Case Law[2023] ZAKZDHC 75South Africa
Selorne Park Body Corporate SS184/2001 v Mc Gregor (D12787/2018) [2023] ZAKZDHC 75 (16 October 2023)
High Court of South Africa (KwaZulu-Natal Division, Durban)
16 October 2023
Judgment
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# South Africa: Kwazulu-Natal High Court, Durban
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## Selorne Park Body Corporate SS184/2001 v Mc Gregor (D12787/2018) [2023] ZAKZDHC 75 (16 October 2023)
Selorne Park Body Corporate SS184/2001 v Mc Gregor (D12787/2018) [2023] ZAKZDHC 75 (16 October 2023)
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sino date 16 October 2023
IN
THE HIGH COURT OF SOUTH AFRICA
KWAZULU-NATAL
LOCAL DIVISION, DURBAN
CASE
NO: D12787/2018
In
the matter between:
SELORNE
PARK BODY CORPORATE SS184/2001
PLAINTIFF
and
LAWERNCE
JAMES JOHN MC GREGOR
DEFENDANT
ORDER
Judgment
is granted against the defendant for:
(a)
Payment of the sum of R2 498 477.84 (two million, four hundred and
ninety-eight thousand,
four hundred and seventy-seven Rand,
eighty-four cents);
(b)
Payment of the sum of R2 882 074.13 (two million, eight hundred and
eighty-two thousand
and seventy-four Rand, thirteen cents);
(c)
Interest at the rate of two percent (2%) per month compounded daily
in arrears from
22 April 2020 to date of final payment;
(d)
Costs of suit on the scale as between attorney and client.
JUDGMENT
Harrison
AJ
[1]
I commence this judgment with three quotations by the defendant:
(a)
'What the Plaintiff does not seem to appreciate is that I am willing
and disposed to paying
whatever it is that I in fact owe to the
Plaintiff for my levies on each of the eight developed units. . .
.';
[1]
(b)
"... and although I always maintained that an amount was due for
levies...";
[2]
and
(c)
"... definitely is an amount due for levies ...".
[3]
These
three statements highlight at the back of the defendant's mind that
there is a debt which is owing and payable.
[2]
The plaintiff body corporate sues the defendant and owner of units in
the body corporate
for payments of the amounts of:
(a)
R2 498 477.84;
[4]
and
(b)
R2 882 074.13.
[3]
These amounts arise out of levies, expenses and utilities owing to
the plaintiff,
together with interest at two percent per month, and
attorney-client costs.
[4]
Mr
Hoar
appeared for the plaintiff. The defendant appeared in
person.
[5]
When this action commenced in 2018, the plaintiff sued the defendant
for the sums
of:
(a)
R572 114.62 (in respect of the developed units); and
(b)
R679 869.57 (in respect of the 13 real right units).
[6]
Those amounts were amended to include further amounts due by the
defendant with the
plaintiff having chosen to draw a line in the sand
at 22 April 2020. The plaintiff has not amended its pleadings to
include all
the current amounts outstanding, Mr
Hoar
having
indicated that the plaintiff just wished to bring the matter before
court and did not wish to invite applications for adjournments
occasioned by any subsequent amendment.
