Case Law[2025] ZASCA 170South Africa
Groundswell Developments Africa (Pty) Ltd and Others v Brown (899/2024) [2025] ZASCA 170; [2026] 1 All SA 12 (SCA) (12 November 2025)
Supreme Court of Appeal of South Africa
12 November 2025
Headnotes
Summary: Section 17(2)(f) of the Superior Courts Act 10 of 2013 – validity of the agreement of sale – validity of the builder’s lien relied upon misrepresentation – unlawful conduct by the second applicant – second applicant failed to show that a grave failure of justice would result or that the administration of justice would fall into disrepute if an order was not granted varying the decision of the high court and the two judges of this Court refusing leave to appeal – application for reconsideration dismissed.
Judgment
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## Groundswell Developments Africa (Pty) Ltd and Others v Brown (899/2024) [2025] ZASCA 170; [2026] 1 All SA 12 (SCA) (12 November 2025)
Groundswell Developments Africa (Pty) Ltd and Others v Brown (899/2024) [2025] ZASCA 170; [2026] 1 All SA 12 (SCA) (12 November 2025)
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sino date 12 November 2025
FLYNOTES:
PROPERTY
– Sale agreement –
Misrepresentation
and unlawful conduct
–
Estate
agent – Acted unlawfully by purchasing property while
representing seller – Created a conflict of interest
–
Agreement contained onerous terms favouring agent and omitted
safeguards present in other offers – Builder’s
lien
was void – Company was agent’s alter ego – Lien
arose from an agreement concluded without seller’s
knowledge
– High Court correctly declared agreement invalid and voided
builder’s lien – Application dismissed
–
Superior Courts Act 10 of 2013
,
s 17(2)(f).
#
# THE SUPREME COURT OF
APPEAL OF SOUTH AFRICA
THE SUPREME COURT OF
APPEAL OF SOUTH AFRICA
# JUDGMENT
JUDGMENT
Reportable
Case no: 899/2024
In the matter between:
#
# GROUNDSWELL DEVELOPMENTS
AFRICA (PTY) LTD FIRST APPLICANT
GROUNDSWELL DEVELOPMENTS
AFRICA (PTY) LTD FIRST APPLICANT
JEAN PIERRE NORTJE
SECOND APPLICANT
HORIZON GROUP (PTY)
LTD
THIRD APPLICANT
and
CATHERINE
JUDY BROWN
RESPONDENT
Neutral citation:
Groundswell Developments Africa (Pty) Ltd and Others v Brown
(899/2024)
[2025] ZASCA 170
(12 November 2025)
Coram:
PETSE, MBHA and DLODLO JJA
Heard
:
15 August 2025
Delivered:
12 November 2025
Summary:
Section 17(2)
(f)
of the
Superior Courts Act 10 of 2013
–
validity of the agreement of sale – validity of the builder’s
lien relied upon misrepresentation – unlawful
conduct by the
second applicant – second applicant failed to show that a grave
failure of justice would result or that the
administration of justice
would fall into disrepute if an order was not granted varying the
decision of the high court and the
two judges of this Court refusing
leave to appeal – application for reconsideration dismissed.
# ORDER
ORDER
On
application for reconsideration
:
referred by Molemela P in terms of
s 17
(2)
(f)
of the
Superior Courts Act 10 of 2013
:
1
The application in terms of
s 17(2)
(f)
of the
Superior Courts
Act 10 of 2013
is dismissed.
2
The second applicant is liable for the respondent’s costs on a
scale between attorney
and client.
3
Paragraph 2 of this order is suspended for ten days to afford the
second applicant an
opportunity, if so advised, to serve on the
respondent’s attorneys and file with the Registrar of this
Court an affidavit
showing cause why paragraph 2 hereof should not
take effect after ten days.
4
The respondent is granted leave, if so advised, to deliver an
affidavit in answer to
that of the second applicant within five days
of the filing of such affidavit.
# JUDGMENT
JUDGMENT
Mbha
JA
(Petse and
Dlodlo JJA concurring):
Introduction
[1]
This is an application brought by the applicants
in terms of s 17(2)
(f)
of
the Superior Courts Act 10 of 2013 (the
Superior Courts Act), for
the
reconsideration of an order of this Court, per Mabindla-Boqwana JA
and Mantame AJA, made on 11 July 2024. In terms of this
order, this
Court dismissed with costs the applicants’ application for
leave to appeal on the grounds that there were no
reasonable
prospects of success in an appeal and that there is no other
compelling reason why an appeal should be heard. The President
of
this Court has exercised her discretion to refer the decision of the
two aforementioned judges, of 11 July 2024, to this Court
for
reconsideration and, if necessary, variation.
Background
[2]
The parties in this matter are Groundswell
Developments Africa (Pty) Ltd (Groundswell), the first applicant; Mr
Jean Pierre Nortje
(Mr Nortje) in his personal capacity, the second
applicant; Horizon Group (Pty) Ltd (Horizon), the third applicant;
and Ms Catherine
Judy Brown (Ms Brown), the respondent. It is common
cause that Mr Nortje was at all relevant times the alter ego of both
the first
and third applicants. All the issued share capital in each
of the two companies registered in Mr Nortje’s name.
[3]
The respondent brought an application in the
Western Cape Division of the High Court, Cape Town (the high court)
seeking, in the
main, an order that the agreement of sale (AOS)
concluded between the respondent and the first applicant be declared
invalid and
of no force and effect, alternatively cancelled and an
order that the builder’s lien relied on by the third applicant
also
be declared void and of no legal force and effect. The remaining
prayers constituted ancillary relief and were dependent on the
success of the main relief.
