Case Law[2023] ZAWCHC 79South Africa
Basson v Bowring (15893/22) [2023] ZAWCHC 79 (24 April 2023)
High Court of South Africa (Western Cape Division)
24 April 2023
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Basson v Bowring (15893/22) [2023] ZAWCHC 79 (24 April 2023)
Basson v Bowring (15893/22) [2023] ZAWCHC 79 (24 April 2023)
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sino date 24 April 2023
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IN THE HIGH COURT OF
SOUTH AFRICA
(WESTERN CAPE
DIVISION, CAPE TOWN)
CASE NO: 15893/22
In the matter between
MARGARETHA
BASSON
APPLICANT
AND
ADRIAN
JEREMY BOWRING
RESPONDENT
Date of Hearing:
07 October 2022
Date of Judgment:
24 April 2023 (to be delivered via email to the respective counsel)
JUDGMENT
THULARE J
[1] A
rule nisi
which
operated as an interim order was issued against the respondent in
terms of which he was ordered to make over and restore applicant’
peaceful and undisturbed full possession, use and control of a
Conqueror Trailer, registration No. C[...] vehicle register No.
Y[...] (the trailer) and that in the event the respondent failed to
comply the sheriff of the court and any other person appointed
by the
sheriff was directed and authorized to give effect to the order by
taking possession and delivering the trailer to the applicant
and
that the respondent was interdicted and restrained from lawfully
interfering with the applicant’s possession, use and
control of
the trailer. The respondent anticipated the return date after the
applicant threatened him with contempt of court proceedings.
The
respondent wished to have the order reconsidered on the basis that
the applicant had appointed an agent, Conqueror Trailers
Western Cape
(Pty) Ltd (the company) represented by Andre Jacobus Rudolph (Andre)
for the purpose of selling her trailer, who was
duly authorized to
market and sell the trailer and the respondent having purchased the
trailer validly, he considered himself entitled
to take transfer of
the trailer. The company, although according to the papers it was
involved in the facts that found the dispute
between the parties, it
did not file any papers and was not represented at the hearing of
this application.
[2] The issue was whether
the
rule nisi
should be made final.
[3] The applicant was the
owner of the trailer and about January/ February 2022 approached
Conqueror Trailers Western Cape (Pty)
Ltd (the company) with a view
to selling it. The company conducted business which entailed the
trading in and purchasing of trailers.
The applicant contacted Andre
Jacobus Rudolph (Andre) of the company and requested Andre to find a
purchaser for the trailer. Andre
requested her to bring the trailer
and the applicant delivered the trailer to the premises of the
company for the purpose of selling
it, in or during April 2022. The
applicant and Andre agreed that the company would market the trailer
and that in the event that
the trailer was successfully sold, she
would receive an amount of R335 000-00 which was her reserve price.
This amount was inclusive
of commission of R20 000-00. The applicant
delivered the trailer but kept the original registration documents of
the trailer.
[4] During May and June
2022 the applicant and Andre discussed replacement of the awnings on
the trailer which was replaced around
July 2022. The applicant also
renewed the license of the trailer and handed the disc thereof to
Andre on 22 July 2022. On or about
that day Andre invited the
applicant to view the trailer and during that process, Andre informed
the applicant that there was some
work done on the trailer, as the
trailer was in the process of being sold to a prospective purchaser
who required certain extras
to be done to the trailer. The applicant
was extremely happy at this development. The applicant expected Andre
to contact her later
regarding the transfer of the trailer to the
prospective purchaser once the transaction was finalized.
[5] Thereafter the
applicant did not hear from Andre. She became suspicious and drove to
the company’s premises to confront
Andre personally. She then
noticed that the trailer was not on the premises. Andre was not on
site, but telephonically confirmed
to her that he had delivered the
trailer to the purchaser, the respondent, before receiving the
purchase price. The applicant contacted
her attorney. Andre later
admitted that he had been dishonest to the applicant and that he had
received the purchase price from
the respondent but was then not in a
position to pay that money to the applicant.
[6] The company
advertised the trailer on an online platform called PRE-LOVED and
marketed the trailer for sale under the caption
“BARGAIN BUY”
for a purchase price of R370 000-00. The respondent reacted to the
advert and contacted Andre on 21 Nay
2022 about the trailer. Upon
enquiry he was advised by Andre that the trailer was available for
sale. On 23 May 2022 at 11am the
respondent arrived at the premises
of the company and went to their showroom where the public could
browse caravans and trailers
for sale. At his request prior to
arrival the displays of the trailer had been opened in order for him
to view his condition of
the awnings and the trailer in general. He
also made enquiries about the history of the trailer and Andre
confirmed that it had
only one prior owner and was mainly used for
camping trips. After viewing the trailer the respondent accepted the
offer as per
the advertisement and a verbal sale agreement was
concluded.