[7]
The plaintiff claims the amounts due in terms of its statutory
obligations in terms
of s 3 of the Sectional Title Schemes Management
Act 8 of 2011 ('the STSMA'). Section 3 specifically provides the
following:
'3
Functions of bodies corporate
(1)
A body corporate must perform the functions entrusted to it by or
under this Act or the
rules, and such functions include-
(a)
to establish and maintain an administrative fund which is reasonably
sufficient to cover
the estimated annual operating costs-
(i)
for the repair, maintenance, management and administration of the
common property
(including reasonable provision for future
maintenance and repairs);
(ii)
for the payment of rates and taxes and other local municipality
charges for the supply
of electricity, gas, water, fuel and sanitary
or other services to the building or land;
(iii)
for the payment of any insurance premiums relating to the building or
land; and
(iv)
for the discharge of any duty or fulfilment of any other obligation
of the body corporate;
(b)
to establish and maintain a reserve fund in such amounts as are
reasonably sufficient to
cover the cost of future maintenance and
repair of common property but not less than such amounts as may be
prescribed by the Minister;
(c)
to require the owners, whenever necessary, to make contributions to
such funds: Provided
that the body corporate must require the owners
of sections entitled to the right to the exclusive use of a part or
parts of the
common property, whether or not such right is registered
or conferred by rules, to make such additional contribution to the
funds
as is estimated necessary to defray the costs of rates and
taxes, insurance and maintenance in respect of any such part or
parts,
including the provision of electricity and water, unless in
terms of the rules the owners concerned are responsible for such
costs;
(d)
to require from a developer who is entitled to extend the scheme in
terms of a right reserved
in section 25(1) of the Sectional Titles
Act, to make such reasonable additional contribution to the funds as
may be necessary
to defray the cost of rates and taxes, insurance and
maintenance of the part or parts of the common property affected by
the reservation,
including a contribution for the provision of
electricity and water and other expenses and costs in respect of and
attributable
to the relevant part or part;
(e)
to determine the amounts to be raised for the purposes of paragraphs
(a), (b) and (c);
(f)
to raise the amounts so determined by levying contributions on the
owners in
proportion to the quotas of their respective sections;
(g)
to open and operate an account with any registered bank or any other
financial institution;
(h)
to insure the building or buildings and keep it or them insured to
the replacement value
thereof against fire and such other risks as
may be prescribed;
(i)
to insure against such other risks as the owners may by special
resolution determine;
(j)
subject to section 17 and to the rights of the holder of any
sectional mortgage
bond, forthwith to apply any insurance money
received by it in respect of damage to the building, in rebuilding
and reinstating
the building or buildings in so far as this may be
effected;
(k)
to pay the premiums on any insurance policy effected by it;
(I)
to maintain all the common property and to keep it in a state of good
and serviceable
repair;
(m)
to comply with any notice or order by any competent authority
requiring any repairs to or work
in respect of the relevant land or
building;
(n)
to comply with any reasonable request for the names and addresses of
the persons who are
the trustees of the body corporate in terms of
the rules or who are members of the body corporate;
(o)
to notify the chief ombud, the local municipality concerned and the
registrar of its
domicilium citandi et executandi
, which is
its address for service of any process;
(p)
to ensure compliance with any law relating to the common property or
to any improvement
of land comprised in the common property;
(q)
to maintain any plant, machinery, fixtures and fittings used in
connection with the common
property and sections and to keep them in
a state of good and serviceable repair;
(r)
subject to the rights of the local municipality concerned, to
maintain and repair
including renewal where reasonably necessary,
pipes, wires, cables and ducts existing on the land and capable of
being used in
connection with the enjoyment of more than one section
or of the common property or in favour of one section over the common
property;
(s)
on the written request of any owner or registered mortgagee of a
section, to produce
to such owner or mortgagee, or any person
authorised in writing by such owner or mortgagee, the insurance
policy effected by the
body corporate and the receipt for the last
premium in respect thereof; and
(t)
in general, to control, manage and administer the common property for
the benefit
of all owners.
(2)
Liability for contributions levied under any provision of subsection
(1), save for special
contributions contemplated by subsection (4),
accrues from the passing of a resolution to that effect by the
trustees of the body
corporate, and may be recovered by the body
corporate by an application to an ombud from the persons who were
owners of units at
the time when such resolution was passed: Provided
that upon the change of ownership of a unit, the successor in title
becomes
liable for the pro rata payment of such contributions from
the date of change of such ownership.
(3)
Any special contribution becomes due on the passing of a resolution
in this regard by the
trustees of the body corporate levying such
contribution and may be recovered by the body corporate by an
application to an ombud,
from the persons who were owners of units at
the time when such resolution was passed: Provided that upon the
change of ownership
of a unit, the successor in title becomes liable
for the pro rata payment of such contributions from the date of
change of such
ownership.
(4)
"Special contribution", for the purposes of this section,
means any contribution
levied under subsection (1) other than
contributions which arise from the approval of the estimate of income
and expenditure at
an annual general meeting of a body corporate,
determined to be a contribution to be levied upon the owners during
the current
financial year.
(5)
The body corporate must, annually or whenever there is a change in
levy, certify in writing-
(a)
the amount determined as the contribution of each owner;
(b)
the manner in which such contribution is payable; and
(c)
the extent to which such contribution has been paid by each owner.