[4]
The AOS was between Ms Brown on the one hand as
the seller and Groundswell on the other as the purchaser and was in
respect of Ms
Brown’s residential property in Sea Point, Cape
Town (the property) which she inherited from her deceased father. Mr
Nortje
marketed the property on Ms Brown’s behalf, as her
estate agent, based on her exclusive mandate to obtain a willing and
able buyer for the property. There were two offers to purchase
received from potential buyers on 3 February 2020 and 24
February
2020 respectively, but which were never presented to Ms
Brown. It is common cause that Mr Nortje presented Ms Brown with the
AOS
on 19 March 2020 and that she signed it on 20 March 2020.
[5]
On 18 March 2020, Mr Nortje, while purporting to
act on behalf of Groundswell, granted a letter of authority to one Ms
Crystalla
du Plessis (Ms du Plessis) authorising her to conclude a
sale of immovable property transaction on behalf of Groundswell. She
was
neither a director, a shareholder nor employee of Groundswell. Ms
du Plessis signed the AOS on 21 March 2020 as purchaser of the
property on behalf of Groundswell.
[6]
The conclusion of this document, ie letter of
authority, by Mr Nortje raises a number of inevitable questions:
(a)
First, Ms du Plessis, an unknown private
individual, appears from nowhere and is merely granted authority to
bind Groundswell, a
company of which Mr Nortje is the sole
shareholder and director, to acquire immovable property with all the
responsibilities and
obligations (including financial obligations),
which normally accompanies contracts of this nature, without a
resolution from Groundswell
to do so.
(b)
Second, Mr Nortje undertakes therein to resign as
director, have Ms du Plessis appointed as director instead and cause
all issued
shares in Groundswell to be registered in her name on
transfer of property into the name of Groundswell. The document
ostensibly
therefore appears to serve a dual purpose. First, it acts
as a letter of authority to Ms du Plessis. Second, it acts as a
separate
contract where Mr Nortje, in his personal capacity and as a
director and sole shareholder of Groundswell, binds himself to allow
Ms du Plessis to step into his shoes as the sole director and
shareholder of Groundswell if and when the transfer of the property
occurs.
(c)
Third, there are no other terms and conditions, no
quid pro quo
and,
as far as the document is concerned, Ms du Plessis becomes the owner
of a company which would own real estate on transfer of
the property
without having paid one cent. Most surprisingly, the property to be
acquired is not identified. The conclusion is
irresistible that this
was deliberate to create the impression that this document was just
of a general nature and that Ms du Plessis
could use Groundswell to
acquire any immovable property she may wish, using Groundswell as her
vehicle to do so.
(d)
As this document was signed on 18 March 2020, it
is clear that it was customised for the acquisition of Ms Brown’s
property.
In fact, in para 69 of Mr Nortje’s answering
affidavit he affirmed unequivocally that after he had introduced her
to Ms Brown’s
property telling her that it had potential
if it could be repaired, he then offered that she could use
Groundswell for the transaction.
[7]
The origin of the builder’s lien relied upon
by the third applicant originates from clause 7 of the AOS which
deals with occupation.
The clause appears, on a proper
interpretation, to grant beneficial vacant occupation of the property
to Groundswell for purposes
of cleaning, repairs and renovations. It
reads, in relevant part, as follows:
‘
7.1
The seller will prove (
sic
)
the Purchaser with Beneficial Vacant Occupation of the Property to do
cleaning and repairs/renovations, within 7 days of the Signature
Date
and agrees that the Purchaser can come to an agreement with the
current tenant to assist in this matter.’
The reference to the
current tenant at that stage was a reference to Ms Brown’s late
father’s girlfriend, who still
occupied the property but
vacated it shortly thereafter.
[8]
The AOS described explicitly the extent of the
repairs and renovations to be effected by the purchaser on the
property. It provides
that:
‘
7.2
The Seller acknowledges that the Tenant have (
sic
)
made makeshift and unauthorised changes to the property and that the
woodwork, plasterwork, ceilings and paintwork is in a very
poor
condition and therefore agrees that the Purchaser can proceed to
remedy same from date of occupation to facilitate bank approval.’
[9]
There is no time limit or anything that indicates
that this situation can only continue for a determined period.
Furthermore, there
is no provision that this may include anything
else than what is specified in the AOS. As will be seen later, Mr
Nortje decided,
unbeknown to Ms Brown and without obtaining her prior
consent, to build,
inter alia
,
two additional bathrooms and two kitchens on the property.
[10]
The aforesaid clause 7.2 also contains, in my
view, an anomaly in that the ‘purchaser’ did not have and
was not required
to obtain the assistance of a bank to finance the
sale. Ms Brown in fact states that the use of the words ‘facilitate
bank
approval’ in that clause was never explained to her by Mr
Nortje. This is not disputed. Even more alarming is the fact that
unlike the other two potential offers to purchase the property
referred to earlier, the AOS did not require the purchaser to pay
any
deposit or guarantee within a short time after signature thereof, as
this is usually the case whenever similar sale agreements
of property
were concluded. I will revert to this aspect later when I deal with
other apparently onerous terms of the AOS, which
were patently
weighted against or were disadvantageous to Ms Brown.
[11]
On 25 March 2020, Groundswell and Horizon
concluded a renovation and repairs agreement (the R and R agreement),
in terms of which
Horizon as service provider, was to facilitate
repairs, renovations and improvements to the property. This agreement
was neither
discussed with nor disclosed to Ms Brown and it was sent
to her just before the legal proceedings in this matter were
instituted.
This was the very first time that Ms Brown became aware
of its existence, some two years after the conclusion of the AOS.
