Case Law[2022] ZAWCHC 228South Africa
Bester N.O. and Others v Horn (11641/2015) [2022] ZAWCHC 228 (5 October 2022)
Headnotes
and the Constitutional Court refused to entertain a further appeal. In Bester, the court held as follows:
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Bester N.O. and Others v Horn (11641/2015) [2022] ZAWCHC 228 (5 October 2022)
Bester N.O. and Others v Horn (11641/2015) [2022] ZAWCHC 228 (5 October 2022)
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sino date 5 October 2022
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
Number: 11641/2015
In
the matter between:
Lambertus
Von Wielligh Bester
N.O.
First Plaintiff
Reinette
Pieters
N.O.
Second Plaintiff
Barend
Pietersen
N.O.
Third Plaintiff
(Acting
in their capacity as joint trustees of
the
sequestrated estate of the RVAF Trust
IT
932/2004)
And
Gertruida
Johanna
Horn
First Defendant
And
various other Defendants forming part
of
the consolidated action
JUDGMENT
ELECTRONICALLY DELIVERED
5
OCTOBER 2022
Baartman,
J
[1]
The
plaintiffs and the defendants
[1]
seek
competing orders for the separation of issues
[2]
.
However, each contend that the others' request, if granted, would
delay rather than expedite finalisation of the trial. The defendants
brought the main application and the plaintiffs the counter
application. I deal with both below.
[2]
It is common cause that the late Herman Pretorius
(Pretorius),
assisted by brokers, solicited investments from members of the
public by promising exceptional returns on their investment. The
public, in large numbers, invested in excess of R200 million in the
scheme that is now believed to have been a Ponzi scheme. The
scheme
collapsed when Pretorius committed suicide.
[3]
The
defendants in this action are investors who have received a return on
their investment in the scheme. Their funds were invested
in the RVAF
Trust
[3]
(the
Trust),
the
entity in the scheme through which Pretorius invested their money.
The Trust was provisionally sequestrated on 1 August 2012,
and on 3
September 2012 a final sequestration order was granted. The
plaintiffs were appointed as provisional
trustees
on
7
August
2012
and
as
final
trustees
on 23
October 2012. The plaintiffs seek to recover from the defendants the
profit they received from the Trust over and above their
investment.
The Trust had approximately 9 000 investors; the plaintiffs therefore
had to determine who the "winners"
had been and institute
action against them to recover their winnings.
[4]
The plaintiffs based their main claim, for the return of money paid
from
the Trust's bank accounts to the defendants, in excess of the
amount invested on unjustified enrichment. They allege that the
payments
were unauthorised and
sine causa
in that:
(a)
the Trust lacked capacity to make the payments as at times of the
payments,
there were only two trustees, Pretorius and Mr Brand
(Brand),
holding office while the trust deed specified a
minimum of three trustees;
(b)
Pretorius acted unilaterally as the Trust's controlling mind to the
exclusion
of Brand;
(c)
the two trustees failed to exercise their powers in accordance with
the Trust deed;
(d)
the payments made to the defendants were made pursuant to an unlawful
and fraudulent Ponzi scheme operated through the Trust.
[5]
Alternatively, the plaintiffs based their claim for return of the
payments
on sections 26(1)(a) and (b) and/or section 29 of the
Insolvency Act, 24 of 1936 (i.e., dispositions without value and
voidable
preferences).
The
first prescription issue
[6]
The 462
defendants
alleged
that
separating
their
prescription
issue
(the
first prescription issue)
and
staying the rest of the trial would be convenient for the court and
the parties
[4]
. These defendants
allege that on 7 August 2012, the plaintiffs had access to all the
relevant information to have instituted action
against them, in that,
on that date, the plaintiffs, as the provisional trustees, had access
to the Trust's property where separate
hard copy investor files
containing relevant information pertaining to potential claims
against them were kept.
On the same
date, the Master of the High Court also authorised the plaintiffs to
appoint attorneys to provide legal advice
[5]
.
The defendants allege that the plaintiffs prioritised other matters
thereby delaying the action against them and therefore the
claims
against them had prescribed. It is common
cause that
action was instituted more than
3 years
after 7 August 2012.