(6)
The body corporate is, for the purposes of effecting any insurance
under subsection (1)
(
h
),
considered to have an insurable interest for the replacement value of
the building and must, for the purposes of effecting any
other
insurance under that subsection, be considered to have an insurable
interest in the subject matter of such insurance.'
[5]
[8]
At the commencement of the trial, Mr
Hoar
identified five issues which were in dispute and I set these out
hereunder as they incorporate and conveniently summarise the defences
raised by the defendant in his plea.
[6]
[9]
The identification of these issues is premised on the common cause
facts that the
defendant purchased and is the owner of real right 45
in the scheme, which real right has eight developed and 13
undeveloped sites.
[7]
[10]
The issues in this trial, and as raised on the pleadings, and as
correctly identified by Mr
Hoar
, are:
(a)
whether the defendant is legally obliged to pay for each undeveloped
site, or whether there
should be a single charge in respect of real
right 45 being the real right to develop;
(b)
whether the defendant is only obliged to comply with the rules of the
scheme and the requirements
to pay levies where same complies withs
3(1)(f) of the STSMA, and that the application of a participation
quota ('PQ') formula
is peremptory;
[8]
(c)
whether the defendant is obliged to pay interest and, if so, at what
rate;
(d)
whether the defendant is exempt from paying levies where the
management rule is in contravention
of s 35(3) of the Sectional
Titles Act 95 of 1986 ('STA'); and,
(e)
finally, the computation of the exact amount due.
[11]
The amount sought by the plaintiff spans a period from January 2018
to April 2020. Considering
the length of time, the number of units
and the number of invoices involved, the plaintiff indicated that
such documentation exceeded
1 600 pages but had prepared what it
termed a 'core bundle', which became exhibit 'A'.
[12]
The Plaintiff when introducing into evidence the core bundle, exhibit
'A', had the corresponding
supporting documentation available should
the defendant place any issue in dispute. A salient approach. The
defendant ultimately
did not challenge any of the documents or the
correctness of the amounts or the actual computations. During the
course of the trial,
I specifically raised with the defendant his
right and obligation to challenge any amount he believed to be
incorrect by specifically
putting it to the witnesses. This was put
to the defendant on two occasions.
[13]
The plaintiff's first witness was Mr Ridl, a trustee of the plaintiff
from 2015. His evidence
was clear and unambiguous.
[14]
The plaintiff was one of the first golfing estates which initially
was a share block, but was
subsequently converted to a sectional
title scheme with the sectional title scheme still holding certain
shares in the share block
company, for example, the shares relating
to the golf course are owned by the plaintiff.
[15]
In terms of s 11(3)(e) of the STA, and in terms of a certificate by
Roger Stanley Green, the
conveyancer, the prescribed management
rules
[9]
('the management
rules') for the plaintiff were amended by the addition of certain
rules set out in an annexure thereto, and the
amendment as contained
in the certificate, the relevant portions of which are set out below:
'2.
The prescribed Management Rules have been amended by way of a
determination made by the Developer in terms of Section 32 (4)
of the
Act whereby the liability for maintenance by owners, the liability to
make contributions under Section 37 (1)(a) of the
Act, the liability
under Section 47 (1) of the Act and the value of voting rights of the
owners shall be reckoned in accordance
with the existing rights and
obligations set forth in the Use Agreement concluded between Selborne
Park Share Block Co. Limited
(the Share Block Company Company) and
the holder of the share blocks in that company. Therefore:-
2.1
The liability of owners and of holders of Portions of a Right of
Extension issued in terms
of Section 25 of the Act (the holders) for
expenses shall be reckoned as follows:-
(a)
If sections are not separately rated, rates levied by the Local
Authority in respect of
sections shall be apportioned between owners
in accordance with the rateable value of the sections.
(b)
Rates levies in respect of the land on which the sections are situate
including the common
property and the land in respect of which
Certificates of Real Rights are issued in terms of Section 25 of the
Act shall be equitably
apportioned by the Trustees of the Body
Corporate (the Trustees) between the owners and the holders.
(c)
Insurance premiums shall be apportioned to owners in relation to the
insured value
of their sections.
(d)
Expenses incurred in connection with the supply of potable water and
electricity will be
apportioned between owners in such manner as the
Trustees may from time to time decide, provided that the Trustees
wherever practicable
shall have due regard to the quantities of water
and electricity consumed on the buildings comprising each section.
(e)
Expenses incurred in respect of the provision of television
facilities shall be equitably
apportioned by the Trustees between the
owners.
