Case Law[2023] ZASCA 23South Africa
C.W v G.T (867/2021) [2023] ZASCA 23 (13 March 2023)
Supreme Court of Appeal of South Africa
13 March 2023
Headnotes
Summary: Exception – delictual claim – patrimonial damages based on alleged fraudulent misrepresentation inducing marriage and resulting in wasted wedding expenses.
Judgment
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## C.W v G.T (867/2021) [2023] ZASCA 23 (13 March 2023)
C.W v G.T (867/2021) [2023] ZASCA 23 (13 March 2023)
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sino date 13 March 2023
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
### JUDGMENT
JUDGMENT
Not
Reportable
Case no: 867/2021
In the matter between:
C W
APPLICANT
and
G T
RESPONDENT
Neutral
citation:
C W v G T
(867/2021)
[2023] ZASCA 23
(13 MARCH 2023)
Coram:
MOLEMELA, MAKGOKA and HUGHES JJA and
MJALI and SIWENDU AJJA
Heard:
16
November 2022
Delivered:
13 March 2023
Summary:
Exception – delictual claim –
patrimonial damages based on alleged fraudulent misrepresentation
inducing marriage and
resulting in wasted wedding expenses.
ORDER
On
appeal from:
Gauteng Division of the
High Court, Johannesburg (Fisher J, sitting
as
a court of first instance):
1
The application for leave to appeal is granted.
2
The appeal is upheld with costs.
3
The order of the high court is altered to read as follows:
‘
The
defendant’s exceptions to the plaintiff’s claims premised
on the
Lex Aquilia
and
Actio Iniuriarum
,
respectively, are dismissed with costs.’
4
The costs order of the high court in respect of the dismissal of the
application
for leave to appeal is
set aside.
5
The costs in respect of the application for leave to appeal in the
high
court and
in this Court are to be
costs in the action.
JUDGMENT
Hughes
JA (Molemela JA and Siwendu AJA concurring):
Introduction
[1]
This is an application for leave to appeal against the upholding of
an
exception. The application concerns a claim for patrimonial
damages instituted by the applicant, Ms W against the respondent, Mr
T, on the ground of a fraudulent misrepresentation. The applicant
alleges that such misrepresentation induced her to marry the
respondent, as a result of which she incurred wedding expenses in an
amount of R331 342.36.
[2]
The
applicant instituted two claims in the Gauteng Division of the High
Court, Johannesburg (the high court), one being the
actio
lex
aquilia
and the
other being the
actio
iniuriarum
.
The respondent raised exceptions to the applicant’s claims. The
exceptions for the claim based on the
lex
aquilia
were upheld, whilst the exceptions based on the
actio
iniuriarum
claim were dismissed. The applicant launched an application for leave
to appeal in the high court, which was refused. She petitioned
this
Court for leave to appeal. This Court directed that the matter be
referred for oral argument in terms of
s 17(2)
(d)
of the
Superior Courts Act 10 of 2013
. Consequently, the parties were
forewarned that they be prepared, if called upon, to address the
Court on the merits of the matter.
[1]
The respondent elected to abide by this Court’s decision.
[3]
During the period between 8 November 2016 and 22 September 2018, the
parties
were in a romantic relationship. The applicant alleges that
throughout their relationship, the respondent professed in words and
deeds that he loved her, he wanted to marry her and remain married to
her until parted by death. During the course of their relationship,
he showered her with expensive gifts and lavish five-star holidays.
On 31 March 2018, the respondent proposed to marry the applicant
and
presented her with an engagement ring worth R63 000. On 15
September 2018, the parties were married out of community of
property
with the accrual system. Thereafter, they jetted off on honeymoon to
a private island off Pemba, in the Quirimbas Archipelago,
Mozambique.
This blissful relationship and union was short lived.
[4]
From about 22 September 2018, their blissful matrimonial relationship
took a turn for the worst. The applicant states that the respondent’s
conduct changed towards her. She alleged that he no
longer showed her
any love and respect, but instead he regularly abused and belittled
her; he used profanity towards her; and generally
treated her in
contrast to how he treated her during their courtship. Furthermore,
he often told her that she was ‘the biggest
regret of his life
and that he regretted marrying her’. On 18 November 2018, the
respondent ordered the applicant to leave
the marital home. On 11
December 2018, the respondent instituted divorce proceedings against
the applicant.
[5]
The applicant alleges that on 24 December 2018 she became aware that
the
respondent had falsely represented to her, knowingly, that he
loved and wanted to remain married to her, when in fact he had known
prior to the marriage that he considered the relationship between
them to be ‘over’. On 29 January 2019, and with this
knowledge at hand, the applicant launched action proceedings in the
high court. She claimed that she was induced to marry the respondent
when he wrongfully and intentionally made the representations that he
did. As a result of the representations, she incurred wasted
wedding
expenses in the amount of R331 342.36. For the sake of
completeness, the second claim, which is not the subject of
this
judgment, was for an amount of R500 000 for the impairment of
the applicant’s dignity and reputation.
[6]
The respondent raised nine exceptions to the applicant’s
particulars
of claim, four in respect of the
lex aquilia
and
five in respect of the
actio iniuriarum
. I do not propose to
deal with each exception individually and maintain the
characterisation by the high court as exceptions under
the
lex
aquilia
and under the
actio iniuriarum
, respectively.
[7]
The issue before this Court is whether the high court was correct in
upholding
the exceptions to the claim under the
lex aquilia
.
[8]
It is well
established in our law that actions
ex
delictual are permitted
stante
matrimonio
between spouses married out of community of property with the
exclusion of marital power, as is the case in this matter. In
Rohloff
v Ocean Accident & Guarantee Corp Ltd
,
[2]
Malan JA stated the following:
‘
I have considered
all the available authorities with care and have come to the
conclusion that actions
ex delicto
are, in our law, permitted
stante matrimonio
between spouses married out of community of
property with exclusion of the marital power. Not only is this view
supported by recognised
Roman-Dutch commentators, but it appears to
me, moreover, to be in accordance with justice, reason, common sense
and public policy.’