[7]
The
defendants rely, to a great extent, on the Bester
[6]
judgment in which the brokers who assisted Pretorius had the
prescription issue separated and obtained judgment in their favour,
which relief the Supreme Court of Appeal
(SCA)
upheld,
and the Constitutional Court refused to entertain a further appeal.
In Bester, the court held as follows:
'[40] In terms of s 12(1)
of the Prescription Act, prescription begins to run as soon as the
debt is due. A debt is due when it
is immediately claimable or
recoverable. If the debtor has knowledge of the identity of the
debtor and of the facts from which
the debt arises, the debt is
deemed to be due, as by that stage, the creditor acquires a complete
cause of action for the recovery
of the debt. In terms of s 12(3) of
the Prescription Act, the creditor is deemed to have knowledge of the
identity of the debtor
and of the facts from which the debt arises if
it could have been acquired by the exercise of reasonable care.'
(Internal footnote
omitted)
[8]
It is
necessary
to deal
with the Bester judgment in some detail.
On 23
August 2018, the court separated
[7]
the following issues:
'1.
The question whether the plaintiffs' claims for the repayment of
commission received by the defendants
earlier than 31 July 2009, on
the grounds... have prescribed in terms of the
Prescription Act 68 of
1969
, is to be separately determined in terms of
Rule 33(4).
1.5cm; margin-bottom: 1cm; line-height: 200%">
2.
The question whether claims in respect of payment made after 31 July
2009, together
with plaintiff's claims under
Section 26
of the
Insolvency Act for
the repayment of commission earned /received by
the defendants, ... have prescribed in terms of the Prescription Act
68 of 1968,
is also to be separately determined from all other
remaining issues in terms of Rule 33(4).
3.
The two questions are to be determined jointly... '
[9]
The SCA confirmed the trial court's factual findings and held that
the
following were common cause:
'[17] It is common cause,
or cannot reasonably be disputed, that the appellants [plaintiffs in
this application] knew prior to 23
October 2012 that:
(a)
the trust deed required three trustees;
(b)
only two trustees had been issued with letters of authority;
(c)
Mr Pretorius was the controlling mind of the Trust and took all
decisions to the exclusion of his co-trustee, Mr Brand;
(d)
the trustees had not exercised their powers according to the trust
deed;
(e)
the investment scheme was a fraudulent Ponzi scheme;
(f)
the Trust was insolvent from inception;
(g)
the scheme was dependant, in part, on the participation of various
brokers/intermediaries,
who had introduced their clients to the
scheme and had been paid commissions therefor.'
[10]
In respect of the brokers, the defendants in the matter, the
following was accepted:
'...[the trustees]
obtained the necessary power to institute proceedings in terms of the
s 18(3) court order on 17 August 2012....[the
trustees] had, or could
reasonably have had, the requisite knowledge to institute action
against the respondents by 23 October
2012.'
[11]
The latter finding was based on the following evidence:
'[23] The [trustees] had
access to the Group premises from 8 August 2012. They soon became
aware that the files, relating to the
brokers and the commissions
earned by them, were kept by Ms Monica Goodman in a cabinet behind
her desk in the reception area at
the Group premises. There were some
documents relating to the brokers which had been archived in boxes
which were kept in a room
behind the reception area.
[24] When the appellants
began their investigations on 8 August 2012, they were assisted by
employees of the Trust and/or the Group.
Mr Brand, as a co-trustee,
(although apparently not involved in the fraudulent conduct of the
scheme) was aware of the scheme and
the parties who were involved in
it, including the brokers. On 12 August 2012, the services of [the]
majority of the staff of the
Trust were terminated save for Mr Brand,
Ms Swart (who was Mr Pretorius' personal assistant), Ms Swanepoel,
and Ms Goodman. Ms
Goodman remained at the Group's premises until 17
August 2012.'
[12]
The evidence, which the trial court accepted and the SCA upheld, was
as follows:
'[33] Mr Janse van Vuuren
(the tenth respondent) and Ms Goodman testified... Mr Janse van
Vuuren's evidence was that he would get
commission statements every
month from the Trust. Ms Goodman dealt with all broker related
enquiries and Mr Brand dealt with the
situation when claw back
payments were deducted. From Mr Janse van Vuuren's evidence, it is
clear that his file contained
a commission statement, a cheque and
deposit slip for every entry on Annexure "E" to the
particulars of claim, save for
one.
