Case Law[2025] ZAKZDHC 4South Africa
Glencore International AG v Atakas Ticaret Ve Nakliyat As and Others (A42/2014) [2025] ZAKZDHC 4 (13 January 2025)
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: Kwazulu-Natal High Court, Durban
South Africa: Kwazulu-Natal High Court, Durban
You are here:
SAFLII
>>
Databases
>>
South Africa: Kwazulu-Natal High Court, Durban
>>
2025
>>
[2025] ZAKZDHC 4
|
Noteup
|
LawCite
sino index
## Glencore International AG v Atakas Ticaret Ve Nakliyat As and Others (A42/2014) [2025] ZAKZDHC 4 (13 January 2025)
Glencore International AG v Atakas Ticaret Ve Nakliyat As and Others (A42/2014) [2025] ZAKZDHC 4 (13 January 2025)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAKZDHC/Data/2025_4.html
sino date 13 January 2025
IN THE HIGH COURT OF
SOUTH AFRICA
KWAZULU-NATAL
LOCAL DIVISION, DURBAN
Case No: A42/2014
Name
of ship:
MV “CECILIA B”
In
the matter between:
GLENCORE INTERNATIONAL
AG
APPLICANT
and
ATAKAS TICARET VE
NAKLIYAT AS
FIRST RESPONDENT
RICHARDS BAY COAL
TERMINAL (PTY) LTD SECOND RESPONDENT
THE OWNERS OF THE MV
“CECILIA B”
THIRD RESPONDENT
ORDER
The
following order
is made
:
1.
The first respondent is directed to provide security for the
applicant’s costs in the
action commenced by the first
respondent, as plaintiff, against the applicant, the second and third
respondents, as defendants,
under case number A42/2014 in the amount
of R1,2 million.
2.
The security referred to in paragraph 1 shall be furnished in a form
agreed by the applicant
and the first respondent, alternatively in a
form to be determined by the Registrar.
3.
The security shall be furnished within ten days of the date upon
which this order is made,
alternatively within ten days of the date
of determination of the form of security by the Registrar, whichever
is the later date.
4.
The action commenced by the first respondent against the applicant is
stayed until such time
as this order is complied with.
5.
In the event of the security not being furnished timeously or at all,
the applicant is granted
leave to make application on the same
papers, duly amplified, as may be necessary, for an order dismissing
the first respondent’s
action against the applicant with costs.
6.
The first respondent shall pay the applicant’s costs of this
application on scale B.
JUDGMENT
Sibiya
AJ:
Introduction
[1]
This is an application in which the applicant, Glencore International
AG (‘Glencore’),
a Swiss company, seeks security for
costs from the first respondent, Atakas Ticaret VE Nakliyat AS
(‘Atakas’), a Turkish
company and a plaintiff in an
action for delictual damages against Glencore, second respondent and
third respondent, as defendants.
The application is brought in terms
of s 5(2)
(b)
of the Admiralty Jurisdiction Regulation Act
[1]
(‘the Act’), read with Uniform rule 47. No relief is
sought against the second and third respondents.
Background
facts
[2]
The essential facts giving rise to this application, which are
largely common cause, can be summed
up as follows. On 18 December
2012 Atakas purchased a consignment of coal from Glencore. On
or about 28 October 2013, the
vessel MV “Cecilia B” (‘the
vessel’), owned by the third respondent, “The owners of
the MV “Cecilia
B” (‘the owners’) and
chartered by Atakas, called at Richards Bay coal terminal,
Kwazulu-Natal, for the purpose
of the carriage of coal from the port
of Richards Bay to Turkey. The second respondent, Richards Bay Coal
Terminal (Pty) Ltd (‘RBCT’)
was responsible for the
loading of the coal onto the vessel.
[3]
On 30 October 2013, after the coal was loaded onto the vessel, an
explosion occurred onboard,
causing damage to the vessel and its
hatch covers and to part of the consignment of coal. As a result of
the explosion, the whole
cargo of coal had to be off-loaded and the
vessel was precluded from leaving the port of Richards Bay until late
in December 2013.
Atakas, through its investigations, determined that
the loading of heated coal onto the vessel was the cause of the
explosion.
