Case Law[2022] ZAWCHC 1South Africa
L.M v R.K (9236/2014) [2022] ZAWCHC 1; [2022] 1 All SA 738 (WCC) (19 January 2022)
Headnotes
this view because whenever she handed over monies to the Defendant and complained, enquiring about her interests as everything was under his name; the Defendant would always respond that he would never leave her in the cold. [22] The Defendant had a gambling business, which he ran for about five years. There were also periods when the Defendant was unemployed and he was sitting at home. The Defendant also worked at Kenilworth racecourse, did books as an accountant and worked for other places as well.
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## L.M v R.K (9236/2014) [2022] ZAWCHC 1; [2022] 1 All SA 738 (WCC) (19 January 2022)
L.M v R.K (9236/2014) [2022] ZAWCHC 1; [2022] 1 All SA 738 (WCC) (19 January 2022)
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sino date 19 January 2022
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN CAPE
DIVISION, CAPE TOWN)
Case
No: 9236/2014
In
the matter between:
### L [. . .] M [. . .]
Plaintiff
L [. . .] M [. . .]
Plaintiff
and
R [. . .] K [. . .]
Defendant
##
## JUDGMENT DELIVERED
ELECTRONICALLY: WEDNESDAY, 19 JANUARY 2022
JUDGMENT DELIVERED
ELECTRONICALLY: WEDNESDAY, 19 JANUARY 2022
NZIWENI
AJ
Introduction
[1]
The Plaintiff and the Defendant (the parties) started a romantic
relationship around
1996 and they lived in the same house together
until 2013. Three children were born from the relationship.
The parties’
long-term relationship never resulted into a
marriage. In 2013, the parties’ relationship ended.
Pursuant to
the breakdown of the relationship, the Plaintiff moved
out of the common household, and stayed in a flatlet situated on the
same
plot with the dwelling. In 2014, the Plaintiff was evicted
from the premises where the parties stayed.
[2]
In this action; the Plaintiff claims that during the subsistence of
her relationship
with the Defendant, they entered into a tacit
universal partnership. Hence, she commenced this action to seek
a declaration
that a tacit universal partnership was concluded
between herself and the Defendant, during the existence of their
relationship.
[3]
Through this action the Plaintiff is seeking to prove the existence
of a universal
partnership between herself and the Defendant in order
to claim entitlement to an equal share in the division of assets; as
at
the date of the dissolution of the relationship.
[4]
The Plaintiff is seeking a declaratory order for the following
reliefs:
(a)
Declaring that a universal partnership existed between herself and
the
Defendant in respect of all properties and monies acquired by
them during the period of 1996 to 2013.
(b)
Declaring Plaintiff to have a 50% share of
such
partnership.
(c)
Declaring that the said partnership was dissolved with effect from
September
2013.
[5]
The Defendant on the other hand, strongly denies and contests the
existence of a universal
partnership during the subsistence of their
relationship. I understand the Defendant to mean that, when the
relationship
finally broke down between himself and the Plaintiff,
anything that a party bought or brought into their relationship
belongs to
that party who brought it, to keep. It is also the
Defendant’s contention that during the subsistence of the
relationship
between himself and the Plaintiff, he was the one who
was in a financially strong position.
[6]
This action centres around the issue of whether the evidence
presented in this case establishes
a tacit universal partnership
as claimed by the Plaintiff. The burden of proving existence of
the partnership rests with
the Plaintiff.
In
general
[7]
Currently, there is no statute in South Africa that regulates the
relationships between
cohabitees.
[8]
The institution of a formal, licenced marriage is universal.
Formal marriage
is a much-recognised legal union between couples.
Different societies recognises and treasure the tradition or
institution
of marriage.
[9]
As is generally known, when couples get married, certain legalities
such as financial
advantages, protection and entitlements can come
with marriage.
Certified
marriage also gives couples a certain legal status.
[10]
It is an undoubted important fact that the South African
jurisprudence, through court decisions,
took a bold step of
recognising, and treating universal partnerships the same manner as
the traditional marriages. See
Bwanya v Master of the High
Court, Cape Town and Others
[2021] ZACC 51
, at paragraphs
53-57and 67. Consequently, the moment a universal partnership
is proven to be in existence between the parties,
it becomes a legal
valid arrangement, as it is the case with a traditional marriage.
[11]
At the same time, it is now well settled that a universal partnership
may confer the same legal
rights and responsibilities conferred in a
traditional marriage. The obvious reason for this is that, a
universal partnership accords
formal legal recognition to partners in
a co-habitation relationship.
[12]
Due to the fully fledged recognition afforded to the arrangement of
universal partnerships in
South African law; a universal partnership
thus exists and runs in parallel to the institution of formal
marriage as it also affords
some form of legal protection to partners
who would otherwise be left in the cold and vulnerable; because of
not having a marriage
certificate. On the basis of
the recognition accorded to universal partnerships, at times it
also comes to the assistance
of unmarried partners who may find
themselves to be financially dependent on their partners.
[13]
Therefore,
besides
the formal marriage, couples may also elect to enter into a universal
partnership, if they do not intend to get formally
married to
one
another.
Though a universal partnership does not
involve any type of solemnisation, in a South African context, it
remains the most formidable
alternative to the traditional marriage.
See Banywa’s case supra
.
[14]
However, the existence of a universal partnership is not always
easily discernible or certain
as a formal traditional marriage.
Even more so, in situations as in the present case where the parties
did not reduce
their intentions into a written agreement. I
pause to mention that in the
Banywa
judgment, the
Constitutional Court succinctly opined that the difficulties
attendant to proving permanent life partnerships are
not insuperable.
