea,
put to
Danilewicz, was in essence that the FSO
2
used
to bind the quinones produced by the Fe3+ introduced from the Filler
would no longer be available, thereby depleting to insufficient
levels the SO
2
available to
combat oxidation. This was put in further detail as follows: if
further iron or rust is added in the form of
Fe3+, it will enter and
become part of the redox cycle at the bottom of the middle part of
the above figure, resulting in the movement
of an electron from the
polyphenol on the left-hand side to each molecule of Fe3+, converting
the polyphenol to a quinone which
causes oxidation and converting the
Fe3+ to Fe2+ which continues the cycle. The quinone created binds
with SO
2
(in the process
described above, which prevents oxidation), thereby consuming it, as
a result of which the SO
2
level
is reduced which compromises the quantity (and, therefore, ability)
of the SO
2
to prevent oxidation.
98.
Danilewicz explained that this was a false
premise for four main reasons:
98.1.
The first obvious reason is that the
creation of quinones and them being bound by SO
2
(i.e. SO
2
being
consumed in the process) is part and parcel of the cycle and catered
for in it, with everything happening simultaneously (as
explained and
illustrated above).
98.2.
The second just as obvious reason is that
the addition of iron or rust does not increase the amount or extent
of oxidation, it simply
speeds it up.
98.3.
The third reason is that, while the
consumption of SO
2
is increased
by the speeded-up reaction, so does the consumption of oxygen,
thereby having no overall effect on the capacity for
oxidation.
98.4.
The fourth reason is as follows:
98.4.1.
SO
2
has
a greater molecular weight than Fe3+. The result of this is that for
every 1mg/l of Fe3+ added, 0.57mg/l of TSO
2
(which
is the total of FSO
2
and bound
SO
2
) will be consumed.
98.4.2.
If 3mg/l of Fe3+ is added, which he
described as a huge amount, this would result in the loss of 1.71
mg/l of TSO
2
at the time of
initial introduction. This is in the context of 40mg/l being the
level of FSO
2
aimed for (by
Walser).
98.4.3.
The reduction in SO
2
will
therefore be in an immaterial amount which is neither here nor there,
having no material effect on the reaction.
98.4.4.
As dealt with above, on average 1.9mg/l of
iron/rust could have been added to the Wines, which means that the
addition of that amount
would have resulted in, on average, an even
more immaterial quantity of SO
2
being
consumed.
98.4.5.
Bearing in mind that 40mg/l of SO
2
is needed pre-bottling to protect wine, this is a
negligible and irrelevant amount.
98.4.6.
Even this is, of course, unrealistically
skewed in favour of the plaintiff because, as dealt with above, 1mg/l
is the minimum iron
level of wine with the result that the actual
levels were in all probability more, meaning that the amount of SO
2
consumed would have been even more negligible and
irrelevant.
98.4.7.
The redox reaction then continues as
before, but at a quicker rate, consuming the oxygen.
99.
In the above respect, Danilewicz’s evidence included the
following (even a very large amount of iron would react with very
little SO
2
):
“
So,
it would mean three milligrams per litre of iron, three milligrams
per litre would cause 1.7 milligrams [per litre] of SO
2
to
react.”
and
“
In
fact, if you were to put in three milligrams per litre, that is a
huge amount of iron, which I do not think you could sit [
sic
-
should be "say"] any of the wines had more than that. You
would have lost 1.7 milligrams per litre of SO
2
. So, the
effect of iron, you are saying that there are other oxidants that are
present. True, Fe3, you have added, you have added
an oxidant. The
result is that the SO2 changes by a miniscule amount. So, this
is why this questioning about another source
of oxidation, the
addition iron to the system. What would it do? Well, unless the
cycle works, it would be very small.”
“
So
however much iron you throw at the system, if there is no oxygen,
nothing is going to happen. So, the amount of oxidation, as
I keep
repeating, is dependent not on the amount of iron you put into the
system, but the amount of oxygen that is present.”
100.
He continued as follows:
"
DR
DANILEWICZ:
If you put in three milligrams per litre, yes
you need two irons, there is two of them and the SO
2
is
64, so you divide 64 by 111.6, I get that milligram per litre of iron
you add, it will be 0.57 milligrams of total SO
2
will be
consumed. It is not very much."
101.
There was no expert evidence that rust causes the problems. On
the contrary, the unchallenged expert evidence of Danilewicz is that
wine is acidic and removes iron and rust taking it up in the form of
Fe3+. There is nothing in the redox cycle which was not there
before.
102.
The result of all of the aforegoing, in my
view, is that
the uptake of iron/rust from the Filler did not
cause the oxidation of the Wines.
103.
In my view, this alone disposes of the case
in favour of the defendant and the plaintiff’s claim must be
dismissed.
F:
When the Filler, if not properly
pickled and passivated, would have displayed rust
104.
Walser testified at length, including as
follows:
104.1.
The plaintiff purchased the Filler from the
defendant.
104.2.
The defendant’s offer to train the
plaintiff’s employees to use the Filler was not taken up by the
plaintiff because
the procedures are simple.