[12]
The salient points about the R and R agreement are
the following:
(a)
The scope of the work recorded in clause 5 goes
far beyond what is envisaged in the AOS and includes building two new
bathrooms
and two new kitchens, rebuilding all aspects of the
approximately 200 square metres of residential dwellings, rebuilding
of the
boundary wall, excavation and removal of 60 cubic meters of
soil from the erf and so forth. This is despite the fact that this
agreement records that the right to do these works is established in
clause 7 of the AOS. The R and R agreement then sets the total
contract cost at about R3.5 million, which is even higher than the
purchase price of the property of R3 million, agreed to by Ms
Brown
and as stipulated in the AOS.
(b)
Horizon, which does not feature at all in the AOS,
is granted possession of the property without Ms Brown’s
knowledge and
this agreement stipulates that she may not interrupt or
interfere with the works in progress, albeit she was not even privy
to
it. Importantly, clause 12.5 of this agreement establishes a
builder’s lien in favour of Horizon and a right to take (and
retain) possession of the property until such time as the contract
costs are fully paid.
(c)
Pursuant to Horizon’s right to full
possession of the property in terms of clause 8, Mr Nortje
started residing on the
property and also used it as his office.
Although he never provided a date when he started living on the
property, he nonetheless
confirmed his occupation thereof and
justified it on the basis that the purchaser (Ms du Plessis or
Groundswell) had the right
to beneficial occupation and was satisfied
that he was providing the service and being on the premises on her
behalf. On the other
hand, Ms Brown did not know when or who took
occupation of her property.
[13]
Mr Nortje explained (in his answering affidavit)
that the purpose of clause 7 in the AOS was to allow Ms du Plessis,
the potential
buyer, to do repairs and renovations to the property
before taking transfer as there was no likelihood of obtaining a bond
on the
property in its current state. Mr Nortje’s statement is
telling and, of necessity, raises the following inferences, namely:
(a)
The purchaser, ie Groundswell or Mr Nortje
himself, required a bond to finance the purchase price, meaning that
the purchaser was
not able to pay the purchase price.
(b)
The purchaser realised that he, she or it would
not get a loan to pay the purchase price due to the state of the
property.
(c)
Neither Ms du Plessis, Groundswell nor Mr Nortje
were able purchasers of the property.
(d)
On Mr Nortje’s version, the purchaser, ie Ms
du Plessis, through Groundswell, or Mr Nortje himself, intended to
finance renovations
and repairs on Ms Brown’s property through
their own funds or a loan. They would continue with this arrangement
until the
purchaser was satisfied and could successfully secure a
bank loan. Only then would they proceed to request transfer of the
property
from Ms Brown.
[14]
The patently unsatisfactory picture that emerges
from this scenario is that Ms Brown’s right to a speedy
sale and transfer
of the property was completely disregarded. This is
because there were no time frames stipulated or specifications of
what would
be permitted and what not, save that remedying work,
plaster work, ceilings and paintwork may proceed.
[15]
According to Mr Nortje, the scope of the ‘project’
in respect of repairs and renovations is actually to be found in his
recordal thereof on his website which he created for this purpose and
that such recordal, referred to as JPN 18, had to be read
with the R
and R agreement. The JPN 18 contains a long list of some 70 odd
itemised attendances to be performed by Horizon or Mr
Nortje himself,
on the property.
[16]
However, what is pertinent is that the R and R
agreement read with JPN 18, does not even resemble anything provided
for in clause
7 of the AOS, and even on Mr Nortje’s own
version, this constituted a recordal of his own observations and
opinion of
what had to be done, but all or most of which is not
authorised by the AOS. Quite significantly, Mr Nortje does not
state
or claim that there was an agreement with the owner of the
property, that this JPN 18 was required in terms of the existing AOS
or that an addendum to the AOS was required to make provision for
what he intended to do on the property.
[17]
Ms Brown asserts unequivocally that she never
received any list like the JPN 18. Although she had access to
the website that
Mr Nortje created, she never saw any list with
similar content. She stated, however, that there was a shorter list
of things that
had to be done on the website. Clearly, and as stated
earlier, the scope of work recorded in clause 4 of the R and R
agreement
goes far beyond what is envisaged in the AOS, albeit that
this agreement records that the right to do these repairs and
renovations
is derived from clause 7 of the AOS.
[18]
Mention has been made of the fact that the R and R
agreement was neither disclosed to nor discussed with Ms Brown. In
addition,
nowhere does the AOS authorise Groundswell, the so-called
purchaser, to enter into a contract with a third party to do what is
envisaged in clause 7 of the AOS, moreover at a cost of R3.5 million,
which is more than the agreed purchase price of the property,
with
the option of additional costs.
[19]
Surprisingly, clause 6 of the R and R agreement in
particular, does not impose any obligation on Groundswell, the
purported ‘client’
in terms of that agreement and
‘purchaser’ of the property as per the AOS, to finance
the repairs and renovations up
front or as the work progresses.
Instead, Groundswell undertakes to pay the total cost only before or
on taking transfer. The most
probable explanation for this situation
is that the repairs and renovations were to be financed either by Mr
Nortje himself or
through the so-called service provider, Horizon.
[20]
The service provider Horizon was in terms of
clause 10 of the R and R agreement entitled to use water, electricity
and any other
municipal service on the property paid for by Ms Brown,
and not Groundswell. Ms Brown asserts that she had been paying
municipal
rates and taxes on the property, which is still the case,
and that at the time of the institution of this litigation she had
spent
in excess of R55 000 in this regard. In addition, whilst
she had paid in excess of R320 000 for the cleaning and repairs on
Mr
Nortje’s specific request, which was not denied, she had never
seen any proof of contribution by the alleged ‘purchaser’
in any capacity. Although Mr Nortje admitted these averments, he
never deemed it necessary to disclose the conclusion of the R
and R
agreement to Ms Brown.