Much
later, in the Constitutional Court, in
Van
Der Merwe v Road Accident Fund
,
[3]
Moseneke DCJ stated:
‘
Equally trite is
that in a marital property regime where each spouse has a separate
estate, the common-law restrictions on claims
in delict has no place.
That explains why the bar to suing one’s spouse does not extend
to marriage out of community of property.’
[9]
I deem it
necessary to restate the general principles applicable when dealing
with an exception. A decision to uphold an exception
is final in
effect and dispositive of the legal issues between parties.
[4]
Therefore, when assessing an exception, it ‘should be dealt
with sensibly’, as it is ‘a useful mechanism to weed
out
cases without legal merit’.
[5]
An exception is competent if the defect appears clearly
ex
facie
the pleadings. The onus lies with the excipient to show that such
pleadings are excipiable.
[6]
When an exception is raised against the pleadings that do not
disclose a cause of action, the averments pleaded by the plaintiff
must be accepted as true.
[7]
In
Luke M
Tembani and Others v President of the Republic of South Africa and
Another
,
[8]
this Court restated that the test to be applied ‘is whether on
all possible readings of the facts no cause of action may
be made
out; it being for the excipient to satisfy the court that the
conclusion of law for which the plaintiff contends cannot
be
supported on every interpretation that can be put upon the facts’.
[10]
Distilled to the bare minimum, the allegation is that the respondent
proclaimed that he
loved the applicant and that he wanted to spend
the rest of his life with her, hence, he proposed marriage, which was
accepted.
At that time, when he made this proclamation he did not
honestly believe it to be true. It was this proclamation and the
conduct
of the respondent that induced the applicant to accede to his
marriage proposal which resulted in her expending an amount totalling
R331 342.36 in respect of wedding expenses.
[11]
I now turn to deal with the exception that was upheld by the high
court relating to the
claim in delict which constitutes the subject
matter of this appeal. The high court accepted these facts as correct
and it considered
the respondent’s contention that the
lex
aquilia
should not be extended. It proceeded from the premise
that ‘[a] fraudulent misrepresentation leading to marriage and
which
results in pure economic loss is not recognised under the
lex
aquilia
’ and that there was ‘. . . no reason why the
aquilian
remedy should be extended to [the applicant] who must
be regarded as having been in the position to both appreciate and
manage
the risks attendant on an unsuccessful marriage, but who
decided not to do so’. The high court then concluded that the
enquiry
is one of wrongfulness and it reasoned that the case was one
where ‘. . . social, economic and other costs are too high to
justify the use of the law of delict for the resolution of the
issue’. The high court was steadfast in its view that this
sort
of claim was not recognised in our law and it would not be in the
public interest to extend the
lex aquilia
to allow such a
claim.
[12]
In the high
court, the applicant contended that the case she made out was one of
pure economic loss arising from a fraudulent misrepresentation,
which
was
prima
facie
wrongful
and unjust. Furthermore, the fact that such representation resulted
in a marriage, does not change conduct that is
prima
facie
wrongful into conduct that is lawful. The applicant stated that this
affirmation is well established in our law. In support of
this
contention, the applicant relied on the decision in
Rex
v Myers
,
[9]
where it was stated that a person who makes a false statement without
an honest belief in the truth thereof is guilty of fraud.
In
Rex
v Myers,
the
court quoted with approval the English law decision of
Derry
v Peek
,
wherein Lord Herschell said:
‘
. . . [F]raud is
proved when it is shown that a false representation has been made (1)
knowingly or (2) without belief in its truth,
or (3) recklessly,
careless whether it be true or false.’
[10]
[13]
The applicant submitted that the high court misdirected itself when
it struck out her claim
for pure economic loss, as that claim had
reasonable prospects of success.
[14]
I
n
Lillicrap,
Wassenaar and Partners v Pilkington Brothers (SA) (Pty) Ltd
(
Lillicrap
)
,
this Court observed that South African law ‘. . . does not
extend the scope of the Aquilian action to new situations unless
there are positive policy considerations which favour such an
extension’.
[11]
Expressing itself in the context of delictual liability for pure
economic loss premised on a claim for damages allegedly suffered
as a
result of the respondent’s negligence in the design of an
aquarium, this Court in
Trustees
for the Time Being of Two Oceans Aquarium Trust v Kantey &
Templer (Pty) Ltd
explained that ‘[w]hen a court is requested in the present
context to accept the existence of a “legal duty”,
in the
absence of any precedent,
it
is in reality asked to extend delictual liability
to a situation where none existed before. The crucial question in
that event is whether there are any considerations of public
or legal
policy which require that extension’.
[12]
I
am of the view that the present case falls into the realm of the
circumstances described in the two cases mentioned above. The
high
court was indeed being asked to extend delictual liability to a novel
situation for which there is currently no precedent
in our courts.
[15]
Another
aspect for consideration, is the alleged claim of fraudulent
misrepresentation made intentionally to induce the applicant.
In the
second judgment, my brother Makgoka JA deals with this extensively.
Save to add that the loss suffered by the applicant
need not have
been intended by the respondent, it is sufficient that the applicant
acted upon the fraudulent representation. This
Court dealt with such
delictual action in the context of a contract in
Standard
Bank of
South
Africa Ltd v Coetsee
,
[13]
and stated the following:
‘
In my view it is
not necessary, generally, in a delictual action based on a fraudulent
misrepresentation that it should be alleged
and proved that the
representor intended to occasion the loss which the representee
suffered. All that is necessary to allege and
prove is that the
representor made a false representation which he intended, whatever
his motive might have been, the representee
to act upon. The loss or
damages which the representee suffered need not have been intended by
the representor, it must simply
have followed as a result of the
representee acting upon the false representation.’