(f)
Expenses incurred in connection with household rubbish removal shall
be equitably
apportioned by the Trustees between the owners.
(g)
Expenses incurred by the Body Corporate exclusively in connection
with the residential units,
such as exterior maintenance, shall be
apportioned between the owners of the residential units in such
equitable manner as the
Trustees may from time to time determine.
(h)
All other expenses incurred by the Body Corporate, including all
operating expenses relating
to the Beach Club shall be divided
equitably between the owners and the holders in such manner as the
Trustees from time to time
determine.
(i)
Levies shall not be imposed on the holders in respect of those
portions of the
land which formerly pertained to the deferred share
blocks in the share block company until such time as the holders
thereof commence
construction of residential units upon such land.
Expenses in relation to that land will then be apportioned in
accordance with
the provisions of this determination.
(j)
Until the Body Corporate of Selborne Park comes into existence, the
function of the Trustees in equitably apportioning
expenses shall be
attended to by the directors of the Share Block Company.
2.2
The value of voting rights of the owners and of the holders of
Portions·of a Right
of Extension issued in terms of Section 25
of the Act (the holders) is set out in the Schedule annexed hereto
marked "8".
The holders in terms of those portions of the
land which formally [sic] pertained to the deferred share blocks in
the Share Block
Company shall not have any voting rights until such
time as those holders have constructed residential units and extended
the sectional
title register to incorporate the units into the
sectional title scheme. As each unit is incorporated into the
Sectional Title
Scheme by virtue of the registration of the extension
of the Sectional Title Register being registered in the Deeds Office,
each
owner of a unit will be allocated one vote.
3.
The prescribed Conduct Rules have been substituted by the Conduct
Rules annexed hereto marked "C".'
[16]
These amendments specifically to the management rules deal with the
rateable value of the sections,
how rates are levied, how expenses
are to be apportioned and specifically address the issue of the right
to develop under s 25
of the STA. The certificate specifies
allocation of rates, levies and expenses and, specifically, that
levies would not be imposed
on holders of real rights (referred to as
'deferred share blocks') until such time as the holders 'commence
construction of residential
units'.
[17]
The levies and expenses are divided by the trustees in a detailed
fashion. Mr Ridl and his co-trustees
drafted the budget. The expense
items are interrogated line by line, and divided into direct levies,
being directly apportioned
to developed units according to their PQ
and indirect levies being divided between all units.
[18]
The allocation is detailed, extensive and clearly developed over a
lengthy history of the existence
of the body corporate. This
budgetary process and allocation was well-known to the defendant as
he became a trustee on the body
corporate and, being a trustee, was
involved in the budgetary process which allocated between direct and
indirect levies.
[19]
Mr RidI confirmed his dealings with the defendant when he became a
trustee. He also introduced
the 2012 resolution which dealt with
interest at two percent per month.
[20]
The plaintiff's second witness, Mrs Robinson, the administrator and
liaison between the managing
agents, Trafalgar, and the plaintiff,
then testified. She held this capacity for nine years and is the
person responsible for the
administration of the estate. All the
books, documents, and records which were before this court are under
her
possession and control, and they have been extracted from the
documents under her possession.
[21]
Mrs Robinson, being the administrator, testified as to trustees'
resolutions, the preparation
and distribution of notices and
documents for calling annual general meetings ('AGM'), the documents
dispensed to the various homeowners
(known as 'AGM packs'), the
minutes of the various AGMs which she took and the distribution of
resolutions of trustees arising
out of budgetary approvals.
[22]
As I have set out above, none of the documents were challenged nor
was the evidence of Mrs Robinson
regarding the procedure and process
adopted in dealing with the levies and expenses.
[23]
Each line item on a homeowners' monthly invoice was explained, with
reference to the background
and supporting documentation, going all
the way back to how the line item was budgeted for, placed before the
body corporate AGM,
approved, and then circularised by the trustees.
[24]
Mrs Robinson testified and introduced all the books, documents,
records and resolutions necessary
to support a claim for the amounts
contended for, for the years 2018 to 2020 and testified as to the
various resolutions of the
trustees including the resolutions
relating to interest at two percent per annum, save and except the
resolution from 2012, dealing
with interest, which was before her
time.
