Case Law[2025] ZASCA 167South Africa
Waterberg Boulevard (Pty) Ltd v Smulhoekie Tuisnywerheid (Pty) Ltd and Another (283/2024) [2025] ZASCA 167 (4 November 2025)
Supreme Court of Appeal of South Africa
4 November 2025
Headnotes
Summary: Civil Law – Magistrates’ Courts Act 32 of 1944 – Whether a claim for arrear rental is a claim for specific performance in terms of s 46 – monetary jurisdiction of the magistrates’ court – landlord’s duty to mitigate damages – whether pre-trial agreements are binding to the court.
Judgment
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## Waterberg Boulevard (Pty) Ltd v Smulhoekie Tuisnywerheid (Pty) Ltd and Another (283/2024) [2025] ZASCA 167 (4 November 2025)
Waterberg Boulevard (Pty) Ltd v Smulhoekie Tuisnywerheid (Pty) Ltd and Another (283/2024) [2025] ZASCA 167 (4 November 2025)
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sino date 4 November 2025
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
### JUDGMENT
JUDGMENT
Reportable
Case
no: 283/2024
In
the matter between:
WATERBERG BOULEVARD
(PTY) LTD
APPLICANT
and
SMULHOEKIE
TUISNYWERHEID (PTY) LTD
FIRST RESPONDENT
LOUIS
PETRUS
BOSHOFF
SECOND RESPONDENT
Neutral citation:
Waterberg Boulevard (Pty) Ltd
v
Smulhoekie Tuisnywerheid (Pty) Ltd
and Another
(283/2024)
[2025] ZASCA 167
(4 November 2025)
Coram:
Mbatha ADP and Hughes, Weiner, Molefe and Unterhalter JJA
Heard:
25 August 2025
Delivered:
4 November 2025.
Summary:
Civil Law –
Magistrates’ Courts Act 32 of 1944
–
Whether a claim for arrear rental is a claim for specific performance
in terms of
s 46
– monetary jurisdiction of the magistrates’
court – landlord’s duty to mitigate damages –
whether
pre-trial agreements are binding to the court.
ORDER
On
appeal from:
Limpopo Division of the High Court, Polokwane
(Naude-Odendaal and Kganyago JJ sitting as court of appeal):
1.
Special leave to appeal is granted.
2.
The appeal is upheld with costs.
3.
The respondents are to pay the costs of the appeal jointly and
severally, the one paying
the other to be absolved.
4.
The high court order is set aside and replaced with the following
order:
1.‘The appeal is
upheld with costs on scale B. The respondents are to pay the costs
jointly and severally, the one paying
the other to be absolved.
2. The magistrates’
court order granted on 25 April 2023 under case number 108/2020, is
hereby set aside and replaced with
the following order:
‘
The defendants are
ordered to pay to the plaintiff:
(a) R442 493.00 jointly
and severally, the one paying the other to be absolved;
(b) interest
a
tempora morae
on the aforementioned amount from the date of
judgment, 25 April 2023 to date of payment;
(c)
costs of suit on attorney and client scale.’’
JUDGMENT
Mbatha
ADP (Hughes, Weiner, Molefe and Unterhalter JJA concurring):
Introduction
[1]
This matter requires the determination
of various issues. First, whether the application for special leave
to appeal, referred to
oral argument in terms of s 17(2)
(d)
of the Superior Courts Act 10 of 2013 (the
Superior Courts Act)
should
be granted. Second, whether a claim for arrear rental
constitutes a claim for specific performance in terms of s 46(2)
(c)
of the Magistrates’ Courts Act 32 of 1944 (the MCA). Third,
whether the lessor had a duty to mitigate damages in terms of
the
lease. Last, whether the monetary claim by the applicant,
Waterberg
Boulevard (Pty) Ltd (Waterberg)
falls
within the monetary jurisdiction of the magistrates’ courts.