[16]
In
Country
Cloud
Trading v MEC, Department of Infrastructure Development
,
[14]
the
Constitutional Court summarised the approach our law takes to
wrongfulness by pointing out that the
wrongfulness
enquiry focuses on ‘the [harm-causing] conduct and goes to
whether the policy and legal convictions of the community,
constitutionally understood, regard it as acceptable. It is based on
the duty not to cause harm – indeed to respect rights
–
and questions the reasonableness of imposing liability’. As
mentioned before, the respondent’s exception questioned
the
existence of a legal duty not to cause harm in relation to the
specific facts of this case.
The
challenge for the respondent was that the averments made in the
particulars of claim were insufficient for purposes of answ
ering
the crucial question posed in
Lillicrap
:
whether there are any considerations of public or legal policy that
require
the extension of the Aquilian remedy to the circumstances of the
case.
[15]
That being the case,
the respondent’s exception was misconceived.
[16]
Based on the same reasoning, the respondent failed to establish that
the particulars in support of the patrimonial damages claim
were
excipiable on every interpretation that can be attached to them.
[17]
It
is on that basis that the exception ought to have been dismissed. In
any event, the issue concerning whether the net of the Aquilian
remedy ought to be cast wider is an aspect that will, in due course,
be dealt with by the high court during the trial.
[17]
Therefore, for the reasons alluded to above and the principles laid
down in the authorities
mentioned above, it follows that the
application for leave to appeal must be granted and the appeal must
succeed.
[18]
In the result, the following order is granted:
1
The application for leave to appeal is granted.
2
The appeal is upheld with costs.
3
The order of the high court is altered to read as follows:
‘
The
defendant’s exceptions to the plaintiff’s claims premised
on the
Lex Aquilia
and
Actio Iniuriarum
,
respectively, are dismissed with costs.’
4
The costs order of the high court in respect of the dismissal of the
application
for leave to appeal is
set aside.
5
The costs in respect of the application for leave to appeal in the
high
court and in this Court are to be costs in the action.
___________________
W HUGHES
JUDGE
OF APPEAL
Makgoka
JA
(Mjali AJA concurring):
[19]
I concur in the order proposed in the judgment of Hughes JA (the
first judgment). I write
separately as my conclusion is based on a
different approach. I engage the jurisprudential premise on which the
high court’s
judgment rests. I highlight my disagreement with
the reasoning of the high court, and provide a juridical framework
within which
the exceptions should have been adjudicated upon. I set
out the facts to the extent necessary to give context to this
judgment.
[20]
The parties were married out of community of property on 15 September
2018, after a courtship
of close to three years. The applicant
alleged that merely a week after the marriage was celebrated, the
respondent started
exhibiting distasteful conduct towards her,
manifested in verbal and emotional abuse; threats and insults; and an
accusation of
theft. Just over two months later, the respondent
ordered her to leave the matrimonial home, and shortly thereafter,
the respondent
instituted an action to end the marriage.
[21]
In a separate action, the applicant claimed R331 342.36
from the respondent,
being the monies she spent for the parties’
wedding celebration. The applicant alleged that when the respondent
proposed
marriage to her, he already considered their romantic
relationship to have broken down, yet failed to disclose this fact to
her.
In other words, he knew his presentation (the marriage proposal)
to be false and that he no longer wanted to continue with the
relationship. She only became aware of this fact in December 2018. In
paragraph 7 of her particulars of claim, the applicant alleged
that
the respondent made the representation ‘. . . wrongfully,
intentionally, and with the intention of inducing [her] to
marry him
. . . ’. Accordingly, her claim was based on the respondent’s
alleged fraudulent misrepresentation.
[22]
The respondent met the applicant’s particulars of claim with
four exceptions, the
gravamen of which was this: our law did not
recognise a claim for pure economic loss arising from a failed
marriage, and as such,
the particulars of claim did not disclose a
cause of action. To find that his conduct was wrongful, the court
would have to extend
the
lex aquilia
to allow for such a
claim, and that it would be contrary to the legal convictions of the
community to do so.
[23]
A claim for
pure economic loss usually arises from a negligent causation
(misstatement or omission) and is not regarded as prima
facie
wrongful.
[18]
Its wrongfulness
depends on the existence of a legal duty, the imposition of which is
a matter of judicial determination involving
criteria of public or
legal policy.
[19]
The
respondent’s submissions found favour with the high court. As
part of its policy considerations, the high court placed
considerable
emphasis on the choice of the parties’ marital property regime.
It said that if the parties ‘. . .
do
not decide to enter into an ante-nuptial contract, they become, on
their marriage,
subject
to a community of property regime
which has, as its foundation, a fair and equal sharing of economic
resources between the spouses’
.
(Italics and underlining added.)
[24]
It is not
clear why the parties’ choice of a marital property regime
became a focal point in the reasoning of the high court.
The
emphasised remarks in the preceding paragraph suggest that the Judge
considered the parties to be married in community of property,
and
that, that constituted a bar to the applicant’s claim. This is
despite the fact that the Judge had already mentioned,
correctly so,
that the parties are married out of community of property. In respect
of such spouses, this Court, over six decades
ago in
Rohloff
v Ocean Corporation
,
[20]
removed the rule which barred delictual actions between them.
Given
this settled legal position, it is difficult to understand the high
court’s particular focus on this aspect, especially
because it
was not raised by any of the parties in their pleadings.
