Case Law[2023] ZASCA 13South Africa
OCA Testing and Certification South Africa (Pty) Ltd v KCEC Engineering Construction (Pty) Ltd and Another (1226/2021) [2023] ZASCA 13 (17 February 2023)
Headnotes
Summary: Arbitration award – appeal against dismissal of application to set aside part of award – s 33(1) of the Arbitration Act 42 of 1965 – gross irregularity committed by arbitrator in making the award with respect to a substantial portion of the claim – award set aside in part and residue of the claim referred to a new arbitrator.
Judgment
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## OCA Testing and Certification South Africa (Pty) Ltd v KCEC Engineering Construction (Pty) Ltd and Another (1226/2021) [2023] ZASCA 13 (17 February 2023)
OCA Testing and Certification South Africa (Pty) Ltd v KCEC Engineering Construction (Pty) Ltd and Another (1226/2021) [2023] ZASCA 13 (17 February 2023)
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sino date 17 February 2023
THE SUPREME COURT OF
APPEAL OF SOUTH AFRICA
JUDGMENT
Not Reportable
Case
No: 1266/2021
In the matter between:
OCA TESTING AND
CERTIFICATION
SOUTH AFRICA (PTY)
LTD
APPELLANT
and
KCEC ENGINEERING AND
CONSTRUCTION (PTY)
LTD
FIRST
RESPONDENT
HONOURABLE JUDGE
N P WILLIS N O
SECOND
RESPONDENT
Neutral
Citation:
OCA
Testing and Certification South Africa (Pty) Ltd v KCEC Engineering
Construction (Pty) Ltd and Another
(1226/2021)
[2023] ZASCA 13
(17 February 2023)
Coram:
PETSE AP, MOCUMIE and CARELSE JJA, MJALI and
MASIPA AJJA
Heard:
11 November 2022
Delivered:
17
February 2023
Summary:
Arbitration award – appeal
against dismissal of application to set aside part of award –
s
33(1)
of the
Arbitration Act 42 of 1965
– gross irregularity
committed by arbitrator in making the award with respect to a
substantial portion of the claim –
award set aside in part and
residue of the claim referred to a new arbitrator.
ORDER
On
appeal from
: Gauteng Division of the
High Court, Johannesburg (Malindi J sitting as court of first
instance):
1 The appeal is upheld
with no order as to costs.
2 The order of the
Gauteng Division of the High Court, Johannesburg, is set aside and in
its place is substituted the following
order:
‘
1
The application to set aside the award insofar as it relates to the
amounts claimed
in respect of the second and third agreements
succeeds.
2
The dispute between the parties in relation to the residue of the
claim
arising from the second and third agreements is to be submitted
to a new arbitrator to be agreed between the parties within 20 days
of this order and, failing such agreement, to be appointed by the
Arbitration Foundation of South Africa.
3
No order as to costs is made.’
JUDGMENT
Petse
AP (Mocumie and Carelse JJA and Mjali and Masipa AJJA concurring):
Introduction
[1]
Does the failure of the arbitrator to deal pertinently with and
determine a substantial
portion of a composite claim that arises from
two independent agreements trigger the provisions of s 33(1) of the
Arbitration Act
42 of 1965 (the Act)? If so, does this then render
the resultant arbitral award insofar as it relates to such agreements
susceptible
to be reviewed and set aside? This is the cardinal
question raised in this appeal.
[2]
The appellant, OCA Testing Inspection and Certification South Africa
(Pty) Ltd (OCA
Testing), said: ‘Yes’. On the contrary,
the first respondent, KCEC Engineering and Construction (Pty) Ltd,
(KCEC Engineering)
said: ‘No’. The Gauteng Division of
the High Court, Johannesburg (the high court) agreed with KCEC
Engineering and
answered both questions in the negative. It is now
the task of this Court to resolve these contrasting contentions. What
follows
is how the dispute arose.
Background
[3]
On three different dates, and at the instance of KCEC Engineering,
three written offers
were made by OCA Testing to KCEC Engineering to
render advisory, technical and mechanical services for
non-destructive test services
to the latter’s plants in the
Northern Cape, subject to certain terms and conditions as agreed
between the parties upon acceptance
of OCA Testing’s three
offers.