[4]
On 26 June 2014 Atakas instituted an action in
personam
against RBCT for damages constituting expenses incurred by it as a
result of the explosion. On 23 February 2016 ‘the owners’
were joined to the action as the second defendant and on 30 May 2019
and pursuant to a confirmation order by the Supreme Court
of Appeal,
Glencore was joined as the third defendant. Glencore’s
application for leave to appeal to the Constitutional Court
was
unsuccessful. Glencore defends the action and has delivered its plea
in which it denies liability for Atakas’ loss.
[5]
On 03 February 2020 Glencore issued a notice in terms of rule 47
calling for security for its costs
in an amount of R1,2 million. The
notice was premised on the ground that Atakas is a
peregrinus
of this court with no known assets of value within the Republic of
South Africa, and secondly, that Glencoe has a genuine and reasonable
need for security for its costs.
[6]
In response to the notice in terms of rule 47, Atakas’
attorneys, on 25 June 2021, sent
an e-mail to Glencore’s
attorneys, tendering a draft bank guarantee to be issued by a Turkish
bank, Garanti BBVA for an amount
up to USD75.000 to their nominated
correspondent bank in South Africa, provided the proposed wording of
the bank guarantee was
acceptable to Glencore. Atakas advised further
that it will revert as soon as it is possible regarding the identity
of the nominated
correspondent bank in South Africa.
[7]
By letter dated 30 June 2021, and before Atakas could provide the
details of the nominated correspondent
bank, Glencore’s
attorneys advised that Glencore was happy with the proposed wording
of the draft bank guarantee. Glencore
further requested Atakas to
consider the possibility of the nomination of either FirstRand Bank
or Standard Bank as Garanti BBVA’s
correspondent bank in South
Africa. In addition, it requested Atakas to advise it once the
guarantee has been issued and when an
original may be collected.
[8]
On 01 July 2021, Atakas, through its attorneys, advised Glencore that
Garanti BBVA had chosen
Absa Bank as its correspondent bank and that
Absa had requested the amendment of the wording of the draft bank
guarantee by the
insertion of the following provision:
‘
The
Guarantor reserves the right to withdraw from this guarantee by
giving the Beneficiary 90 (Ninety) days written notice of its
intention to do so. All Demands should have been received at the
Guarantor’s address stated therein on or before the expiry
of
the notice period. The Guarantor’s liability shall cease on
expiration of notice whether the guarantee is returned to
the
Guarantor for cancellation or not. The Guarantor’s liability
shall cease on expiration of the notice period and no further
claims
will be considered.’
[9]
On 13 July 2021, Glencore, dissatisfied with Absa’s proposed
wording of the bank guarantee,
advised Atakas that the wording of the
draft bank guarantee was unacceptable. I find it prudent to quote
Glencore’s response
verbatim, for reasons that will follow
later regarding Glencore’s assertion that there was a
conclusion of a contract between
the parties. The e-mail reads thus:
‘
We
refer to your e-mail below of 1 July 2021. Our client has instructed
us that it is entitled to security for its costs until such
time as
the matter is finalised. The proposed wording that Absa seeks to
impose on the parties negates this and potentially leaves
our client
without the agreed security at Absa’s whim. In the
circumstances we are instructed that our client cannot agree
to the
proposed amended wording of the agreed terms. We look forward to
hearing from you by return.’
[10]
Consequent to Glencore’s rejection of Absa’s proposed
amendment, Atakas has not furnished security
as demanded in the
notice in terms of rule 47, leading Glencore to launch this
application on 02 August 2023.
Glencore’s
contentions
[11] In
its application papers Glencore alleges that Atakas had agreed to
provide security for its costs however
it is now attempting to renege
from the agreement. It contends further that it has a genuine and
reasonable need for security and
would only accept a bank guarantee
issued by a South African bank and executable in South Africa. In
addition, Glencore has submitted
that considerations of fairness,
equity and justice dictate that Atakas should be ordered to furnish
security for its costs of
the action.
[12]
With regard to the amount of security to be provided, Glencore has
submitted that the amount should not be
in issue because Atakas has
tendered a bank guarantee up to an amount of USD75.000, which is more
than the R1,2 million Glencore
seeks in its notice in terms of rule
47.
Atakas’
contentions
[13]
Atakas denies that there is an agreement for it to provide security
for Glencore’s costs and contests
its liability to provide
security. It averred that its tender of the draft bank guarantee was
part of negotiations between the
parties and those negotiations fell
through due to Glencore’s rejection of Absa’s proposed
wording of the bank guarantee,
and further the tender was made
‘without prejudice’ and as such it is inadmissible as
evidence in this application.