[21]
Although Groundswell, as the purchaser, purported
to grant guarantees involving Ms Brown in clause 12 of the R and R
agreement,
this was clearly a ruse. Neither Ms du Plessis nor Mr
Nortje discussed this with Ms Brown. Consequently, she never agreed
to it
and was entirely unaware of these arrangements. Groundswell
then pledged the benefit of the AOS to Horizon as ‘surety’
for the payment of the total contract costs in the amount of R3.5
million. This arrangement clearly anticipates Mr Nortje,
either
personally or through Horizon, revealing himself as the true buyer of
the property at the end of the process or just before
transfer.
[22]
On 13 June 2022, acting on Ms Brown’s
instructions, her attorney, Mr Gabri Jordaan, addressed a letter to
Mr Nortje cancelling
the AOS, the power of attorney and the estate
mandate on the ground of a misrepresentation he had committed against
her. Mr Nortje
responded, on 18 July 2022, by forwarding a
document titled ‘Notice of Cession’. This document
records that as allowed
for in clause 15.6 of the AOS, Ms du Plessis
was ceding with immediate effect all her and Groundswell’s
rights and responsibilities
under the AOS, and specifically in
relation to the property, to Mr Nortje. The document also
mentioned that Mr Nortje was
currently residing on the property as
the project ‘manager’. Ms Brown responded on the same
day, empathetically stating
that she did not accept the cession and
disputed its validity.
[23]
Only on 17 August 2022, did Ms Brown, as seller,
receive the notice regarding the R and R agreement, dated 25 March
2022, from Mr
Nortje. This is when she came to know of Horizon’s
existence. Following a search conducted on the Companies and
Intellectual
Property Commission website, she then discovered that
Horizon was completely ‘owned’ by Mr Nortje. In her view,
Horizon
was Mr Nortje’s alter ego.
[24]
Clause 15.6 of the AOS, on which reliance was
sought to be placed by Mr Nortje for the justification of the said
‘cession’,
reads as follows:
‘
The
Seller agrees that the Purchaser shall have the right to cede or
assign any part, share or interest of this Agreement of Sale
or any
rights or obligations hereunder to a third party and that such
assignment can allow for the recovery of any cleaning, repair
and
renovation costs incurred by the Purchaser’.
[25]
Three distinct features characterise this
‘cession’ namely:
(a)
It is undated and bears only Mr Nortje’s
signature. The purported cedent’s signature, ie, Ms du Plessis,
is glaringly
absent therefrom.
(b)
Mr Nortje who has signed the AOS as ‘agent’
and is in fact the purported agent in the transaction, is as far as
Mr Nortje
is concerned, the prescribed third party to whom the
purchaser can lawfully cede rights and obligations arising from the
AOS. However,
Clause 2.19 of the AOS expressly defines ‘agent’
to mean Mr Nortje.
(c)
Lastly, the AOS does not provide that the
purchaser may cede its responsibilities or obligations without the
seller’s permission.
This omission must be contrasted with
clause 17.6 of the other two potential offers to purchase referred to
earlier, each of which
firmly provides that:
‘
Neither
this Agreement of Sale nor any part…nor any rights or
obligations hereunder may be ceded…without the prior
written
consent of the other Party.’
[26]
In light of what is stated in the preceding
paragraph, this purported ‘cession’ undoubtedly exposed
Mr Nortje for what
his true plans and intentions were,
vis-à-vis
Ms Brown. His conduct was certainly inconsistent
with his oft-repeated representation to Ms Brown that he always had
her interests
as seller at heart and that he did not have any
conflict of interest when he also represented the ‘purchaser’
Groundswell,
which was later confirmed that Groundswell was his alter
ego. This situation also raised the question of how Mr Nortje could
justify
claiming an agent’s commission when his alter ego,
Groundswell, is the purchaser and when he thereafter became the
purchaser
of the property in his personal capacity after the
so-called cession.
The judgment of the
high court
[27]
The
high court (per Fortuin J) found that Mr Nortje had committed various
acts of misrepresentation. It found that specifically
at the time the
AOS was concluded in March 2020, Mr Nortje was not in possession of a
valid fidelity fund certificate and that
he only obtained a valid
certificate on 14 February 2021. Relying, on the decision in
LEK
v
Estate Agents Board
,
[1]
Fortuin
J held that, in the circumstances any mandate to Mr Nortje
during 2020 would have been invalid.
[28]
The high court found that Mr Nortje did not
disclose his own interest in the transaction to the seller and that
purchasing the seller’s
property, while simultaneously acting
as her agent, is unlawful. From the common cause facts, it was clear,
the high court continued,
that Mr Nortje was the true purchaser of
the property and that he used Groundswell with the assistance of Ms
du Plessis as a front.
On these bases, the high court declared the
AOS to be invalid and of no force and effect.
[29]
The high court found that at the time that the
application was brought, Mr Nortje was residing on the seller’s
property and
also used it as an office without her knowledge and
consent. It further found that the initial occupation of the property
was authorised
in clause 7 of the AOS, in terms of which Groundswell
as ‘purchaser’ was entitled to obtain ‘beneficial
vacant
possession’, specifically and only for the purpose of
cleaning, repairs and renovations in respect of woodwork,
plasterwork,
ceilings and paintwork. There was nothing in clause 7,
the court held further, that permitted Mr Nortje to occupy the
property
for residential purposes or for work purposes as an office
for an undetermined period, or until transfer has taken place, or
until
Mr Nortje himself unilaterally decided that the repairs were
now complete. In the circumstances, the high court held that Mr
Nortje’s
occupation of the property is unlawful.