[4]
After the conclusion of the parties’ three written
agreements,
[1]
initially their
contractual relationship seemed to operate smoothly, and various tax
invoices submitted by OCA Testing to KCEC
Engineering from time to
time were settled without demur by the latter.
[5]
Clause 14 of the parties’ written agreements explicitly
provided, amongst other
things, that ‘Any dispute or difference
arising out of this Agreement shall be referred to the arbitration of
a person to
be agreed upon between the [parties] or, failing
agreement, nominated by the President for the time being of the
relevant Chartered
Institute of Arbitration of Spain.’ After
running smoothly for some time, disputes between the parties emerged.
The deterioration
in the parties’ relations culminated in KCEC
Engineering refusing to settle tax invoices submitted by OCA Testing.
Litigation
history
Arbitration
tribunal
[6]
With an impasse having arisen and the parties’ best endeavours
to break the
logjam having failed to bear fruit, the parties agreed
to refer their dispute to arbitration before a retired judge of this
Court,
Justice N P Willis, who was appointed by the Arbitration
Foundation of South Africa in accordance with the parties’
agreement.
OCA Testing sued KCEC Engineering for payment of
R2 603 729.44 in respect of services allegedly rendered
during the period
from 25 May 2018 to 25 August 2018. In so
doing OCA Testing relied on three agreements. The aggregate sum
claimed comprised
three amounts. The amount of R142 002.46 had
its genesis in the first agreement. The amount of R2 355 768.05
in
the second agreement and the sum of R276 744.00 in the third
agreement. How these three amounts were computed was not in dispute
between the parties.
[7]
KCEC Engineering admitted that the services in relation to which the
claim arose were
duly provided by OCA Testing. However, KCEC
Engineering disputed liability on various grounds. Briefly stated, it
asserted that:
(i) the services by OCA Testing were rendered late,
resulting in it suffering damages; (ii) it had overpaid OCA Testing
to the
tune of R1 961 770.24 which it sought to recover by
way of its counter-claim; and (iii) it had suffered liquidated
damages
in the sum of R1 646 220.00 occasioned as a result of
OCA Testing’s default in breach of the latter’s
contractual
obligation.
[8]
In making his award, the arbitrator identified the issues in dispute
as follows:
‘
(a)
Whether the claimant was obliged to deliver the CoC
[2]
to the Defendant before payment could be made of the outstanding
invoice (identified as ‘POC15’), in terms of the first
agreement;
(b)
Whether the claimant has overcharged the defendant for services
rendered in terms of the second agreement
(which would result in the
defendant being entitled to a rebate) by failing to meet, on a daily
basis, the estimated daily production
rate;
(c)
Whether the defendant is entitled to the delivery of videos prior to
payment of any outstanding invoice
in respect of the third agreement;
(d)
Whether the defendant’s claim for damages is time-barred;
(e)
Whether the claimant is responsible for the damages claimed by the
defendant.’
[9]
After an exhaustive analysis of the parties’ pleadings, the
evidence presented
by both sides in respect of both the claim and
counter-claim as well as contentions advanced by counsel for the
parties, the arbitrator
dismissed both the claim by OCA Testing and
the counter-claim by KCEC Engineering. It bears mentioning that the
arbitrator concluded
that the claim for payment of the amount of
R142 002.46 in respect of the first agreement had to fail
because OCA Testing
had breached that agreement. Significantly, he
then proceeded to hold that none of KCEC Engineering’s two
counterclaims was
sustainable.
[10]
What the arbitrator stated in the course of his award bears emphasis.
He said:
‘
The
claimant has sought judgment for monies due in terms of its unpaid
invoices. The total amount allegedly owing to the claimant
is in the
sum of R2 603 729.44. The defence raised to the payment of
the invoices relating to the first agreement was
the failure by the
claimant timeously to deliver the CoC to the defendant. The evidence
makes it clear that [the] claimant was
indeed in breach of its
agreement with the defendant by failing so to deliver the CoC and,
consequently, its claim must fail.’