[34] Ms
Goodman took over the responsibility of maintaining the brokers'
files from November 2008. She testified that
if anyone needed to know
how much commission any broker received, they only needed to look at
the broker files or the archive files
containing historic
information. The documents contained in the files relating to each
broker included one or more of the following:
a deposit slip, a
cheque, and/or a commission statement to evidence each payment made
to the particular broker. She and/or Mr Brand
and/or the other
employees of the Trust, could have assisted the [trustees] to find
any documentation required. The [trustees]
did not seek Ms Goodman's
assistance in this regard - either whilst she was at the Group's
premises in August 2012, or when she
returned to work for them in
February 2013.
[35] Mr
Bester [one of the trustees] ...confirmed that the investigation into
the 37 brokers' files was not an insurmountable
task, and when
undertaken, it took a relatively short time to be completed. Mr
Bester knew from the outset that the Trust had used
brokers to
procure the investments. He conceded that whilst examining the bank
statements for inter-group transactions in August
2012, the auditors
could simultaneously have accessed the payments made to the brokers.
[36] Mr
Bezuidenhout, the auditor appointed by the [trustees] ... conceded
further that he could have compiled a schedule,
similar to that
attached to the particulars of claim...from the documents in the
broker files without a forensic investigation.
In the case of Mr
Janse van Vuuren, it would have taken him approximately two hours to
do.
[37] Mr Brand
was fully aware of where the brokers' files were kept and that they
contained the details of the brokers
and the commissions paid to
them. He knew many of the brokers personally and had their email
addresses. If asked, he could have
pointed out the brokers' files and
the archived files. He stated that he would have been able to trace
all the brokers quite easily
- if he would have been asked.'
(Internal footnotes omitted.)
[13]
The evidence indicated that a small number of files, readily
available, contained all the
information the trustees needed to
institute action against the brokers. In addition, the co-trustee,
Brand, and the clerk, Ms
Goodman, were at hand and could have
attended to any queries. Therein, so the submission went, lies the
difference between the
brokers' files and 9 000 investors' files. The
trustees needed to determine the winners, as they had claims only
against them and
that involved a far more onerous task than the
brokers' investigation. The available investor files, so the
submission went, did
not in all instances contain the identity of the
investor, e.g., some trusts were only identified by name. In those
cases, it was
necessary to approach the Master of the High Court for
the trust information. Bank statements were necessary to do a
reconciliation.
[14]
Mr van der Merwe SC, the plaintiffs' counsel who appeared with Ms
Wharton, submitted with
some vigour that there could be no suggestion
that Brand carried 9 000 investors' details in his head. Although,
the investor files
were available to the defendants, there was no
agreement in respect of their content. The defendants assert that the
files contained
all the relevant information from which the
plaintiffs could have determined the identity of the debtors and the
facts from which
the debt arose and stressed that the plaintiffs had
had 3 years to obtain any outstanding information.
[15]
It is realistic to envisage that the issue sought to be separated
would require detailed
evidence in respect of approximately 400
files. Similarly, there is a dispute about the content of the
electronic database on the
Trust's premises when the plaintiffs first
gained access to the premises. Apparently, expert evidence will have
to be led in this
regard. The plaintiffs allege that the forensic
investigation from which it could determine the information necessary
to institute
action in respect of defendants in these proceedings was
only completed in November 2016. Evidence will have to be led in this
respect. The merits of this special plea of prescription are linked
to the merits of the plaintiffs' claim. That evidence will have
to be
led in the separated trial and again in the main trial. That is
highly undesirable.
[16]
It is clear that it will be in issue, in the trial or separate
hearing, whether the content
of the investors' files, similar to the
brokers' files, contained sufficient information for prescription to
have started to run.
In the brokers' separated trial, several
witnesses had to testify over many days. However, that concluded the
trial against the
brokers and therefore it was convenient for both
the court and the parties. It is in issue whether the same will
happen in respect
of the investors. An obvious difference is that the
plaintiffs have claims only against investors who made a profit, so
the reconciliation
undertaken by the forensic auditor was, on the
face of it, necessary. The defendants allege, based on the brokers'
success, that
they hold good prospects of success in a separated
prescription hearing. There are, however, material differences
between the defendants'
case and the brokers' case. The plaintiffs
allege that the investors' files contained 'incomplete ... fake and
fraudulent calculations...'
