Case Law[2024] ZAKZDHC 104South Africa
Zamani Security Services (Pty) Ltd v Indiza Airport Management (Pty) Ltd t/a Indiza Airport Aviation (D2951/2024) [2024] ZAKZDHC 104 (11 December 2024)
Judgment
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# South Africa: Kwazulu-Natal High Court, Durban
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## Zamani Security Services (Pty) Ltd v Indiza Airport Management (Pty) Ltd t/a Indiza Airport Aviation (D2951/2024) [2024] ZAKZDHC 104 (11 December 2024)
Zamani Security Services (Pty) Ltd v Indiza Airport Management (Pty) Ltd t/a Indiza Airport Aviation (D2951/2024) [2024] ZAKZDHC 104 (11 December 2024)
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sino date 11 December 2024
IN
THE HIGH COURT OF SOUTH AFRICA
KWAZULU-NATAL
LOCAL
DIVISION,
DURBAN
Case
no.: D2951/2024
In
the matter between:
ZAMANI
SECURITY SERVICES (PTY) LTD
PLAINTIFF
and
INDIZA
AIRPORT MANAGEMENT (PTY) LTD DEFENDANT/EXCIPIENT
t/a
INDIZA AIRPORT AVIATION
ORDER
The
following orders shall issue:
1.
The exception is dismissed.
2.
The defendant/excipient shall pay the plaintiff’s costs
occasioned by the application on Scale
B, such costs to include the
costs of the employment of senior counsel.
JUDGMENT
BRAMDHEW
AJ
Introduction
and background
[1]
This is an exception issued by the defendant on the ground that the
plaintiff’s particulars
of claim lacks averments necessary to
sustain a cause of action.
[2]
The plaintiff instituted proceedings against the defendant in the sum
of R206,705.29 in
respect of unpaid invoices for guarding services
rendered by the plaintiff.
[3]
The plaintiff pleaded that:
3.1.
on or about 25 August 2020, the parties entered into a written
agreement in terms of which the plaintiff
would deploy guards to
perform guarding services at premises identified by the defendant.
3.2.
the agreement commenced on 1 September 2020 and would continue for an
initial term of two years, renewable
on a yearly basis.
3.3.
the plaintiff would provide guards and equipment at specified rates
and the defendant would pay for
the plaintiff’s services at the
agreed rates upon presentation of an invoice/s.
3.4.
between May 2021 and March 2023, the plaintiff rendered guarding
services at premises identified by
the defendant, being Richards Bay
and Virginia.
3.5.
the defendant failed to pay the following invoices:
3.5.1.
IN103368 rendered on 19 May 2021 in the sum of R31,050.00 for
Richards Bay for the period 16 May 2021 to 31 May 2021;
3.5.2.
INV105295 rendered on 18 April 2023 in the sum of R70,218.43;
3.5.3.
IN105262 rendered on 15 March 2023 in the sum of R70,218.43, wherein
the defendant effected part payment in the sum of R35,000.00; and
3.5.4.
INV105389 rendered on 17 May 2023 in the sum of R70,218.43.
3.6. the agreement ended
at the instance of the defendant as a consequence of the uMhlatuze
and eThekwini Municipalities terminating
the defendant’s rights
to occupy or operate its business at Richards Bay and Virginia, and
the defendant notifying the plaintiff
that it no longer needed
guarding services.
3.7. the plaintiff
accepted this and discontinued rendering guarding services at
Richards Bay on 1 June 2021 and at Virginia at
1 June 2023.
[4] The defendant
delivered an exception on the basis that the plaintiff’s
particulars of claim lacked averments which
are necessary to sustain
a cause of action, which exception stated that:
4.1.
In terms of the written agreement, the plaintiff failed to plead
compliance with clause 7.5 of the
agreement which states:
“
7.5. In the
event of the CLIENT being in breach of any of the terms or conditions
of this agreement and failing to remedy such breach
within 14
(fourteen) business days after receiving written notice by ZS calling
upon the CLIENT to remedy such breach, the ZS may,
without prejudice
to any other rights it may have in terms of this agreement or which
are available either at common or statutory
law:
7.5.1. Cancel this
agreement and institute an action for damages which it may have
suffered as a result of the said breach; or
7.5.2. Alternatively,
to require specific performance in terms of the condition or term,
which was breached and claim any damages
suffered.