[11]
He then continued:
‘
Moreover, it may
be pointed out,
en passant
, that the agreements were obviously
not interlinked in the sense that a failure to pay an outstanding
invoice due in terms of the
second agreement and/or the third
agreement would have the contractual consequence of not obliging the
claimant to furnish the
CoC in terms of the first agreement.’
[12]
I pause here to observe that what the arbitrator said in the
preceding two paragraphs is significant.
The statements
unquestionably demonstrate that the arbitrator was acutely alive to
the fact that OCA Testing’s breach was
in relation to the first
agreement only. This is borne out by what the arbitrator said
immediately after making his finding encapsulated
in paragraph 10
above. He was at pains to point out that:
‘
.
. . the agreements were obviously not interlinked in the sense that a
failure to pay an outstanding invoice due in terms of the
second
agreement and/or the third agreement would have the contractual
consequence of not obliging the claimant to furnish the
CoC in terms
of the first agreement.’
(My
emphasis.)
I shall revert to this
aspect later.
[13]
The arbitrator dismissed KCEC Engineering’s counter-claim for
recovery of the alleged overpayment
of R1 961 770.24 on the
basis that such a claim was not based on the
condictio indebiti
and therefore had to fail. He also made short shrift of the
counter-claim for R1 646 220.00, finding that at the
conclusion
of the parties’ agreements there was ‘no
serious contemplation that [OCA Testing] may be liable for special
damages’.
High Court
[14]
A little over a month after the arbitrator’s dismissal of OCA
Testing’s claim, OCA
Testing instituted proceedings in the high
court for the award to be reviewed and set aside in terms of s 33(1)
of the Arbitration
Act 42 of 1965 (the Act) together with ancillary
relief. None of the two respondents entered the fray, with the
consequence that
the application was not opposed.
[15]
In due course the application served before Malindi J who dismissed
it with no order as to costs.
After making reference to both s 32(1)
and s 32(2) of the Act, the learned Judge set out what he considered
was central to OCA
Testing’s claims. He proceeded to say:
‘
The
question that arises therefore is whether the second respondent
failed to deal with the validity of the claims under the second
and
third agreements. The applicant contends that although the second
respondent correctly identified the dispute between the parties
as
relating to three separate agreements, he only considered the merits
of the claim for the invoices relevant to the first agreement
when he
started: “ . . . relating to the first agreement was the
failure by the claimant timeously to deliver the CoC to
the
defendant.”’
[16]
He then continued:
‘
In
my view, although the award dismissed the claimant’s claim
without traversing the claims under each agreement the second
respondent clearly considers the claimed globular amount which
comprises claims under all three agreements . . .’
[17]
Ultimately, the learned Judge concluded that ‘there was no
doubt that the whole claim for
R2 603 729.44, inclusive of
the claims under the three agreements, is dismissed, with all claims
under each agreement
having been separately considered.’ Thus,
the learned Judge reasoned, the arbitrator had fully understood the
nature of the
enquiry into the first agreement and, in the result,
there was no basis to set aside paragraph 1
[3]
of
the award. Subsequently, on 20 October 2021, the learned Judge
granted OCA Testing leave to appeal to this Court.
[18]
Before us, as it was in the high court, the basis of OCA Testing’s
attack of the arbitrator’s
award, broadly stated, was that the
arbitrator ‘could not have arrived at a conclusion to dismiss
the aggregate claim’
(ie totalling R2 603 729.44)
with reference to the first agreement only. This argument was
predicated upon seven broad
contentions, namely:
(i) the amount claimed by
OCA Testing was, as correctly observed by the arbitrator himself, an
aggregate comprising three distinct
claims arising from three
different agreements;
(ii) the arbitrator was
cognisant of the fact that the three agreements were not interlinked;
(iii) the contractual
breach established in evidence by KCEC Engineering related to the
first agreement only in respect of a minor
portion, ie R142 002.46,
of the aggregate amount;
(iv) the finding by the
arbitrator that KCEC Engineering, ‘evidence [made] it clear
that [OCA Testing] was indeed in breach
of [the first] agreement with
[KCEC Engineering] by failing to deliver the CoC’ hence its
claim must fail;
(v) the words ‘its
claim’ must, having regard to the factual matrix and viewed in
context, be a reference to the first
agreement which is what the
arbitrator was pertinently dealing with;
(vi) having regard to the
fact that KCEC Engineering’s remaining defences – which
would have nullified the total amount
as claimed – were
rejected by the arbitrator as devoid of merit, it followed
axiomatically that the indebtedness in respect
of the amounts arising
from the second and third agreements was established;
(vii) the recognition by
the high court that the arbitrator dismissed the claim in its
entirety, ie the whole of the globular amount,
‘without
traversing the claims under each agreement’.