[25]
The high court went on to explain that to allow an
aquilian
action in the circumstances of the case would impermissibly intrude
into the parties’ right ‘. . . freely to determine
their
financial relationships within their marriage. . .’. Such right
of choice, the high court said, ‘. . . should
be given
pre-eminence over the right to be recompensed for economic loss which
has accrued as a result of conduct which occurred
before the marriage
even if that conduct led to the marriage’. The issue, said the
high court, impacted on the ‘parties
right to dignity –
to be accorded the respect which will allow them the autonomy to
regulate the financial consequences of
their lives together’.
[26]
The court expanded on its reasoning:
‘
The potential
insecurity that such litigation would introduce into the operation of
the chosen property regime
of the parties to the marriage is
also an important consideration. It would be difficult to allocate
this liability in the context
of the complex economic relationships
that are engendered by marriage and are sought to be rationalized on
its dissolution.’
(Emphasis added.)
[27]
There are several difficulties with some of the high court’s
pronouncements. First,
it is not clear what the parties’
‘financial relationships within the marriage’ has to do
with the applicant’s
claim. If anything, in a marriage,
none of the parties is entitled to fraudulently misrepresent their
intentions to the other,
causing them loss. This case is about
misrepresentation, which, if established, could potentially result in
the annulment
of the marriage as being voidable at the applicant’s
instance.
[28]
The unqualified statement by the high court that any conduct (even
fraudulent) which leads
to a marriage cannot give rise to a claim for
loss, is of doubtful legal soundness. As I endeavour to demonstrate
in this judgment,
our law sets its face against fraudulent
misrepresentation, and almost invariably, regards it as wrongful. As
to the high court’s
reference to the parties’ ‘right
to dignity’, it is not at all clear in what context the Judge
raised it.
[29]
The high court also said that the applicant ‘.
. .
must be regarded as having been in the position to both
appreciate and manage the risks attendant on an unsuccessful
marriage, but
[had] decided not to do so’. The court continued:
‘
Indeed the premise
of the fraudulent misrepresentation sought to be relied on by the
[applicant] encompasses metaphysical questions
as to the nature and
meaning of love and, to my mind, whether such things are capable of
proof in a court of law is questionable.’
[30]
Again, with respect to the learned Judge, the applicant’s
complaint has nothing to
do with the ‘risks’ associated
with an unsuccessful marriage (to which the law attaches no
consequence). There is nothing
in her particulars of claim to suggest
that the applicant complains as a bitter spouse because her marriage
had failed. Her complaint
is about the fact that she was induced into
the marriage by the respondent’s fraudulent misrepresentation.
Had the applicant’s
allegation ended here, the high court’s
reasoning would have had some foundation. But the applicant goes
further, and alleges
that as a result of the misrepresentation, she
incurred a loss which she would not have incurred, had the
misrepresentation not
been made. Thus, her complaint is about a
fraudulent misrepresentation which induced a marriage and resulted in
loss. At exception
stage, the court was not called upon to decide on
the merits of the applicant’s claim and on issues whether
indeed the respondent
ever loved the applicant. It was to determine
whether the necessary assertions were made in the particulars of
claim in order to
sustain a cause of action.
[31]
Most of the policy considerations taken into account by the high
court appear to be based
on the concern about the negative impact a
claim such as asserted by the applicant would have on a marriage
relationship. But this
ignores an important consideration: a claim of
this nature would inevitably arise once a marriage relationship
breaks down, as
demonstrated by the facts of this case. The applicant
only sued the respondent once it was clear that the relationship had
but
all ended, and after the respondent had instituted divorce
proceedings. Therefore, under such circumstances, there would be
nothing
left of the marriage relationship to preserve. In my
view, therefore, none of the policy considerations discussed by the
high court should have resulted in the upholding of the respondent’s
exceptions.
[32]
Apart from the policy considerations, the high court went on to
question what it perceived
to be the applicant’s poor judgment
in: (a) electing to pay for the relevant wedding expenses; (b) not
opting for what the
learned Judge considered ‘a less expensive
wedding’; (c) not having dealt with such expenses in an
ante-nuptial agreement.
The learned Judge also expressed a view that
‘. . . it is common for parties to dictate that one or the
other will be entitled
to the wedding gifts in the event of divorce’.
[33]
This being the exception stage, it was not open for the high court to
go beyond the applicant’s
factual averments and question their
efficacy. The issues raised by the high court were not part of the
respondent’s exceptions.
The learned Judge brought to bear her
own subjective views on (a) how wedding gifts should be regulated
between spouses, (b) whether
the wedding expenses should have been
incurred in the first place, and (c) the reasonableness of such
expenses. This is plainly
impermissible.
[34]
For
purposes of determining the exception, the factual averments by the
applicant must have been accepted as correct, unless they
appeared to
be manifestly false.
[21]
Although the high court referred to this principle, it is clear from
how it treated the applicant’s averments that it merely
paid
lip service to it. Had it applied the principle, it would have
accepted that: (a) the respondent made a fraudulent misrepresentation
to the applicant (b) the misrepresentation induced the applicant into
the marriage; (c) as a result of the misrepresentation she
incurred
the wedding expenses; (d) but for the misrepresentation she would not
have incurred the expenses; (e) the wedding expenses
were necessary
and reasonable.
[35]
I turn now
to the respondent’s exceptions, and how they should have been
approached. As mentioned already, the respondent’s
exceptions
were predicated on the contention that the applicant’s
particulars of claim did not disclose a cause of action.
The test in
this regard is trite: the court asks the question
whether
upon
any construction of the particulars of claim, no cause of action is
disclosed.
[22]
The
exceptions could only be upheld if this question was answered in the
affirmative. The onus is on an excipient such as
the respondent, to
establish this.
[23]
This
should have been the starting point for the high court in considering
the exceptions. Unfortunately, it did not embark upon
such an
enquiry. I do so now, in the light of the averments in the
particulars of claim.