[7] Andre confirmed to
the respondent that the company, which was Andre’s employer,
would attend to the registration of the
trailer into the respondent’s
name as soon as the respondent effected payment of the purchase
price. On 24 May 2022, the
respondent received an invoice for the
payment of the purchase consideration in respect of the trailer. The
invoice was issued
by the company to the respondent on 23 May 2022.
On 24 May 2022 the respondent paid the total purchase price of R370
000 into the
company’s Standard bank account, as provided for
in the invoice. The respondent indicated to Andre that Andre was
under no
direct pressure to deliver the trailer as the respondent did
not plan on using it in the immediate future. It was agreed that
Andre
would start the process of registering the trailer in the
respondent’s name and would conclude a minor service on the
trailer
after which the respondent would collect it.
[8] By 2 June 2022 Andre
had not done the roadworthy certificate and change of ownership, and
he promised that it would be done
in the week of 9 June 2022. This
was not done. The respondent then insisted on delivery of the trailer
and the respondent offered
to attend to the transfer of ownership
personally. It was agreed that the respondent would collect the
trailer on 25 July 2022.
On 25 July 2022 the respondent’s
brother-in-law, Richard Bellbridge (Bellridge), collected the trailer
from the company’s
premises. A lay only known as Elmarie, at
the company’s premises handed the trailer over to Bellridge
after demonstrating
to Bellridge the trailer’s features. The
demonstration took about 30 minutes after which Bellridge took
delivery of the trailer.
On that morning of 25 July 2022 Andre sent a
whatsapp message to the respondent wherein Andre confirmed that the
paperwork of the
trailer was not ready yet but that he, Andre, would
deliver the paperwork to the respondent the following morning. The
respondent
did not receive the trailer’s registration papers.
[9] Andre alleged that he
delivered the trailer to the respondent without having any
authorization from the applicant to do so.
According to him, he did
not complete any of the relevant registration papers which was
required to transfer ownership of the trailer
into the respondent’s
name as he knew that he was not authorized to do so on behalf of the
applicant and the applicant had
kept the original certificate of
registration of the trailer in her possession. He knew that he acted
outside the scope of authority
when he sold and delivered the trailer
to the respondent without the applicant’s knowledge or
assistance as the owner. He
intended making good any damages that
either of the parties may have suffered as a result of his conduct.
[10] In
Pretorius v
Loudon
1985 (3) SA 845
(A) at 861F-G it was said:
"...
the underlying principle... I have found is this, that it would be
inequitable that an owner, who has led others into
the reasonable
belief that the person to whom he has entrusted his goods is entitled
to dispose of them, should be allowed to recover
such goods from a
person who has acquired them honestly and for value, unless the owner
tenders to repay such value."
[11] The advert was
placed on PRE-LOVED by the company. The photos displaying the
features of the trailer are under the logo of
the company. Below the
written features of the trailer on the advert is the price and
underneath the price is the telephone number
and the email address of
the company. Nowhere does the advert give any indication that the
company was acting as an agent of the
applicant. Nowhere in the
advert is the applicant or her details appearing. An innocent member
of the public, in the position of
the respondent, would not have
known that the company was acting as an agent of the applicant. The
company was in the business
of selling caravans and trailers and had
a showroom for members of the public to browse. The advert displayed
the trailer as a
“bargain buy”, inviting prospective
buyers with a “don’t miss out!” call. “Buy”
is commonly
understood as to get something by paying money for it.
“Buy” is a common and informal word which means a sale
transaction.
The advert makes no mention that the company only had
the mandate to market the trailer, and had no mandate to sell and
transfer
it, as the applicant now wants this court to believe. The
advert left any reasonable reader with the message that the trailer
could
be acquired by exchange by the purchaser paying the money, R370
000-00, to the company. No indication was given that any prospective
buyer should contact the applicant and that the sale and transfer was
to be handled by the applicant.
[12] When the respondent
made the offer after viewing the trailer, neither the company nor
Andre gave any indication that they were
acting as agents of the
applicant. Andre confirmed to the respondent that it was the company
that would attend to the registration
of the trailer into the name of
the respondent as soon as the respondent effected payment of the
purchase price for the trailer.
The tax invoice that was issued to
the respondent, for payment for the trailer, bore the business
address of the company, to wit,
1[...] O[...] Street, Wellington. It
also bore the name of the company. There was no mention of the
applicant on the invoice, or
any indication that the purchase price
was payable to her by the purchaser. The respondent paid the purchase
price into a Standard
Bank account provided by the company. This was
the bank account where the company’s name appeared as the
account holder.