[19]
In these circumstances, so went the argument, the arbitrator
committed a gross irregularity in
the conduct of the arbitration
proceedings as contemplated in s 33(1)
(b)
of the Act.
This, in turn, clouded the arbitrator’s mind resulting in him
misconducting himself in relation to his duties
as arbitrator as
envisaged in s 33(1)
(a)
of the Act.
Statutory framework
[20]
In pursuit of the relief it sought in the high court, and before us
on appeal, OCA Testing invoked
s 33(1) of the Act. To the extent
relevant for present purposes s 33(1), which is headed ‘setting
aside of award, provides
as follows:
‘
(1)
Where –
(a) any member of an
arbitration tribunal has misconducted himself in relation to his
duties as arbitrator . . .; or
(b) an arbitration
tribunal has committed any gross irregularity in the conduct of the
arbitration proceedings or has exceeded his
powers; or
(c) . . .;
the court may, on the
application of any party to the reference after due notice to the
other party or parties, make an order setting
the award aside.’
[21]
I consider it convenient at this juncture to deal first with the
current state of the law relating
to the considerations that bear on
the circumstances in which a court will come to the aid of a party
relying on s 33(1) of the
Act. Section 33(1) has been considered,
albeit briefly, in many judgments of this Court and others. Some of
the cases were analysed
by Harms JA in
Telcordia
Technologies Inc v Telkom SA Ltd
[4]
(
Telcordia
).
In para 72, Harms JA cited a passage from the judgment of Mason J in
Ellis
v Morgan
;
Ellis
v Desai
[5]
(
Ellis
)
in which the position was succinctly stated as follows:
‘
But
an irregularity in proceedings does not mean an incorrect judgment;
it refers not to the result, but to the methods of a trial,
such as,
for example, some high-handed or mistaken action which has prevented
the aggrieved party from having his case fully and
fairly
determined.’
[22]
In the course of his judgment, Harms JA also referred to
Goldfields
Investment Ltd v City Council of Johannesburg
[6]
(
Goldfields)
,
stating that an arbitrator misconceives the nature of the inquiry in
instances where he or she fails to perform his or her mandate.
And
‘[b]y misconceiving the nature of the inquiry a hearing cannot
in principle be fair because the body fails to perform
its
mandate.’
[7]
In
Goldfields
Schreiner J was forthright when he, with reference to
Ellis
v Morgan,
said:
‘
.
. . it is not merely high-handed or arbitrary conduct which is
described as a gross irregularity; behaviour which is perfectly
well-intentioned and
bona
fide
,
though mistaken, may come under that description. The crucial
question is whether it prevented a fair trial of the issues. If
it
did prevent a fair trial of the issues then it will amount to a gross
irregularity.’
[8]
[23]
In
Palabora
Copper (Pty) Ltd v Motlokwa Transport and Construction (Pty) Ltd
[9]
(
Palabora
Copper
),
this Court reiterated that where ‘an arbitrator engages in the
correct enquiry, but errs either on the facts or the law,
that is not
an irregularity and is not a basis for setting aside an award.’
[10]
This
is in keeping with the abiding principle that whenever parties elect
to resolve their disputes through arbitration courts must
defer to
the parties’ choice and not lightly intervene.
[11]
Analysis
[24]
I have already dealt with what is at issue in this appeal and how the
arbitrator went about in
arbitrating the dispute between the parties.