[15]
As pointed out in the
Banywa
matter, it is not possible to
overlook the fact that a party may not want to get married in order
to avoid the obligations that
come with formalised marriage.
Therefore, as it usually happens, if there is no existing contract
concluded between the parties
to establish a universal partnership,
the Court, as in this instance, would be faced with a momentous task
of determining its existence.
The
Evidence
[16]
The Plaintiff in her endeavours to discharge the onus of proof to
establish that a universal
partnership existed between herself and
the Defendant; testified and called her mother as a witness.
On behalf of the
Defendant, it was only the Defendant who testified.
[17]
The Plaintiff
testified that she was born in February 1973.
She met the Defendant in December 1995, when she was 23 years old and
the Defendant
was 33 years old at the time. They were in a
romantic relationship they lived like husband, and wife, and their
relationship
resembled a marriage.
[18]
When the relationship started she lived in an apartment and the
Defendant resided in a one bedroom
rented tiny flat. The
Defendant kept on pushing her to move in with him and in 1996; she
decided to move in with him in his
flat. They stayed at that
flat of the Defendant for about 14 months. When she moved
in with him, the Defendant
owned a television set, a mattress, two
sets of bed linen, a microwave oven and a motor vehicle with a R5000,
00 instalment per
month. On the other hand, she moved in with a
washing machine, lounge suite, bed linen, kitchenware and a motor
vehicle for
which she paid an instalment of R700, 00 per month.
[19]
Within four months of them moving together they were pregnant with
their first-born. They
did not plan the pregnancy. Whilst they
stayed together, three children were born from their relationship.
The first-born
was born on 26 January 1998, the second child was born
on 2 November 2001 and the last-born was born on the 14 August 2009.
[20]
It is her testimony that she and the Defendant lived together as
husband and wife for 17 years.
They were also engaged in those
years, and she even bought a wedding dress. When they had
talks about getting married,
the Defendant would tell her that she
would receive 50 percent when they got married.
[21]
From the beginning of their relationship, the Defendant would tell
her the following:
“
It is all in
one pot my baby, I will never leave you in the cold
”.
She then concluded that there was a joint estate between her and the
Defendant. She held this view because
whenever she handed over
monies to the Defendant and complained, enquiring about her interests
as everything was under his name;
the Defendant would always respond
that he would never leave her in the cold.
[22]
The Defendant had a gambling business, which he ran for about five
years. There were also
periods when the Defendant was
unemployed and he was sitting at home. The Defendant also
worked at Kenilworth racecourse,
did books as an accountant and
worked for other places as well.
[23]
She also used to assist the Defendant by putting advertisements at
her swimming school for parents
who might have required their books
to be done. Her brother also found the Defendant a good job at
a game reserve.
Her brother gave the Defendant a shirt, shoes
and pants. The Defendant earned R25 000, 00 at the game
reserve. When
the employment at the game reserve ended, the
Defendant started his own business ventures. She also assisted
the Defendant
in these business ventures. When she worked for
the Defendant in his business ventures, she was not paid. She helped
the
Defendant virtually on daily basis.
[24]
She started giving swimming lessons on an ad hoc basis. She
started with her own swimming
school in 1998 when their first-born
was born. Her swimming lessons were for nine months per year.
The school was doing
fairly well. She built a good reputation
for herself in Houtbay. She received payments in cash.
The parents
would put in cash in brown envelopes handed to them.
The Defendant helped with the printing of brown envelopes and did
swimming
school administration. She would then give the cash to
the Defendant, who acted as her accountant. The Defendant would
then put the money on a credit card. He would also use the cash.
From time to time, she would ask for the credit card to
do some
shopping.
[25]
She initially gave swimming lessons at her parents’ house for
just under two years.
During that time she earned between R
8000, 00 to R12 000, 00 per month. She incurred no expenses
whilst she ran the swimming
school from her parents’ house.
Around year 2000, she moved her school from her parents’ house
to a swimming
pool belonging to Samantha, who was a parent to one of
her leaners. She struck a deal with Samantha, that her father
would
fix her heat pump. Samantha’s swimming pool was
small and she earned about R10 000, 00 per month. She then
moved
her school to another house where she operated until they moved
to 101 Victoria Avenue. At the new venue she did quite well
as
she earned R15 000, 00 per month and she did not pay any rent.
She installed a heat pump and solar panels and her father
helped with
a bubble cover. The Defendant paid for the electricity bill.
[26]
When they bought the 101 [. . .] (‘the second property’)
property, they moved the
swimming school there. At the second
property, the main expense generated by the school was the
electricity. However,
the Defendant made plans to eliminate the
electricity expense. At V [. . .] A [. . .], the school brought
an income of about
R15000 00, 00 to R18 000 00, 00 per month.
Her payment system never changed.
[27]
She operated the swimming school at V [. . .] A [. . .] until 2009.
The school stopped running
at the instance of the Defendant.
The Defendant pointed out that they were about to be parents to three
children, therefore,
she needed to stay with the children. The
Defendant suggested that they should substitute the income from the
swimming school
by renting out a flatlet. She never
stopped completely to give swimming lessons. The schools would
call her as
a substitute teacher.
[28]
Her parents gave them money to finance the building of the flatlet at
the second property.
They then rented it out for R 5000
00, 00 to R 7000 00, 00 per month. When the last tenant of the
flatlet moved out, the
relationship between her and the Defendant had
deteriorated. The Defendant then offered that she should move
into the flatlet.
She stayed in the flatlet for a year or
two, until the Defendant evicted her.
[29]
It was her testimony that she also took care of the children, would
cook as the Defendant could
not cook, would also do school lunches
for their children. For meals, she would have to do two meals,
as the Defendant is
a vegetarian. Even though they had a domestic
worker, she did laundry and other domestic chores.