Factual Background
[2]
On or about 15 March 2016, Waterberg
entered into a written lease agreement with the first respondent,
Smulhoekie Tuisnywerheid
(Pty) Ltd (Smulhoekie), in terms of which
Smulhoekie leased business premises from Waterberg for a period of
three years. The second
respondent Mr Louis Petrus Boshoff (Mr
Boshoff), who represented Smulhoekie, simultaneously bound himself as
a surety for the debts
of Smulhoekie in favour of Waterberg. Rental
for the premises was fixed at R17 100 per month, escalating over
the following
two years. Smulhoekie was also liable for the payment
of electricity, water and other sundry charges.
[3]
Upon signing the agreement, Smulhoekie took
occupation and began trading on the premises. However, as of October
2016, the business
closed down
due to poor
performance. This unfortunate state of affairs was communicated to Mr
Nico Van
Heerden (Mr Van Heerden), a
representative of Waterberg. According to Mr Boshoff, he was
requested to identify a suitable tenant,
who could take over the
remaining portion of the lease. A few months later, Mr Bilal Hassim
(Mr Hassim) was introduced to Mr Ettian
Fourie (Mr Fourie), a
representative of Waterberg, as a potential prospective tenant to
replace Smulhoekie. Mr Boshoff stated further
that, Mr Hassim
undertook also to settle the arrear rental owing by Smulhoekie to
Waterberg.
[4]
A few months later, Waterberg proceeded by
way of action in the Magistrates’ Court for the District of
Bela-Bela (the magistrates’
court) to seek the recovery of
arrear rental for the period from April 2016 to October 2016. The
matter served before Magistrate
M Montana (the magistrate), under
case number 207/2017 (the first MC action). Smulhoekie and Mr Boshoff
defended the action and
also filed a counterclaim. The court found in
favour of Waterberg. Smulhoekie and Mr Boshoff appealed against the
judgment and
order of the magistrates’ court. The appeal came
before the Limpopo Division of the High Court, Polokwane (the high
court).
The high court,
per
Semenya AJP and Diamond AJ, dismissed the appeal on the basis that
Waterberg’s claim fell within the monetary jurisdiction
of the
magistrates’ court. In addition, it found that Waterberg had no
duty to mitigate damages.
[5]
Upon the expiration of the lease agreement,
Waterberg issued a new summons out of the same magistrates’
court, under case
number 108/2020, against Smulhoekie and Mr Boshoff,
claiming arrear rental in a total amounting to R 478 061.28 (the
second MC
action). The amount claimed was later reduced to R 442
493.33. Waterberg also sought interest
a
tempora morae
on the said amount and costs of suit on an attorney and client scale.
The Magistrates’
Court case no 108/2020 (the second MC action)
[6]
I turn to consider the judgment of the
magistrates’ court, under case number 108/2020, which is the
subject of the application
before us. The magistrates’ court
(
per
Mr
Ponnan) dismissed a point
in limine
raised by the respondents in terms of s 46(2)
(c)
(
i
)
of the MCA. Smulhoekie and Mr Boshoff contended that the magistrates’
court lacked jurisdiction to determine the matter
as the claim by
Waterberg was a claim for specific performance, without an
alternative claim for damages; and that the claim also
exceeded the
monetary jurisdiction of the court, which is fixed at R200 000.
Although the magistrates’ court dismissed the
point
in limine,
it found in favour of
Smulhoekie and Mr Boshoff, on the basis that Waterberg failed to
mitigate its damages in terms of the law.
This led to Waterberg's
appeal to the high court.