It suffices to emphasise that there was no dispute about the amounts
arising out of
the second and third agreements. And allied to that
was the arbitrator’s finding that KCEC Engineering’s
defences to
those two agreements are unsustainable. Yet, nowhere in
his award did the arbitrator revert to the question as to what the
fate
of the amounts arising from the second and third agreements
should be.
[25]
In addressing this aspect in its judgment, the high court stated:
‘
[T]here
is no doubt that the whole claim of R2 603 729.44,
inclusive of the claims under the three agreements, is dismissed,
with all claims under each agreement having been separately
considered.’
And
that:
‘
[B]y
addressing the defences to the claims under the second and third
agreements, the [arbitrator] did consider their merits and
came to
the conclusion that they too are to be dismissed.’
And, with reference to
Palabora Copper
, concluded that no irregularity is committed
by an arbitrator who ‘engages in the correct enquiry, but errs
on the facts
or the law.’ Consequently, the high court held
that there would be no basis for setting the award aside.
[26]
This then raises the question whether the arbitrator engaged in the
correct enquiry in the context
of the facts of this case. If this
question is answered in the affirmative, that would be the end of the
matter. However, if not,
intervention by this Court would be
warranted.
[27]
What compounds matters in this case is that the arbitrator found that
KCEC Engineering’s
defences in relation to the second and third
agreements were devoid of merit. Insofar as the counter-claim was
concerned, it was
dismissed. Yet, the arbitrator inexplicably
dismissed the residue of the globular amount claimed when he had
already found that
there was nothing standing in the way of an award
in respect of those amounts relating to claims 2 and 3 being made in
favour of
OCA Testing. That the arbitrator did not do so manifests a
lack of appreciation on his part of the fact that OCA Testing’s
globular claim comprised three components. This, in my view, is a
typical case of an arbitrator having ‘committed [a] gross
irregularity in the conduct of the arbitration proceedings’ as
contemplated in s 33(1)
(b)
of the Act. Reflecting on the
sentiments of Schreiner J in
Goldfields
, the crucial question
is whether the arbitrator’s conduct prevented a fair trial of
the issues.
[28]
That the arbitrator did not determine the fate of the residue of the
globular amount claimed,
after having dismissed the claim in respect
of the first agreement, ineluctably leads me to conclude that his
approach to the matter
‘prevented a fair trial of the issues.’
Simply put, the arbitrator was here called upon to decide whether OCA
Testing
was entitled to any monies representing amounts flowing from
the second and third agreements. In short, the arbitrator simply did
not direct his mind to the crucial question whether OCA Testing was
entitled to the residue of the globular amount claimed, ie
R2 603 729.44 less the amount of R142 002.46 in
respect of the first agreement. Had he dealt with the amounts flowing
from the second and third agreements, his award would have been
immune from impeachment under s 33(1) of the Act even though he
may
have been wrong on the facts or the law.
[29]
As it emerges from the record, the tenor of the arbitrator’s
underlying reasoning makes
it plain that he was alive to the fact
that the total amount of R2 603 729.44 was made up of three
components arising
from three different agreements. To illustrate
this point, the arbitrator said:
‘
[T]he
amount of R142 002.46, is claimed by the claimant in respect of
the first agreement. The amount of R2 355 767.05,
is claimed in
respect of the second agreement. The amount of R276 744.00, is
claimed in respect of the third agreement.’
[30]
And having analysed KCEC Engineering’s defence in respect of
the sum of R142 002.46,
he concluded, as already mentioned, that
OCA Testing had committed a material breach of the first agreement.
Consequently, so the
arbitrator held, OCA Testing was not entitled to
payment, and its claim for R142 002.46 fell to be dismissed.
[31]
However, what then followed was that the arbitrator inexplicably
dismissed the claim in its entirety
without, for once, engaging in
any analysis in regard to the legitimacy or otherwise of the amounts
claimed pursuant to the second
and third agreements. That OCA Testing
had elected to claim a composite amount combining three separate
agreements was beyond question
and the arbitrator, too, was cognisant
of this fact. Thus, in failing to address the residue of the claim,
just as he had done
with the component of the claim flowing from the
first agreement, the arbitrator effectively closed off his mind to
the fundamental
question that he was called upon to answer, namely
whether OCA Testing’s claim for the residual amount –
that had its
genesis in the second and third agreements – was
sustainable. In my view, this omission prevented a fair trial of the
totality
of the issues and therefore amounts to a gross irregularity.