Issues
for determination
[14]
The following are issues for determination:
(a)
whether there is an agreement between Glencore and Atakas for Atakas
to provide security for Glencore’s
costs. Should the answer be
in the affirmative, this court is relieved from determining Atakas’
liability to provide security.
However, should the answer be in the
negative, the next enquiry is;
(b)
whether Glencore has made out a case that it has a
genuine and reasonable need for security for costs.
The
agreement
[15]
Counsel for Glencore, Mr
Mackenzie
, has submitted that Atakas’
tender of the draft bank guarantee, on receipt of the notice in terms
of rule 47, was accepted
by Glencore and as such there was a
conclusion of an agreement between the parties, in the form of an
offer and acceptance. He
contended further that Glencore’s
averment that there was an agreement was not denied by Atakas in its
answering affidavit
and as such Glencore is justified in relying on
the agreement made in order to discharge its case. It is however
noted that Glencore’s
submission cannot be sustained because,
at paragraph 31 of the answering affidavit, Atakas has submitted that
security tendered
by Atakas in the form of a bank guarantee to be
issued by a Turkish bank has been rejected by Glencore, which insists
on a guarantee
from a South African bank.
[16]
With regard to Atakas’ submission that
Glencore
did not disclose the conclusion of an
agreement
in its founding affidavit and as such seeks to make out a case in the
replying
affidavit, Mr
Mackenzie
has submitted that
Atakas’ argument is misplaced in that, at paragraph 20 of the
founding affidavit, Glencore made mention
that, following the
delivery of the notice in terms of rule 47, Atakas agreed to provide
Glencore with security for its costs in
the form of a bank guarantee
up to a maximum of USD75.000.
[17] Mr
MacWilliam,
acting for Atakas, has submitted
that
Glencore’s argument that there was an agreement for
Atakas to provide security for Glencore’s costs is misplaced in
that it has become common cause that Glencore rejected the wording as
proposed by Absa, thus bringing to an end the negotiations.
[18] In
order to determine the existence or absence of an agreement between
Atakas and Glencore, consideration
of the contents of the exchanged
letters dated 25 June 2021, 30 June 2021, 01 July 2021 and 13 July
2021 in which the wording of
the draft bank guarantee was discussed,
as alluded to in paragraphs 6 to 9 above, is necessary.
[19] It
is not disputed that Atakas’ tender of the draft bank guarantee
was conditional on Glencore accepting
the terms of the bank guarantee
to be issued by a Turkish bank, Garanti BBVA, which had advised that
it was yet to appoint its
correspondent bank in South Africa. In
response to the letter dated 25 June 2021, Glencore proposed the
appointment of either FirstRand
Bank or Standard Bank as Garanti
BBVA’s correspondent bank. Glencore’s proposal of the
appointment of either of the
above-mentioned two banks, in my view,
indicates Glencore had acknowledged that the negotiations with Atakas
were on-going. When
Glencore rejected Absa’s proposed wording
of the draft bank guarantee, there was no meeting of the minds
regarding the terms
or wording of the bank guarantee to be issued by
Garanti BBVA and as such there was no conclusion of an agreement.
[20]
Another indication that Glencore was aware that there was no
agreement in existence is the relief it seeks
in the notice of motion
and repeated in paragraph 11 of the founding affidavit. It seeks an
order that security be furnished in
a sum of R1,2 million or in such
amount as the Registrar shall determine, and further in a form to be
agreed by it and Atakas,
alternatively to be determined by the
Registrar.
[21]
The general rule is that no contract can come into existence unless
the offer is accepted
[2]
.
AJ
Kerr, in
The
Principles of the Law of Contract
[3]
,
enumerated
on the options available to a party on receipt of an offer. He stated
that ‘
the
offeree may (1) refuse it; or (2) request further information and /
or reserve his position while he considers what to do; or
(3) with
the offeror’s consent, often implied, deal with the matter in
stages; or (4) make a counter offer; or (5) accept
the offer as it
is. He stated further that an offeree who does not wish to contract
on the terms offered and does not wish to enter
into any further
negotiations on it may simply refuse it. If he declines the offer
falls away and cannot be accepted later unless
it is again proposed
by the offeror’.