[7]
This appeal too served before the high
court, Polokwane, (
per
Naude-Odendaal and Kganyago JJ). First, the high court found that the
question whether damages should be mitigated was not rendered
res
judicata
by the existence of a judgment
between the parties
per
Semenya
AJP and Diamond AJ in respect of the first MC action. This issue was
not pursued before this Court. Second, that the parties
were not
bound by the admissions and agreements made at the pre-trial
conference. Third, on the question whether the claim by Waterberg
was
for specific performance or not, it found that although the
magistrates’ court came to the correct conclusion, its finding
was based on the wrong premise of law. It held that Waterberg’s
claim was one sounding in money, rather than a claim for
specific
performance. Despite having reached this conclusion, it found that
since there was no alternative claim for damages by
Waterberg, the
magistrate ought to have upheld the point
in
limine
raised in terms of s 46(1)
(c)
of the MCA and dismissed the action. Last, it found that the claim
for R442 493.00 exceeded the prescribed monetary jurisdiction
of the
magistrates’ court; as a result, the magistrates’ court
lacked jurisdiction to entertain the claim. Consequently,
it
dismissed the appeal by Waterberg with costs.
Before this Court
[8]
Before this Court, the main questions are:
(a) whether the claim for arrear rental is a claim for specific
performance; and if so,
whether such a claim is beyond the
jurisdiction of the magistrates’ court; (b) whether the
magistrates’ court exceeded
its statutory jurisdiction by
considering a claim for specific performance without an alternative
claim for damages; (c) the binding
nature of the pre-trial minutes;
and whether on the facts of this case there was a duty upon the
lessor to mitigate its damages.
Waterberg contends that the high
court failed to appreciate that its claim fell outside of the
exception listed in s 46 of the
MCA. In addition, its claim was for
monetary payment which fell within the jurisdiction of the
magistrates’ court. On that
score, there was no need on the
part of Waterberg to plead damages in the alternative. It argued
further that the high court erred
in finding that it had a duty to
accept Mr Hassim as a substitute tenant to mitigate its damages. By
doing so, it argued that the
high court disregarded the principles of
pacta sunt servanda
and that there was nothing unfair, unreasonable, or unjust with the
lease agreement. On the other hand, Smulhoekie and Mr Boshoff
argued
that the high court did not err in its findings, and the appeal ought
to be dismissed with costs.
Special leave
[9]
The initial question to be decided by this
Court is whether Waterberg has met the threshold of s 16(1)
(b)
of the
Superior Courts Act. Section
16(1)
(b)
provides as follows:
‘
Subject
to
section 15(1)
, the Constitution and any other law-
(a)
…
(b)
an appeal against any decision of a Division on
appeal to it, lies to the Supreme Court of Appeal upon special leave
having been
granted by the Supreme Court of Appeal.’
The
law is trite as to what an applicant needs to show to reach the
jurisdictional threshold of s 16(1)
(b).
The yardstick as set out in
Westinghouse
Brake & Equipment (Pty) Ltd v Bilger Engineering (Pty) Ltd
[1]
(
Westinghouse
)
finds application to this provision, where Corbett JA expressed
himself as follows:
‘
I
have no doubt that the terms “special leave” and “leave”
were chosen with deliberation by the lawgiver
and that they were
intended to denote different concepts. It may be accepted that the
normal criterion of reasonable prospects
of success applies to both
the “special leave” of s 20 (4)
(a)
and the “leave” of s 20 (4)
(b)
(and in this connection I agree with ELOFF J, when he held, in the
case of
Van Heerden v Cronwright and
Others
1985 (2) SA 342
(T), that the
criterion of appealability adopted
in
Magnum National Life Assurance Co Ltd v South African Bank of Athens
Ltd
1985 (4) SA 365
(W) was clearly
wrong). In my view, however, the word “special” in the
former subsection denotes that some additional
factor or criterion
was to play a part in the granting of special leave. The contrary
view would give no content to the word “special”
and
would thus run counter to the general rule in the construction of
statutes.’
[10]
I
find that Waterberg has met the threshold set out in
Westinghouse
and should be granted special leave to appeal. Waterberg raises
questions of law and has demonstrated prospects of success that
are
sufficiently strong that refusing special leave could result in a
denial of justice. The matter is also of significance to
the public
and the parties.
[2]
There
are two conflicting judgments from the high court on two similar
questions of law.