Therefore, the forensic analysis
undertaken was necessary.
[17]
Mr Stelzner
SC who appeared with Mr Rabie, the defendants' counsel, submitted
that the first prescription issue would resolve the
trial in respect
of approximately 90% of the defendants. The plaintiffs strenuously
deny that submission. If the separation is
granted the main trial
would have to await the outcome of the appeal process. In this
regard, the plaintiffs raised the valid concern
that some witnesses
are elderly, memory fades with time and some witnesses will have to
testify in multiple hearings. A single
hearing is an advantage of
consolidation which ordinarily promotes expeditious disposal of a
matter. Mlambo JA
[8]
cautioned,
however, against ill-conceived separation of issues as follows:
'[27] In the present
case, in spite of the separation of the issues as sanctioned by the
trial Court in terms of Rule 33(4), almost
all causes of action and
defences are still open to the parties. The underlying dispute
(between the parties) has yet to be determined
Neither counsel
could deny that all the litigation thus far has not resulted in the
expeditious disposal thereof despite the fact
that it has now gone
through three Courts at monumental cost, no doubt, to the litigants.
I refer to this scenario simply to voice
our disquiet at yet another
manifestation of a failure to ensure that a separation of issues in
terms of Rule 33(4) has the potential
to curtail litigation
expeditiously. Courts should not shirk their duty to ensure that at
all times, when approached to separate
issues, there is a realistic
prospect that the separation will result in the curtailment and
expeditious disposal of litigation.'
[18]
The defendants have indicated that they would, for purposes of the
prescription hearing,
concede that the scheme was a Ponzi scheme.
However, should the prescription defence fail, that would be a
dispute in the trial.
Mr van der Merwe submitted that the matter was
trial ready and that I should certify it as such. The defendants'
counsel denied
that the matter was trial ready and listed the
outstanding issues before the matter could be declared trial ready.
The Trust was
liquidated in 2012 so it is necessary to finalise its
affairs. On 22 January 2020, the parties requested that a judge be
appointed
to case manage the matter; still the matter is not trial
ready. It is of concern that at this late stage, the defendants have
incomplete
expert reports. The prospect of running the consolidated
matter in stages appears to be the reason for this.
[19]
I am not
persuaded that the separation of the prescription issue would
necessarily expedite the process; on the contrary, it might
prolong
the agony of those with claims against the Trust as approximately 9
000 persons and entities invested roughly R2 billion
[9]
.
I accept
that there might be a saving of many days of evidence, but the
separation will inevitably delay the finalisation of the
main trial.
It is realistic to accept that
it
would
take
a
few
years
to
finalise
the
separated
hearing
including all appeals. In the circumstances of this matter, where
appeals are already foreshadowed, that outcome does not
promote the
expeditious finalisation of the main trial and would cause
inconvenience to some of the parties and the court
[10]
.
It follows
that it is not convenient to separate the first prescription issue.
## The second special plea
of prescription
The second special plea
of prescription
[20]
The plaintiffs claimed repayment of amounts paid to investors before
1 August 2009, more
than 3 years prior to their appointment as the
Trust's trustees. The affected investors want to raise prescription
as a special
plea to be dealt with in a separate hearing. It is
common cause that the Trust at times relevant to the dispute had only
two appointed
trustees, while the trust deed prescribed a minimum of
three trustees. Therefore, the Trust could not have authorised any
payment.
[21]
The defendants allege that the trustees, appointed to represent the
Trust and its creditors,
cannot institute action to recover amounts
paid out more than 3 years after payment. The defendants allege that
Brand could have
instituted action timeously for the recovery of the
amounts paid out. He, so the submission went, had the necessary
knowledge and
locus standi
and further that any Trust
beneficiary had the required
locus standi.
[22]
The defendants concede that Brand's evidence 'may be relevant. ..as
the sole surviving
trustee of the RVAF trust' but importantly that he
had already testified in the brokers' matter and that a transcript of
his evidence
is available. Brand is an elderly man who, if possible,
should not have to testify about the same facts in multiple
proceedings.
[23]
However, in a further "Defendants' Note", the following is
alleged:
'73. No evidence will
have to be led for the second special plea of prescription, the lack
of jurisdiction and the Administration
of Estates special pleas as
these special pleas can be decided by way of a stated case.'