[30]
The high court further found that over and above
improperly purchasing the seller’s property while acting as her
agent, Mr
Nortje had entered into a renovation and repairs agreement
with Horizon, while being the sole director of Horizon to the
detriment
of his principal, the seller. It then held that Mr Nortje
had used Horizon as a façade to conceal the true facts when he
personally attended to the repairs and renovations on Ms Brown’s
property, but later involved Horizon.
[31]
The
high court concluded that Mr Nortje’s use of Horizon
constituted an abuse of juristic personality of this company as a
separate entity. In the circumstances, the court found that Horizon
is not a juristic person for purposes of the repairs and renovations
work on Ms Brown’s property, but that Mr Nortje and Horizon are
deemed to be the same person as contemplated in
s 20(9)
(a)
and
(b)
of the
Companies Act 71 of 2008 (the
Companies Act).
[2
]
[32]
As Ms Brown was never privy to the R and R
agreement, the high court found the conclusion of this agreement to
be an abuse. On the
facts, it was clear that Horizon is the alter ego
of Mr Nortje. Given that no actual proof of the amount and expenses
in relation
to the alleged repairs and renovations was provided, the
high court declared the builder’s lien relied upon by Horizon
to
be of no force and effect.
[33]
With regard to the cession, the high court found
that Groundswell had sought to cede all its rights, benefits and
responsibilities
to Mr Nortje as it was entitled to do in terms of
clause 15.6 of the AOS. However, the high court noted that a cession
under this
clause could only be effected to a ‘third party’.
It then reasoned that as Mr Nortje was in fact an agent, as
defined in clause 2.19, and that he also signed the AOS as a witness
and agent, he was accordingly not a third party, as was required
in
clause 15.6 of the AOS. In the circumstances, the high court held
that the cession was invalid and void
ab
initio
.
[34]
On 4 September 2023, the high court granted an
order,
inter alia
,
declaring the AOS between Ms Brown and Groundswell invalid and of no
force and effect, that the builder’s lien relied on
by Horizon
was void and of no legal force and that the respondents grant vacant
possession of the property to Ms Brown within 30
calendar days of the
order. The costs followed the event. The application for leave to
appeal was dismissed on the grounds that
there was no reasonable
prospect of success on appeal and there was no other compelling
reason why an appeal should be heard. On
11 July 2024, a subsequent
petition for leave to appeal to this Court suffered the same fate.
Hence the current application referred
to the Court by the President
under
s 17(2)(f).
The
s 17(2)
(f)
application
[35]
Before us two points
in
limine
were raised on the respondent’s
(ie Ms Brown) behalf. First, that the respondent was prejudiced by
the applicants’ failure
to comply with the rules of this Court
by failing to deliver a founding affidavit together with the
application for reconsideration
timeously resulting in the President
of this Court not having all the facts before her when she referred
the matter for reconsideration
and possibly variation. It is further
alleged that Ms Brown was prejudiced because she was unable to file a
supplementary affidavit
to address the belatedly filed founding
affidavit. Second, whether the first and third applicants, being
juristic persons, could
be represented in the appeal by the second
applicant, a lay person, without the leave of this Court first having
been sought and
granted.
[36]
The first point
in
limine
arose under the following
circumstances. The applicants served their application for
reconsideration on the respondent via electronic
mail on 12 August
2024. However, the founding affidavit was not attached to the index.
On 15 August 2024, the applicants served
a notice of motion with
a founding affidavit in which condonation was sought for the late
filing of the application.
[37]
On the same day, 15 August 2024, the respondent
filed an opposing affidavit in which it is stated,
inter
alia
, that the respondent will abide by
the President’s decision on the condonation application. The
respondent also opposed the
application in terms of the
s 17(2)
(f)
of the
Superior Courts Act on
the
merits.
[38]
As it is common cause that the President made her
decision referring the matter for reconsideration and possibly
variation on 31
August 2024, it is difficult to understand the
respondent’s complaint that when the President made her
decision she did so
without having all the facts before her.
Furthermore, the allegation of prejudice does not arise at all
because the respondent
duly placed all the facts in opposition to the
application in her opposing affidavit on 15 August 2024. In the
circumstances, the
first point
in limine
must fail.
[39]
I now
turn to consider the second point
in
limine
raised
by the respondent. It is trite that a company cannot conduct a case
in this Court except through the appearance of a natural
person who
is qualified as an advocate or attorney.
[3]
However,
cases will arise where the interests of justice may require a
relaxation of that general rule. Accordingly, superior
courts have a
residual discretion in any matter where such relaxation is sought,
arising from their inherent power to regulate
their own proceedings.
[40]
Courts
have refrained from formulating a test for the exercise of the
court’s inherent power and such cases have generally
been left
to the good sense of individual judges. However, this Court has laid
down that in each such instance leave must first
be sought by way of
a formal application.
[4]
In
Manong
& Associates (Pty) Ltd v Minister of Public Works and
Another
,
[5]
this
Court said the following:
‘…
Lest
this be misconstrued as a tacit or general licence to unqualified
agents, it needs be emphasised that in each such instance
leave must
be sought by way of a properly motivated, timeously lodged formal
application showing good cause why, in that particular
case, the rule
prohibiting non-professional representation should be relaxed.
Individual cases can thus be met by the exercise
of the discretion in
the circumstances of that case. It would thus be impermissible for a
non-professional representative to take
any step in the proceedings,
including the signing of pleadings, notices or heads of argument (as
occurred here), without the requisite
leave of the court concerned
first having been sought and obtained.’