[32]
In summary therefore, I am satisfied that OCA Testing has established
that there is good cause
to remit the dispute to a new arbitrator. As
I have already found, this must be so because the arbitrator in this
matter failed
to deal with all the issues that were before him.
[12]
As
already indicated, we are here not dealing with a situation where the
arbitrator got it horribly wrong without more, in which
event there
would have been no basis to disturb the award. Rather, he simply
overlooked some of the crucial issues that he was
required to
determine.
[13]
Section
28 of the Act explicitly provides that absent an agreement between
the parties to the contrary, an award shall, subject
to the
provisions of the Act, ‘be final and not subject to appeal and
each party to the reference shall abide by and comply
with the award
in accordance with its terms.’
[14]
And
as Harms JA forcefully put it: ‘[A]n arbitrator “has the
right to be wrong.”’
[15]
Consequently,
where an arbitrator errs in his or her interpretation of the law or
analysis of the evidence that would not constitute
gross irregularity
or misconduct or exceeding powers as contemplated in s 33(1) of the
Act.
[16]
Should the arbitrator
be substituted?
[33]
Counsel for OCA Testing urged upon us that in the event of this Court
upholding the appeal, we
should review and set the arbitral award
aside to the extent that it dismissed the claim in its entirety.
Thereafter, the dispute
should be remitted for re-consideration by a
new arbitrator. Motivating for the substitution of the erstwhile
arbitrator, counsel
argued that given the fundamental irregularity
committed by the arbitrator OCA Testing has lost confidence in him.
Therefore, so
the argument went, the interests of justice strongly
militate against the remittal of the matter to the same arbitrator.
Rather,
they dictate that someone entirely divorced from the
atmosphere of the abortive hearing would be ideally suited to
determine the
issues afresh without his or her mind being clouded by
the dust of the previous conflict.
[34]
There is much to be said for counsel’s contentions although the
proposed course raises
the spectre of a re-hearing of the dispute
with its attendant expense. However, on balance I am persuaded that
this is the route
to take to ensure that justice is not only done but
also manifestly seen to be done. In any event, s 33(4) of the Act
provides
that ‘
[i]f the award is set aside the dispute
shall, at the request of either party, be submitted to a new
arbitration tribunal constituted
in the manner directed by the
court.’
(My emphasis.)
[35]
As to how the re-hearing of the dispute is to be conducted, that is a
matter entirely to be determined
by the new arbitrator. No doubt his
or her approach will be informed by whatever submissions or
representations the parties themselves
may advance. If deemed
convenient and practicable, the new arbitrator could, for example,
determine the remaining issues between
the parties on the recorded
evidence without relying on the findings of the previous arbitrator,
particularly so, if it is thought
that the assessment of the
demeanour of the witnesses who testified is not essential for a
proper determination of their credibility.
But, ultimately, these are
all issues that fall squarely in the remit of the new arbitrator.
Relief
[36]
This brings me now to the form of relief to be granted to OCA Testing
in the light of the conclusion
reached above that the arbitrator
committed a gross irregularity. The award comprised two parts, the
first part was a dismissal
of OCA Testing’s claim in its
entirety. The second was a dismissal of KCEC Engineering’s
counter-claim. The latter
part does not feature in this appeal,
presumably because KCEC Engineering accepted the outcome of its
counter-claim.
[37]
In
Polabora
Copper
this
Court was confronted with a situation where only part of the award
was found to be bad. The question then arose as to whether
s 33(1)
of the Act solely contemplates the setting aside of an award in its
entirety or also countenances interference with
only part of the
award that is vulnerable to impeachment. After surveying various
legal sources and seeking guidance from foreign
jurisdictions, this
Court concluded that ‘[t]here does not appear to be any sound
reason why an arbitration, that has been
properly conducted on
certain issues and properly determined those issues, should be set
aside in its entirety, because of an irregularity
in relation to a
wholly separate issue.’