[24]
However, in
the same note, it is alleged that: '106... Brand in particular [had]
the necessary knowledge of the alleged facts'.
As indicated above, it
is in dispute whether Brand had the necessary knowledge in respect of
the investors.
Brand's
knowledge of the brokers' files cannot simply be equated with
knowledge of the investors' files. Brand's knowledge in respect
of
the investors' files is in dispute and would require evidence to be
led. Nugent JA
[11]
held that:
'[3] ... Rule 33(4)
...which entitles a Court to try issues separately in appropriate
circumstances - is aimed at facilitating the
convenient and
expeditious disposal of litigation. It should not be assumed that
that result is always achieved by separating the
issues. In many
cases, once properly considered, the issues will be found to be
inextricably linked, even though, at first sight,
they might appear
to be discrete. And even where the issues are discrete, the
expeditious disposal of the litigation is often best
served by
ventilating all the issues at one hearing, particularly where there
is more than one issue that might be readily dispositive
of the
matter. It is only after careful thought has been given to the
anticipated course of the litigation as a whole that it will
be
possible properly to determine whether it is convenient to try an
issue separately…'
[25]
I agree with the defendants that 'the second prescription plea is
eminently arguable'.
However, it does not follow that it is therefore
convenient to separate the issue as alleged. There are other
considerations, such
as that the second prescription plea is raised
only in respect of the plaintiffs' claims based on unjustified
enrichment. Further,
it relates only to a portion of the claims
against certain defendants. The plaintiffs further replicated that
Pretorius operated
a fraudulent investment scheme through the Trust.
The plaintiffs deny that the knowledge of Pretorius, the Trust's
controlling
mind, can be ascribed to the Trust. An appeal against the
prescription pleas is already foreshadowed. In the brokers' matter,
the
appeal process was carried through to the Constitutional Court,
which refused to entertain the matter.
[26]
The main
trial will be delayed which will adversely affect those defendants
who have not raised prescription. It must be borne in
mind that
Brand, as the only remaining trustee and an important witness in the
main trial, has already testified. The defendants'
counsel submitted
that the special pleas were capable of being determined expeditiously
by means of admitted common cause facts
or with limited evidence. The
facts suggest otherwise, the parties are far apart and evidence will
have to be led. The court granting
separation cannot direct the
evidence to be led in respect of the separated issues
[12]
.
[27]
If the divergent submissions made in this application are anything to
go by, considerable
evidence will be led that will have to be
repeated should the special pleas fail. The defendants also envisaged
that the case management
judge 'and the trial judge (at least in
respect of separated issues) shall be the same person'. Presumably,
the separated issues
would then be heard expeditiously instead of
waiting their turn on the opposed role. It is not convenient to the
plaintiffs and
some defendants nor to the proper administration of
justice to separate the prescription pleas as the defendants have
requested.
## The jurisdiction special
plea
The jurisdiction special
plea
[28]
The jurisdiction special plea is raised in respect of a small number
of defendants. The
parties are in agreement that this special plea
could be dealt with as a discrete question of law on agreed
facts. The plaintiffs
alleged that it should be dealt with as a point
in limine
at the main trial, while the defendants wanted the
issue dealt with together with the prescription special pleas
referred to above.
I do not intend to separate the prescription
special pleas, and as the parties are agreed that a separate hearing
on this issue
is not warranted and it involves a small number of
defendants, this application must fail.
## The Administration of
Estates Act special plea
The Administration of
Estates Act special plea
[29]
The Administration of Estates Act special plea is also only raised in
respect of a small
number of defendants. It is common cause that it
can be dealt with as a question of law on agreed common cause facts.
The defendants
envisaged the issue to be dealt with together with the
prescription special pleas. The plaintiffs contended that the issue
should
be dealt with as a point
in limine
at the trial. It is
not appropriate to direct the order in which the trial court should
deal with issues. The issue is best left
to the discretion of the
court seized with the trial.
[30]
I intend to refuse the defendants' application for separation.