Specific performance
and jurisdiction of the magistrates’ court
[11]
The magistrates’ court is a creature
of statute. In that regard, specific performance is regulated by s
46. Section 46(2),
in relevant part, provides that:
‘
A
court shall have no jurisdiction in matters-
(a)
…
(b)
…
(c)
in
which is sought specific performance without an alternative of
payment of damages, except in-
(i)
the rendering of an account in respect of which the claim does not
exceed the amount determined by the
Minister from time to time by
notice in the
Gazette
.’
The
maximum amount applicable is presently R200 000.
[3]
[12]
Section
46 is a statutory provision that limits the jurisdiction of the
magistrates’ court. In order to claim specific performance
in
the magistrates’ court, such a claim must be made with an
alternative claim for damages, save for an exception, not relevant
to
this case. In the event that it does not satisfy the aforesaid
requirements, such a claim may be made in the high court, which
has
concurrent jurisdiction
with
the magistrates’ court. The parties may confer jurisdiction
upon the magistrates’ court, by consenting to it in
writing.
This position is regulated by the provisions of s 45(1). Section 45
confers jurisdiction upon the magistrates’ court
over matters
which would otherwise be beyond its jurisdiction, if the parties
consent in writing to the court’s jurisdiction.
In most cases,
consent to the jurisdiction of the magistrates’ court is often
embodied in a contract between the parties.
It is essential to
highlight the court's statement in
Daljosaphat
Restorations (Pty) Ltd v KasteelHof CC
.
[4]
It
held that the conferral of jurisdiction by agreement cannot be made
by litigants who are not persons in respect of whom the magistrates’
courts enjoy jurisdiction, in the first place, in terms of s 28.
[13]
It is therefore imperative that, though the
parties may consent to jurisdiction, the relevant magistrates’
court must also
have jurisdiction in terms of s 28 of the MCA over
the persons concerned. Section 28 embodies the following:
‘
(1)
Saving any other jurisdiction assigned to a court by this Act or by
any other law,
the persons in respect of whom the court shall,
subject to subsection (1A), have jurisdiction shall be the following
and no other-
(a)
any person who
resides, carries on business or is employed within the district or
regional division;
(b)
any partnership which
has business premises situated or any member whereof resides within
the district or regional division;
(c)
any person whatever,
in respect of any proceedings incidental to any action or proceeding
instituted in the court by such person
himself or herself;
(d)
any person, whether
or not he or she resides, carries on business or is employed within
the district or regional division, if the
cause of action arose
wholly within the district or regional division;
(e)
any party to
interpleader proceedings, if-
(i)
the execution creditor and every claimant to the subject-matter of
the proceedings
reside, carry on business, or are employed within the
district or regional division; or
(ii)
the subject-matter of the proceedings has been attached by process of
the court;
or
(iii)
such proceedings are taken under section 69(2) and the person therein
referred to
as the “third party” resides,
carries on business, or is employed within the district or regional
division;
or
(iv)
all the parties consent to the jurisdiction of the court;
(f)
any defendant
(whether in convention or reconvention) who appears and takes no
objection to the jurisdiction of the court;
(g)
any person who owns
immovable property within the district or regional division in
actions in respect of such property or in respect
of mortgage bonds
thereon…’
[14]
Section
45
[5]
should
therefore be read together with s 28 when the court determines
whether it has the necessary jurisdiction to hear a matter.
In
Pfeiffer
v First National Bank of Southern Africa Ltd
,
[6]
this
Court determined that the words appearing in s 45(1), being
‘otherwise beyond its jurisdiction’, have reference
to
the amount being claimed. Therefore, these words allow a creditor to
bring a monetary claim, which is above the magisterial
jurisdictional
amount, before the magistrates’ court, if consented to by the
parties. Should there be no clause which expressly
excluded the
concurrent jurisdiction of the high court, the claimants would be
within their rights to institute an action in either
the magistrates’
court or the high court.