[30]
The Defendant would transport the children to school. The
Defendant would also help with
the children’s homework.
They were both responsible for buying groceries. She would use
the Defendant’s
credit card to pay for groceries.
She did not operate any bank account. The Defendant kept her
credit card in
a safe. The swimming school moneys went to
the Defendant’s credit card.
[31]
The Defendant controlled the finances of the household. She had
no say in the finances.
According to her testimony the
arrangements between the parties, pertaining to their finances was
that the finances were in one
pot. The Defendant would pay for
rent and she would pay for food. She also testified that if she
received any money
she had to hand it all to the Defendant. The
Defendant would thank her and say the money is a nice cash business
and it was
keeping them afloat.
[32]
The Defendant told her that women should not control finances and
about his financial background
as an accountant.
[33]
The Defendant also undertook to pay a Liberty life policy and their
son’s study policy.
When she pointed out to the
Defendant that they did not have a pension fund, the Defendant
responded by saying that the Liberty
policy was their ‘
little
nest egg’
. The Defendant was the policyholder of the
Liberty insurance; she is not sure whether it was her or the children
that were
the beneficiaries. The Defendant explained that the
Liberty insurance was an emergency they could fall back on. She
understood it to represent something, which was going to look after
them when they were older.
[34]
She was content to have the policy under the name of the Defendant,
as things were done that
way in their house. She testified that
she believed the Defendant when he said ‘baby you know I will
never leave you
in the cold.’ She put her trust in him.
She also blames naivety and the fact that she was very young when
they
started with the relationship.
[35]
They maintained their standard of living because she and the
Defendant worked hard and she contributed
immensely to the joint
household.
[36]
With the arrival of their first-born and the business of the
Defendant struggling, they battled
with the rental of the Defendant’s
flat. The Defendant even sold his motor vehicle. When
they could no longer
afford the rental of the flat, her parents
offered them accommodation rent-free. They moved to her
parents’ house for
six months.
[37]
From her parents’ house they then moved to Chapman’s View
where they paid approximately
R2000, 00 rent. The
Chapman’s View property was tiny for them and she decided to go
and look for another rental
property that they could rent. They then
moved to 115 [. . .] (‘the first property’) where they
paid a rent of R3000,
00 per month. When the house the first
property went on the market whilst they were renting it, she
persuaded the Defendant
that they should purchase the first property,
as it was a good investment.
The
first property
[38]
It is the Plaintiff’s testimony that before they bought the
first property, they got engaged
when their first-born was over a
year old.
[39]
According to the Plaintiff, they used a bank loan to finance the
purchase price for the first
property. To pay for the loan,
they used her earnings from her swimming school together with the
money earned from the Defendant’s
business. The purchase price
and transfer costs were also financed with a loan from her mother.
She does not think that the
loan from her mother was ever repaid.
[40]
The property was then registered only under the name of the Defendant
because the Defendant told
her that she did not need to worry as
their finances were in one pot and when they get married they would
earn half share of their
property.
[41]
When the first property was purchased it was in a bad condition.
It was a fixer upper.
The Defendant did the renovations and she
was the project manager and did the interior decoration. Her
parents also helped
with the renovations. Her father’s
employees also helped with the gutters, which were falling off.
[42]
Financing for the renovations came from her mother together with the
monies from her swimming
school and the Defendant’s money.
The furnishings for the house came from her, and her mother would
give and
purchase furniture for them. The Defendant purchased a
bed and he brought a second hand fridge. They stayed at the
first property until 2002 or 2003.
The
second property
[43]
She then saw another property down the road on V [. . .] A [. . .].
The property address
was [. . .] V [. . .] A [. . .].
What attracted her to the property was the size of its swimming
pool. The size
of the swimming pool was ideal for her swimming
school. When the house was on show, she took the Defendant to
the house.
She testified that the Defendant reacted by asking
her if she was mad as they could not even afford their rent.
[44]
When they decided to buy the property at [. . . .] V [. . .] A [. .
.], they did an evaluation
of the first property. The first
property was sold for R980 000, 00. With the profit from
the first property,
they bought the second property and moved in.
The size of the property was very big and had quite a big plot.
[45]
The purchase price for the second property was R 1 250 000, 00.
The Defendant put the proceeds
from the swimming school into his bank
account and explained that he did so because it would look good with
the bank. They
applied for a bond to finance the purchase
price. The bond was registered at R650 000, 00. They
moved into the second
property in 2003.
End
of relationship
[46]
The Plaintiff testified that their relationship had incidents of
domestic violence and these
led to their temporary breakup in August
2007. Her relationship with the Defendant finally ended in
2013. In 2014, the Defendant
evicted her from the 101 Victoria Avenue
house. She then moved into her parent’s property.
Anshen Moore
testified that the Plaintiff is her daughter. When the parties wanted
to purchase the first property, the Defendant went with her
to the
bank. The Defendant told her that he needed R60 000, 00;
otherwise he could not get the loan. She
obliged and gave
the Defendant R60 000, 00. She testified that they gave the R60
000, 00 because the Plaintiff and the Defendant
were in a
relationship and had two children.
[47]
The R60 000, 00 was not the only amount of money the Defendant
borrowed from her. She and
her husband also helped with the
fixing of the first property.
[48]
When she was asked who was going to be the owner of the first
property; she responded by saying
if money is requested from the
in-laws, one would think the house would be on both names.
[49]
She testified that the Plaintiff started her swimming school before
the birth of her first-born.
It was also her testimony that the
Plaintiff’s swimming school moved to different locations.
She also testified that
her husband also helped with the maintenance
of the swimming pools.