[36]
As
mentioned already, the applicant’s cause of action is based on
fraudulent misrepresentation. In
Geary
& Son (Pty) Ltd v Gove
,
[24]
the requirements of this cause of action were stated to be: (a)
representation by the other party; (b) knowledge by the representor
that the representation is false; (c) that the representation induced
the representee to act; (d) that the representee suffered
damages as
a result.
[25]
Ordinarily, upon
proof of these requirements on a balance of probabilities,
wrongfulness is established.
[26]
This is because a fraudulent misrepresentation which causes pure
economic loss to another has always been prima facie wrongful
by
virtue of the
actio
doli
.
[27]
[37]
In the present case, the applicant has made all the necessary
averments in her particulars
of claim. Despite this, on the
reasoning of the high court, the applicant’s particulars of
claim do not disclose a
cause of action. The only reason for that
conclusion is that the parties were married. Taken to its logical
conclusion, the result
of the high court’s reasoning would be
this: had the fraudulent misrepresentation induced any other
contract, the applicant’s
particulars of claim would have
disclosed a cause of action, but because it induced marriage, and
resulted in loss, no cause of
action is disclosed.
[38]
Differently
put, the applicant should be non-suited
only
because her damage arose from the marriage contract. This, in my
view, would result in an absurdity and an artificial differentiation
between two categories of persons who had suffered loss, both due to
misrepresentation. To my mind, the fact that the parties are
married,
should make no difference in the determination of wrongfulness on the
facts of the present case. The reasoning of the
high court ignores
the prima facie wrongfulness of a fraudulent misrepresentation.
As
explained by this Court in
Minister
of Finance and Others v Gore NO
:
[28]
‘
[
I]t
is hard to think of any reason why the fact that the loss was caused
by dishonest (as opposed to bona fide negligent)
conduct,
should be ignored in deciding the [wrongfulness] question. We do not
say that dishonest conduct will always be wrongful
for the purposes
of imposing liability, but it is difficult to think of an example
where it will not be so.’
[29]
[39]
As I see
it, this is one of the cases where a finding of fraud ‘
inevitably
leads to a finding of wrongfulness,’ as remarked in
mCubed
International (Pty) Ltd v Singer NNO
.
[30]
Were the case to be determined on this footing, there would be no
need to extend the
lex
aquilia
.
In
a different but not unrelated context, it was held in
Lillicrap
v Pilkington Brothers
[31]
that
when
the existing law provided adequate means for the plaintiff to protect
itself against loss, there was no call for the
lex
aquilia
to be extended.
[32]
This may well be the case here.
[40]
However,
should it be that wrongfulness cannot be established without the
enquiry whether the
lex
aquilia
should
be extended, as postulated by the high court, there should be
public
policy considerations. As mentioned already, fraud unravels
everything. It is therefore conceivable that in that enquiry,
the
respondent’s fraudulent misrepresentation
not
only evokes moral indignation, but also that the legal convictions of
the community demand that it be regarded as wrongful.
[33]
[41]
In
Dawood
and Another v Minister of Home Affairs and Others
,
[34]
it was pointed out that because m
arriage
and the family are social institutions of vital importance,
e
ntering
into marriage therefore is to enter into a relationship that has
public significance as well. Therefore, the public has
an interest
that the institution of marriage is not brought about through
fraudulent misrepresentation. Thus viewed,
the
respondent’s fraudulent misrepresentation is inimical to all
that a marriage encapsulates, among others, fidelity, trust,
mutual
support and loyalty. Given all these, public policy considerations
could well result in the respondent’s fraudulent
misrepresentation being deemed wrongful.
[42]
Professor
Neethling
[35]
puts it well:
‘
There can be no
doubt that when the defendant [respondent] proposed marriage to the
plaintiff [the applicant] and had already considered
that their
romantic relationship had broken down irretrievably, he had a legal
duty to disclose this to her (see the Attorneys
Fidelity Fund case
par 107 and McCann v Goodall Group Operations (Pty) Ltd
1995 2 SA 718
(C) 721 726 as to the failure to disclose information). This duty to
speak was even stronger in light of the fact that marriage
is a
social institution of vital importance . . . and the defendant
nevertheless fraudulently induced her into a marriage which
was
doomed from the start.’
[36]
[43]
It must
also be borne in mind what was said in
Absa
v Moore
,
[37]
(in the context of fraud inducing a contract) that whether fraud
unravels a contract, depends on its victim, not the fraudster.
[38]
Thus, where the victim of fraudulent misrepresentation seeks relief,
as is the case here, it does not lie in the mouth of the
misrepresentor (the respondent in this case) to assert that the legal
convictions of the community are such that his conduct should
not
give rise to a claim.
[44]
Another
important policy consideration in the enquiry whether aquilian
liability for pure economic loss should be extended
or not, is the
risk of indeterminate liability. As explained in
Country
Cloud Trading CC v MEC, Department of Infrastructure Development,
Gauteng
,
[39]
‘
.
. .
if
claims for pure economic loss are too freely recognised, there
is the risk of “liability in an indeterminate amount
for an
indeterminate time to an indeterminate class.”’
[40]
[45]
There would
have been risk of indeterminate liability had the applicant based her
claim
only
on the mere fact of the marriage having been unsuccessful due to
conduct of the respondent. A need to limit liability could thus
arise, lest the flood-gates open for spouses aggrieved by their
failed marriages, resulting in
indeterminate
claims and amounts.
However,
on the facts of this case, there can be no issue of indeterminate
liability. The basis for liability is clearly circumscribed
and
delineated by the applicant’s factual allegations, especially
that of fraudulent misrepresentation. The loss suffered
by the
applicant is both finite and determinate. Also, as Professor
Neethling
[41]
correctly points
out, there was no possibility of multiplicity of actions, as similar
situations where fraudulent conduct induces
a marriage will be few
and far in between.