104.3.
Walser described the Filler before it was
used for the first time on or about 11 or 12 November 2019 as being
‘spic and span’.
This also appeared from photographs
placed before the court.
When it was delivered to the
plaintiff, the Filler was in pristine condition.
104.4.
No rust was observed on it despite it being used on 15
different days between 13 November 2019 and 11 February 2020.
104.5.
The plaintiff started using the Filler on or about 13 November
2019 and used it for bottling 27 of its wines from that date
to 11
February 2020, on 15 different dates, namely 13, 15, 22 and 27
November 2019; 3 December 2019; 9, 10, 13, 14, 16, 17, 25
and 27
January 2020; and 3 and 11 February 2020.
104.6.
After being used for bottling the Filler was hosed down.
Walser said that the machine was not physically
dried and is left to dry by itself.
104.7.
Once bottling had been completed for the
season, the Filler was put in the office space next to the printer
and the desk of an employee,
Stefan Johannes (“Johannes”).
The machine looked in perfect condition, in particular there were no
signs of rust.
104.8.
Walser said that he would say that on 9
January 2020 they (by which I consider he meant himself, Johannes and
the workers involved)
all looked into the filler bowl (there was no
bottling from 3 December 2019 to 9 January 2020). They saw inside
because they cleaned
it. Nobody noticed any rust.
104.9.
The Filler was thereafter used on 10, 13,
14, 16, 17, 25 and 27 January 2020 and on 3 and 11 February 2020. The
same applies to
these dates as well. Walser did not notice any rust
on the Filler at that stage.
104.10.
The plaintiff last used the Filler on 11
February 2020. No wines were bottled using it after that date.
Immediately after that last
use, it was rinsed with raw borehole
water. This is because there would be contamination issues were wine
to be left inside the
Filler. Walser said he was most likely there
when it took place. Since then, the Filler stood indoors next to the
printer and Johannes’s
work-space in the open plan warehouse.
It was visible to Johannes and him from 11 February 2020.
104.11.
No rust was seen until Walser visited Ellis
on 17 March 2020. Walser saw rust on the Filler that day for the
first time. He took
the Filler in his bakkie to Ellis on the same
day. Ellis took photographs on his cell-phone on 17 March 2020 in the
driveway of
his office. Rusted areas were clearly visible.
104.12.
Subsequent to the problems arising, Walser
bottled one of the wines which had spoilt (called
Aasvoël
).
He used Amata to bottle these. One batch was bottled using inert gas
and vacuum (i.e. to reduce the possible effect of oxidation),
and one
without. Videos were played depicting this. Approximately 200 bottles
were involved. Walser observed the bottling and provided
the wine. He
did nothing else in the process. There were no problems with both
batches.
104.13.
Walser and Ellis both knew that if they
used Amata to bottle there would be oxygen.
104.14.
Winemaking is complex with many steps.
Bottling is the final step. It is a critical step. One can change the
product at many steps
in the process by mixing and adding. One can
add and remove items as permitted by law until bottling, but once
bottled, that is
it and the wine cannot be changed.
105.
The aforegoing evidence establishes the following during which
no rust/oxidation was observed:
105.1.
Although there was no actual evidence on this aspect, it flows
from the aforegoing evidence that the Filler was, once manufactured,
transported to the defendant which must have taken some time. This
time is not taken into account in the figures below, but would
only
serve to exacerbate the conclusion.
105.2.
The plaintiff purchased the Filler and took possession thereof
on 11 or 12 November 2019.
105.3.
It was first used by the plaintiff from 11 or 12 November 2019
to 3 December 2019, a period of just over 3 weeks.
105.4.
It stood at the plaintiff’s premises from 3 December
2019 to 9 January 2020, a period of 38 days, including both start and
end days (5 weeks and 3 days).
105.5.
It was used on 9, 10, 13, 14, 16, 17, 25 and 27
January
2020 and on 3 and 11 February 2020.
105.6.
It stood at the plaintiff’s premises from 11 February
2020 to 17 March 2020, a period of 36 days (2020 was a leap year,
hence
the extra day of 29 February), including both start and end
days (5 weeks and 1 day).
105.7.
No rust/oxidation was seen until Walser
visited Ellis later on 17 March 2020 when rusted areas were clearly
visible. What infer
from this is that the rust must have become
visible some time before that.
106.
This means that the Filler was in the plaintiff’s
possession and use for at least four months in which no
rust/oxidation was
observed.
107.
Cotton testified that if the Filler was not properly pickled
and passivated on manufacture and iron leached out, the effect would
be immediate. She answered the following question in the affirmative:
“
Yes,
if it is exposed to air, you would expect it to be – for red
rust to be evidence immediately, yes?”
108.
She testified that, w
ith normal exposure to
oxygen, there will immediately be oxidising if iron is able to leach
out. The reaction happens instantaneously.
The layer must be fully
intact and covering the whole item without any gaps (i.e.
homogenously and continuously, which is imperative)
to work. That is
the purpose of final treatment. If not, iron oxide is immediately
created in the form of red rust. One would expect
red rust to be
evident immediately if exposed to air.