[50]
She thinks her husband spoke to the Defendant about building up at
the second property.
When a subdivision of the second property
did not go through, her husband got a builder, which was going to
convert a portion of
the house to a flatlet. The flatlet was
going to be rented out and the income was going to be the Plaintiff’s
contribution
towards the Plaintiff’s family coffers.
[51]
She together with her husband financed the building of the flatlet.
They did this not as
a loan but they thought it was a contribution
and it was an arrangement to help them out. Most of the time
her husband would
be on the building site supervising the building.
On Fridays they would go and pay the builder, except for the last
payment,
which they gave to the Defendant. According to her, it
is clear that she and her husband maintained the K [. . .] household
over the years.
[52]
It was her testimony that she would hear the Defendant utter the
words ‘it is all in one
pot I will not leave you in the cold.’
She would also hear these words from her daughter. She
testified that
these words are etched in her mind.
The
Defendant’s version
[53]
In his amended plea the following is pleaded by the Defendant:
“
3A Defendant
pleads that in or about and during 1996 or 1997 and at Cape Town, the
parties both acting in person entered into an
express oral,
alternatively tacit cohabitation agreement on the following terms:
3A.1 the
parties would live together and share a joint household;
3A.2 the
parties would each contribute to the expenses of joint household in
accordance with his or her means;
3A.2(
sic
) the
parties would each contribute to the furnishing and fitting of the
joint household as is required, and in accordance with
his or her
means.”
[54]
The
Defendant
testified that when he and the Plaintiff lived
together they entered into a cohabitation agreement. The
agreement entailed
sharing of living expenses. He ended up
paying most of the expenses, as the Plaintiff was not bringing
much.
The Plaintiff brought little money and she
contributed as she pleased. The pregnancy of their first and
the third child was
unplanned. Only the second born child
was a planned pregnancy.
[55]
The Plaintiff did not contribute to his business. The only time
the Plaintiff had been
to his business premises was just one Saturday
for half an hour and when her mother called her, she left. She
never cleaned
his business premises she merely arrived there to drink
beer. He would only ask the Plaintiff to buy stock if there was
an
emergency and he would request her to physically go and buy.
[56]
He claims that when they stayed at the house of the Plaintiff’s
parents, they stayed in
a room linked to the braai area and not in
the actual house. The accommodation was quite uncomfortable and
unsuitable for
them. He denies that he borrowed R60
000,00 from Plaintiff’s mother. According to evidence he
only borrowed
an amount that was between R50 000.00 – R55 000.
The money he borrowed from the Plaintiff’s mother was not for
the
purchase price of the property but was for the transfer costs.
He took an access bond for R 460 000, 00 and only used R 414
000, 00
of the bond amount that was allocated to him.
[57]
It was his testimony that the proceeds of the swimming school were
used for day-to-day living
expenses between them. However, the
proceeds from the swimming pool were not that much; as a result, he
had to carry the
major expenses. The swimming school properly
started in 2003. It is the Defendant’s testimony
that the
swimming school was running at a loss.
[58]
Whilst they stayed at the first property, there were talks of them
putting a swimming pool at
the first property but the plot was
small. He also put an application to the council and by the
time the council approved
they had to move to the second property.
However, during cross-examination he testified that he did not submit
plans
for the swimming pool and it was not an option at the first
property as there was no space. He denies that it was the
Plaintiff’s
family that maintained the pool at the second
property and claims that he maintained the pool. He provided an
enclosure and
heat pump. He also testified that he played an
integral role in the swimming school business and did its
administration.
During cross-examination, he testified that it
is false that the Plaintiff’s father installed the solar
heating and bubble
cover at Rina Conrad’s pool. According
to his testimony, he did the solar panels installation. When
the Plaintiff’s
counsel put it to him that he was contradicting
himself as he testified earlier that he was not involved with the
pool at Rina’s
place; he testified that he financed the solar
panels and the Plaintiff’s father installed them.
[59]
It was his testimony that his involvement with the swimming school
became more pronounced at
the second property. At the second
property, he was a partner in the swimming school. He supplied
a pool, did an enclosure,
maintained the pool and did the
administration of the school.
[60]
The purchase of house the second property came about because the
Plaintiff liked it and he also
knew about the house and he viewed it
when it was on auction. The Plaintiff liked it because it
had a big pool.
[61]
He testified that he would juggle the cash received from the swimming
school. He would
use the cash from the school for the expenses
of the school and household expenses. Cheque payments
were deposited
in the Plaintiff’s bank account. When his
counsel asked who would do that; he responded by saying ‘I
assume it
would be me, I cannot recall’.
[62]
According to his testimony that Plaintiff’s mother proposed
subdividing the second property
so that there could be a
self-contained flatlet, on order for her to reside there. He
testified that the Plaintiff’s
mother was going to do the
conversion to make a self-contained flatlet. The Plaintiff’s
mother was responsible for
the design.
[63]
The Plaintiff did not bring anything when she moved in with him.
When they moved to the
first property, her mother brought a mirror.
The entire house at the second property was renovated at his
expense.
The Plaintiff’s mother virtually contributed
nothing to the furnishing of the house except to supply linen and
maybe a curtain
or two.
Analysis
[64]
The evidence in this matter reveals the following facts, which are
not seriously disputed:
(a)
The parties lived at the house of the Plaintiff’s mother
for
about six months rent-free. The two properties in V [. . .] A [.
. .] were bought during the subsistence of the relationship of
the
parties and they were registered only under the name of the Defendant
at the Deeds Office.
(b)
When the first house was to be purchased, the Plaintiff’s
mother
lent the Defendant cash that could be in the excess of R50
000, 00.
(c)
The first property, was a fixer upper and when it was sold there was
a
profit made and the profit was used to partially pay for the bond
of the second property.