[46]
Given
all these weighty juridical and policy considerations, the judgment
of the high court cannot stand. The judgment has
received severe
criticism in academic reviews, which criticism, based on the views
expressed in this judgment, is with respect,
trenchant.
[42]
In all the circumstances, it cannot tenably be asserted that on every
possible construction of the applicant’s particulars
of claim,
no cause of action is disclosed. Accordingly, the exceptions should
have been dismissed. For these reasons I agree
with the order
of the first judgment.
______________________
T
MAKGOKA
JUDGE
OF APPEAL
Molemela JA
[47]
I have read the first
and second judgments authored by my colleagues. I concur in the first
judgment. My reasons are set out below.
[48]
The
factual matrix has already been correctly set out in the first
judgment. Research conducted by our court’s researchers
revealed that there is currently no precedent for a delictual claim
premised on facts similar to those presented in the particulars
of
claim in the context of fraudulent misrepresentation.
[43]
The notice of exception speaks for itself,
[44]
and the issues posed therein are self-explanatory. The summons, to
which the particulars of claim were attached, was the only pleading
filed before the high court. On the averments alleged in the
particulars of claim, there were insufficient facts before the high
court to assist it in the determination of whether there are policy
considerations that require the extension of the lex Aquilia
in the
specific circumstances of this case. It is for that reason that I
agree that the issue whether the net of the Aquilian action
is indeed
being cast wider, as contended for by the respondent, is a matter
that can only be tested and decided by the trial court
with the
benefit of all the pleadings and evidence. Implicit in this finding
is that the respondent did not discharge the onus
of showing that the
particulars of claim are excipiable on every interpretation that
could reasonably be attached to them.
[45]
On this ground alone, the appeal ought to succeed.
[49]
Moving
on to specific issues pertaining to the elements of the appellant’s
delictual claim, it is trite that wrongfulness
is a requirement for
liability that is separate from fault. Equally trite is the principle
that ‘fraud unravels all’
and that ‘a fraudulent
misrepresentation that induces the conclusion of a transaction
causing pure economic loss is a delict’.
That said, due regard
must be paid to the fact that in the context of the issues posed in
the exception, the question is not only
whether the alleged
misrepresentation is actionable, but also whether a false
representation was made. While it could, in the abstract,
be argued
that it is inconceivable that public policy considerations could
dictate that the respondent be absolved from liability
for his
alleged fraudulent conduct because intention does not usually assume
an important role in Aquilian liability for patrimonial
loss, it must
be borne in mind that this Court has recognised that there are
instances where intention plays a pivotal role in
the process of
adjudicating a delictual claim, such that ‘intent will then be
an integral part of the element of wrongfulness’.
[46]
The judgments of this Court alluded to in paragraphs 15, 16 and 17 of
the first judgment clearly illustrate the need to take context
into
account. Having considered all the issues posed in the exception
against the backdrop of the context provided by the factual
matrix, I
am of the view that the paucity of facts in this matter is an
impediment to a context-specific discussion on fraud and
its
ramifications. For all the reasons mentioned above, I agree with the
reasoning and conclusion of the first judgment.
________________________
M B MOLEMELA
JUDGE OF APPEAL
Appearances
For applicant: D
Milne
Instructed
by: Van
Rensburg Pillay Jonker Inc, Johannesburg
Honey
Attorneys, Bloemfontein
For respondent: No
appearance
[1]
MEC for
Safety and Security (Eastern Cape Province) v Mtokwana
[2010] ZASCA 88
;
2010 (4) SA 628
(SCA);
[2010] 4 All SA 583
(SCA) at
629C-D.
[2]
Rohloff
v Ocean Accident & Guarantee Corporation Ltd
1960 (2) SA 291
(AD) at 304A.
[3]
Van Der
Merwe v Road Accident Fund
[2006] ZACC 4
;
2006
(6) BCLR 682
(CC);
2006 (4) SA 230
(CC) para 29.
[4]
Maize
Board v Tiger Oats Ltd
and
Others
2002 (5) SA 365
(SCA) at 373B-D; In
Pretorius
v Transport Pension Fund
[2018]
ZACC 10
;
2018 (7) BCLR 838
(CC);
[2018] 7 BLLR 633
(CC);
2019 (2) SA
37
(CC) (
Pretorius
v TPF
)
at 44E, the Constitutional Court stated:
‘
The
dismissal of an exception is not usually finally dispositive of the
legal issue at stake, unlike the upholding of an exception
on the
basis that the claim is bad in law.’
[5]
Telematrix
(Pty) Ltd t/a Matrix Vehicle Tracking v Advertising Standards
Authority SA
2006 (1) SA 461
(SCA) para 3.
[6]
Luke M
Tembani and Others v President of the Republic of South Africa and
Another
[2022] ZASCA 70
(SCA) (
Tembani
v President of RSA
)
para 14.
[7]
Marney
v Watson
and
Another
1978
(4) SA 140
(C) at 144.
[8]
Tembani
v President
of
RSA fn 8 above para 14
;
Trustees for the time being of Children’s Resource Centre
Trust and Others v Pioneer Food (Pty) Ltd and Others
[2012] ZASCA 182
;
2013 (2) SA 213
(SCA);
[2013] 1 All SA 648
(SCA);
2013 (3) BCLR 279
(SCA) (
Children’s
Resource Centre Trust
)
para 36.
[9]
Rex v
Myers
[1948] 1 All SA 354
(A);
1948 (1) SA 375
(A) at 382.
[10]
Ibid.
[11]
Lillicrap,
Wassenaar and Partners v Pilkington Brothers (SA) (Pty) Ltd
[1958]
1 All SA 347
(A);
1985 (1) SA 475
(A) at 504D-H.