109.
Press testified in similar vein: that
iron contamination on a surface results in corrosion within hours. He
said that it should
have appeared in the first days of operation and
certainly during the break in operations between November and
December and the
five-week break after January.
110.
On questions from the Court, as to how rapid (it having been
described as instantaneous) the reaction would be in the light of her
earlier testimony, Cotton testified that if the Filler was not
properly pickled and passivated on manufacture, it would take a
matter of weeks for the rust/oxidation to show. This includes time
standing (for example at the manufacturer) or in a show room
when not
being used. She testified that
it would be quicker
if used. The invisible reaction will happen immediately in the filler
at a nano level but will not manifest
in anything visible (at a
macroscopic level) for a matter of weeks.
111.
The Filler was in existence for much more than a matter of
weeks without showing any rust/oxidation:
111.1.
As mentioned, while there was no evidence as to the actual
time involved, the Filler must have spent some time in transport and
at the defendant’s premises prior to possession having been
taken by the plaintiff (although this is not taken into account
in
the analysis below).
111.2.
It was at the plaintiff’s premises in use and standing
for over four months. It was used in this time as summarised above.
Cotton stated that the use of the Filler makes the rust/oxidation
process faster.
111.3.
Cotton opined that the wine running over the surface of the
tank of the Filler and the act of cleaning could wash the rust away
(“
you may get rid of that evidence by way of use
”,
“
evidence being washed away
”), but in my view this
does not have a material impact because (1) it means that the rust
would have had to have been there
nonetheless in order for it to be
washed away, but it was not seen (2) the Filler was being used which
sped up the appearance of
rust (3) the Filler was hosed, not washed
and (4) yet the Filler stood for a period of 5 weeks and 3 days
between 3 December 2019
and 9 January 2020 with no appearance of
rust, as well as for other periods. This is 38 days including the
start and end days.
112.
I think that what resolves the matter on the probabilities is
the following:
112.1.
In response to a series of questions for the purposes of
clarification from the Court, Cotton gave the following answer which
indicates
the re-appearance of the rust would be after a matter of
days:
“
MS
COTTON
: Yes, so what I mean by the evidence being washed away is
that any haematite that could have possible been visually,
microscopically
visual, would have been washed away through the flow
of the product through the wine filler and then also the cleaning
process.
If the wine filler was then used the very next day or
several days later, I would not expect there to be any visual rust,
but certainly,
that haematite product could be washed away with use
and find itself in the product.”
112.2.
The last bottling date was 11 February 2020 (2020 was a leap
year). The Filler was taken to Ellis on 17 March 2020,
when the
rust was first seen
.
This was
36
days
including the start and end days (5 weeks and 1 days).
The underlining is to emphasise that the rust could (or, more
accurately,
probably would) have appeared earlier as the Filler was
not being used and the r
usted areas were described
as being clearly visible on 17 March 2020, which would reduce this 36
day period
.
112.3.
The Filler had earlier stood at the plaintiff’s premises
from 3 December 2019 to 9 January 2020, a period of
38 days
,
including both start and end days (5 weeks and 3 days).
112.4.
This means that it had earlier stood for a
longer
period with no rust appearing (a difference which probably would have
been more because the rust must have appeared earlier, it
having been
described as being clearly visible on 17 March
2020
).
112.5.
This in turn means, on the probabilities, that:
112.5.1.
had the relevant part of the Filler bowl not been properly
pickled and passivated, the rust would have appeared in that earlier
longer period;
112.5.2.
rust on that the relevant part of the Filler bowl was
therefore not caused by that part not being properly pickled and
passivated.
113.
As an aside, the condition of the Filler as
identified in the evidence (dust, insects, dirt etc) indicates that
it may not have
been stored in the office at all times and rather
exposed to a more ‘aggressive’ environment which may have
played
a role in the corrosion, as testified by Press, but this is
not needed for the analysis of, and conclusion on, this aspect.
114.
On plaintiff’s evidence, therefore, I am of the view
that, had the inside of the Filler bowl not being properly pickled
and
passivated, on the probabilities, it would have shown
rust/oxidation well before it actually did on 17 March 2020, and
should have
done so in the earlier longer period of no use leading up
to 9 January.
115.
The
consequence of the aforegoing is that, I am not in a position to find
on a balance of probabilities that the rust/oxidation
on the inside
of the Filler bowl (as opposed to certain welds on the upper lip and
other areas)
[9]
was caused by
the Filler not being properly pickled and passivated (and therefore
that any oxidation of any of the Wines would
have been caused
thereby, which has, in any event, been determined in the previous
section).
116.
In my view, this is a further and
independent basis why the plaintiff’s claim fails.
G:
Further problematic questions
impacting on the plaintiff’s case
117.
There are further problems with the plaintiff’s case in
the context of section F above.
(1)
The quantity and materiality of any iron/rust pickup
from the Filler
118.
The plaintiff’s case is that the iron/rust pickup was
from the wine being in the Filler.
119.