(d)
Upon termination of the parties’ relationship, the Plaintiff
resided
in a flatlet, situated on the premises of the parties’
former common household; until the eviction of the Plaintiff in 2014.
(e)
At one stage, there was a plan, endorsed by the Defendant; that the
mother
of the Plaintiff was going to stay on the premises of the
second property.
(f)
That the plan to have the parents of the Plaintiff residing on the
premises of the house registered under the name of the Defendant,
involved a situation where the parents of the Plaintiff would
have to
finance the building of a flatlet on the premises.
(g)
That the Plaintiff’s parents paid for the renovations of the
flatlet
(h)
That there was no expressed agreement of universal partnership and
the
Plaintiff relies on implied agreement.
(i)
The Plaintiff’s main source of income was her swimming
school.
(j)
The Defendant did play a role in the swimming school of the
Plaintiff.
(k)
Some sort of an agreement was concluded between the parties
regarding
their relationship.
Was
there a universal partnership between the parties?
[65]
Obviously, the commencement of the relationship by a couple does not
necessarily signify the
start of a universal partnership between
them. Similarly, when the parties live together continuously
for a considerable
period, that is not an indication of a universal
partnership, particularly if there is no written agreement.
Equally, the
living together and having children together, is not
sufficient to prove that a universal partnership was entered into.
[66]
In the case of
Butters v Mncora
(181/2011)
[2012] ZASCA 29
(28 March 2012) at paras 17, 18, 19 and 22, the
Supreme Court of Appeal
opined
:
“
[17]
. . . The requirements for a partnership as formulated by Pothier had
become a well-established part of our law.
Those requirements have
served us well. They have been applied by our courts to universal
partnerships in general and universal
partnerships between cohabitees
in particular. I therefore cannot see the necessity for the
formulation of special requirements
for the latter category. This is
also borne out by the fact that Pothier himself did not find his
formulation of the requirements
incompatible with the concept of
universal partnerships of all property which he discussed in some
detail.
[18]
In this light our courts appear to be supported by good authority
when they held, either
expressly or by clear implication that:
(a)
Universal partnerships of all property which extend beyond commercial
undertakings were
part of Roman Dutch law and still form part of our
law.
(b)
A universal partnership of all property does not require an express
agreement. Like any
other contract it can also come into existence by
tacit agreement, that is by an agreement derived from the conduct of
the parties.
. .
(c)
The requirements for a universal partnership of all property,
including universal
partnerships between cohabitees, are the same as
those formulated by Pothier for partnerships in general.
(d)
Where the conduct of the parties is capable of more than one
inference, the test for when
a tacit universal partnership can be
held to exist is whether it is more probable than not that a tacit
agreement had been reached.
[19]
Once it is accepted that a partnership enterprise may extend beyond
commercial undertakings,
logic dictates, in my view, that the
contribution of both parties need not be confined to a profit making
entity. The point is
well illustrated, I think, by the very facts of
this case. It can be accepted that the plaintiff’s contribution
to the commercial
undertaking conducted by the defendant was
insignificant. Yet she spent all her time, effort and energy in
promoting the interests
of both parties in their communal enterprise
by maintaining their common home and raising their children. On the
premise that the
partnership enterprise between them could notionally
include both the commercial undertaking and the non-profit making
part of
their family life, for which the plaintiff took
responsibility, her contribution to that notional partnership
enterprise can hardly
be denied.
[22]
As I see it, this argument harks back to the model of a partnership
confined to a commercial
enterprise. Taken to its logical conclusion,
it would mean that even a negligible monetary contribution would
outweigh an invaluable
non-financial contribution to the family life
of the parties. In this light I must admit some sense of relief that,
freed from
the restraints of regarding universal partnerships as
being confined to commercial enterprises, we are now able to evaluate
the
contribution of those in the position of the plaintiff in its
proper perspective. This also accords with a greater awareness in
modern society of the value of the contribution of those who are
prepared to sacrifice the satisfaction of pursuing their own careers,
in the best interests of their families.”
[67]
In this case when it comes to implied universal partnership, it is
essential that the party that
relies on it should prove through
evidence that mutual agreement can be inferred from the parties’
conduct or circumstances.
See
Mcora’s case, supra,
at paragraph 20. Clearly, there can never be a blanket
approach; it can never be a one size fits all approach.
Accordingly, it is very critical that each case falls to be decided
on its own particular facts and circumstances.
[68]
In my view, principally the Defendant’s defence of the action
is based on two distinct
strands. The first leg is that he and
the Plaintiff entered into a cohabitation contract, wherein they
formalised the obligations
they have towards each other. The
second leg is that there was never a universal partnership entered
tacit or otherwise between
the parties.
[69]
The Defendant makes a significant concession that he and the
Plaintiff concluded a contract of
cohabitation. The corollary
to this is that the Defendant is pertinently admitting that the
parties consented to contract
their relationship in order to regulate
it and their finances. Strange as it may sound, I find the
concession regarding a
contract of cohabitation as a striking key
element in the version of the Defendant and in this case.
[70]
It is also quite significant that in this matter it was never the
case of the Defendant that
the parties generally in their
relationship kept separate finances. Instead, the Defendant
strongly maintains that he is
the one who contributed the lion share
towards the running of the joint household. It is also the
Defendant’s own evidence
that the parties used the Plaintiff’s
swimming school proceeds for day-to-day living expenses between
them.