# The plaintiffs'
separation application
The plaintiffs'
separation application
## The in rem res judicata
point
The in rem res judicata
point
[31]
The
plaintiffs allege that the Trust 'suffered from an incapacity that
precluded it from performing binding acts'. The Trust deed
requires a
minimum of 3 trustees to be appointed, however, the Master of the
High Court only appointed 2 trustees. This is common
cause and was
the position at times relevant to these proceedings. The plaintiffs
allege that two judgments
[13]
in this division pronounced on the Trust's incapacity, therefore, so
the submission went, the Trust's status has been finally adjudicated
upon by courts of competent jurisdiction. The defendants deny that
the decisions are binding on them.
[32]
Saldanha J, in the Bester matter, delivered after the full bench
judgment in the Calitz
matter, concluded as follows:
'[4] At the outset it is
perhaps appropriate to indicate that a similar application was
brought against a broker... Mr Michael Johannes
Calitz on the same
basis by the applicants... in which similar defences were raised by
Calitz in those proceedings ...
[44]
The claims advanced by the RVAF Trust on the basis of the
condictio
sine causa specialis
are premised on two fundamental principles
relating to trusts...Cameron JA in the matter of
Land and
Agricultural Bank of SA v Parker and Others
2005 (2) SA 77
(SCA):
"[11] It follows
that a provision requiring that a specified minimum number of
trustees must hold office is a capacity-defining
condition. It lays
down a prerequisite that must be fulfilled before the trust estate
can be bound. When fewer trustees than the
number specified are in
office, the trust suffers from an incapacity that precludes action on
its behalf.
[12] This is not to say
that the trust ceases to exist. It is axiomatic that the trust
obligation exists even when there is
no trustee to carry it out. The
Court or the Master will where necessary appoint a trustee to perform
the trust. But it does not
follow that a sub-minimum of trustees can
bind a trust."
[45]
The second principle is that in the absence of authorization in the
trust deed, the trustees must act jointly
in order to bind the
trust...
[46] As
to the first requirement it was common cause that at no stage during
the existence of the RVAF trust were
three trustees appointed as
required...
[47] As
to the second requirement Brand had confirmed in his evidence at the
insolvency inquiries as well as his
sworn affidavit. .. Pretorius did
not act jointly with him....Brand had also claimed that he had never
been given access to the
bank accounts or any financial statements of
the trust. ...
In my view the
respondents challenge to the assertions of Brand as constituting a
dispute of fact was equally without merit and
there is no basis to
reject as did Blignault J and Schippers J
et al,
Brand's
version that Pretorius had acted alone and had therefore not bound
the RVAF Trust in the making of the payments to the respondent.
…
[52] In my view based on
the evidence in this matter and supported by the principles upheld by
the judgment of Blignault J and that
of Schipper J in the full bench,
that the most natural and logical conclusion to be drawn from the
facts is that the payments made
by Pretorius to the respondent from
the RVAF Trust were
sine causa
and fall to be repaid.
…
[58] ...any such payments
made from funds solicited from the general public was pursuant to an
illegal investment scheme...'(Internal
footnotes omitted.)
[33]
Although they hold good prospects of success, they do not seek that
the issue be dealt
with separately; instead, they submit it can be
dealt with as a point
in limine
at the trial. I agree,
although the trial court will decide the process to be followed.
# Conclusion
Conclusion
[34]
There are issues that can be separated; however, I am not persuaded
that it would be convenient
to do so in the circumstances of this
matter. The two special pleas of prescription, if separated, would
cause substantial delay
in the finalisation of the main trial.
Irrespective of the outcome of the special plea hearing, appeal
proceedings would follow;
that much was common cause between the
parties. Meanwhile, the main trial will be stayed. The convenience to
the affected defendants
is obvious, it would, however, cause severe
inconvenience to the plaintiffs, as the possibility of witnesses
becoming unavailable
is a reality. Brand has been testifying since
2013 in insolvency inquiries and has attested to affidavits even
before that. As
indicated above, he also testified in the brokers'
matter. He is also the only surviving trustee and thus an important
witness
who is elderly, which makes fading memory a reality.
[35]
The delay in this matter will add to rather than alleviate the
already congested court
rolls. As indicated above, 466 matters have
been consolidated in this action; presumably each litigant saw some
benefit in that
strategy. The papers in this application were
voluminous and argument took up a full court day, despite my best
efforts.