In the bottling process the wine is pumped in a continuous
process from the tanks into the Filler through which it flows into
the
(six) wine bottles in place.
120.
While there may possibly be interruptions at times, for
example if the filler gets too full, for which there are sensors to
stop
the pumping, it is a continuous process. This has the result
that any portion of the wine is in the Filler for a matter of
seconds,
at most a minute or two, and even less is in contact with
any corrosion on the Filler.
121.
Even though, in my view, its pick-up makes no difference to
the extent of oxidation, as considered above, there was in any event
no evidence as to the quantity of rust/iron which could be picked up
from a few seconds or a minute or two’s contact with
rust on
the Filler. On this basis, too, the plaintiff has in my view failed
to make out a case.
122.
This was exacerbated by the fact of
variation in the iron values in different samples of the same wine. I
do not believe that this
was shown to be the result of different time
spent by wine in the Filler (which could only be a matter of seconds,
at most a minute
or two), as argued by the plaintiff. A similar
problem for the plaintiff presented with the variations in TSO
2
in the wines.
123.
Of more import than my belief, is that
there was no scientific basis proffered for this.
124.
Put simply, in my view, the plaintiff
failed to make out a case in this regard.
(2)
Related to, but standing independently of, the
above aspect is that there was no evidence as to the quantity of
rust/iron which
would be required to cause the wine to spoil (again,
even though its pick-up makes no difference as explained above)
125.
It would have been a simple task for the plaintiff to conduct
a test with iron/rust and wine, but this was not done. On this basis,
too, the plaintiff has failed to make out a case.
126.
In regard to conducting a test, one of the
reports of Van Rensburg (filed at the instance of the defendant)
summarised such a test.
Although he did not testify, the test (and
most of his report) was dealt with Ellis in cross-examination and he
agreed with most
of it.
127.
The purpose of the experiment was to obtain
an idea of the extent to which the exposure to iron in a filler bowl
during bottling
could lead to increased levels of iron in the wine
and what effect that would have on the oxidation of the wine, with
oxygen excluded.
128.
A teabag with 4.65 grams of iron filings
was put in 4.65 litres of wine in a filler for more than 10 minutes
and in another the
teabag was left in the bottle overnight. In the
control bottle the FSO
2
was
53mg/l and TSO
2
was 138mg/l.
Copper was 0.21mg/l and iron was 0.51mg/l. The analysis of wine which
had the iron for 10 minutes and overnight was
recorded. For the 10
minutes item, the FSO
2
was
53mg/l and TSO
2
138mg/l.
Iron was (in mg/l) 0.53, 0.51, 0.54 and 0.57, which was a moderate
uptake in the wine.
129.
This is statistically irrelevant.
130.
For the overnight item, iron was 3.67mg/l.
The longer the exposure, the higher the uptake of iron.
131.
What is important is not whether the
results of the test are accurate or not, but rather that this further
illustrates that no case
has been made out by the plaintiff that the
minimal period for which the wine would have been exposed to any iron
or rust in the
Filler (considered above) would have had the effect of
the pick-up of sufficient Fe3+ to have the effect on the Wines
claimed by
the plaintiff (although all indications are that it would
not have had that effect).
(3)
Changed bottling practices
132.
Ellis testified that “
There
were differences in the plaintiff’s practices beyond the use of
the Zambelli, such as the use of inert gas, vacuum and
the third
party bottlers, Amata.
”
133.
Prior to using the Filler, the plaintiff employed the services
of Amata to bottle its wines. When it bottled the Wines itself using
the Filler, the plaintiff deviated from bottling practices used by
Amata when it bottled the plaintiff’s wines prior to the
use of
the Filler, as follows:
133.1.
Not protecting the wine in the filling bowl by means of an
inert gas layer to keep oxygen away from the wine as much as
possible.
133.2.
Not sparging the bottles with inert gas to remove oxygen from
them.
133.3.
Not applying a vacuum at the time of corking.
133.4.
Not ensuring that its staff was properly trained and
experienced at bottling in such a way as to ensure minimum oxygen
uptake during
bottling.
134.
Further of the plaintiff’s practices
which may be relevant identified by the defendant in argument
included:
134.1.
Not determining that the SO
2
content of the wines
was stabilised before bottling, in the sense of actually measuring
them before bottling. This was a recommended
practice, according to
Ellis.
134.2.
Not ensuring that the FSO
2
content was sufficient
to protect the wines from oxidation, in the sense of actually
measuring them before bottling.
135.
Walser testified as follows:
135.1.
Prior to using the Filler, the plaintiff used the services of
Amata for bottling.
135.2.
Amata is a specialist in bottling wine. It bottled for many
winemakers.
135.3.
The Amata mobile bottling unit was
established by Martin Fourie, an ex-student of Ellis. Ellis helped
with the planning because
it has to be done correctly.
135.4.
Amata used its own employees to bottle the wine.
Amata
had a team of employees for this specific purpose. They go from place
to place to fill bottles. They use their own equipment.
They apply
management practices and controls to show how they have performed
their tasks and have written records. Walser observed
the bottling by
Amata and supplied the wine, but did nothing else.