‘
Without
prejudice rule’
[22]
With regards to Mr
MacWilliam’s
submission that
negotiations between the parties were conducted without prejudice and
as such the letters are inadmissible as evidence,
Mr
Mackenzie
submitted that there is no request in Atakas’ papers for the
contents of the letters to be struck out as evidence and therefore
there has not been an objection to the admissibility of the letters.
[23]
In
Naidoo
v Marine and Trade Insurance Co Ltd
,
[4]
Trollip JA held that correspondence conducted ‘without
prejudice’ in the bona fide efforts of the parties to settle
a
claim, is in accordance with the general ‘without prejudice’
rule, once a party objects to it being adduced as evidence,
wholly
inadmissible. In the absence of an objection to the admissibility of
the letters, the contents of the letters are admissible.
No
objections to the admissibility of the letters could be found in the
answering affidavit. Another consideration in favour of
admitting the
letters is that Atakas has, at paragraph 31 of the answering
affidavit, referred to the same tender as appears in
the letters and
in addition, at paragraph 41, it has repeated its offer stating that
it is still amenable to tendering security
from a Turkish bank
directly.
Has
Glencore discharged the onus that it has a genuine and reasonable
need for security?
[24]
Having determined that there is no contractual liability for Atakas
to provide security for Glencore’s
costs, the next
consideration is whether Glencore has made out a case for security
for its costs. Glencore has submitted that it
is in the interest of
fairness and justice that Atakas be directed to furnish security
executable in South Africa in the form to
be agreed by the parties or
as ordered by the Registrar.
[25]
Section 5(2)
(b)
of the Act empowers a court, in the exercise of its admiralty
jurisdiction, to order any person to give security for costs or for
any claim.
In
MV
NYK
Isabel: Northern Endeavour Shipping Pty Ltd v Owners of MV NYK
Isabel and Another
,
[5]
the Supreme Court of Appeal (‘the SCA’) held that the
provisions of s 5(2)
(b)
confer
a wide
discretion
on the courts to order security for costs, however, for the said
discretion to arise, the applicant first has to establish
that they
may be entitled in due course to an order for costs or that they have
a prima facie enforceable claim against a party
from whom
security
is sought, and secondly, that it has a genuine and reasonable need
for security.
[26]
Rule 47 provides:
‘
(1)
A party entitled and desiring to demand security for costs from
another shall, as soon as practicable after the commencement
of
proceedings, deliver a notice setting forth the grounds upon which
such security is claimed, and the amount demanded.
(2)
If the amount of security only is contested the registrar shall
determine the amount to be given and his decision shall be final.
(3)
If the party from whom security is demanded contests his liability to
give security or if he fails or refuses to furnish security
in the
amount demanded or the amount fixed by the registrar within ten days
of the demand or the registrar’s decision, the
other party may
apply to court on notice for an order that such security be given and
that the proceedings be stayed until such
order is complied with.
(4)
The court may, if security be not given within a reasonable time,
dismiss any proceedings instituted or strike out any pleadings
filed
by the party in default, or make such other order as to it may seem
meet.
(5)
Any security for costs shall, unless the court otherwise directs, or
the parties otherwise agree, be given in the form, amount
and manner
directed by the registrar.
(6) The registrar may,
upon the application of the party in whose favour security is to be
provided and on notice to interested
parties, increase the amount
thereof if he is satisfied that the amount originally furnished is no
longer sufficient; and his decision
shall be final.’
[27] Mr
Mackenzie
has submitted that Atakas, by its tender of a draft
bank guarantee, acknowledged that Glencore may, in due course, be
entitled
to an order for costs, thus relieving Glencore of
discharging the onus placed on it.
[28]
Glencore has submitted, without any substantiation, that Atakas’
claim for damages is meritless. In
response, Atakas has submitted
that the trial court is bound to find that either one of the three
defendants is liable for its
loss as a result of the loading of hot
coal onto the vessel. In
Silvercraft
Helicopters (Switzerland) Ltd and Another v Zonnekus Mansions (Pty)
Ltd, and two other cases
[6]
it was held that ‘the practice is clearly established that the
court will not in applications for security enquire into the
merits
of the disputes or the bona fides of the parties’. Having said
that, it is however not disputed that Atakas, in its
action, hopes to
pin the liability for its damages on at least one of the defendants.