[71]
Most interestingly, though, from both sides, the evidence in terms of
this case manifest that
the parties ran a joint household. For
instance, they shared chores and expenses. Even from the
language used by both
parties when they testified, it becomes clear
that they ran a common household. For example, as pointed out
previously, on
the version of the Defendant, he testified that the
parties entered into a cohabitation agreement and the agreement
entailed sharing
of living expenses. Additionally, an important
observation is that during the Defendant’s testimony and in his
amended
plea, it is also discernible that, he would refer to their
house as the common household. Little wonder
the Plaintiff’s mother when she testified she also referred to
couples’ household as the Kenmuir household and described
herself as an in law of the Defendant.
[72]
Furthermore, in my view, in the context of this case, it would have
been a different situation had
the Defendant simply said that the
parties decided only to cohabitate, and to keep their finances
separate.
However,
the Defendant in the instant case went further and stated that the
parties entered
into a cohabitation agreement
, which involved
sharing of expenses. Consequently, as already pointed out, it appears
to me, therefore, that the Defendant on his
own version inadvertently
admitted that the parties’ arrangement to stay permanently
together extended to their finances.
[73]
In the present case, the fact of the matter is that the Defendant
never disputed that:
(a)
The Plaintiff looked after the children, took the children to
school,
cooked for the family, and did school runs for the children.
(b)
He told the Plaintiff to close the swimming school so that she
could
look after the children.
(c)
The Plaintiff swimming school did contribute towards the living
expenses
of the household.
(d)
There was an instance where the Plaintiff helped at his business.
[74]
Additionally, the Defendant never disputed that the purchase of house
101 Victoria Avenue came about
because the Plaintiff liked it.
It is further the Defendant’s own version that he would juggle
the cash received from
the swimming school, for the expenses of the
school and household expenses. In my view, this powerfully
illustrates that
the parties’ finances were merged into a
single pool.
[75]
Interestingly, on the Defendant’s own version, he also played
an integral role in the swimming
school business and did its
administration and at the second property his involvement was
pronounced in the swimming school, and
he became
a partne
r.
[76]
When the Plaintiff testified that both the parties maintained their
standard of living because
she and the Defendant worked hard and she
contributed immensely to the joint household; her testimony in this
regard explains so
much, in the context of this case.
Particularly, if regard is given to the version of the Defendant.
Demonstrably,
when the parties conducted themselves there
was
no distinction between what is mine and what is yours because all
funds and expenses were pooled together.
[77]
One thing, which is abundantly clear in this case is that, merely on
the version of the Defendant,
it is quite clear that it was the
parties mutual understanding that they were in a partnership
agreement. It is readily apparent
on the version of the
Defendant, that the parties’ finances and financial
responsibilities were intrinsically and intimately
interconnected for
purposes of their own household financial security. There is no
other way to perceive it.
[78]
An obvious example is the fact that the Defendant testified that he
had to carry major expenses
of the common household, and this offers
insight to the fact that the finances of the common household were
connected towards a
common purpose. Quite clearly, this also strongly
implies pooled income.
[79]
In the context of this matter, I have no hesitation in concluding
that the evidence reveals that
the Defendant was playing an
instrumental role in making financial decisions for the common
household to increase its economic
security and well-being.
Additionally, the evidence also shows that the Defendant played a
central role in the cash flow
management of the joint household.
This much was not disputed by the Defendant.
[80]
The control of the household finances by the Defendant is partly
demonstrated by the fact that
the Defendant was the one who played a
key role in obtaining a substantial loan from the Plaintiff’s
own mother when the
second property was purchased. This aspect
is an illustration of the fact that the Defendant was firmly in
charge of financial
matters of the common household purse strings.
It is evident that he was the financial manager of the partnership.
[81]
The unilateral financial control of the finances by the Defendant
also created an underpinning
and important link between the finances
of the Plaintiff and the Defendant’s finances. As it was
the Defendant’s
own evidence that, he was the one who juggled
the income from the swimming school. Moreover, it is palpable
that the funds
from the swimming school were also used to enhance and
increase the financial stability of the joint household. The
evidence
in this matter also bears the point that the Plaintiff was
also an active member in the partnership.
[82]
The fact that the parties’ finances were so intertwined
illustrates the point that all
the money in the household came out of
two pots and went into one pot, for a common goal. The pooled funds
clearly indicate that
the parties were totally invested in their
relationship.
The
testimony of the Plaintiff eloquently illustrates the point when she
testified that she, together with the Defendant worked
very hard for
the joint household.
[83]
There are thus ample objective facts, which support the testimony of
the Plaintiff that the Defendant
throughout their relationship kept
on telling her
that ‘it is all in one pot baby, I will never
leave you in the cold.’
Moreover, the mother of the
Plaintiff also corroborated the Plaintiff that the Defendant did
utter those words.
[84]
As noted, the objective facts in this matter quite articulately
proves that everything in the
household of the parties was in one
pot. Hence, I accept the Plaintiff’s version that the
Defendant did utter such
words. Another objective fact, which
supports the version that everything was in one pot, is the fact that
when the parties
broke up in 2013, the Plaintiff moved into the
flatlet for more than a year.
[85]
As already indicated that; it is common cause in this matter that the
parties lived together for about
17 years. The patterns in the
evidence in this matter strongly suggests that during the subsistence
of the parties’
co-habitation, their relationship resembled a
partnership. Another noteworthy scenario of this matter
is that the Defendant
interacted with the Plaintiff’s parents;
the Plaintiff’s brother helped the Defendant to secure
employment. In
my mind this shows that the Defendant was
willing to go through endless lengths to provide financial stability
for the joint household.
[86]
I have no hesitation in concluding that absolute control of finances
by the Defendant made the
Plaintiff financially dependent on him.
Without doubt, the dynamics of the relationship between the
parties in this
matter evinces that the Plaintiff did not have
control over her own money.