135.5.
The plaintiff bought the Filler to do the
bottling itself.
135.6.
Amata trained employees over the years to
do the work and to manage the machinery.
135.7.
On the other hand, Johannes and Walser
trained the plaintiff’s workers to operate the Filler. None had
previous experience
apart from possibly three days with a rented four
head filler rental.
135.8.
Amata used inert gases to reduce the risk of oxidation in the
bottling process. The plaintiff did not do so when it used the
Filler.
135.9.
Amata’s employees cleaned their filler before, during
(between different wines) and after bottling.
Amata
also cleaned the filler off-site
. Plaintiff did this itself
with the Filler.
135.10.
Amata uses a vacuum corker to prevent or minimise oxygen
ingress.
On the other hand, Plaintiff does not
have a facility to use a vacuum with which to remove air from the
head space of the bottle.
This means that air remains in the bottle.
135.11.
Amata uses inert gases to reduce the
possibility of oxidation. Plaintiff does not do so.
136.
Archibald Smartryk Coetzee, who currently
owns the Amata business (it is now called “iBottle” –
I do not know
if it is held in an entity, but that is of no moment)
testified that the above practices were inherited from the previous
owner
of the business and are still applied.
137.
Johannes was described as the plaintiff’s
cellarmaster.
Johannes was not called to corroborate the
plaintiff’s case and there was no indication that he was not
available to testify.
The failure to call Johannes is of some
significance because he is the person who Walser said:
137.1.
Filled out the pink cards from which the bottling dates
appear.
137.2.
Helped with the Plaintiff’s bottling procedure and
sulphur dosage, and should have been able to corroborate Walser’s
evidence in this regard.
137.3.
Helped to train the plaintiff’s staff in the operation
of the Filler.
137.4.
From time to time cleaned the Filler after use.
138.
None of the employees who assisted with the SO
2
dosage testified.
139.
Ellis himself testified that his first
comment was that the changes in the wines which had spoilt were from
bad bottling practices.
He said that there are other possible reasons
for the oxidation of wines, but it is normally the fault of the
winemaker. Ellis
testified that most of the deterioration of wines
after bottling comes from the practices during and before bottling.
140.
It is therefore not a simple matter of
saying, as the plaintiff attempted to argue, that nothing changed in
the bottling of the
Wines. The fact is that much did.
141.
In addition, not all of the wines (5 out of the 20 in
question, being
Smaug the Magnificent
,
Orbito
,
ESB, TBC
and
Jimmy
) which passed
through the Filler were not oxidised which supports the conclusion
that it was not the Filler which resulted in oxidation.
142.
While it is not necessary to determine what in fact caused the
rust/oxidation on the Filler which was first observed more than four
months after the plaintiff took possession thereof, both Cotton and
Press testified that
the disruption of the oxide
layer can take place in a variety of ways, for example that
imperfections to the oxide layer can be
caused by physical contact
with the surface or chloride in water used on the
Filler (a
factor favoured by Press)
, which in this case was
slightly above the recommended limits. Cotton explained that
breakdown of the passive layer depends on
various factors such as
environment temperature, time of exposure, Ph level and oxygen
concentration in the electrolyte. It could
also be that
during
the time it was in the plaintiff’s possession it was knocked in
a manner which could have compromised the integrity
of the stainless
steel.
143.
The consequence of all of the aforegoing is that, on the
plaintiff’s own evidence, and that of its experts, dealt with
above,
were it to be necessary to decide the point, I am not in a
position to find on a balance of probabilities that the rust in the
Filler which would have come into contact with the Wines was caused
by the inside bowl of the Filler not being properly pickled
and
passivated (and that the oxidation of the plaintiff’s wine
complained of in this matter was caused by the Filler not
being
properly pickled and passivated).
144.
This is an additional basis to the main
bases considered in sections E and F above for the plaintiff not
having made out a case.
H:
The plaintiff’s late argument on shelf life
145.
In oral argument in reply (during the last
hour of a trial lasting over 20 days), Mr Coetzee raised the point,
as I understand it,
that an increase in iron in wine which would
oxidise in any event would result that that wine would have a lesser
shelf life and
that this was a breach. In other words, that the
uptake of iron/rust caused wine which would have oxidised in any
event to have
oxidised quicker, which is itself a breach.
146.
No such case is pleaded by the plaintiff.
147.
The pleaded case is that wine was oxidised,
caused by the uptake of iron particles, not that oxidised wine is
oxidised quicker resulting
in a lesser shelf life which causes a
loss.
148.
A further problem is that no case is made
out as to the different shelf life of the wine which would result and
the materiality
thereof: unsurprisingly, in the context of this
after-thought, one is left in the dark as to whether it would be a
matter
of days, a week, a few weeks, a month or a few months or
otherwise.
149.
A consideration of the evidence which there
is indicates that no case would be able to be made out for the
following reasons:
the evidence dealt with above established
that oxidation would take between 8 weeks and 12 weeks depending on
the level of the
iron (from 1mg/l to 5 mg/l), which is an immaterial
difference (and excessively in the plaintiff’s favour because
the iron
levels averaged 2.9mg/l, as dealt with above).