[15]
A consent in writing to the jurisdiction of
the magistrates’ court should be in writing as prescribed in s
45(1). In this
matter, consent to jurisdiction of the magistrates’
court was embodied in clause 43 of the lease agreement, which
provides
as follows
:
‘
…
The
landlord's domicilium is the address indicated on the title page of
this agreement; provided that the landlord may at any time,
by
written notice to the tenant, amend its domicilium, the amendment to
become effective as soon as the said written notice has
been posted
to the tenant by prepaid registered mail. Although the landlord will
not be obliged to do so, it will be entitled to
institute any action
arising out of this agreement in the
Pretoria
Magistrate’s Court
and
in that event, the said court will have jurisdiction in that matter
.
’
(Emphasis added.)
[16]
Waterberg instituted all the actions in
Bela-Bela, rather than in Pretoria, as expressly stated in the lease
agreement. The reference
to Pretoria as a court of choice for the
parties is not fatal to Waterberg’s case for several reasons.
First, the issuing
of summons in Bela-Bela did not oust the
jurisdiction of the magistrates’ court, as s 45 requires only
that the consent be
in writing. It does not require that the parties
choose a specific court. Second, a summons issued in the wrong forum
would generally
attract a special plea relating to the lack of
jurisdiction or the parties could transfer the action by consent to
the correct
forum. Last, the consent to the magistrates’ court
jurisdiction should also comply with the requirements of s 28, as
stated
above. Waterberg, in its particulars of claim, described
Smulhoekie’s principal place of business as being in Bela-Bela,
that the cause of action arose within the jurisdiction of the
magistrates’ court in Bela-Bela and that Mr Boshoff is resident
within the jurisdiction of the Bela-Bela court. These factors
conferred jurisdiction on the Bela-Bela court in terms of s 28. In
that regard, the Pretoria magistrates’ court would not have had
jurisdiction over the parties.
[17]
I
briefly reiterate the relevant principles relating to specific
performance. A party seeking an order for specific performance
in
terms of a contract should allege and prove non-performance of the
contract. It is trite that every party to a binding contract
who is
ready to carry out its obligations under it has the right to demand
from the other party performance of their obligation
in terms of the
contract.
[7]
In
this matter, Waterberg instituted a claim for arrear rental, without
seeking a claim for specific performance of the contract.
In
the law of contract specific performance can be understood in three
senses: a claim for the payment of money (
ad
pecuniam solvendam
),
a claim for the performance of a positive act (
ad
factum praestandum
);
or a claim to enforce a negative obligation, for example, a restraint
of trade.
[18]
It is apposite that I give a brief history
of s 46(2)
(c)
,
which is relevant to the interpretation of the words ‘specific
performance’. The issue at hand is whether the phrase
‘specific
performance’ should be confined to specific performance of an
obligation, that is, a contractual obligation.
And whether there
should be a distinction between a claim
ad
pecuniam solvendam
(claims sounding in
money) and a claim
ad factum praestandum
(claims for the performance of a specific act). Section 44(2)
(c)
of the Magistrates’ Courts Act 32 of 1917 (the old MCA),
provided that the magistrates’ court shall have no jurisdiction
over a matter in which is sought ‘the specific performance of
an act’ (daadwerklike vervulling van een verbitenis),
without
an alternative claim for damages.
[19]
The
provision was interpreted differently by different provincial
divisions of the supreme courts. In
Sydney
Clow & Co Ltd v Herzberg
[8]
(
Sydney
Clow
),
in considering the meaning of the words ‘specific performance’,
the court placed reliance on the use of the words
‘of an act’
after the words ‘specific performance’. It found that
specific performance, properly interpreted,
was not confined to
specific performance of an obligation and that it included the claim
for the return of property in a vindicatory
action. In coming to this
conclusion, it relied on the signed English version of the old MCA.
The Dutch version of s 44 in relation
to the caveat stated that
‘…waarinverbinteis zonder even alternaeis voor
schadevergoeding genorden word’.
[9]
Section
44 of the old MCA also enumerated instances where the magistrates’
court would not have jurisdiction, where specific
performance was
sought without an alternative claim for damages. The learned authors
of
Jones
& Buckle
,
The Civil Practice of the Magistrates’ Court, Volume 1
[10]
(Jones
& Buckle) have expressed doubts that the interpretation offered
in
Sydney
Clow
would be applicable to the current legislation.