”
4.2.
In the absence of pleading compliance with clause 7.5, the plaintiff
has failed to disclose a cause
of action as its action would require
compliance with such conditions of the agreement prior to pursuing
the action.
[5]
In the agreement, the plaintiff is denoted as “ZS” and
the defendant as the
“CLIENT”.
[6]
The defendant contends that the agreement contained a specified
lex
commissoria
, which must be complied with in order for the
plaintiff to cancel the agreement.
[7]
The plaintiff contends that the defendant repudiated the agreement,
which repudiation the
plaintiff accepted.
[8]
Accordingly, the issues for determination are
8.1.
if the defendant repudiated the agreement, and such repudiation was
accepted, can the defendant rely
on a term of that agreement.
8.2.
was the plaintiff obliged to comply with clause 7.5 of the agreement.
8.3.
do the particulars of claim sustain a cause of action.
The
legal framework and its application to the facts
[9]
Upon
acceptance of a repudiation, the innocent party is entitled to treat
the agreement as cancelled and claim damages for breach.
The
party who repudiated cannot rely on the terms of the agreement after
the other party has accepted the repudiation. Acceptance
of a
repudiation terminates the contract, relieving both parties of their
obligations under the contract
[1]
[10]
A
lex
commissoria
is a contractual provision allowing cancellation upon breach
[2]
.
The defendant contends that clause 7.5 of the agreement constitutes
such a provision and that the plaintiff was obliged to comply
with
this provision. However, this clause applies only where the agreement
is in effect and the innocent party seeks to cancel
it in terms of
its conditions. The defendant contends that the plaintiff was
not entitled to cancel the agreement without
first complying with the
notice contemplated in the agreement.
[11] The
plaintiff has pleaded that the agreement ‘demised’ at the
instance of the defendant when it notified
the plaintiff that it no
longer had the need for the guarding services at Richards Bay as at 1
June 2021 and Virginia as at 1 June
2023.
[12] Mr
Mizrachi
, appearing for the defendant, submitted that the
allegation of an accepted repudiation is unsustainable as the
plaintiff could
not have accepted the repudiation, yet continue
providing services at another site.
[13] The
agreement relied upon does not identify the premises at which
services are to be rendered. It is not
contended by the
defendant that services were not rendered at Richards Bay and at
Virginia. It appears that the agreement
would apply to any
premises designated by the defendant.
[14]
In
Firmpulse
Trading CC and Another v Kleynhans and Another
[3]
,
the
court summarised the test for exceptions as follows:
“
1.
In order for an exception to succeed, the excipient must establish
that the pleading is excipiable on every interpretation that can
reasonably be attached to it…
2.
A charitable test is used on exception, especially in deciding
whether a cause of action is established, and the pleader is entitled
to a benevolent interpretation…
3.
The Court should not look at a pleading “with a magnifying
glass of too high power”…
4.
The pleadings must be read as a whole; no paragraph can be read in
isolation…”
[15]
In
McKenzie
v Farmers’ Co-operative Meat Industries Ltd
[4]
‘cause of action’ was defined as:
‘…
every
fact which it would be necessary for the plaintiff to prove, if
traversed, in order to support his right to judgment of the
court. It
does not comprise every piece of evidence which is necessary to prove
each fact, but every fact which is necessary to
be proved
.’
[16]
In
McKelvey
v Cowan NO
[5]
, it was stated that:
‘
It is a first
principle in dealing with matters of exception that, if evidence can
be led which can disclose a cause of action alleged
in the pleading,
that particular pleading is not excipiable. A pleading is only
excipiable on the basis that no possible evidence
led on the pleading
can disclose a cause of action
.’
[17]
Further, in
Vermeulen
v Goose Valley Investment (Pty) Ltd
[6]
,
it was stated that:
“
It is trite law
that an exception that a cause of action is not disclosed by a
pleading cannot succeed unless it is shown that ex
facie the
allegations made by a plaintiff and any document upon which his or
her cause of action may be based, the claim is (not
may be) bad in
law.
”
[18]
When
considering factual averments made by the plaintiff, at an exception
stage, they must be accepted as being correct
[7]
,
unless they are manifestly false
[8]
,
which fact is not apparent from the pleadings.
[19] The
defendant’s contention is that the repudiation could not have
been accepted if the plaintiff continued
rendering services at
another premises.