150.
Danilewicz testified that a wine with
sufficient oxygen (or insufficient SO
2,
whichever
way one looks at it) will oxidise, whether with an iron level of
1mg/l or 5 mg/l or otherwise. The amount of iron does
not impact on
the amount of oxidation: it will remain the same. The amount of
oxidation depends on the amount of oxygen.
The amount of iron only
impacts the rate at which oxidation occurs. The wine with 5 mg/l
would oxidise quicker, in about 8 weeks.
With 1mg/l it would take
about 12 weeks. These are actual examples, being the plaintiff’s
wines 10 and 14 as numbered by
it which were analysed by Danilewicz.
As mentioned, this is an immaterial difference (and excessively in
the plaintiff’s
favour because the iron levels averaged
2.9mg/l, as dealt with above).
151.
That is in the short rapid first phase and
in these (extreme, from the perspective of iron levels, which is what
is in issue) examples
it would be over within weeks of each other.
When the wines are sent to the retailer, both would appear oxidised.
152.
Sight has not been lost of the two phases
of oxygen exposure. Iron is involved in the initial rapid phase, not
the later slow phase
of oxygen passing through the cork at the Oxygen
Transmission Rate (OTR).
153.
I am therefore of the view that this point
is of no merit.
I:
Conclusion on the merits (leaving aside the legal question as to
damages dealt with below)
154.
I am of the view that the plaintiff has not established on a
balance of probabilities that the Filler not being properly pickled
and passivated and as a result becoming corroded was the cause of the
wine becoming oxidised.
155.
I am of the view that
the plaintiff
has not established on a balance of probabilities that iron or rust
uptake from the Filler spoilt the Wines.
156.
The plaintiff’s claim will therefore
be dismissed.
J:
The damages claimable in law
157.
The plaintiff’s claim is for
contractual damages.
158.
The debate between the parties concerned
two questions of law:
158.1.
Whether the damages claimed flow naturally
from the breach (also known conveniently as general damages or
intrinsic damages:
Shatz Investments
v Kalovyrnas
1976 (2) SA 545
(A)
at 550BC), special damages no longer being claimed, as referred to
above.
158.2.
Whether consequential damages could, in
law, be claimed at all in the circumstances.
159.
Both of these aspects are hurdles which the
plaintiff must overcome to be in a position to claim the damages
which it does in this
matter.
(1)
General damages
160.
These damages are for loss which flows
naturally and generally from the kind of breach which the law
presumes the parties contemplated
as a probable result of that
breach. As held in
Holmdene Brickworks (Pty) Ltd v
Roberts Construction Co Ltd
1977 (3) SA 670
(A)
at 687, they are:
“…
damages that flow
naturally and generally from the kind of breach of contract in
question and which the law presumes the parties
contemplated as a
probable result of that breach …”
161.
Mr Duminy submitted as follows: the
standard measure of general damages is to make good the bargain
which, in this instance,
is the difference between the market value
of the item sold and the market value of the item delivered. Where an
agreement is rescinded
for breach of contract, the measure of damages
is the difference between the contract price and the market price at
the time of
performance. Examples of special damages include loss of
profit on resale, loss of reputation and loss of trade.
162.
The above-mentioned principles do not
appear to me to be contentious.
163.
The plaintiff’s main remaining claim
is for
R3 923 232.78 for
the
difference between the value of the wine it withdrew from the market,
less saved costs. Mr Duminy submitted that this was a
claim for loss
of profit which is
ordinarily
regarded as a claim for special damages and not damages which flow
naturally from the breach (general damages) (
Shatz
Investments v Kalovyrnas
1976
(2) SA 545
(A)
at 550GH).
164.
I have underlined the word
ordinarily
because it indicates in unambiguous terms that this is not an
absolute rule. What I understand from this is that the legal
conclusion
as to whether damages flow naturally from the breach
depends on the facts and circumstances of the matter.
165.
Assuming that Mr Duminy is correct that the
above-referred claim is for loss of profit, what must be considered
is whether on the
facts and circumstances of this case it is excluded
from general damages.
166.
The Filler was purchased by Walser
Wine
Projects (Pty) Ltd from
Wine
Machinery Group (Pty) Ltd. Its purpose was to bottle
wine
.
It is common cause that it should not spoil
wine
if properly used. It would be a breach of a term of the contract of
sale were the
wine
to be spoiled even if the Filler was properly used. The loss of that
wine
would
flows from that breach. I have underlined the word
wine
because its involvement is core to the contract and the agreed
intended use of the Filler.
167.
I think that these facts and circumstances
provide the answer in the affirmative in the plaintiff’s favour
as to the damages
flowing naturally from the breach of the contract.
(2)
Consequential
damages
168.
There was no debate between the parties
that the plaintiff’s claim is for consequential loss.
169.
It is admitted on the pleadings that the defendant is a
merchant who sells products related to wine-making, including
bottling equipment.
170.