[10]
[25]
The cross-examination of the plaintiff's witnesses, as well as the
subsequent statement and testimony
by the defendant, highlighted
complaints which are different to the defences as pleaded, and
demonstrate that the defendant feels
aggrieved at the high levies
imposed by Selborne. According to the defendant, there was a failure
to explain these levies to him
thereby purportedly allowing him to
justify his non-payment of levies. The cross-examination and the
issues put to the witnesses,
related to complaints that other real
rights holders were not being charged levies or expenses such as
those charged to the defendant
or, the levies in respect of the units
which were hotel rooms were only a quarter of those charged to
individual unit holders.
[26]
At the heart of the defendant's complaint is that when he requested
information and it was not
forthcoming, he was aggrieved by what he
perceived to be an inequality or as he put it, it was 'not fair and
equitable'.
[11]
[27]
As a consequence of this and other interactions with the body
corporate, the defendant has conceded
that he withheld levies.
[12]
[28]
That there is animosity between the plaintiff and defendant would be
an understatement as it
is clear that the parties are 'at war'. As
was correctly pointed out by Mr
Hoar
, the ancillary issues
regarding other units, spoliations, withholding access to the golf
estate, and all the other legal battles,
are not relevant to the
pleaded issues which require determination in this trial.
[29]
It is clear that the parties have, in the past, sought to engage and
seek methods to resolve
payment of amounts that were outstanding,
that it is acknowledged that there are levies outstanding (although
the amount and calculation
may be in dispute), and that those
engagements also involved outside third parties such as the hotel on
the estate. The plaintiff
and defendant both agree that the body
corporate could not operate a letting operation and this had to be
dealt with by third parties,
that engagement and the complaints
relating thereto do not affect the liability to pay rates.
[30]
It is clear that the defendant has conflated the identities of the
hotel, the owners of other
real rights, the golf course management
and the trustees of the body corporate, and, as a consequence,
because of a commonality
of parties, the defendant has quite clearly
blurred the lines of his complaints. The identity of parties and the
defendant's complaints
as regards the hotel and the letting agents,
have clouded the defendant's judgment as regards settling with the
body corporate.
[31]
This conflation of issues is
res inter alios acta
yet the
defendant has used it as a justification to withhold payments on the
basis that it is unfair and inequitable. It is this
very conflation
of issues which appears to have prevented the defendant from settling
this matter.
[32]
I turn now to deal with the issues as correctly identified by Mr
Hoar.
Levies
on one real right or on 13 sections
[33]
Real right 45 incorporates units 155 to 175. When the developer or
holder of that right commenced
construction, the liability of the
plaintiff commenced. It is the turning of the soil that triggers the
event which incurs the
liability.
[34]
That there are eight developed units on real right 45, demonstrates
that the trigger event has
occurred and, accordingly, the allocation
of expenses must then occur in accordance with paragraph 2.1 of the
certificate as set
out above.
[35]
That certificate was proved in terms of sections 19 & 20 of the
Civil Proceedings Evidence
Act 25 of 1965. That certificate and the
amendments to the rules as contained therein, are amended as provided
for in s 35(2) of
the STA and it is clear that the trustees have
applied their minds to the allocation of expenses, pursuant to the
certificate in
order to differentiate between expenses which should
be levied on a PQ basis to those which should be charge on a per unit
basis.
[36]
The reasonableness and the allocation was alleged by the defendant as
being unfair or inequitable,
yet in the trial the actual line items,
the amounts or the allocation to direct or indirect costs, was never
challenged. In any
event the allegations of inequity amounts to a
collateral challenge.
[13]
[37]
There is no counterclaim or application to set aside any of the
discretion exercised by the trustees.
Thus, while I am enjoined to do
so by the defendant, it would be improper as it is not a matter on
which I am called upon to decide.
[14]
[38]
The defendant is accordingly liable for both the eight developed
units as well as the 13 undeveloped
sites in respect of real right
45.
[39]
As was also correctly submitted by Mr Hoar, the defendant has
conceded that he was aware of the
charging of levies on the
undeveloped units before he bought into Selborne. Having bought the
units, and being aware that the levies
were being charged, the
defendant's complaints ring hollow.
Defendant
only liable for contributions which comply withs 3(1)(f) of the STSMA
[40]
This defence, as raised in the pleadings, is that the defendant is
only obliged to pay contributions
'in proportion to the quotas of
their respective sections'.