[12]
Trustees
for the Time Being of Two Oceans Aquarium Trust v Kantey &
Templer (Pty) Ltd
[2007] 1 All SA 240
(SCA);
2006 (3) SA 138
(SCA) para 12
.
[13]
Standard
Bank of
South
Africa Ltd v Coetsee
1981
(1) SA 1131
(A) at 1145A-B.
[14]
Country
Cloud Trading v MEC, Department of Infrastructure Development
[2014]
ZACC 28; 2015 (1) SA 1 (CC).
[15]
Compare
Trustees
for the time being of Children’s Resource Centre Trust and
Others v Pioneer Food (Pty) Ltd and Others
[2012] ZASCA 182
;
2013 (2) SA 213
(SCA);
[2013] 1 All SA 648
(SCA);
2013 (3) BCLR 279
(SCA) paras 36-37. Also see
Tembani
and Others v President of the Republic of South Africa and Another
[2022] ZASCA 70
(SCA) paras 14-20.
[16]
Ibid.
[17]
Telematrix
(Pty) Ltd v Advertising Standards Authority SA
2006
(1) SA 461
(SCA) para 2.
[18]
Fourway
Haulage SA (Pty) Ltd v SA National Roads Agency Ltd
[2008]
ZASCA 134
;
2009 (2) SA 150
(SCA);
[2009] 1 All SA 525
(SCA) para 12;
Trustees
for the Time Being of Two Oceans Aquarium Trust v Kantey &
Templer (Pty) Ltd
[2005]
ZASCA 109
;
2006 (3) SA 138
(SCA);
[2007] 1 All SA 240
(SCA) para 12.
[19]
Administrateur,
Natal v Trust Bank van Afrika Bpk
1979
(3) SA 824
(A);
[1979] 2 All SA 270
(A) at
833D-834A
;
Bayer
South Africa (Pty) Ltd v Frost
[1991] ZASCA 85
;
1991
(4) SA 559
(A) at 568B-C.
[20]
Rohloff
v Ocean Accident and Guarantee Corporation Ltd
1960
(2) SA 291
(A) at 310F.
[21]
Trinity
Asset Management (Pty) Ltd and Others v Investec Bank Limited
[2008] ZASCA 158
;
2009 (4) SA 89
(SCA);
[2009] 2 All SA 449
(SCA)
para 55.
## [22]SeeFairoaks
Investment Holdings (Pty) Ltd and Another v Oliver and Others[2008] ZASCA 41; 2008 (4) SA 302 (SCA); [2008] 3 All SA 365 (SCA)
(Fairoaks)
para 12;Theunissen
and Others v Transvaalse Lewendehawe Koop Bpk1988 (2) SA 486 (A) at 500E;Trustees
for the Time Being of the Children’s Resource Centre Trust and
Others v Pioneer Food (Pty) Ltd and Others[2012]
ZASCA 182; 2013 (3) SA (SCA); 2013 (3) BCLR 279
(SCA); [2013] 1 All SA 648 (SCA) para 36.
[22]
See
Fairoaks
Investment Holdings (Pty) Ltd and Another v Oliver and Others
[2008] ZASCA 41; 2008 (4) SA 302 (SCA); [2008] 3 All SA 365 (SCA)
(
Fairoaks
)
para 12;
Theunissen
and Others v Transvaalse Lewendehawe Koop Bpk
1988 (2) SA 486 (A) at 500E;
Trustees
for the Time Being of the Children’s Resource Centre Trust and
Others v Pioneer Food (Pty) Ltd and Others
[2012]
ZASCA 182; 2013 (3) SA (SCA); 2013 (3) BCLR 279
(SCA); [2013] 1 All SA 648 (SCA) para 36.
[23]
Fairoaks
fn para 12.
[24]
Geary &
Son (Pty) Ltd v Gove
1964 (1) SA 434 (A).
[25]
Ibid
at
441D.
[26]
In
Geary
& Son
(fn 6) Steyn CJ suggested, in an
obiter
dictum
that in addition, the claimant had to prove that the representor had
intended to cause him the loss by the false representation.
In
Standard
Bank of South Africa Ltd v Coetsee
1981 (1) SA 1131
(A) at 1145A-B, Joubert JA explained that this
dictum was made in view of the special circumstances alleged in the
pleadings
in that case, involving as it did, unlawful competition.
Otherwise, this was generally not a requirement in a delictual
action
based on misrepresentation.
[27]
Matthews
and Others v Young
1922
AD 492
at 505. See also,
Bill
Harvey’s Investment Trust (Pty) Ltd v Oranjegezicht Citrus
Estates (Pty) Ltd
1958 (1) SA 479 (A).
[28]
Minister
of Finance and Others v Gore NO
2007
(1) SA 111
(SCA);
[2006] ZASCA 98; [2007] 1 All SA 309 (SCA).
## [29]Ibid
para 87.
[29]
Ibid
para 87.
[30]
mCubed
International (Pty) Ltd v Singer NNO
[2009]
ZASCA 6
;
2009 (4) SA 471
(SCA);
[2009] 2 All SA 536
(SCA) para
34.
[31]
Lillicrap,
Wassenaar and Partners v Pilkington Brothers (SA) (Pty) Ltd
1985
(1) SA 475
(A) (
Lillicrap
).
See also,
Trustees,
Two Oceans Aquarium Trust
fn
1 above.
[32]
Ibid
at 500H-I.
[33]
Minister
van Polisie v Ewels
1975
(3) SA 590
(A)
at
597A-B.
[34]
Dawood
and Another v Minister of Home Affairs and Others; Shalabi and
Another v Minister of Home Affairs and Others; Thomas and
Another v
Minister of Home Affairs and Others
[2000] ZACC 8; 2000 (3) SA 936; 2000 (8) BCLR 837.