In
Kroonstad Westelike Boere Ko-Op v Botha
1964 (3) SA 561
(A)
it was held as follows:
“…
there is insufficient
judicial support for the wide view that a merchant, who sells goods
in which it is his business to deal, is
merely on that account liable
for consequential damages caused to the purchaser by a latent
defect, of which the seller was
unaware, in the thing sold.”
[10]
“
In
my opinion the preponderant judicial view, and which this Court
should now approve, is that liability for consequential damage
caused
by latent defect attaches to a merchant seller, who was unaware
of the defect, where he publicly professes to have
attributes of
skill and expert knowledge in relation to the kind of goods sold. …
Whether a seller falls within the category
mentioned will be a
question of fact and degree, to be decided from all the circumstances
of the case.”
[11]
171.
The defendant argued that the plaintiff’s contractual
claim cannot succeed unless it proves that the defendant was a
merchant
seller who publicly professed to have attributes of skill
and expert knowledge in relation to fillers such as the Filler.
172.
The plaintiff tendered no evidence in support of the necessary
allegation that the defendant publicly professed to have attributes
of skill and expert knowledge in relation to the kind of goods sold.
173.
The plaintiff relies on the admission that the contract of
sale contained an implied term of fitness for purpose and submits
that
this satisfies the requirements articulated in
Kroonstad
.
174.
The defendant submits that this is not the correct reflection
of the law and argues that the breach of the implied warranty against
latent defects that would render an item sold useless or partially
useless for the purpose for which it was sold is a ‘redhibitory
defect which underlies the Aedilitian remedies (the
actio quanti
minoris
and the
actio redhibitoria
).
175.
Liability for
consequential loss
, however, for breach
of the implied warranty against latent defects, is confined to cases
that satisfy
Kroonstad
. In
Holmdene Brickworks
it was held at 682-683 as follows:
“
The
legal foundation of respondent's claim is the principle that a
merchant who sells goods of his own manufacture or goods in relation
to which he publicly professes to have attributes of skill and expert
knowledge is liable to the purchaser for consequential damages
caused
to the latter by reason of any latent defect in the goods. Ignorance
of the defect does not excuse the seller. Once it is
established that
he falls into one of the above mentioned categories, the law
irrebuttably attaches this liability to him, unless
he has expressly
or impliedly contracted out of it. (See Voet, 21.1.10; Pothier,
Contrat de Vente, para. 214; Kroonstad Westelike
Boere Ko-op.
Vereniging v Botha,
1964 (3) SA 561
(AD); also Bower v Sparks,
Young and Farmers Meat Industries Ltd.,
1936 NPD 1
; Odendaal v
Bethlehem Romery Bpk.,
1954 (3) SA 370
(O).) The liability is
additional to, and different from, the liability to redhibitorian
relief which is incurred by any seller
of goods found to contain a
latent defect (see Botha's case, supra at p. 572).”
176.
A claim for special damages which is not based on ‘what
is articulated in
Kroonstad
carries with it the
necessary elements of contemplation and agreement required to be
proved for such a claim. This basis for the
claim was abandoned, as
mentioned above, which appears to me to have been a correct decision
on the evidence. Walser confirmed
that the little that passed
between the parties concerned only the speed of filling, in respect
of which there is no complaint:
“
MR
DUMINY
: According to your pleadings, you had discussions with him
over a period from February 2018 to November 2019 ?
MR
WALSER
: Yes. So the discussion was all about the speed of
filling.
MR
DUMINY
: Yes.
MR
WALSER
: There was only a six head filler available, so it is got
six spouts and I was not sure if I needed a four - spout one or
a six- spout one. So discussions was all about the flow and the rate
of flow. That was the discussions regarding the filling.
MR
DUMINY
: Alright and you had, sometime later in November 2019, you
experimented with a four - head filler and could see its speed. So
you
had a basis for comparison?
MR
WALSER
: That is correct.
MR
DUMINY
: But that is really as far as it went?
MR
WALSER
: Yes.”
177.
The defendant contends that for this independent reason, the
plaintiff’s contractual claim should be dismissed, with costs.
178.
In the light of the decisions above on the merits of the
matter, this question need not be decided.
Mr
Duminy submitted, in my view correctly, that unless
Kroonstad
is satisfied, consequential damages cannot be claimed. Mr Coetzee
relied on
Amler’s Pleadings
10ed
at 337 which set out three circumstances in which damages can be
claimed. He relied on
Minister van
Landboutegniese Dienste v Scholtz
1971 (3) SA 188
(A)
and
Kroomer
v Hess
1919 AD 207
.
In my view, his argument is not supported by these cases.
179.
Kroonstad
was concerned with the consequences of
a contract of sale in certain factual circumstances. They arise where
there is a contract
of sale, the
merx
is latently defective,
the seller is not aware of the defect and has publicly professed
skill and expert knowledge in relation
to the kind of goods sold. The
implication or imputation of the “term” underlying
liability depends on those facts
being proven. In that sense, it
could be classified as a tacit term. It is imposed as a matter of
law, and in that sense it would
be equally valid to regard it as an
implied term. Neither
Kroonstad
nor any of the later
decisions on the point, attribute different consequences or apply the
Kroonstad
requirements differently depending on whether
the term is regarded as implied (by law) or tacit (i.e. by
agreement).