It therefore follows that Atakas has acknowledged
that a possibility
exists that the trial court may dismiss the claim against Glencore
and find against either one of the other
two defendants.
[29]
Glencore has averred that the following factors evidence that it has
a genuine and reasonable need for security:
(a)
Atakas is a
peregrinus
of this court and as such, in the
absence of a bilateral agreement between Turkey and South Africa
regarding the enforcement of
foreign judgments, Glencore will incur
further legal costs and expenses in a foreign jurisdiction in an
attempt to obtain and enforce
a costs order which must first be
confirmed by a Turkish court;
(b)
it will be time-consuming for Glencore to enforce its costs order in
a foreign jurisdiction; and
(c)
Glencore is at a disadvantage in being obliged to continue with its
defence of Atakas’s
claim in circumstances where the first
defendant in the action, RBCT has been furnished with security for
its costs, whereas Glencore
has not; and further Atakas is in
negotiations with the second defendant for the provision of security.
[30]
The essence of Glencore’s contention, from the above-mentioned
factors, is that it would be extremely
expensive and time consuming
for it to enforce its costs order in a foreign jurisdiction.
[31]
Atakas contends that Glencore made no effort, in its founding
affidavit, to reveal facts which negated any
reasonable apprehension
that a costs award would not be paid. It averred that the following
factors evidence that Glencore has
no genuine and reasonable need for
security:
(a)
Glencore did not previously apply or request security at the first
available opportunity when the joinder
application was launched
despite the fact that Glencore’s costs in the joinder
proceedings were substantial;
(b)
Glencore is aware of Atakas’ sound financial status and ability
to meet any costs order
against it because Atakas, having been
established in 1989, is one of the first import coal companies in
Turkey having coal importation
and packing facilities with an annual
capacity of 2.5 million tonnes of coal which is used throughout
Turkey for industrial and
heating purposes. Glencore is also aware of
Atakas’s considerable investments in other industries including
steel and port
management. Atakas’ audited financial statements
show that the total shareholders’ equity had risen from
804 753 386
Turkish Lira as of 31 December 2021 to 2041
264 835 Turkish Lira as of 31 December 2022, which equates to
USD 76 055 890.66;
(c)
Atakas is in a position to satisfy any costs order to be made in
favour of Glencore because the
amount of costs Atakas will be able to
recover from Glencore at the end of the trial, exceeds the amount of
security which Glencore
seeks as security for costs and as such
Glencore will be able to set off the amount of any costs order
Glencore should obtain against
Atakas, and against the amount which
it owes Atakas in terms of cost orders already made by the SCA and
the Constitutional Court.
The total amount of its bills, inclusive of
drawing and taxing fees is R1 202 473.03 and in addition to
those are the
costs of its correspondent attorneys in both the SCA
and Constitutional Court which its cost consultant has advised would
be somewhat
less than R50 000.00;
(d)
Atakas and its related companies conduct considerable trade with
Glencore to the value of between
USD50 million and USD100 million per
annum and during the 2021 financial year Atakas had purchased from
Glencore bulk cargo to
the value of USD134 million; and as such
Atakas has no intention of jeopardizing the trade relationship by not
paying a ‘trivial’
costs order should it be made in
Glencore’s favour; and
(e)
To the extent that one defendant may have security, whereas another
does not have, is of relevance
as between the separate defendants,
because any costs order as against those other defendants are
irrelevant to Glencore.
[32]
In
MV
Orient Stride, Asiatic Shipping Services Inc v Elgina Marine Co
Ltd
[7]
the SCA in dealing with factors to be considered in the applicant’s
discharge of the onus that it has a genuine and reasonable
need for
security held as follows:
[8]
‘
The
requirement that the need for security must be “genuine and
reasonable’ does not appear in the Act. The formulation
is that
of Didcott J in a separate but concurring judgment in
Katagum
Wholesale Commodities Co Ltd v The MV Paz
1984
(3) SA 261
(N) at 270A. It was subsequently endorsed by this court in
Thalassini Avgi
at
833A and in
Bocimar NV v Kotor Overseas
Shipping Ltd
[1994] ZASCA 5
;
1994 (2) SA 563
(A) at 583
E - F that the appropriate standard of proof was held to be a balance
of probabilities. It is important to observe,
however that the
requirement does not mean that in every case it must be proved that
the party whose property is arrested has or
will have insufficient
assets to meet a judgment granted against it in the main proceedings.