There was no way that a third party in the position
of the respondent, would have known about the applicant’s
ownership of
the trailer and whatever role if any, that the applicant
was to play in the sale of the trailer. As per the advert, the
respondent
did not miss out on a bargain buy of a trailer which was
sold by the company. It was the company that explained the features
of
the trailer to the respondent’s representative, and the
respondent’s representative respondent took delivery of the
trailer from the company.
[13] The company was
never the owner of the trailer as it did not purchase the trailer
from the applicant. The company sold the
trailer to the respondent as
if it was the owner. The respondent did not acquire the right of
ownership directly from the applicant
as the applicant did not sell
the trailer to the respondent. The company advertised the trailer in
such a manner that it created
the impression that it had the mandate
to sell and transfer ownership of the trailer to a purchaser. It
provided an invoice in
its name, as well as an account number where
it was an account holder into which the purchase price was to be
paid, and never disclosed
that the registration documents were still
being held by the owner of the trailer, the applicant, specifically
for the purpose
of the transfer of ownership. The company, or Andre
in its name, created the impression to the respondent that the
company was
the owner of the trailer. The false impressions created
to the respondent caused him to buy the trailer with the belief that
the
company was the owner thereof and that upon the completion of the
sale ownership of the trailer would transfer to him.
[14] The company through
its representative, Andre, was an agent for sale for the trailer. The
company or Andre were the applicant’s
agent for sale and became
her agent for sale at the moment that she entrusted the trailer to
the company or Andre. The principle
in
Pretorius v Loudon
placed
a limitation on an owner’s
rei vindicatio
where such
owner placed their property in an agent for sale and where the agent
then sold and delivered the property to a
bona fide
third
party. The principle protects the third party’s possession
against the claim of the owner of the property. The respondent
bought
the trailer from the company through its representative, Andre, the
persons to whom the applicant entrusted the trailer.
The respondent
was a
bona fide
purchaser. He did not know that the applicant
was the seller of the trailer. The company or Andre could never have
been the respondent’s
agent at any stage, for the simple reason
that he never knew that they were not the owners of the trailer. As a
result the company
or Andre could not be an intermediary or broker
for the respondent. I saw the respondent as the person who bought the
trailer because
he was misled by the applicant’s agent for
sale, specifically around the nature, scope and content of the
authority given
by the applicant in respect of the sale of the
trailer. The details of such authority are facts peculiar and within
the knowledge
of the applicant and her agent, whether it be the
company or Andre or both.
[15] There was a need to
protect a
bona fide
purchaser where the owner of the property
allowed that the property be disposed of normally as part of the
stock of a person who
sold such stock to the public [
Konstanz
Properties (Pty) Ltd v Wm Spilhaus en Kie WP (Bpk)
[1996] ZASCA 28
;
1996 (3) SA
273
(A) at p. 287]. The applicant delivered the trailer to the
company and the trailer was displayed on the shop floor of the
company
as part of the company’s stock and the public,
including the respondent browsed it as such. It was displayed with
other trailers
displayed by the company for sale. The nature of that
floorplan agreement was not disclosed to the public or to the
respondent.
The trailer was exhibited as such and contemplated to be
sold and that the applicant would then be paid. The manner of
advertisement,
display, payment for, explanation of features and
delivery of the trailer was such that it proclaimed that the
ownership of the
trailer was vested in the company.
[16] The applicant
delivered the trailer to the company that sold trailers, well aware
that it was going to be displayed as part
of the company’s
stock and could freely be disposed of in the normal nature of the
company’s business. The applicant,
by her conduct, created the
impression to a purchaser who was a client of the company, that the
company had the authority to pass
ownership to the purchaser. It was
the conduct of the applicant which formed part of the impression
which misled the respondent
into the belief that the company or
Andre, from whom the respondent acquired the trailer, was the owner
and was entitled to dispose
of it. The applicant should reasonably
have contemplated that a prospective purchaser might act on the
representation to his prejudice,
and she was negligent in not taking
reasonable steps to prevent it. The applicant did nothing to ensure
that an innocent client
of the company or Andre, like the respondent,
who bought the trailer and paid the company with the intention that
with the delivery
thereof he would be the owner, was not misled and
prejudiced. The
rei vindicatio
would hold if the property was
sought from and was still in the possession of the company or Andre
[
Konstanz Properties
at p. 288]. It would be unfair to order
the respondent to forthwith make over and restore applicant’s
possession, use or control
of the trailer which he
bona fide
purchased from the company.
[17] For these reasons I
make the following order:
(a)
The
rule nisi
is discharged.
(b)
The applicant, Margaretha Basson to pay the
costs.
DM THULARE
JUDGE OF THE HIGH
COURT
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