180.
My view, were this issue need to be decided, is that the
requirements in
Kroonstad
were not satisfied and
therefore that the argument of the defendant is to be preferred.
While this may appear harsh to a purchaser,
it appears to me to be
the state of the law and would be another basis for the claim to
fail.
Costs
181.
The defendant requested the qualifying and
preparation fees of all of the expert witnesses for whom summaries
had been delivered
at its instance, which included three who did not
testify. I indicated to Mr Duminy that I do not consider that such
costs can
be awarded without more. He argued that while Van Rensburg
did not testify, his report was mostly accepted by Ellis which
disposed
of many disputes. Accordingly, even though he did not
testify, his costs should be allowed. This however, only applied to
Van Rensburg’s
first report and not his second report. Further,
there were some aspects of the first report which were not admitted.
Van Rensburg
had also refused to attend a meeting with Ellis, stating
(as recorded in the ‘joint minute’ prepared by Ellis (he
was
the sole participant) that Van Rensburg said “
I
have my opinion and you have yours.
”
I do not regard that as acceptable. In my view, only the costs of the
witnesses who actually testified for the defendant
should be awarded.
182.
There was no dispute that the employment of
two counsel was warranted and that scale C in terms of
Rule 67A
should apply, the matter being complex.
Order
183.
The following order is granted: The plaintiff’s claim is
dismissed with costs, including the costs of two
counsel where so
employed, with scale C in terms of
Rule 67A
applying, and including
the qualifying and preparation fees of the expert witnesses
Danilewicz and Press.
A
Kantor
Acting
Judge of the High Court
[1]
See
par [25], footnote 4. This was because
section 37C
and
Rule 38(9)
had not yet been enacted.
[2]
At
par [3].
[3]
At
par [38] – [45]. See also the Judge’s remarks in
Folley
v Pick n Pay Retailers (Pty) Ltd & Others
[2017] ZACHC 86 (23 August 2017) at par [20]. In addition to the
cases already quoted, there are others dealing with remote hearings,
mostly in the context of the Covid pandemic, such as
Krivokapic
v Transnet Ltd t/a Portnet
[2018]
4 All SA 251
(KZD)
;
Union-Swiss
(Pty) Ltd v Govender and Others
2021
(1) SA 578
KZD
;
RVD
v IJDV
81157/2017, 24 March 2021 Gauteng Division; and
Puma
Sports Distributors (Pty) Ltd v Hughes and Others
1820/18, 10 November 2020, Western Cape Division
.
[4]
A
good overview of recent developments in this field is to be found in
Hafez,
M
‘
Remote
hearings and the use of technology in arbitration.’ Global
Arbitration Review: The Middle Eastern and African Arbitration
Review 2023. The article can be accessed at:
https://globalarbitrationreview.com/review/the-middle-eastern-and-african-arbitration-review/2023/article/remote-hearings-and-the-use-of-technology-in-arbitration
[5]
2020
FCA, a judgement of the Federal Court of Australia-New South Wales.
This case can be accessed at:
https://www.austlii.edu.au/cgibin/viewdoc/au/cases/cth/FCA/2020/486.html?context=1;query=capic%20ford%20motor%20company;mask_path=
[6]
[2020]
EWHC 854
(CH), a judgement of the Chancery Division of the High
Court of England and Wales. This case can be accessed at
https://www.bailii.org/ew/cases/EWHC/Ch/2020/845.pdf.
For a later evaluation by the same Judge of his experience of the
use of the technology, see the same case name but with citation
[2021]
EWHC 684
(Ch) at par
[25]
(which can be found at
https://www.bailii.org/ew/cases/EWHC/Ch/2021/684.pdf):
“In summary, the remote hearing proved
to be more than a
second-best work around in the face of the Covid 19 pandemic. The
fully remote mode of trial certainly created
real challenges for the
parties and their representatives, not least because of the short
period to make adjustments in the preparations
for trial. However,
my overall assessment is that not only were those challenges
overcome by appropriate and mutually agreed
adjustments on the part
of counsel, the parties and court but that the trial was conducted
more efficiently and far more conveniently
as a fully remote trial.
It was also more accessible to the public than it would have been
had it taken place in a traditional
court room in the Rolls
Building.”
[7]
Superior
Court Practice
Vol 2, D1
Rule 22
-
8
.
[8]
Vinlab
is a facility which conducts laboratory tests on wine which were
accepted by the parties as being reliable.
[9]
Identified
by Press. Both he and Cotton testified as to welding and the heat
involved therewith being a factor in the compromise
of stainless
steel.
[10]
At
571DF. See also
Holmdene
Brickworks v Roberts Construction
1977 (3) SA 670
(A)
at 682-683;
Ciba-Geigy
(Pty) Ltd v Lushof Farms (Pty) Ltd en 'n Ander
2002 (2) SA 447
(SCA)
,
par [48] – [50].
[11]
At
571GH.
sino noindex
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