[20]
In
s 46(2)
(c)
of the current MCA, the words ‘of an act’ are omitted and
in the signed version, which is in Afrikaans, the words ‘daadwerklike
vervulling’ appear without reference to any ‘verbintenis’.
This is a factor which Jones & Buckle opines that
the
interpretation of the words ‘specific performance’ in
Sydney
Clow
may no longer be applicable to the current MCA. In
Maisel
v Camberleigh Court (Pty) Ltd,
[11]
(
Maisel
)
the court found that the words specific performance should be given
their well-known meaning of specific performance of a contract
on the
basis that it appears inapt to describe a claim for statutory or
other obligation as a claim for specific performance. In
Olivier
v Stoop
[12]
(
Olivier
),
the court found that the words specific performance relates to the
specific performance of a contractual obligation. And, that
the
magistrates’ court has jurisdiction to order that a liquidator
be appointed.
[21]
Conversely,
Zinman
v Miller
[13]
(
Zinman
)
held as follows:
‘
The
reference to “specific performance” in s 46(2)
(c)
is a reference in my opinion to claims in which a plaintiff seeks
ordinary relief of a final nature based on the obligation, in
terms
of which the defendant is bound to render specific performance’.
It
went on to state that ‘it is immaterial for the purposes of
this case whether the obligation arises from contract, delict
or
statute and it is therefore unnecessary to decide whether the words
“specific performance” in the section are restricted
to
performance of a contract’. In
Carpet
Contracts (Pty) Ltd v Grobler
[14]
(
Carpet
Contracts
),
following the decision in
Zinman
the
court found that even an obligation arising from delict could give
rise to a claim for specific performance. This is in line
with the
view expressed in Jones & Buckle that the omission of the words
‘of an act’ and ‘van een verbintenis’
in s
46(2)
(c)
would
resolve the conflict between the English and Dutch versions in the
old MCA, to empower the magistrate’s court to compel
a person
to perform an act.
[22]
However,
in
Carpet
Contracts,
[15]
the
court held that a claim by a seller for payment of the contract price
is a claim for specific performance of a contractual obligation.
Therefore, in the absence of an alternative claim for damages, the
magistrates’ court lacked jurisdiction to entertain the
matter.
In addition, it found that there was no distinction between a claim
ad
factum praestandum
and a claim
ad
pecuniam solvendam
and
that both claims, depending on the circumstances, may be claims for
specific performance. Conversely, in
Tuckers
Land and Development Corporation (Edms) Bpk v van Zyl
,
[16]
(
Tuckers
),
the court made a distinction between claims
ad
pecuniam solvendam
and claims
ad
factum praestandum
.
It did not follow the finding in
Carpet
Contracts
.
It found that orders sounding in money, regardless of the cause of
action, are not for the purposes of s 46(2)
(c)
orders for specific performance. The learned authors in Jones &
Buckle are of the view that this is a correct approach. They
opine
that the reasoning of the court in
Tuckers
is
sound as it is based on the history of the section and practice which
has arisen thereunder. In that regard, they conclude that
when the
legislature placed orders for specific performance without an
alternative claim for damages, beyond the jurisdiction of
the
magistrates’ courts, it had in mind not orders for specific
performance, but orders for specific performance
ad
factum praestandum
as contrasted with orders
ad
pecuniam solvendam
.
The case before us is not the type of matter where the court has to
exercise a discretion whether to grant an order for specific
performance or consider an alternative claim for damages. The
discretion is exercised in cases where to order specific performance
is to require a defendant to do a positive act. If the discretion is
exercised against such an order, damages is the alternative
remedy.
That reasoning does not apply in the case of a money claim.
[23]
I,
therefore, conclude by finding that the individual claims for arrear
rental by Waterberg were claims sounding in money and not
claims for
specific performance within the meaning of s 46(2)
(c)
.