[6]
[41]
It is common cause that Mr Nortje has not filed
any application seeking to show good cause why the rule that juristic
persons cannot
be represented by a natural person who is not an
advocate or attorney should be relaxed in this case. In the absence
of such application,
this Court is not at liberty to simply exercise
a discretion in the vacuum to depart from this well-established rule.
It therefore
follows that Mr Nortje is not permitted to
represent the first and third applicants in this application.
[42]
With effect from 3 April 2024, the amended
s
17(2)
(f)
of
the
Superior Courts Act reads
as follows:
‘
The
decision of the majority of the judges considering an application
referred to in paragraph
(b)
,
or the decision of the court, as the case may be, to grant or refuse
the application shall be final: Provided that the President
of the
Supreme Court of Appeal may, in circumstances where a grave failure
of justice would otherwise result or the administration
of justice
may be brought into disrepute, whether of his or her own accord or on
application filed within one month of the decision,
refer the
decision to the court for reconsideration and, if necessary,
variation.’
As Mr Nortje’s
reconsideration application was lodged on 15 August 2024, after the
aforementioned amendment came into effect,
it means that the previous
threshold for referral, namely ‘exceptional circumstances’,
is no longer required. The current
position is that the President of
this Court is permitted to refer a matter ‘where a grave
failure of justice would otherwise
result or the administration of
justice may be brought into disrepute’.
[43]
In
Liesching
and Others v S and Another
,
[7]
the
Constitutional Court held that
s 17(2)
(f)
applies
once special leave has been refused, which implies that the applicant
must demonstrate something beyond the requirements
for special leave.
It held:
‘
The
proviso in
s 17(2)
(f)
is
very broad. It keeps the door of justice ajar in order to cure errors
or mistakes, and for the consideration of a circumstance,
which, if
it were known at the time of the consideration of the petition, might
have yielded a different outcome. It is therefore
a means of
preventing an injustice. This would include new or further evidence
that has come to light or that became known after
the petition had
been considered and determined.’
[8]
[44]
In
order to establish whether a grave failure of justice would result or
the administration of justice would be brought into disrepute,
an
applicant in the position of Mr Nortje must demonstrate that the
matter involved specific criteria, including
‘
substantive
points of law, an issue of great public importance, or a strongly
arguable prospect of a denial of grave justice should
reconsideration
be refused’.
[9]
In
Avnit
v First Rand Bank
,
[10]
this
Court understood the power of referral as one
‘
likely
to be exercised only when the President believes that some matter of
importance has possibly been overlooked or grave injustice
will
otherwise result’.
[11]
The
Court emphasised that
s 17(2)
(f)
of
the
Superior Courts Act ‘is
not intended to afford disappointed
litigants a further attempt to procure relief that has already been
refused’
[12]
and
that ‘[a]n application that merely rehearses the arguments that
have already been made, considered and rejected
will not
succeed’.
[13]
In
this regard the Constitutional Court has stated in no uncertain terms
that
s 17(2)
(f
)
does not provide for a ‘parallel appeal process’
[14]
or
‘additional bites at the proverbial appeal cherry’.
[15]
[45]
I now turn to consider whether or not Mr Nortje’s
application satisfies or meets the threshold set out in the amended
s
17(2)
(f)
of
the
Superior Courts Act. Of necessity
in determining this issue,
regard must be had to the fact that a court must be convinced on
proper grounds that there is a reasonable
prospect of success on
appeal or any other compelling reason for the appeal to be heard.
[46]
In
sum, Mr Nortje argues that reconsideration is of critical importance
because the high court’s judgment creates numerous
erroneous,
‘dangerous and potentially harmful precedents’ that are
not supported by evidence and which according to
him ‘could
have dire consequences for other litigants’. Mr Nortje submits
that the high court’s finding that
he was not entitled to act
as an estate agent at the time of the conclusion of the AOS, as he
did not have a valid fidelity fund
certificate, is erroneous. Relying
on the decision in
Signature
Real Estate (Pty) Ltd v Charles Edwards Properties and Others
(Signature)
,
[16]
he
submits that the high court’s finding undermined estate agents’
constitutionally guaranteed right to freely
engage in their trade,
occupation or profession. In this case, he had fully complied with
all the requirements of the Estate Agency
Affairs Board (the Board),
and any reason for the delay in the issuing of a fidelity fund
certificate lays squarely with the Board.
[47]
In my view, Mr Nortje’s attempt to rely on
Signature
is
totally misplaced. The facts briefly, in that case, are that
Signature Real Estate (Pty) Ltd (Signature (Pty) Ltd) had fully
complied with all the formalities and was entitled in terms of the
provisions of the applicable legislation to be issued with a
fidelity
certificate. However, the Board erroneously issued certificates in
the name of Hidicol CC instead of Signature (Pty) Ltd.
The Board
conceded this. In
casu
,
it is common cause that no fidelity fund certificate was ever issued
to Mr Nortje for the year 2020 and that he only obtained
a valid
fidelity fund certificate on 14 February 2021. Significantly, Mr
Nortje has not even filed any supporting evidence from
the Board,
that this body was somehow at fault in not issuing him with a
fidelity fund certificate for 2020. In the circumstances,
the high
court’s finding that any mandate to Mr Nortje as an estate
agent, during 2020, would have been invalid, is correct
and cannot be
faulted.