[17]
[38]
Here the issue is clear-cut. The portion of the arbitrator’s
award that has been impeached
by OCA Testing relates to a part of the
main claim and does not affect the counter-claim. The fact that OCA
Testing has accepted
its fate in relation to a minor portion of its
claim (ie R142 002.46) does not, by parity of reasoning, detract
from this
principle. Accordingly, paragraph 1 of the award falls to
be set aside albeit only to the extent that it relates to the amounts
arising from the second and third agreements.
Costs
[39]
There remains the issue of costs to address. Counsel for OCA Testing
asked for costs of two counsel
in the event that the appeal is
upheld. In my view the appropriate order to grant in relation to
costs is that there be no order
as to costs. It goes without saying
that where a litigant seeks costs against its adversary in the event
that the application is
opposed, there should be no order as to costs
where the adversary has not opposed the application but, instead,
elected to remain
supine. This is precisely what happened in this
case. In these circumstances, OCA Testing is not, in the absence of
opposition,
entitled to costs both in this Court and the high court.
[40] In
the result the following order is made:
1
The appeal is upheld with no order as to costs.
2
The order of the Gauteng Division of the High Court, Johannesburg, is
set
aside and in its place is substituted the following order:
‘
1
The application to set aside the award insofar as it relates to the
amounts claimed
in respect of the second and third agreements
succeeds.
2
The dispute between the parties in relation to the residue of the
claim
arising from the second and third agreements is to be submitted
to a new arbitrator to be agreed between the parties within 20 days
of this order and, failing such agreement to be appointed by the
Arbitration Foundation of South Africa.
3
No order as to costs is made.’
____________________
X
M PETSE
ACTING
PRESIDENT
SUPREME
COURT OF APPEAL
APPEARANCES
For the appellant: B L
Skinner SC (with I Veerasamy)
Instructed by: Pather
& Pather Attorneys, Durban
Kramer Weihmann
Attorneys, Bloemfontein
For
the respondents: No appearance
[1]
The first, second and third agreements were all concluded during
June 2017.
[2]
CoC is an acronym for ‘Certificate of Conformity’.
[3]
Paragraph 1 dismissed OCA Testing’s claim in its entirety.
[4]
Telcordia
Technologies Inc v Telkom SA Ltd
[2006]
ZASCA 112
;
2007 (3) SA 266
(SCA) (
Telcordia
).
[5]
Ellis v
Morgan; Ellis v Desai
1909 TS 576
at 581.
[6]
Goldfields
Investment Ltd v City Council of Johannesburg
1938 TPD 551
at 560-561 (
Goldfields
).
[7]
Telcordia
para
73.
[8]
Goldfields
at 560.
[9]
Palabora
Copper (Pty) Ltd v Motlokwa Transport and Construction (Pty) Ltd
[2008] ZASCA 23
;
[2018] 2 All SA 660
(SCA) (
Palabora
Copper
).
[10]
Ibid para 8.
[11]
Clark v
African Guarantee and Indemnity Co Ltd
1915 CPD 68
at 77;
Lufuno
Mphaphuli and Associates (Pty) Ltd v Andrews and Another
[2009] ZACC 6
;
2009 (4) SA 529
(CC) para 219.
[12]
See
in this regard
South
African Forestry Co Ltd v York Timbers Ltd
[2004]
ZASCA 72
;
2003 (1) SA 331
(SCA) para 14.
[13]
Compare:
Kolber
and Another v Sourcecom Solutions (Pty) Ltd and Others
;
Sourcecom
Technology Solutions (Pty) Ltd v Kolber and Another
2001 (2) SA 1097 (C).
[14]
Section 28 reads: Unless the arbitration agreement provides
otherwise, an award, shall, subject to the provisions of the Act,
be
final and not subject to appeal and each party to the reference
shall abide by and comply with the award in accordance with
its
terms.
[15]
See para 21 above for the full citation.
[16]
See:
Doyle
v Shenker and Co Ltd
1915 AD 233
at 236-238;
Administrator,
South West Africa v Jooste Lithium Myne (Eiendoms) Bpk
1955 (1) SA 557 (A).
[17]
Palabora
Copper
para 48.
sino noindex
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