The magistrates’ court has jurisdiction to entertain such
monetary claims, without an alternative claim for damages. Waterberg
also categorised its action as a claim for specific performance. The
high court failed to appreciate the distinction between orders
ad
factum praestandum
(claims
for specific performance of an act) and
pecuniam
solvendam
(claims for the payment of a sum of money) as found in
Tuckers
.
In
Tuckers
the court made the following analogy ‘…to order the
payment of a salary due is not an order for specific performance
ad
faciendum [to be done] …’
[17]
It
explained further that these are not orders for specific performance
in form or nature. And found that, orders sounding in money,
regardless of the cause of action are not for purposes of s 46 orders
for specific performance.
[24]
In the particulars of claim, the
claims for rental were tabulated as follows:
‘
3.
In terms of the said agreement, the first defendant would pay rental
to the plaintiff as follows:
3.1 From 15 April 2016 to
31 March 2017, an amount of R17 100.00….
3.2 From 1 April 2017 to
31 March 2018, and an amount of R18 468.00…
3.3 From 1 April 2018 to
31 March 2019, an amount of R19 945.44….’
The
amounts above totalled R478 061.28, which exceeds the prescribed
statutory limit of R200 000.
[25]
Section 43(1) of the MCA allows for the
combination of two or more claims in a single summons, even if they
are based on different
causes of action. Therefore, each year’s
rental claim would be considered as a separate cause of action, as
they did not
exceed the jurisdictional limit of R200 000. The
monetary jurisdiction of the magistrates’ court is regulated by
s 29
which provides as follows:
‘
(1)
Subject to the provisions of this Act and the National Credit Act,
2005 (Act No. 34
of 2005), a court in respect of causes of action,
shall have jurisdiction in –
(g)
actions other than those already mentioned in this
section, where the claim or the value of the matter in dispute does
not exceed
the amount determined by the Minister from time to time by
notice in the Gazette.’
The
provision stipulates that the total amount of the claims individually
should not exceed R200 000. Waterberg’s claim
for the
amount of R442 493.28 does exceed the prescribed monetary
jurisdiction of the magistrates’ court but the individual
claims do not. Properly construed, this means that different claims
with a total value in excess of the magistrates’ court
money
jurisdiction determined by the Minister, can be claimed in one
action, as long as each claim falls under a separate cause
of action.
The claims of Waterberg have been pleaded separately and they all
fall within the jurisdiction of magistrates’
court. Had the
claims not been separated, Waterberg would still be entitled to its
full claim as the parties consented in writing
to the jurisdiction of
the magistrates’ court in terms of clause 43 of the lease
agreement. I
therefore find that the
magistrates’ court did not exceed its statutory jurisdiction by
considering Waterberg’s claim,
although with a caveat, that the
claim was not for specific performance requiring damages to be
pleaded in the alternative.
The binding nature of
pre-trial agreements
[26]
Rule 22A of the Magistrates’ Court
Rules mandates that the parties should meet for a pre-trial
conference, which ultimately
culminates in a minute signed by both
parties. The purpose of this rule is to encourage pre-trial
engagement, enhancing judicial
case management and promoting
efficient preparation for the hearing. Incorrect legal concessions
made by the parties during the
process are not binding on the court.
The court was correct in finding that a wrong concession on a
question of law was not binding
on it, going as it did to a question
of jurisdiction over which a court always retains the power to
decide.
Duty to mitigate
damages
[27]
I find that the high court misdirected
itself by finding that Waterberg had a duty to mitigate damages.
First, the lease agreement
remained in force as Smulhoekie and Mr
Boshoff failed to cancel it. Second, the relationship between the
parties was regulated
by the terms of the written lease agreement,
rather than any other law, as determined by the high court. Clause
9.2.3 of the lease
agreement provides:
‘
In
the event of the cancellation of the lease-
9.2.3
the tenant notwithstanding any stipulation to the contrary, shall
remain liable for all rental and other
monies due until the end of
the term of lease or until a new tenant that is acceptable to the
landlord is found and commences paying
rental in respect of the
premises, whichever is earlier.’ (Emphasis added.)