Indeed, more often than not the asset
arrested is a ship which has a
value far in excess of the claim. What, I think, must be established
is a genuine and reasonable
apprehension that the party whose
property is arrested will not satisfy a judgment or award made in
favour of the arresting party.
That apprehension may be founded upon
actual knowledge of the extent of the assets of the party whose
property has been arrested,
or, as would more likely be the case, it
may be founded on factors giving rise to an inference either that the
party in question
will be unable to meet the judgment or that it will
seek to conceal its assets or otherwise prevent the judgment from
being satisfied.
The circumstances may also be such, whether for
geographic reasons or otherwise, that it would be extremely difficult
for the successful
party to enforce the judgment. Different
considerations will also arise where the party seeking security
already has security but
arrests property to increase its security…
Whether a need for security has been shown to exist or not will
depend therefore
upon a consideration of the facts of each case.’
[33]
It is common cause that, Atakas is a
peregrinus
of this court and is not possessed of assets within the Republic. It
was not disputed that Atakas is in a sound financial position
and
that it conducts considerable trade with Glencore. It is however
crucial that Glencore’s contention that it will suffer
financial hardships and long delays in executing its costs order in a
foreign jurisdiction be given due consideration and weight.
In
Browns
The Diamond Store CC v Van Zyl
it
was held:
[9]
‘
So
although in this age of globalisation, suing a peregrine in his own
jurisdiction to recover costs may be less arduous, the extra
burden
of costs and delay in enforcing a judgment abroad is an obvious
reality that cannot be ignored…’
[34] In
considering factors adduced by Atakas, it is noted that even though
it disputes its liability to provide
security, upon receiving the
notice in terms of rule 47, it did not contest its liability or
allege that it cannot afford the amount
demanded. Instead it offered
an amount up to USD75.000 which is more than R1,2 million demanded by
Glencore as security. Its averment
that the impediment to providing
security is Glencore’s insistence on a bank guarantee from a
South African Bank, is evidence
that it merely contests the form of
security to be provided, not affordability.
[35] It
is noted further that it is not Atakas’ case that it had
approached other banks in South Africa
for a bank guarantee that
would be worded in acceptable terms to it and Glencore. Atakas merely
engaged Absa and when negotiations
between it and Glencore fell
through regarding the wording of the bank guarantee, it refused to
provide security alleging that
it has no intention of tying funds to
a South African bank in circumstances where it is of the view that
Glencore has no genuine
and reasonable need for security.
[36]
In
Silvercraft
Helicopters
,
[10]
it was held as follows:
‘
It
is trite law that the courts have a discretion to grant or refuse an
application for security and, in coming to a decision, will
consider
the relevant facts of each case. Hardship to the peregrinus and
financial ability to provide security are
taken into account,
but are not necessarily decisive. The court should have due regard to
the particular circumstances of the case
and considerations of equity
and fairness to both the
incola
and
the non-domiciled foreigner…’
[37]
Having regard to the particular circumstances of this case and in
balancing the interests of both parties,
I find that Glencore has
made out a case that it may, in due course, be entitled to an order
for costs and that it has a genuine
and reasonable need for security.
Atakas is a
peregrinus
of this court and does not have assets within South Africa. The
probabilities are that Glencore will incur further legal costs
and
long delays should it have to execute its costs orders in Turkey or a
foreign jurisdiction whereas Atakas, as evidenced by
its financial
statements can afford to provide security for Glencore’s costs
as demanded without experiencing any hardships.
The merits of the
disputes in the action or the bona fides of the parties are
irrelevant to the current application for security.
[11]
[38] As
regards costs of this application, the general principle that costs
follow the event finds application.
Having regard to the nature of
the issues and the complexity thereof, I find that the issues dealt
with were not novel or so complex
as to warrant the highest scale of
costs as envisaged in rule 67A read with rule 69. I am therefore of
the view that a costs order
on scale B is warranted.
Order
[39]
In the circumstances
the following order
is made:
1.
The first respondent is directed to provide security for the
applicant’s costs in the
action commenced by the first
respondent, as plaintiff, against the applicant, the second and third
respondents, as defendants,
under case number A42/2014 in the amount
of R1,2 million.