[87
]
It is the Plaintiff’s testimony that the use and control of her
swimming school funds facilitated
the purchase of the two
properties.
The Plaintiff testified that
she was
inhibited in spending, and she would be forced to do
groceries on a tight budget. The Plaintiff was adamant that she did
run a swimming
school from the beginning of their relationship and
there was no way the Defendant could afford the bond alone.
[88]
The Defendant in his testimony was set in trying to minimise the
contribution of the Plaintiff
in the household. In fact,
the Defendant tried throughout his testimony to minimise the role the
Plaintiff played in
their relationship and by anyone from the side of
the Plaintiff. It is almost comical how blatant this is.
I think
it is highly important to recite some examples. For
instance, the Defendant strenuously asserted the following:
(a)
That the school ran only for four to five months per year and
that
the business was not profitable.
(b)
It was also put to the Plaintiff during cross-examination that
her
earnings from the swimming school had nothing to do with the
purchase of the properties.
(c)
The Plaintiff overstated the income generated from the swimming
school
business.
(d)
The Defendant also denied that the Plaintiff played a role of a
project
manager and an interior decorator when they purchased the
first property.
(e)
It was put to the Plaintiff that she did not have money to
contribute
to the bond.
(f)
The Plaintiff’s mother never gave her R60 000, 00, and the
amount the Defendant obtained from the Plaintiff’s mother did
not go towards the payment of the purchase price for the second
property.
(g)
The Plaintiff never did any renovations at the first property.
(h)
The mother of the Plaintiff did not provide furniture for the first
property.
(i)
The father of the Plaintiff did not help with the swimming
pool’s
maintenance.
(j)
The type of accommodation they received from the Plaintiff’s
mother was unsuitable and uncomfortable.
(k)
The role played by the Plaintiff’s parents in the building of
the
flatlet at the second property.
(l)
The type of mother the Plaintiff was.
[89]
Both the Plaintiff and her mother made a good impression as witnesses
in this Court. They
gave evidence in a clear and calm fashion
without being argumentative. I never got the impression that they
were colluding against
the Defendant, or tried to pad their version,
or endeavoured to cast the Defendant in bad light. I did
not get the
impression that they went out of their way to create an
atmosphere of suspicion against the Defendant or that their version
was
set out to mislead this Court. Surely, if they were
calculative, brazen and manipulative, as the Defendant would like
this
Court to believe, they could have easily embellished the
contributions made by the Plaintiff’s parents in the parties’
joint household and even minimize the role played by the Defendant.
[90]
The Plaintiff’s mother did not come across as a witness who was
actuated by ulterior or
improper motives in testifying, in order to
come build a case for her daughter.
[91]
In fact, it is not in dispute that during the purchase of the second
property she did advance
monies to the Defendant. The Defendant
only disputes the amount advanced. However, it is significant
to note that there
is not a huge gap between the amounts she claims
was advanced to the Defendant and the amount as per the version of
the Defendant.
[92]
Clearly, in the context of this case, there is definitely no reason
why the Plaintiff’s
mother would lie about the amount. As
far as I am concerned, both the Plaintiff and her mother were
completely honest with
this Court.
[93]
What is significant is that though the Defendant disputes the amount,
however, on his own version
he is not sure whether it was R50 000, 00
or R55 000, 00. It is rather an oddity that the Defendant
cannot remember such
a significant amount, particularly, if regard is
given to the fact that the lending of the money was related to a
major milestone
marked by a moment of pride and celebration in
personal development. It is also significant to note that
this new version
of the amount was never put to the Plaintiff’s
mother when she testified. Once again, this new evidence was
another
demonstration of abysmal failure in endeavours to minimise
other people’s roles.
[94]
In the context of this case, all the indications are that the
Defendant could hardly explain
how he could pay the purchase price,
if he only obtained R414 000, 00, bond. Evidently, the
Defendant was caught in an outright
lie in this instance. It is
palpable that the Defendant is merely disputing the amount merely to
minimise the contribution
of the Plaintiff’s family. This
was also evinced when the Defendant colossally failed in his attempt
to demonstrate
that the bond covered the purchase price, yet the
documentary evidence showed otherwise. The version of the
Defendant could
not bear out as to how the shortfall was covered,
without the loan from the Plaintiff’s mother.
Clearly, the
manipulation of facts by the Defendant was demonstrated
in this regard.
[95]
Equally, when it comes to the aspect of the subdivision of the second
property, the attempt to
manipulate the facts emerged from the
evidence of the Defendant. Initially he testified that it was
the proposal of the Plaintiff’s
mother and later on he
testified that she had nothing to do with it.
[96]
As far as the swimming school is concerned, the Defendant was
emphatic in his testimony that
it was running at a loss.
However, when he was asked in cross-examination how was it able to
pay for expenses if the swimming
pool was running at a loss; the
Defendant could not answer but simply said it was basically a loss
and he constantly asked Plaintiff
to give more lessons but she
refused. Without doubt, it would not make sense for the
Plaintiff to want a big pool yet the
swimming school was all along
not thriving.
[97]
Similarly, it would be irrational to invest in the swimming school if
it was not profitable;
yet the evidence bears the point that, the
Defendant invested in the swimming pool. Little wonder,
he contradicted
himself regarding whether he considered putting a
pool at the first property, and obviously whilst the Defendant was
testifying
he could realise that he could not consider that if the
swimming pool was not profitable. When the Defendant realised
the
trap he set for himself; he quickly somersaulted and stated that
the swimming pool was a consideration not for the swimming school
but
for the enhancement and increase of the property value. Quite
clearly, the Defendant was adapting his testimony as he
went along.
He also attempted to adapt his version by saying why would he go to
all the expense when the income generated
from the school is so
negligible. Evidently, the Defendant is not so good
in making things up as he slips up
when he does.