[36]
The defendants are intent on obtaining further expert reports on
completion of the prescription
hearing and resulting appeals. This
piecemeal approach has already affected the case management process;
therefore, the matter
is still not trial ready. It follows that if
the prescription pleas fail, the matter will be further delayed to
obtain those reports,
among others. That is an undesirable and
inconvenient outcome.
## Costs
Costs
[37]
I intend to refuse the defendants' application. The plaintiffs'
application for a single
trial succeeds even though I am not prepared
to direct the course of the trial. That is the prerogative of the
trial judge. I intend
to grant the plaintiffs' costs.
# Order
Order
[38]
I, for the reasons stated above, make the following order:
(a)
The defendants' application is dismissed with costs, including the
costs of two counsel.
(b)
The plaintiffs' application, for a single hearing, is granted with
costs, including the
costs of two counsel.
Baartman
J
[1]
In terms of a court order, dated 5 November 2018, and a directive,
dated 18 November 2021, approximately 466 defendants, against
whom
the plaintiffs had instituted actions in the various magistrates'
court, were transferred to this court and consolidated.
[2]
Rule 37(A) (12)(f) read with Rule 33(4) of the Uniform Rules of
Court: Rule (12): 'The case management judge may at a case
management conference -
...
(f) order a separation of issues in appropriate cases
notwithstanding the absence of agreement by the parties thereto;...
'
Rule
33(4): 'If, in any pending action, it appears to the court
mero
motu
that there is a question of law or fact which may
conveniently be decided either before any evidence is led or
separately from
any other question, the court may make an
order directing the disposal of such question in such manner as it
may deem fit
and may order that all further proceedings be stayed
until such question has been disposed of, and the court shall on the
application
of any party make such order unless it appears that the
questions cannot conveniently be decided separately.'
[3]
3The RVAF Trust, with ref.NO. IT932/2004, was established on 26
March 2004. Pretorius and Eduard Brand were trustees. It is common
cause that the Trust deed provided for a minimum of three trustees
who had to act jointly in all events.
[4]
Privest
Employee Solutions (Pty) Ltd v Vital Distribution Solutions (Pty)
Ltd
2005
(5) SA 276
(SCA).
[5]
Section 18(2)
of the
Insolvency Act, 24 of 1936
.
[6]
Bester
and Others NNO v Gouws and Others
(851/2019)
(2020] ZASCA 174.
[7]
Lambertus
Von Weilligh Bester N.O. v Anton
Gouws
and 10
Others,
Case
No. 21057/2015 delivered on 23 August 2018 per Gamble J.
[8]
Privest,
footnote 4 above.
[9]
Hotels,
Inns and Resorts
SA
(Pty)
Ltd v Underwriters at Lloyds and Others
1998
(4) SA 466
(C): '[9] ... I dismissed the
Rule 33(4)
application ...
[10]
The Rule enjoins the Court to accede to the application and make the
necessary order "unless it appears that the questions
cannot
conveniently be decided separately". It is incumbent on the
applicant to satisfy the Court that the application be
granted.
Convenience must be demonstrated and the Court must have sufficient
information to enable it to decide meaningfully
upon the
application. It has been held that 'convenient' connotes not only
"facility or ease or expedience", but also
"appropriateness" in the sense that the procedure would be
convenient if, in all the circumstances of the case, it
appeared to
be fitting, and fair to the parties concerned ... The convenience of
all concerned must be taken into consideration
by the Court. Thus
clearly where evidence is such that it would substantially overlap,
no purpose would be served in granting
the application to separate
issues. While no doubt it might be convenient to the applicant to
grant the application, surely it
would be inconvenient to the other
party and the Court. The hearing could be unduly protracted. It is,
after all, in the interests
of justice that litigation must be
finalised without inordinate delay. Such interests are better served
by the disposal of the
whole matter in one hearing...'
[10]
Minister
of Agriculture v Tongaat Group Ltd
1976
(2) SA 537
(D) at p363 D-G.
[11]
Denel (Edms) Bpk v Vaster 2004 (4) SA 481 (SCA).
[12]
Van der
Burgh v Guardian National Insurance
Co
Ltd
1997
(2) SA 187
(E) at 189J.
[13]
M.
Calitz and Three Others v Bester NO and Five Others
Case
NO. A505/14;
Bester
NO and Two Others v A. Pretorius
Case
NO 9772/14.
sino noindex
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