[20] It
appears that the defendant indicated that it no longer required the
plaintiff’s services at Richards
Bay as a 1 June 2021, however,
continued using the plaintiff’s guarding services at Virginia
until the alleged repudiation
at 1 June 2023.
[21] Given
that the defendant effected part payment of invoice IN105262, it is
apparent, although not pleaded, that
the agreement was renewed on 1
September 2022 on a yearly basis for services at Virginia.
Thereafter, the defendant indicated
that it no longer required the
plaintiff’s services at Virginia as at 1 June 2023, resulting
in the defendant not requiring
the plaintiff’s services at
all. This would constitute a repudiation of the agreement.
[22] All
that needs to be established is whether the plaintiff’s claim
sustains a cause of action.
[23]
Considering the principles outlined above:
23.1. I must accept
the factual averments of a repudiation in the particulars of claim
unless clearly false and untenable.
There is nothing before me on
which basis those averments can be deemed false or untenable.
23.2. The defendant
has failed to establish that the pleading is excipiable on every
interpretation that can reasonably be
attached to it. The
plaintiff contends that the defendant repudiated the agreement, which
repudiation was accepted –
these are facts which are sufficient
to establish a cause of action. I am not called upon to determine the
success of that cause
of action. As at 1 June 2023, the
aforementioned invoices were outstanding.
23.3. While the
plaintiff’s particulars of claim may have certain
imperfections, this does not render them excipiable,
and I can see no
reason why the defendant would not be able to plead to it.
Conclusion
[24] The
plaintiff’s particulars of claim do disclose a cause of action
in the allegations that the defendant
repudiated the agreement, which
repudiation was accepted by the plaintiff. The alleged facts,
if proven, would establish
a repudiation of the agreement, its
acceptance, and thereby a termination of the agreement. These
allegations sustain a cause
of action and would render compliance
with clause 7.5 unnecessary. The plaintiff was, therefore, not
obliged to plead compliance
with clause 7.5 of the agreement.
[25] I find
that the plaintiff’s particulars of claim contain sufficient
averments to sustain a cause of action
and are thus not excipiable.
[26]
Accordingly, there is no need for me to consider issue 2.
Costs
[27] Mr
Shapiro
SC, for the plaintiff, and Mr
Mizrachi
contend
that costs should be awarded on Scale B, with Mr
Shapiro
submitting that such costs should include the costs of senior
counsel. I am satisfied that the matter was of significant
complexity to award costs on scale B and such costs should include
the costs consequent upon the employment of senior counsel.
Order
[28] The
following orders shall issue:
1.
The exception is dismissed.
2.
The defendant/excipient shall pay the plaintiff’s costs
occasioned by the application on Scale
B, such costs to include the
costs of the employment of senior counsel.
BRAMDHEW
AJ
Case
information
Heard
on:
7
November 2024
Judgment
delivered:
11
December 2024
For
the plaintiff:
Mr
Shapiro SC
Instructed
by:
Woodhead
Bigby Inc
92
Armstrong Avenue
La
Lucia
Ref:
AL/AC/MAT24660
E-mail:
anul@woodhead.co.za
For
the defendant/excipient:
Mr
Mizrachi
Instructed
by:
Thorpe
and Hands Inc
Unit
8 Northsands Centre
5
Forest Drive
Umhlanga
Rocks
Ref:
R Topping/afs/IND4.01
Email:
robin@thorpeandhands.co.za
[1]
Datacolor International (Pty) Ltd v Intamerket (Pty) Ltd
[2000] ZASCA 82
;
2001 (2) SA
284
(SCA)
[2]
GPC Developments CC and Others v Uys (A71/2017)
[2017]
ZAWCHC 80
;
[2017]
4 All SA 14
(WCC) (15 August 2017)
[3]
(5115/2023)
[2024] ZAFSHC 166
(27 May 2024) at paragraph 3
[4]
1922 AD 16
at 23
[5]
1980 (4) SA 525
(Z) at 526
[6]
[2001] 3 All SA 350
(A) at para 7
[7]
Living Hands (Pty) Ltd NO and Another v Ditz and Others 2013 (2) SA
368 (GSJ)
[8]
Naidoo and Another v The Dube Tradeport Corporation and Others
2022
(3) SA 390
at paragraph 18
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