[41]
This argument then suggests that the defendant is not liable for any
of the undeveloped units
as they have no PQ.
[42]
This argument ignores s 3(1)(
c
) of the STSMA which requires
owners 'whenever necessary, to make contributions to such funds'.
Those funds being the administrative
fund ins 3(1)(
a)
and the
reserve fund ins 3(1)(
b)
of the STSMA.
[43]
Section 10 of the STSMA and, more specifically, s 10(5), contemplates
that the rules may be amended.
This is the very self-same
consideration which s 35 of the STA specifically provided for, namely
an amendment to the rules.
[44]
The requirement for those rules as set out in s 10(3) of the STSMA,
is that they 'must be reasonable
and apply equally to all owners of
units'.
[45]
The wording of this section clearly contemplates a discretion being
vested upon bodies corporate
to manage themselves in a fashion so
long as it is reasonable.
[46]
Having already found that the manner in which the body corporate has
approached the divvying
up of the expenses and its detailed and
considered approach, there is nothing unreasonable about it and,
accordingly, there is
no basis to contend that the amendment to the
rules is unreasonable.
[47]
Accordingly, I find that there is no absolute requirement as
contended for by the defendant that
only a PQ can be used to allocate
costs and in its very implementation, the manner in which the
plaintiff has conducted itself,
in amending its rules, as it is
allowed to do, in its implementation and in the practical
application, is reasonable in the circumstances.
Interest
[48]
The STSMA specifically provides that interest may be charged. This is
contained in management
rule 21(3)(c).
[49]
The only caveat is that such interest may not exceed the amount in
terms of the National Credit
Act 34 of 2005 ('the NCA').
[50]
The two percent interest per month, whilst equating to 24 percent per
annum, is below the limit
of the NCA and the resolutions for 2012
(exhibit A28), 2019 (exhibit A216) and 2020 (Eexhibit A236), were
never put in dispute.
[51]
Whilst the 2012 resolution is for all future amounts outstanding, I
take the other two documents
to merely be a belt and braces approach.
There is no reason not to apply two percent per month.
The
amendment to the management rule holding unit holders liable,
contravenes section 35(3) of the STA
[52]
The defence in this regard is that the levy computation formula is
corrupted and that the plaintiff
is not entitled to charge levies on
undeveloped units as it contravenes s 35(3) of the STA.
[53]
As has already previously been found, the amendment of the rules
under the STA was permissible
and, accordingly, once the rules were
amended, it is the operation of the certificate which governs the
collection. This is perfectly
permissible and, accordingly, this
argument, too, amounts to a collateral challenge and fails for the
same reasons set out in this
judgment above.
Amount
Due
[54]
The final issue for determination is the calculation of the amount
due. At exhibit A355, the
computation of the amount due and claimed
in this case is set out. That schedule, its calculations and the
computation were never
challenged.
[55]
In addition thereto, the plaintiff and its witnesses were meticulous
in proving the methodology
of interrogating the budget line by line,
allocating expenses between direct and indirect expenses and,
thereafter, appropriating
those levies to the individual statements.
In addition, the evidence regarding the reserve funds and the special
levies were specifically
canvassed as well as the budgeted amounts.
[56]
Mrs Robinson was clear and explicit on the utility charges and the
allocation of the basic amounts
between unit holders and, again,
those amounts were never challenged. Her evidence of the trustees
resolutions, the AGM board packs,
the minutes of the meetings and the
notifications thereafter was clear and unequivocal.
[57]
I pause to mention that one of the specific items that was canvassed
was the special levy at
exhibit A325, where a special levy was raised
against all owners as there was a shortfall in the funds due to
'material non-payment
of special and ordinary levies by defaulters'.
[58]
By 2020, the defendant, by his own admission, was a defaulter, owed
money and was withholding
levies. The establishment of administration
and reserve funds, both in terms of the STA and the STSMA, are
specifically contemplated
at bodies corporate operating such that
their income is sufficient to discharge their liabilities. When that
income is divided
by the unit holders, and defaulters accumulate,
such as in the present circumstance, it is inevitable that a special
levy will
have to be raised to satisfy the loss/differential created
by the defaulters.