The wording of clause
9.2.3, properly construed, regulates the mitigation of damages, in
the event of the cancellation of the lease.
The lease was never
cancelled. No duty on the part of Waterberg could arise to mitigate
damages.
[28]
Accordingly, for the reasons above, I find
in favour of Waterberg. The appeal should be upheld with costs.
[29]
I make the following orders:
1.
Special leave to appeal is granted.
2.
The appeal is upheld with costs.
3.
The respondents are to pay the costs of the appeal jointly and
severally, the one paying
the other to be absolved.
4.
The high court order is set aside and replaced with the following
order:
1. ‘The appeal is
upheld with costs on scale B. The respondents are to pay the costs
jointly and severally, the one paying
the other to be absolved.
2. The magistrates’
court order granted on 25 April 2023 under case number 108/2020, is
hereby set aside and replaced with
the following order:
‘
The defendants are
ordered to pay to the plaintiff:
(a) R442 493.00 jointly
and severally, the one paying the other to be absolved;
(b) interest
a
tempora morae
on the aforementioned amount from the date of
judgment, 25 April 2023 to date of payment;
(c)
costs of suit on attorney and client scale.’’
Y
T MBATHA
ACTING
DEPUTY PRESIDENT OF APPEAL
Appearances
For
the applicant:
M
Bresler
Instructed
by:
Riekert
Terblanche Attorneys, Bela-Bela
Hendre
Conradie Inc., Bloemfontein
For
the respondents:
D
Fine
Instructed
by:
Boshoff
Inc., Pretoria
Honey
Attorneys, Bloemfontein.
[1]
Westinghouse
Brake & Equipment (Pty) Ltd v Bilger Engineering (Pty) Ltd
1986 (2) 555 (A) at 561 C-F.
[2]
Cook v
Morrison and Another
[2019]
ZASCA 8
;
[2019] 3 All SA 673
(SCA);
2019 (5) SA 51
(SCA) para
8.
[3]
GN 217, Government Gazette 37477, 27 March 2014: Determination of
monetary jurisdiction for causes of action in respect of courts
for
districts.
[4]
Daljosaphat
Restorations (Pty) Ltd v KasteelHof CC
[2006] ZAWCHC 26
;
2006 (6) SA 91
(C) para 35.
[5]
Section 45(1) provides: ‘(
1)
Subject
to the provisions of section 46, the parties may consent
in
writing
to the jurisdiction of either the court for the district or the
court for the regional division to determine any action or
proceedings otherwise beyond its jurisdiction in terms of section 29
(1).’ (Emphasis added.)
[6]
Pfeiffer
v First National Bank of Southern Africa Ltd
1998
(3) SA 1018 (SCA); [1998] 3 All SA 397 (A).
[7]
Farmers’
Co-operative Society v Berry
1912 AD 343
at 350.
[8]
Sydney
Clow & Co Ltd v Herzberg
1938 TPD 201.
[9]
This translates to ‘obligations that, by their nature, have no
equivalent remedy in damages if they are not performed’.
[10]
Jones and Buckle:
The
Civil Practice of the Magistrates' Courts in South Africa
10
th
edition (2017) at 306.
[11]
Maisel
v Camberleigh Court (Pty) Ltd
1953
(4) SA 371
(C) at 379H.
[12]
Olivier
v Stoop
1978
(1) SA 196
(T) at 201B and 202C-D.
[13]
Zinman
v Miller
1956
(3) SA 8
(T) at 12D- E.
[14]
Carpet
Contracts (Pty) Ltd v Grobler
1975
(2) 436 at 439 (T).
[15]
Ibid at 442C-D.
[16]
Tuckers
Land and Development Corporation (Edms) Bpk v van Zyl
1977
(3) SA 1041
(T) at 1045 D.
[17]
Ibid at 1049 F-G.
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