[48]
Mr Nortje argues that the high court’s
finding that he was the true purchaser and that he used Groundswell
with the assistance
of Ms du Plessis as a front was incorrect and
‘proven totally unfounded’. He submits that this finding
is erroneous
and creates a
‘
dangerous
and potentially harmful precedent for any property developer or
investor as it flies in the face of the independent nature
of
companies’. He then argues that Groundswell, an independent
company, was in fact the buyer.
[49]
I have above dealt extensively with the
circumstances surrounding the coming into existence of the AOS, which
Ms Brown, as seller,
signed on 20 March 2020 and the so called letter
of authority dated 18 March 2020 by which Mr Nortje authorised
Ms du Plessis
to conclude the AOS on behalf of Groundswell,
the purchaser of the property. It is undisputed that Mr Nortje never
disclosed to
Ms Brown that he was the sole shareholder in
Groundswell, the so-called purchaser which is a registered company.
Ms du Plessis,
a private individual appeared from nowhere and was
merely given authority to bind Groundswell to acquire immovable
property, without
even a resolution from Groundswell to do so. At the
same time, Mr Nortje had purportedly resigned and then had Ms du
Plessis appointed
as sole director of that company. Significantly,
there are no other terms and conditions nor any
quid
pro quo
but Ms du Plessis firmly became
the owner of Groundswell, which would then own Ms Brown’s
property without having paid one
cent.
[50]
To describe what happened as a shenanigan is, in
my view, an understatement. It is clear that Mr Nortje devised a
devious scheme,
whereby he used Groundswell and Ms du Plessis as a
front to acquire Ms Brown’s property. It is clear that he was
in fact
the purchaser. As he was purporting to act as Ms Brown’s
mandated agent to sell the property, the fact that he conjured up
his
schemes to purchase the property, without disclosing his interest in
the transaction means that he allowed himself to be in
a conflict of
interest situation. The high court correctly described his conduct as
being unlawful.
[51]
I have, earlier on in the judgment, made reference
to certain terms and conditions in the AOS, which were particularly
onerous and
disadvantageous to Ms Brown as seller, and which
were materially different to the two other prospective offers of
sale. Considering
that Ms Brown’s property was in a poor state
of repair and not in a particular marketable condition, one would
have expected
a similar ‘voetstoots’ clause to have been
inserted in the AOS but this did not happen. The other two agreements
also
contained an express clause to the effect that no cession could
be done without the approval of the other party, something glaringly
missing in the AOS. In all, Mr Nortje did not act in the best
interests of his ‘principal’, as so called ‘agent’.
Instead, he went to great lengths to elaborate fictitious schemes to
advance his own interests to the prejudice of his client,
thereby
betraying the latter’s trust.
[52]
Mr Nortje criticises the finding by the high court
that the builder’s lien relied upon by Horizon to be void and
of no legal
force and effect to be ‘totally unfounded’.
Furthermore, as a contractor in Horizon’s position would seek
to
rely on a similar lien to ensure that she or it gets paid for work
done, the high court’s aforementioned finding created ‘a
dangerous and potentially harmful precedent for any contractor’.
[53]
As I have pointed out earlier, the particular lien
on which Horizon sought to rely has its root in clause 7 of the AOS
dealing with
occupation. Groundswell, as the so called
purchaser, was granted beneficial vacant possession of the property
for the specified
purposes of cleaning, repairs and renovations. The
clause further specified that this was to be limited to the woodwork,
plaster
work, ceilings and paintwork.
[54]
It is common cause that completely unbeknown to Ms
Brown, Groundswell and Horizon, the latter completely unknown to Ms
Brown at
that stage, signed a R and R agreement containing onerous
and disadvantageous terms and conditions as far as the owner and
seller
of the property was concerned. All of these have been
discussed earlier in the judgment and will not be repeated here.
[55]
It bears reminding again that Mr Nortje was the
sole shareholder of Horizon. On the facts, he clearly used Horizon as
a façade
to conceal the true facts when he personally attended
to the repairs and renovations on Ms Brown’s property but later
involved
Horizon. Clearly, Mr Nortje’s use of Horizon
constituted an abuse of juristic personality of Horizon as a separate
entity.
In the circumstances, I am unable to fault the high court
in finding that Horizon was not a juristic person for purposes of
the
repairs and renovations on Ms Brown’s property, but that Mr
Nortje and Horizon were deemed to be the same person as contemplated
in
s 20(9)
(a)
and
(b)
of the
Companies Act.
[56
]
The high court also found that the lien sought to
be relied on by Horizon was also void on the basis that no actual
proof of the
amount and the nature of the expenses was provided.
Furthermore, whoever was responsible for the actual repairs and
renovations
effected, was entitled to recover whatever he or it
believed was due through the normal legal process. I agree totally
with the
high court’s finding and approach in this regard.
[57]
Mr Nortje attacks the high court’s finding
that the cession is invalid and void
ab
initio
as ‘totally erroneous’
and that it ‘creates a dangerous and potentially harmful
precedent for any entity acting
on contracts where the rights of
cession are relied on’. He avers that as an estate agent he was
not a party to the AOS and
that he was in fact a facilitator as well
as a third party. Furthermore, only the parties specified as buyer(s)
and seller(s) are
parties to the AOS. He then alleges that he was
only a third party to the AOS and that these are no grounds for
finding that the
cession is invalid, irregular or illegal. The
cession at issue is one purportedly effected by Ms du Plessis (on
behalf of Groundswell
presumably) to Mr Nortje.
[58]
It is so that clause 15.6 of the AOS does provide
that the seller agrees that a purchaser of the property has a right
to cede or
assign any part, share, interest or rights or obligations
under the AOS to a third party. The high court found that ‘agent’
was defined in the AOS to refer specifically to Mr Nortje.