[98]
At times, the Defendant became unduly contrived in trying to explain
away simple details.
For instance, he testified that cheque
payments were deposited into the Plaintiff’s bank account.
When his counsel
asked who would do that; he responded by saying I
assume it would be me, I cannot recall. This is rather a very
odd way of
answering, particularly, for someone who was controlling
the finances of the swimming pool and who was emphatic in his version
that the Plaintiff did receive cheque payments.
[99]
The mother of the Plaintiff corroborated the Plaintiff regarding the
places where she ran the
swimming school. There is a whole range of
things in this matter to show that the Defendant did not speak the
truth or take this
Court in his confidence when he testified.
However, if I go through all of them, I will never finish this
judgment.
[100]
In my view, there is no reason that this court should not accept the
testimony of the Plaintiff and her mother
as being the truth,
particularly, in the face of the fact that the Defendant did not make
a good impression to this Court as a
witness.
[101]
Consequently, I reject the version of the Defendant as false, as far
as it is in conflict with that of the Plaintiff
and her mother.
[102]
Quite clearly, only on the accepted version, inclusive that of the
Defendant, it is evident that the Plaintiff
as envisaged in
Mcora’s
case,
supra,
spent all her time, effort and
energy in promoting the interests of both parties in their communal
enterprise by maintaining their
common home, raising their children
and running the swimming pool school.
It is now settled
that does not matter if one person makes twice as much money as their
partner.
[103]
I simply cannot fathom on what basis
the
counsel on behalf of the Defendant contends under the circumstances
of this case that joint household does not create a joint
estate.
In this matter, it is not the Plaintiff’s claim that a joint
household is what created the joint estate.
The Plaintiff
contends that the joint estate is a consequence of a universal
partnership, agreed upon tacitly by the parties.
[104]
In as much as the Defendant would like to deny the existence of a
universal partnership, plainly in the context
of this case, the
denial of a universal partnership proved to be extremely difficult to
navigate, for the Defendant, even on his
own version. At
the risk of repetition, for instance, the fact that he testified
that there was a cohabitation
agreement concluded between the
parties; together with the evidence that the finances from the
swimming pool school were intermingled
with his, under his control
and management; puts the parties squarely within the realm of a
universal partnership.
Equally
important or true, there is no evidence in this matter to support
that there was distinction between what belonged to the
Plaintiff and
what belonged to the Defendant as all funds and expenses were
combined in one pool.
[105]
In light of the fact that this Court accepted that the Defendant
stated that; ‘
it is all in one pot baby, I will never leave
you in the cold’
; it is thus quite clear in my mind that
these words in plain language signify beyond any doubt that there was
a mutual understanding,
or some sort of declaratory of intention,
between the parties; pertaining to their relationship.
[106]
The Plaintiff also testified that the parties agreed on sharing
everything equally, upon getting married.
In the context of
this case, I have absolutely no reason not to believe that. In
this particular aspect, the key element
is that consent plays a
pivotal role in a universal partnership; as it is the case with any
partnership. Obviously, in this
case the parties mutually
agreed through their conduct and otherwise that they were in a
universal partnership. They did so amongst
others by agreeing to
contribute all their individually owned property and to devoting all
their skill, labour, and services to
the common household.
[107]
There is ample evidence in this case that demonstrates that the
parties handled their finances in many ways as
a partnership for
their joint benefit. The facts and circumstances as described
hereinabove constitute evidence of a universal
partnership.
Significantly, the Defendant at one point referred to himself as a
partner in the swimming school business.
This concession on its
own is extremely telling.
[108]
The Plaintiff presented in my view more than conclusive proof that a
tacit universal partnership existed between
herself and the Defendant
from 1996 to September 2013 and that she is entitled
to
the 50% share of assets as she claims
.
Division
of the estate
[109]
The evidence in this matter also establishes that the joint estate of
the partnership grew whilst they were living
together. Given
the fact that the finances of the partnership were intermingled it is
not possible to calculate the percentage
contributed by each party.
Nevertheless, it is a significant fact in this matter that the
accepted evidence reveals that
it was the parties’ intentions
to share the joint estate equally, regardless who contributed more.
Hence, I find that
the Plaintiff is entitled to 50% share.
[110]
During the closing arguments, I asked the parties if the appointment
of the liquidator should not be deferred
in order to allow the
parties an opportunity to attempt to settle the division of the
partnership’s joint estate; before
this Court makes an order
for the appointment of the liquidator. Both parties were
amenable to the suggestion. However,
with the advantage of
hindsight, I have come to the realisation that even if this Court
orders that a liquidator should be appointed;
there is absolutely
nothing which will inhibit the parties from engaging one another,
should they desire to do so; regarding the
division of the assets of
the partnership.
[111]
Consequently, I am not going to defer the appointment of a liquidator
pending negotiations between the parties.
[112]
In the result, I make the following orders:
(a)
An order declaring that:
(i)
a universal partnership existed between the Plaintiff and the
Defendant in respect of all property, whether movable and/or
immovable and the money acquired by them during the period 1996 to
2013;
(ii)
the Plaintiff has 50% share in such partnership;
(iii)
the said partnership was dissolved with effect from September 2013;
(b)
An order appointing a liquidator with authority to realise the whole
of
the partnership assets, to liquidate the assets of the
partnership; to prepare a final account and to pay the Plaintiff and
the
Defendant each a half of the net profits made by the partnership.
(c)
An order that the costs of the liquidator shall be borne by the
parties
in proportion to their shares in the partnership estate;
(d)
The Defendant to pay the costs of suit.
CN
NZIWENI
Acting
Judge of the High Court
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