[59]
Whilst on this side, the defendant, having admitted that he withheld
levies and having admitted
that he owes levies, can hardly be
surprised that he was not allowed to vote at the AGMs as the STSMA
specifically provides that
a unit holder who is in arrears may not
vote and, accordingly, the defendant's complaint that he was not
allowed to vote his shares
again rings hollow.
[15]
He was legitimately precluded from voting where he deliberately
withheld levies.
[60]
The defendant in court displayed a sense of entitlement which is best
described as wanting to
have his cake and eat it, in circumstances
where he wanted to benefit from the income of the properties, have
the body corporate
pay the utilities and then withheld all payments
including for the utilities. He then complains the Plaintiff
prevented him from
operating his business. This again is an issue
which I do not have to decide upon, I have referenced it in order to
negate the
misguided thinking of the defendant that simply because he
did not like the size or extent of the levies, he was excused from
paying
them. If he wishes to correct that situation, his remedies lie
elsewhere but do not allow him to withhold payments as he has done
in
the present circumstances.
[61]
In all the circumstances, I find that the plaintiff has made out its
case for relief as set out
in the summons and, accordingly, I make
the following order.
Order
[62]
Judgment is granted against the defendant for:
(a)
Payment of the sum of R2 498 477.84 (two million, four hundred and
ninety- eight thousand,
four hundred and seventy-seven Rand,
eighty-four cents);
(b)
Payment of the sum of R2 882 074.13 (two million, eight hundred and
eighty- two thousand
and seventy-four Rand, thirteen cents);
(c)
Interest at the rate of two percent (2%) per month compounded daily
in arrears from
22 April 2020 to date of final payment;
(d)
Costs of suit on the scale as between attorney and client.
HARRISON
AJ
Appearances
For the Plaintiff:
Mr S Hoar
Instructed by:
Cox Yeats Attorneys
21 Richefond Circle
Ridgeside
Office Park
Umhlanga
Ridge
Ref:
L Paloa/N
Cura/04S014002
Tel:
031 536 8500
Email:
lpaola@coxyeats.co.za
And to:
stewarthoar@vodamail.co.za
For the Defendant:
IP
Instructed by:
Talbot Attorneys
Address:
02 Shackleford Road
Pelham,
Pietermaritzburg
c/o
ER Browne
Address:
310 Cowey Road
3rd
Floor
91-123 Problem
Mkhize Road
Durban, 4001
Email:
secretary@talbotlaw.co.za
Date of reserved:
03 October 2023
Date of delivery:
16 October 2023
[1]
Opposing Affidavit to Summary Judgment, para 40. Affidavit deposed
to on 2 April 2019.
[2]
Exhibit C4, para 2.
[3]
Defendant's closing address.
[4]
This is a reduced amount in respect of developed units, it having
become common cause that units G29 and G30 had been sold, levies
paid (when the levy clearance certificate was required), and those
properties transferred.
[5]
I have specifically incorporated the entire section 3 in this
judgment for the benefit of the defendant as a litigant in person.
[6]
I must mention that the plea was drafted at a time when the
defendant was represented by both an attorney and counsel.
[7]
The existence of the developed sites is admitted in the defendant's
plea and during the course of the trial, the identification,
numbering and square meterages of the developed sites was also
clarified and became common cause. It also became common cause
during the trial that real right 45 has 21 sites, eight developed
and 13 undeveloped. These are units 155 to 175 of which 155
to 162
are the developed sites, and 163 to 175 are the undeveloped sites.
[8]
This defence is effectively in the alternative to the argument that
there should only be a single charge, if a PQ is only to
be applied,
then, the 13 undeveloped units will not attract a levy as being
undeveloped sites they do not have a PQ.
[9]
Annexure 1 to the Sectional Titles Schemes Management Regulations GN
R1231, GG 40335, 7 October 2016.
[10]
Nothing turns on this as the issue of the interest and the 2012
resolution was introduced by Ridl and has never been challenged.
[11]
Annexure 'C4', para 2.
[12]
Exhibit 'C', page 6, penultimate paragraph.
[13]
Oudekraal
Estates (Pty) Ltd v City of Cape Town and Others
2004 (6) SA 222 (SCA).
[14]
Baront
Investments (Pty) Ltd v West Dune Properties 296 (Pty) Ltd and
Others
2014 (6) SA 286 (KZP).
[15]
Management rule 20(2) (Annexure 1 to the Sectional Titles Schemes
Management Regulations GN R1231, GG40335, 7October2016).
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