2.
The
security
referred to in paragraph 1
shall be furnished in a form agreed by the applicant and the first
respondent, alternatively in a form
to be determined by the
Registrar.
3.
The security shall be furnished within ten days of the date upon
which this order is made,
alternatively within ten days of the date
of determination of the form of security by the Registrar, whichever
is the later date.
4.
The action commenced by the first respondent against the applicant is
stayed until such time
as this order is complied with.
5.
In the event of the security not being furnished timeously or at all,
the applicant is granted
leave to make application on the same
papers, duly amplified, for an order dismissing the first
respondent’s action against
the applicant with costs.
6.
The first respondent shall pay the applicant’s costs of this
application on scale B.
SIBIYA AJ
Case
Information
Heard
on
:
12
August 2024
Date
Delivered
:
13
January 2025
For
the Applicant
:
Mr J
Mackenzie
Instructed
by
:
Lee
Attorneys
Suite
706, 7
th
Floor Esplanade Garage
127
Margaret Mncandi Avenue
Durban
Ref:
Janine Lee
Email:
jlee@leeatt.co.za
Email:
Arthur.james@clyde.com
/
Nicholas.veldman@clydeco.com
For
the First Respondent:
:
Mr
RWF MacWilliam SC
Instructed
by
:
Webber
Wentzel
C/O
Goodrickes
1
Nollworth Crescent
La
Lucia Ridge
Durban
Ref:
ILC/MAT 14637
Email:
gavin.fitzmaurice@webberwentzel.com
/
andre.october@webberwentzel.com
[1]
Admiralty Jurisdiction Regulation Act 105 of 1983.
[2]
RH
Christie
The
Law of Contract in South Africa
8 ed (2022) at 81.
[3]
AJ
Kerr
The
Principles of the Law of Contract
6 ed (2002) at 75.
[4]
Naidoo
v Marine and Trade Insurance Co Ltd
1978
(3) SA 666
(A) at 677B-C.
[5]
MV
NYK
Isabel: Northern Endeavour Shipping Pte Ltd v Owners of MV NYK
Isabel and Another
2017
(1) SA 25
(SCA) para 46.
[6]
Silvercraft
Helicopters (Switzerland) Ltd and Another v Zonnekus Mansions (Pty)
Ltd, and two other cases
2009
(5) SA 602
(C) para 28.
[7]
MV
Orient Stride: Asiatic Shipping Services Inc v Elgina Marine Co Ltd
[2008] ZASCA 111
;
2009
(1) SA 246
(SCA) .
[8]
Ibid para 7.
[9]
Browns
The Diamond Store CC v Van Zyl
[2017]
ZAGPJHC 70 para 23.
[10]
Silvercraft
Helicopters
above
fn
6 para 26.
[11]
Ibid
para
28.
sino noindex
make_database footer start
Similar Cases
RGS Group Holdings Limited v Tongaat Hulett Limited (In Business Rescue) and Others (D13702/2024) [2025] ZAKZDHC 8 (18 February 2025)
[2025] ZAKZDHC 8High Court of South Africa (KwaZulu-Natal Division, Durban)98% similar
Tongaat Hulett Limited (In Business Rescue) and Others v South African Sugar Association and Others (Leave to Appeal) (D4472/2023) [2024] ZAKZDHC 19 (6 May 2024)
[2024] ZAKZDHC 19High Court of South Africa (KwaZulu-Natal Division, Durban)97% similar
Kilken Platinum (Pty) Limited v Lutzkie and Others (D11532/2022) [2024] ZAKZDHC 41 (4 June 2024)
[2024] ZAKZDHC 41High Court of South Africa (KwaZulu-Natal Division, Durban)97% similar
Tongaat Hulett Limited (In Business Rescue) and Others v South African Sugar Association and Others (D4472/2023) [2023] ZAKZDHC 93; [2024] 1 All SA 509 (KZD) (4 December 2023)
[2023] ZAKZDHC 93High Court of South Africa (KwaZulu-Natal Division, Durban)97% similar
Engen Petroleum (Pty) Ltd v Hitech Chemicals (Pty) Ltd and Another (D1613/2025) [2026] ZAKZDHC 4 (3 February 2026)
[2026] ZAKZDHC 4High Court of South Africa (KwaZulu-Natal Division, Durban)97% similar