[35]
Neethling ‘The Availability of the Actio Legis Aquiliae
and the Actio Iniuriarum Between Spouses’ 2021
TSAR
602.
[36]
Ibid 607-608.
[37]
Absa
Bank Limited v Moore and Another
[2016]
ZACC 34; 2017 (1) SA 255 (CC); 2017 (2) BCLR 131 (CC).
[38]
Ibid
para 39.
[39]
Country
Cloud Trading CC v MEC, Department of Infrastructure Development,
Gauteng
[2014]
ZACC 28; 2015 (1) SA 1 (CC)
;
2014 (12) BCLR 1397 (CC).
[40]
Ibid
para 24.
[41]
Fn 15 above at
608.
[42]
See
for example, Professor J C Sonnekus ‘Erkenning van deliktuele
remedies: ‘n Bevestiging van ‘n beskermingswaardige
regsbelang of tog ‘n bedreiging vir ‘n sosiale
instelling soos modern huwelik? 2021 (84) THRHR and Neethling (fn
15
above).
[43]
We were referred to this Court’s judgment in
Van
Jaarsveld v Bridges
[2010] ZASCA 76
, an appeal to this court arising from a delict in
the context of a breach of promise.
[44]
The Notice of Exception was, in relevant parts, formulated as
follows:
‘
PLEASE
TAKE NOTICE that the defendant hereby excepts to the plaintiff’s
particulars of claim on the basis that they fail
to disclose a cause
of action and/or are vague and embarrassing and/or that the court
lacks jurisdiction to adjudicate the matter.
The basis of the
exception is set out below.
.
. . .
First
Exception
The
plaintiff’s particulars of claim do not disclose a cause of
action in respect of her claim for wasteful expenditure
for one or
more or all of the following reasons:
8.1.
The misrepresentations alleged by the plaintiff are not actionable;
8.2.
No claim exists in law for a wrongful proposal of marriage in the
circumstances pleaded
by the plaintiff.
8.3.
No cause of action for wrongful
marriage is known in the law of contract or delict.
8.4.
The defendant’s expression of love towards the plaintiff even
if later found to
have been insincere, does not amount to an
actionable misrepresentation.
8.5.
The defendant’s statement that he wished to marry the
plaintiff cannot amount to
a misrepresentation in that the parties
did in fact get married consequent upon the statement by the
defendant that he wished
to marry the plaintiff.
8.6.
The defendant’s statement or representation that he wished to
remain married to
the plaintiff until parted by death, even if found
to have been made with reservation or sincere, cannot in fact or in
law amount
to an actionable misrepresentation.
8.7.
An insincere statement of love prior to parties becoming engaged
and/or entering into
a marriage cannot found an action for damages.
Second
Exception
9.
It is not clear from the particulars of claim whether the actionable
wrong
relied upon is the alleged misrepresentations or the failure
on the part of the defendant to disclose to the plaintiff before
they got married that he considered the relationship between them to
be ‘over’.
10.
In any event, doubts or reservations that the defendant may have had
about the success
of their marriage after the betrothal do not give
rise to an actionable wrong.
11.
The plaintiff does not specify the nature of the duty allegedly owed
by the defendant
to the plaintiff and the facts and circumstances in
which such duty arises.
12.
The particulars of claim do not allege, imply or infer a causal
nexus between the
alleged misrepresentations, namely an insincere
expression of love, and the alleged breach of a legal duty to
disclose that the
relationship was over.
Third
Exception
13
The alleged truth or otherwise of the representations are not
reasonably capable
of determination and cannot found a basis for
action in damages against the defendant for wasteful expenditure. In
this regard:
13.1.
The plaintiff does not define what is meant by ‘love’ in
the context in which it is
pleaded.
13.2.
An expression of love by one or both parties is not an essential
element of a betrothal or of a
marriage. Accordingly, the absence or
an insincere expression of love by the defendant does not found a
basis on which the plaintiff
can hold the defendant liable in
damages;
13.3.
The defendant’s statement that he loved the statement is of a
subjective nature. It is difficult
to define, quantify, measure and
prove and as such, the matters in issue (as pleaded by the
plaintiff) are not reasonably and/or
practicably capable of
determination by a court of law;
13.4
No causal link has been alleged between the defendant's alleged
insincere expression of love
towards the plaintiff and the failure
of their relationship and indeed, it would unreasonable and
impracticable for the court
to embark on an examination as to
whether the breakdown of their relationship (either before or after
the marriage) was caused
by the defendant’s insincerity as
regards his love for the plaintiff.
14.
The boni mores of society and the legal convictions of the community
do not extend the
concept of wrongfulness to circumstances where one
party after the breakdown and intended dissolution of the marriage
complains
that the marriage was induced by an expression of love
made by the other party made which was not genuine.
.
. . .
16.
The law ought to refrain from compelling and enforcing proper and/or
ethical marital
conduct directly or indirectly by legal measures.
This includes claims for damages arising from expressions of love
that are
subsequently found not to have been genuine. Intimate and
private personal relationships between consenting adults should not
be regulated by law in the manner and to the extent contended for by
the plaintiff.
.
. . .
19.
The plaintiff’s claim for wasteful expenditure is for pure
economic loss.
It is contrary to the
boni mores
and legal
convictions of the community to extend claims to disappointed
spouses based on the facts alleged by the plaintiff.
This would open
the flood gates of litigation and inundate our courts with an untold
number of damages claims.
20.
IN THE PREMISES
, the facts alleged by the plaintiff do not
give rise to a claim against the defendant in damages as alleged or
at all alternatively,
the particulars of claim are vague and
embarrassing and prejudice the defendant.’
[45]
Tembani
v President of RSA
fn 8 above para 14.
[46]
Media
24 v SA Taxi Securitisation
2011 (5) SA 329
(SCA) para 12.
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