Considering that Mr Nortje also signed and witnessed the AOS as
‘agent’,
I am unable to fault the high court in this
regard.
[59]
Lastly, Mr Nortje criticises the high court’s
finding of various acts of misrepresentation on his part as being
totally unsubstantiated
and therefore erroneous. I have already dealt
with the various aspects and relevant facts and documents pertaining
to this matter
to which Ms Brown, the seller, was not privy. In
particular Mr Nortje went to reside and use Ms Brown’s property
as an office
without her knowledge and consent. The R and R agreement
and the cession are other documents that were also concluded behind
her
back.
[60]
The question that must now be answered is whether
Mr Nortje has successfully satisfied or met the prescribed threshold
for a
s 17(2)
(f)
application
in terms of the
Superior Courts Act. I
have carefully analysed both
the facts in this case and the high court’s reasoning for the
findings made. I am unable, as
I have pointed out in this judgment,
to find fault with any of the reasoning by the learned judge who
decided the matter.
[61]
In my view, Mr Nortje has hopelessly failed to
show that a grave failure of justice would result or that the
administration of justice
would fall into disrepute if an order was
not granted varying the decision of the high court and the two judges
of this Court who
all declined to grant leave to appeal. There is
nothing that shows that their decisions to refuse leave to appeal
were wrong. All
that Mr Nortje has done, in this Court, is simply an
attempt to re-argue or rehearse the merits of the case, something
which
s 17(2)
(f)
is not designed for. There is no basis whatsoever
to find otherwise.
[62]
The respondent also sought an order striking off
irrelevant material from the record with costs. These comprise a
transcription
of the arguments in the high court which number about
seven pages. I do not deem it necessary that any order should be made
in
this respect because there was not an enormous number of pages
involved giving rise to the complaint.
[63]
Regarding costs, I am of the view that this
application was completely meritless from the onset. Mr Nortje’s
unconscionable
conduct in this entire episode also involved
misrepresentation towards his principal, the respondent, which is
viewed in serious
light. For these reasons, I am of the view that the
respondent should not in any way be out of pocket regarding costs.
Costs on
a punitive scale is justified.
[64]
In the result the following order is made:
1
The application in terms of
s 17(2)
(f)
of the
Superior Courts
Act 10 of 2013
is dismissed.
2
The second applicant is liable for the respondent’s costs on a
scale between attorney
and client.
3
Paragraph 2 of this order is suspended for ten days to afford the
second applicant an
opportunity, if so advised, to serve on the
respondent’s attorneys and file with the Registrar of this
Court an affidavit
showing cause why paragraph 2 hereof should not
take effect after ten days.
4
The respondent is granted leave, if so advised, to deliver an
affidavit in answer to
that of the second applicant within five days
of the filing of such affidavit.
B H MBHA
JUDGE OF APPEAL
Appearances
For
the first and third applicants:
No
appearance
For
the second applicant:
In
person
For
the respondent:
J C
Tredoux
Jordaan
and Ferreira Inc, Cape Town
Horn
and Van Rensburg Attorneys, Bloemfontein
[1]
LEK
v Estate Agents Board
1978
(3) SA 160 (C).
[2]
Section
20
of the
Companies Act reads
as follows:
‘
Validity
of company actions
…
.
(9) If, on application
by an interested person or in any proceedings in which a company is
involved, a court finds that the incorporation
of the company, any
use of the company, or any act by or on behalf of the company,
constitutes an unconscionable abuse of the
juristic personality of
the company as a separate entity, the court may-
(a)
declare that the company is to be deemed not to
be a juristic person in respect of any right, obligation or
liability of the company
or of a shareholder of the company or, in
the case of a non-profit company, a member of the company, or of
another person specified
in the declaration; and
(b)
make any further order the court considers
appropriate to give effect to a declaration contemplated in
paragraph
(a)
.’
[3]
Yates
Investments (Pty) Ltd v Commissioner for Inland Revenue
1956
(1) SA 364 (A); 1 All SA 285 (A).
[4]
Manong
& Associates (Pty) Ltd v Minister of Public Works and Another
[2010]
(2) SA 167
(SCA);
1 All SA 267
(SCA) (
Manong
)
para 14.
[5]
Ibid.
[6]
Ibid.
[7]
Liesching
and Others v S and Another
[2016]
ZACC 41; 2017 (4) BCLR 454 (CC); 2017 (2) SACR 193 (CC).
[8]
Ibid
para 54.
[9]
Rock
Foundation Properties and Another v Chaitowitz
(1038/2023)
[2025] ZASCA 82
(9
June 2025) para 17.
[10]
Avnit
v First Rand Bank
[2014]
ZASCA 132.
[11]
Ibid
para 7.
[12]
Ibid
para 6.
[13]
Ibid.
[14]
Liesching
and Others v S
[2018]
ZACC 25
;
2018 (11) BCLR 1349
(CC);
2019 (1) SACR 178
(CC);
2019 (4)
SA 219
(CC) para 139, See also
Mkhonto
and Others v Bushbuckridge Local Municipality and Others
(218/2024)
[2025] ZASCA 111
(23 July 2025) para 18;
Minister
of Police and Another v Ramabanta
[2025]
ZASCA 95
para 19; and
Cloete
and Another v S; Sekgala v Nedbank Limited
[2019]
ZACC 6
;
2019 (5) BCLR 544
(CC);
2019 (4) SA 268
(CC);
2019 (2) SACR
130
(CC) paras 47 and 56.
[15]
Ibid.
[16]
Signature
Real Estate (Pty) Ltd v Charles Edwards Properties and Others
[2020]
ZASCA 63
;
2020 (6) SA 397
(SCA).
sino noindex
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